TIDMAEP
RNS Number : 6576J
Anglo-Eastern Plantations PLC
20 August 2019
Anglo-Eastern Plantations PLC
("AEP", "Group" or "Company")
Announcement of interim results for the six months ended 30 June
2019
The group comprising Anglo-Eastern Plantations PLC and its
subsidiaries (the "Group"), is a major producer of palm oil and
rubber with plantations across Indonesia and Malaysia, amounting to
some 128,200 hectares, and has today released its results for the
six months ended 30 June 2019.
Financial Highlights
2019 2018 2018
6 months 6 months 12 months
to 30 June to 30 to 31 December
June
$m $m $m
(unaudited) (unaudited) (audited)
Revenue 97.9 133.3 250.9
(Loss) / Profit before tax
- before biological assets
("BA") movement (0.2) 21.7 33.2
- after BA movement 1.6 22.0 30.9
Basic Earnings per ordinary
share ("EPS")
- before BA movement (6.72)cts 30.37cts 32.50cts
- after BA movement (3.74)cts 30.90cts 28.79cts
Total net assets 472.7 463.8 464.6
Enquiries:
Anglo-Eastern Plantations PLC
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon (UK) Limited
Dominic Morley +44 (0)20 7886 2954
Chairman's Interim Statement
The interim results for the Group for the six months to 30 June
2019 are as follows:
Revenue for the six months to 30 June was $97.9 million, 27%
lower than $133.3 million reported for the first six months of
2018. The Group's gross profit was $5.3 million compared to $25.2
million for the first six months of 2018. Overall profit before tax
for the first half of 2019 decreased by 93% to $1.6 million (after
BA movement) versus $22.0 million for the corresponding period in
2018. This was attributed mainly to lower Crude Palm Oil ("CPO")
prices.
Fresh Fruit Bunches ("FFB") production for the first half of
2019 was 1% lower at 470,300mt compared to 477,400mt in the same
period last year. The decrease in production was due to a lower
production trend observed in Riau, Bengkulu and South Sumatera
which was similarly experienced by other planters in the region.
Bought-in crops, however, decreased by 15% to 402,900mt from
473,100mt consistent with lower crop production by other planters
in Riau and Bengkulu.
Operational and financial performance
For the six months ended 30 June 2019, gross profit margin
decreased to 5.4% from 18.9% as the Group experienced lower CPO,
palm kernel and rubber prices. Higher operational costs and the
increase in newly matured areas also compressed the operating
profit margin.
CPO price ex-Rotterdam averaged $527/mt for the first six months
to 30 June 2019, 20% lower than $661/mt over the same period in
2018. Our Group's average ex-mill price for CPO was lower at
$466/mt for the same period (1H 2018: $564/mt).
Profit after tax for the six months ended 30 June 2019 was $0.3
million, 98% lower compared to a profit of $16.2 million for the
first six months of 2018.
The resulting basic earnings per share for the period decreased
by 112% to a loss of 3.74cts (1H 2018: 30.90cts).
The Group's balance sheet remains strong. Net assets as at 30
June 2019 were $472.7 million compared to $463.8 million as at 30
June 2018 and $464.6 million as at 31 December 2018. The increase
in net assets was attributed to a $10.5 million exchange
translation gain for the first half of 2019 and similar gain of
$8.1 million for the twelve months since June 2018. The Indonesian
Rupiah has appreciated by 2% against the US dollar in each of the
two respective periods.
As at 30 June 2019, the Group had cash and cash equivalents of
$100.1 million (1H 2018: $130.1 million) and borrowings of $16.1
million (1H 2018: $25.6 million), giving it a net cash position of
$84.0 million, compared to $104.5 million as at 30 June 2018. This
is largely due to further investment in new planting, maintenance
of immature areas and repayment of loans.
Operating costs
Operating costs per hectare for the Indonesian operations were
higher in the first half of 2019 compared to the same period in
2018 mainly due to an increase in wages, estate upkeep and mill
maintenance. Higher operating costs were also partly attributed to
a 5% increase in newly matured areas where the yield remains
relatively low.
Production and Sales
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
mt mt mt
Oil palm production
FFB
- all estates 470,300 477,400 1,035,800
- bought-in from third parties 402,900 473,100 1,010,000
Saleable CPO 177,500 193,800 418,800
Saleable palm kernels 42,300 46,700 99,200
Oil palm sales
CPO 182,600 195,500 418,800
Palm kernels 41,200 45,000 99,900
FFB sold outside 23,300 14,000 24,700
Rubber production 202 291 637
The Group's six mills processed a total of 849,900mt in FFB for
the first half of 2019, a 9% decrease compared to 936,500mt for the
same period last year. The lower throughput was mainly due to lower
production trend in Riau and Bengkulu. Production in Riau moderated
after a bumper harvest last year when yield peaked at 29.4mt/ha
while lower production in Bengkulu was likely weather induced. As a
result of the low FFB prices, AEP estates in South Sumatera have
started to sell their crops to local millers to save on the high
transport costs to their own mills.
Overall CPO produced for the first half of 2019 was 8% lower at
177,500mt from 193,800mt. The oil extraction rate for the first
half of 2019 improved marginally to 20.9% from 20.7% in the same
period last year.
The Group continues to reduce its greenhouse gas ("GHG")
emissions by capturing the methane gas released from its effluent
treatment plants to produce electricity. The three biogas plants in
the Group produced over 7,470 MWh of electricity compared to 7,060
MWh in the same period last year. The third biogas plant located in
Kalimantan began commercial operation in February this year.
Commodity prices
The CPO price ex-Rotterdam for first half of 2019 averaged
$527/mt, 20% lower than last year (1H 2018: $661/mt). The price has
gradually trended downwards from the start of the year at $517/mt
to close at $501/mt on 28 June 2019 and has since increased to
$522/mt as at 14 August 2019. CPO prices are expected to remain
subdued in the coming months due to oversupply, competitive pricing
of other vegetable oils and projection of higher production in the
second half of 2019.
Rubber price averaged $1,315/mt, 1% lower than 2018 (1H 2018:
$1,329/mt).
Development
The Group's planted areas at 30 June 2019 comprised:
Total Mature Immature
ha ha Ha
North Sumatera 19,194 15,311 3,883
Bengkulu 16,981 16,981 -
Riau 4,873 4,873 -
South Sumatera 6,271 5,344 927
Kalimantan 15,118 12,858 2,260
Bangka 1,183 538 645
Plasma 3,423 1,818 1,605
------- ------- ---------
Indonesia 67,043 57,723 9,320
Malaysia 3,460 3,460 -
------- ------- ---------
Total: 30 June 2019 70,503 61,183 9,320
------- ------- ---------
Total: 31 December 2018 69,792 57,909 11,883
------- ------- ---------
Total: 30 June 2018 68,703 58,266 10,437
------- ------- ---------
The Group's new planting for the first six months of 2019
totalled 481ha compared to 427ha for the same period last year. New
planting is delayed as the Group awaits results of a peer review of
high carbon stock sustainability study which will determine areas
in Central Kalimantan which cannot be planted with oil palm due to
high conservation and high carbon stock values.
The Group remains optimistic that planting will continue to pick
up in the second half of 2019. The Group's total landholding
comprises some 128,200ha, of which the planted area stands around
70,503ha (1H 2018: 68,703ha) with the balance of estimated
plantable land at 21,000ha.
The earthwork for the fourth biogas reactor lagoon has been
completed. The contractor will begin civil works and the lining of
the lagoon membrane which are expected to be completed by the
fourth quarter of 2019.The sinking and uneven settlement of soil
which have affected the progress of the construction of the seventh
mill in North Sumetera have been addressed and the need for
additional filling is being monitored. Tenders will be invited for
the civil and mechanical works by the third quarter of 2019. The
mill is scheduled for completion by 2021.
Dividend
As in previous years, no interim dividend has been declared. A
final dividend of 3.0 cents per share in respect of the year ended
31 December 2018 was paid on 12 July 2019.
Outlook
The Group expects CPO prices to remain subdued due to likely
higher output and inventories across the market in the second half
of 2019. Analysts also highlighted the spread between CPO futures
and spot prices has narrowed over the past months signalling the
market's negative sentiments on CPO prices going forward. We expect
production volumes in the second half of the year to improve.
Principal risks and uncertainties
We believe that the potential impact on the Group of Britain's
vote to leave the European Union is limited, unless Brexit causes a
worldwide recession. Other than maintaining its corporate presence
and listing in United Kingdom, all plantation and mill operations
together with marketing are primarily based in Indonesia. The
principal risks and uncertainties have broadly remained the same
since the publication of the annual report for the year ended 31
December 2018.
A more detailed explanation of the risks relevant to the Group
is on pages 21 to 25 and from pages 92 to 97 of the 2018 annual
report which is available at https://www.angloeastern.co.uk/.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014.
Madam Lim Siew Kim
Chairman
20 August 2019
Responsibility Statements
We confirm that to the best of our knowledge:
a) The unaudited interim financial statements have been prepared
in accordance with IAS34: Interim Financial Reporting as adopted by
the European Union;
b) The Chairman's statement includes a fair review of the
information required by DTR 4.2.7R (an indication of important
events during the first six months and a description of the
principal risks and uncertainties for the remaining six months of
the year); and
c) The interim financial statements include a fair review of the
information required by DTR 4.2.8R (material related party
transactions in the six months ended 30 June 2019 and any material
changes in the related party transactions described in the last
Annual Report) of the Disclosure and Transparency Rules of the
United Kingdom Financial Services Authority.
By order of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
20 August 2019
Condensed Consolidated Income Statement
2019 2018 2018
6 months to 30 June 6 months to 30 June Year to 31 December
(unaudited) (unaudited) (audited)
-------------------------------- --------------------------------- ------------------------ ----------
Notes Result Result Result
Continuing before before before
operations BA BA BA BA BA BA
movement movement Total movement movement Total movement movement Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
----------------- ------ --------- --------- ---------- --------- ---------- ----------- ----------- ----------
Revenue 4 97,863 - 97,863 133,331 - 133,331 250,859 - 250,859
Cost of sales (94,432) 1,845 (92,587) (108,458) 332 (108,126) (206,224) (2,286) (208,510)
----------------- ------ --------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Gross profit 3,431 1,845 5,276 24,873 332 25,205 44,635 (2,286) 42,349
Administration
expenses (3,190) - (3,190) (3,544) - (3,544) (9,368) - (9,368)
Impairment
losses (2,337) - (2,337) - - - (4,339) - (4,339)
----------------- ------ --------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Operating (loss)
/
profit (2,096) 1,845 (251) 21,329 332 21,661 30,928 (2,286) 28,642
Exchange gains /
(losses) 163 - 163 (1,222) - (1,222) (1,250) - (1,250)
Finance income 2,257 - 2,257 2,374 - 2,374 5,048 - 5,048
Finance expense 3 (569) - (569) (793) - (793) (1,511) - (1,511)
----------------- ------ --------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
(Loss) / Profit
before
tax 4 (245) 1,845 1,600 21,688 332 22,020 33,215 (2,286) 30,929
Tax expense 5 (804) (461) (1,265) (5,739) (83) (5,822) (13,633) 571 (13,062)
----------------- ------ --------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
(Loss) / Profit
for
the period (1,049) 1,384 335 15,949 249 16,198 19,582 (1,715) 17,867
----------------- ------ --------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Attributable to:
- Owners of the
parent (2,664) 1,181 (1,483) 12,037 209 12,246 12,882 (1,469) 11,413
-
Non-controlling
interests 1,615 203 1,818 3,912 40 3,952 6,700 (246) 6,454
----------------- ------ --------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
(1,049) 1,384 335 15,949 249 16,198 19,582 (1,715) 17,867
----------------- ------ --------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Earnings per
share
for (loss) /
profit
attributable to
the
owners of the
parent
during the
period
- basic 7 (3.74)cts 30.90cts 28.79cts
- diluted 7 (3.74)cts 30.87cts 28.79cts
Condensed Consolidated Statement of Comprehensive Income
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
--------------------------------------------------------------- ------------ ------------ ---------------
Profit for the period 335 16,198 17,867
--------------------------------------------------------------- ------------ ------------ ---------------
Other comprehensive expenses:
Items may be reclassified to profit or loss:
Profit / (loss) on exchange translation of foreign
operations 10,523 (27,093) (29,550)
--------------------------------------------------------------- ------------ ------------ ---------------
Net other comprehensive income / (expenses) may
be reclassified to profit or loss 10,523 (27,093) (29,550)
--------------------------------------------------------------- ------------ ------------ ---------------
Items not to be reclassified to profit or loss:
Unrealised (loss) / gain on revaluation of leasehold
land, net of tax (1,521) (531) 137
Remeasurement of retirement benefits plan, net
of tax - - 894
--------------------------------------------------------------- ------------ ------------ ---------------
Net other comprehensive (expenses) / income not
being reclassified to profit or loss (1,521) (531) 1,031
--------------------------------------------------------------- ------------ ------------ ---------------
Total other comprehensive income / (expenses)
for the period, net of tax 9,002 (27,624) (28,519)
Total comprehensive income / (expenses) for the
period 9,337 (11,426) (10,652)
Attributable to:
- Owners of the parent 5,475 (10,906) (11,527)
- Non-controlling interests 3,862 (520) 875
--------------------------------------------------------------- ------------ ------------ ---------------
9,337 (11,426) (10,652)
--------------------------------------------------------------- ------------ ------------ ---------------
Condensed Consolidated Statement of Financial Position
2019 2018 2018
as at 30 June as at 30 June as at 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
------------------------------------------ -------------- -------------- ------------------
Non-current assets
Property, plant and equipment 350,914 337,719 340,367
Receivables 13,343 8,746 11,020
Deferred tax assets 15,318 10,857 11,147
------------------------------------------- -------------- -------------- ------------------
379,575 357,322 362,534
------------------------------------------ -------------- -------------- ------------------
Current assets
Inventories 10,015 10,718 9,540
Tax receivables 38,521 34,327 44,310
Biological assets 6,041 6,695 4,093
Trade and other receivables 6,159 6,308 5,203
Cash and cash equivalents 100,123 130,127 112,212
------------------------------------------- -------------- -------------- ------------------
160,859 188,175 175,358
------------------------------------------ -------------- -------------- ------------------
Current liabilities
Loans and borrowings (13,328) (11,844) (11,078)
Trade and other payables (17,452) (20,553) (20,083)
Tax liabilities (4,847) (4,688) (5,626)
Dividend payables (1,262) (1,617) (37)
------------------------------------------- -------------- -------------- ------------------
(36,889) (38,702) (36,824)
------------------------------------------ -------------- -------------- ------------------
Net current assets 123,970 149,473 138,534
------------------------------------------- -------------- -------------- ------------------
Non-current liabilities
Loans and borrowings (2,734) (13,719) (8,203)
Deferred tax liabilities (19,032) (20,023) (20,040)
Retirement benefits - net liabilities (9,107) (9,246) (8,244)
------------------------------------------- -------------- -------------- ------------------
(30,873) (42,988) (36,487)
------------------------------------------ -------------- -------------- ------------------
Net assets 472,672 463,807 464,581
------------------------------------------- -------------- -------------- ------------------
Issued capital and reserves attributable
to owners of the parent
Share capital 15,504 15,504 15,504
Treasury shares (1,171) (1,171) (1,171)
Share premium 23,935 23,935 23,935
Capital redemption reserve 1,087 1,087 1,087
Revaluation reserves 49,864 50,789 51,308
Exchange reserves (236,768) (244,088) (245,170)
Retained earnings 523,815 526,545 526,487
------------------------------------------- -------------- -------------- ------------------
376,266 372,601 371,980
Non-controlling interests 96,406 91,206 92,601
------------------------------------------- -------------- -------------- ------------------
Total equity 472,672 463,807 464,581
------------------------------------------- -------------- -------------- ------------------
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
-----------------------------------------------------------------------------------------------
Capital Non-controlling
Share Treasury Share redemption Revaluation Exchange Retained interests Total
capital shares premium reserve reserves Reserves earnings Total equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ---------
Balance at 31 December
2017 15,504 (1,171) 23,935 1,087 51,288 (221,435) 515,884 385,092 91,799 476,891
Items of other comprehensive
income:
* Unrealised gain on revaluation of leasehold land,
net
of tax - - - - 20 - - 20 117 137
* Remeasurement of retirement benefits plan, net of
tax - - - - - - 775 775 119 894
* Loss on exchange translation of foreign operations - - - - - (23,735) - (23,735) (5,815) (29,550)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
income / (expenses) - - - - 20 (23,735) 775 (22,940) (5,579) (28,519)
Profit for the year - - - - - - 11,413 11,413 6,454 17,867
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive income
/ (expenses) for the year - - - - 20 (23,735) 12,188 (11,527) 875 (10,652)
Dividends paid - - - - - - (1,585) (1,585) (73) (1,658)
---------------------------------------------------------- ---------
Balance at 31 December
2018 15,504 (1,171) 23,935 1,087 51,308 (245,170) 526,487 371,980 92,601 464,581
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (1,444) - - (1,444) (77) (1,521)
* Gain on exchange translation of foreign operations - - - - - 8,402 - 8,402 2,121 10,523
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
(expenses) / income - - - - (1,444) 8,402 - 6,958 2,044 9,002
(Loss) / Profit for the
period - - - - - - (1,483) (1,483) 1,818 335
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive (expenses)
/ income for the period - - - - (1,444) 8,402 (1,483) 5,475 3,862 9,337
Dividends payable - - - - - - (1,189) (1,189) (57) (1,246)
Balance at 30 June 2019 15,504 (1,171) 23,935 1,087 49,864 (236,768) 523,815 376,266 96,406 472,672
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Attributable to owners of the parent
---------------------------------------------------------------------------------------------------
Capital Non-controlling
Share Treasury Share redemption Revaluation Exchange Retained interests Total
capital shares premium reserve reserves reserves earnings Total Equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Balance at 31 December
2017 15,504 (1,171) 23,935 1,087 51,288 (221,435) 515,884 385,092 91,799 476,891
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (499) - - (499) (32) (531)
* Gain on exchange translation of foreign operations - - - - - (22,653) - (22,653) (4,440) (27,093)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Total other comprehensive
(expenses) / income - - - - (499) (22,653) - (23,152) (4,472) (27,624)
Profit for the period - - - - - - 12,246 12,246 3,952 16,198
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Total comprehensive (expenses)
/ income for the period - - - - (499) (22,653) 12,246 (10,906) (520) (11,426)
Dividends payable - - - - - - (1,585) (1,585) (73) (1,658)
Balance at 30 June 2018 15,504 (1,171) 23,935 1,087 50,789 (244,088) 526,545 372,601 91,206 463,807
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Condensed Consolidated Statement of Cash Flows
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
----------------------------------- ------------ ------------ -----------------
Cash flows from operating
activities
Profit before tax 1,600 22,020 30,929
Adjustments for:
Biological assets movement (1,845) (332) 2,286
Gains on disposal of property,
plant and equipment (21) (8) (21)
Depreciation 8,511 8,375 16,752
Retirement benefit provisions 764 878 1,250
Net finance income (1,688) (1,581) (3,537)
Unrealised (gains) / losses
in foreign exchange (163) 1,222 1,250
Property, plant and equipment
written off 46 17 620
Impairment losses 2,337 - 4,339
Operating cash flows before
changes in working capital 9,541 30,591 53,868
Increase in inventories (246) (1,877) (746)
Increase in non-current,
trade and other receivables (3,383) (1,062) (2,173)
(Decrease) / Increase in
trade and other payables (2,774) 4,629 4,148
----------------------------------- ------------ ------------ -----------------
Cash inflows from operations 3,138 32,281 55,097
Interest paid (569) (793) (1,511)
Retirement benefits paid (103) (83) (257)
Overseas tax paid (162) (19,636) (36,508)
----------------------------------- ------------ ------------ -----------------
Net cash flows from operating
activities 2,304 11,769 16,821
----------------------------------- ------------ ------------ -----------------
Investing activities
Property, plant and equipment
- purchases (15,992) (13,279) (30,282)
- sales 52 41 42
Interest received 2,257 2,374 5,048
Net cash used in investing
activities (13,683) (10,864) (25,192)
----------------------------------- ------------ ------------ -----------------
Financing activities
Dividends paid to the holders
of the parent - - (1,585)
Dividends paid to non-controlling
interests (57) (73) (73)
Repayment of existing long-term
loans (3,219) (2,313) (8,594)
Net cash used in financing
activities (3,276) (2,386) (10,252)
----------------------------------- --------- -------- ---------
Net decrease in cash and
cash equivalents (14,655) (1,481) (18,623)
Cash and cash equivalents
At beginning of period 112,212 139,489 139,489
Exchange gains / (losses) 2,566 (7,881) (8,654)
----------------------------------- --------- -------- ---------
At end of period 100,123 130,127 112,212
----------------------------------- --------- -------- ---------
Comprising:
Cash at end of period 100,123 130,127 112,212
----------------------------------- --------- -------- ---------
Notes to the interim statements
1. Basis of preparation of interim financial statements
These interim consolidated financial statements have been
prepared in accordance with IAS 34, "Interim Financial Reporting",
as adopted by the European Union. They do not include all
disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the
2018 Annual Report. The financial information for the half years
ended 30 June 2019 and 30 June 2018 does not constitute statutory
accounts within the meaning of Section 434(3) of the Companies Act
2006 and has been neither audited nor reviewed pursuant to guidance
issued by the Auditing Practices Board.
Basis of preparation
The annual financial statements of Anglo-Eastern Plantations PLC
are prepared in accordance with IFRSs as adopted by the European
Union. The comparative financial information for the year ended 31
December 2018 included within this report does not constitute the
full statutory accounts for that period. The statutory Annual
Report and Financial Statements for 2018 have been filed with the
Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statements for 2018 was unqualified,
did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act
2006.
After making enquiries, the directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue operations for the foreseeable future. For this reason,
they continue to adopt the going concern basis in preparing the
financial statements.
Changes in accounting standards
The same accounting policies, presentation and methods of
computation are followed in these condensed consolidated financial
statements as were applied in the Group's latest annual audited
financial statements, except for those that relate to new standards
and interpretations effective for the first time for periods
beginning on 1 January 2019 and will be adopted in the 2019 annual
financial statements. The new standard impacting the Group that
will be adopted in the annual financial statements for the year
ended 31 December 2019, and which has given rise to changes in the
Group's accounting policies is IFRS 16 Leases.
Details of the impact of this standard are given below. Other
new and amended standards and Interpretations issued by the IASB
that will apply for the first time in the next annual financial
statements are not expected to impact the Group as they are either
not relevant to the Group's activities or require accounting which
is consistent with the Group's current accounting policies.
IFRS 16 Leases
IFRS 16 introduces a single lessee accounting model and requires
a lessee to recognise assets and liabilities for all leases with a
term of more than 12 months, unless the underlying asset is of low
value. A lessee is required to recognise a right-of-use asset
representing its right to use the underlying leased asset and a
leased liability representing its obligation to make lease
payments. The impact to the Group is immaterial.
2. Foreign exchange
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Closing exchange rates
Rp : $ 14,141 14,404 14,481
$ : GBP 1.27 1.32 1.28
RM : $ 4.13 4.04 4.13
Average exchange rates
Rp : $ 14,197 13,753 14,246
$ : GBP 1.29 1.38 1.33
RM : $ 4.12 3.94 4.04
3. Finance expense
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Payable 569 793 1,511
------------ ------------ ---------------
4. Segment information
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2019
(unaudited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 34,900 28,837 813 15,902 217 14,474 95,143 854 - 95,997
* Rubber 266 - - - - - 266 - - 266
* Shell nut 189 242 - 290 - 17 738 - - 738
* Biomass products 303 - - - - - 303 - - 303
- Biogas products 33 229 - - - 123 385 - - 385
- Others 34 29 25 - - 28 116 58 - 174
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Total revenue 35,725 29,337 838 16,192 217 14,642 96,951 912 - 97,863
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss)
before
tax 701 1,509 (3,533) 3,941 (242) (1,451) 925 (401) (769) (245)
BA movement 805 651 50 (42) 13 348 1,825 20 - 1,845
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss) for
the
period before tax
per consolidated
income statement 1,506 2,160 (3,483) 3,899 (229) (1,103) 2,750 (381) (769) 1,600
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Interest income 1,012 962 2 180 - 16 2,172 83 2 2,257
Depreciation (2,026) (2,142) (1,205) (447) (135) (2,306) (8,261) (250) - (8,511)
impairment losses - - (115) - - (2,222) (2,337) - - (2,337)
Inter-segment
transactions 2,514 (1,010) (367) (290) (61) (972) (186) 58 128 -
Inter-segment
revenue 10,314 560 622 - - 624 12,120 - - 12,120
Tax expense (2,730) (59) 2,155 (2,216) 154 1,593 (1,103) (117) (45) (1,265)
Total assets 176,332 120,118 45,785 33,772 12,600 124,385 512,992 21,553 5,889 540,434
Non-current assets 108,550 71,925 43,493 17,975 12,238 105,731 359,912 16,630 3,033 379,575
Non-current assets
- additions 4,377 2,127 1,521 111 1,935 5,540 15,611 95 - 15,706
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2018
(unaudited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 43,054 44,177 - 22,318 143 19,597 129,289 1,234 - 130,523
* Rubber 393 - - - - - 393 - - 393
* Shell nut 289 281 - 421 - 12 1,003 - - 1,003
* Biomass products 310 - - - - - 310 - - 310
- Biogas products 226 266 - - - - 492 - - 492
- Others 531 - 10 18 - 51 610 - - 610
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Total revenue 44,803 44,724 10 22,757 143 19,660 132,097 1,234 - 133,331
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Profit / (loss)
before
tax 5,191 10,303 (2,694) 7,208 (226) 3,121 22,903 (57) (1,158) 21,688
BA movement 583 80 (56) (28) (2) (241) 336 (4) - 332
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Profit / (loss) for
the
period before tax
per consolidated
income statement 5,774 10,383 (2,750) 7,180 (228) 2,880 23,239 (61) (1,158) 22,020
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Interest income 788 1,309 1 182 - 11 2,291 82 1 2,374
Depreciation (2,008) (2,033) (1,276) (463) (119) (2,215) (8,114) (261) - (8,375)
impairment losses - - - - - - - - - -
Inter-segment
transactions 2,569 (1,051) (364) (301) (49) (880) (76) 46 30 -
Inter-segment
revenue 11,867 568 1,959 - - 194 14,588 - - 14,588
Tax expense (3,613) (2,177) 2,077 (2,802) 133 641 (5,741) (52) (29) (5,822)
Total assets 168,247 147,978 40,952 34,332 11,305 111,967 514,781 24,261 6,455 545,497
Non-current assets 100,619 69,203 39,232 17,973 11,038 98,390 336,455 17,869 2,998 357,322
Non-current assets
- additions 3,786 1,597 1,382 315 677 5,417 13,174 105 - 13,279
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Year to 31 December 2018
(audited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 84,771 79,652 1 43,970 261 34,848 243,503 2,092 - 245,595
* Rubber 792 - - - - - 792 - - 792
* Shell nut 651 432 - 930 - 34 2,047 - - 2,047
* Biomass products 914 - - - - - 914 - - 914
- Biogas products 417 446 - - - - 863 - - 863
- Others 519 38 18 - - 73 648 - - 648
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Total revenue 88,064 80,568 19 44,900 261 34,955 248,767 2,092 - 250,859
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Profit / (loss)
before
tax 12,993 18,753 (7,445) 13,112 (531) (557) 36,325 (894) (2,216) 33,215
BA movement (296) (1,074) (93) (272) (4) (479) (2,218) (68) - (2,286)
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Profit / (loss) for
the
period before tax
per consolidated
income statement 12,697 17,679 (7,538) 12,840 (535) (1,036) 34,107 (962) (2,216) 30,929
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Interest income 1,594 2,978 3 318 - 20 4,913 133 2 5,048
Depreciation (4,031) (4,120) (2,530) (900) (234) (4,425) (16,240) (512) - (16,752)
impairment losses - - (914) - - (3,425) (4,339) - - (4,339)
Inter-segment
transactions 4,887 (2,021) (700) (579) (94) (1,870) (377) 103 274 -
Inter-segment
revenue 24,409 1,608 3,710 - - 1,049 30,776 - - 30,776
Tax expense (7,872) (2,994) 1,862 (5,351) 151 1,154 (13,050) 19 (31) (13,062)
Total assets 188,266 118,098 41,074 36,900 11,815 113,186 509,339 22,347 6,206 537,892
Non-current assets 103,648 70,237 39,672 17,884 11,588 99,738 342,767 16,783 2,984 362,534
Non-current assets
- additions 8,578 4,460 3,753 472 1,647 11,355 30,265 110 - 30,375
In the 6 months to 30 June 2019, revenues from 4 customers of
the Indonesian segment represent approximately $57.2m (1H 2018:
$60.1m) of the Group's total revenues. In year 2018, revenues from
4 customers of the Indonesian segment represent approximately
$115.4m of the Group's total revenues. An analysis of this revenue
is provided below. Although Customer 1 to 3 each contribute over
10% of the Group's total revenue, there is no over reliance on
these Customers as tenders are performed on a monthly basis. Two of
the top four customers are the same as in the year to 31 December
2018.
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$m % $m % $m %
Major Customers
Customer 1 21.8 22.3 18.6 14.0 37.1 14.8
Customer 2 16.9 17.2 15.3 11.5 29.6 11.8
Customer 3 10.4 10.6 14.7 11.0 24.9 9.9
Customer 4 8.1 8.3 11.5 8.6 23.8 9.5
------------------ --------- --------- ---------- -------- -------- --------
Total 57.2 58.4 60.1 45.1 115.4 46.0
------------------ --------- --------- ---------- -------- -------- --------
5. Tax expense
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Foreign corporation tax
- current year 6,087 9,043 16,852
Foreign corporation tax
- prior year - 6 70
Deferred tax adjustment
- origination and reversal
of temporary differences (4,822) (3,227) (3,860)
1,265 5,822 13,062
------------ ------------ ---------------
6. Dividend
The final and only dividend in respect of 2018, amounting to 3.0
cents per share, or $1,189,091 was paid on 12 July 2019 (2017: 4.0
cents per share, or $1,585,455, paid on 13 July 2018). As in
previous years, no interim dividend has been declared.
7. Earnings per ordinary share ("EPS")
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
(Loss) / Profit for the period
attributable to owners of the
Company before BA movement (2,664) 12,037 12,882
BA movement 1,181 209 (1,469)
------------ ------------ ---------------
Earnings used in basic and
diluted EPS (1,483) 12,246 11,413
------------ ------------ ---------------
Number Number Number
'000 '000 '000
Weighted average number of
shares in issue in the period
- used in basic EPS 39,636 39,636 39,636
- dilutive effect of outstanding
share options - 33 -
------------ ------------ ---------------
- used in diluted EPS 39,636 39,669 39,636
------------ ------------ ---------------
Basic EPS before BA movement (6.72)cts 30.37cts 32.50cts
Basic EPS after BA movement (3.74)cts 30.90cts 28.79cts
Dilutive EPS before BA movement (6.72)cts 30.34cts 32.50cts
Dilutive EPS after BA movement (3.74)cts 30.87cts 28.79cts
8. Fair value measurement of financial instruments
The carrying amounts and fair values of the financial
instruments which are not recognised at fair value in the Statement
of Financial Position are exhibited below:
2019 2018 2018
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value
$000 $000 $000 $000 $000 $000
Non-current receivables
Due from non-controlling
interests 3,022 1,850 2,977 1,837 2,965 1,833
Due from cooperatives
under Plasma
scheme 10,321 7,407 5,769 5,495 8,055 6,240
13,343 9,257 8,746 7,332 11,020 8,073
--------- ------- ------------ ------- --------- -------
Borrowings due
after one year
Long-term loan 2,734 2,473 13,719 13,403 8,203 7,742
--------- ------- ------------ ------- --------- -------
Financial instruments not measured at fair value include cash
and cash equivalents, trade and other receivables, trade and other
payables, and borrowings due within one year.
Due to their short-term nature, the carrying value of cash and
cash equivalents, trade and other receivables, trade and other
payables and borrowings due within one year approximates their fair
value.
All non-current receivables and long-term loan are classified as
Level 3 in the fair value hierarchy.
The valuation techniques and significant unobservable inputs
used in determining the fair value measurement of non-current
receivables and borrowings due after one year, as well as the
inter-relationship between key unobservable inputs and fair value,
are set out in the table below:
Item Valuation approach Inputs used Inter-relationship
between key unobservable
inputs and fair
value
----------------- ------------------------- ------------ ---------------------------
Non-current receivables
Due from Based on cash flows Discount The higher the
non-controlling discounted using rate discount rate,
interests current lending rate the lower the
of 6% (1H 2018 and fair value.
2018: 6%).
Due from Based on cash flows Discount The higher the
cooperatives discounted using rate discount rate,
under Plasma an estimated current the lower the
scheme lending rate of 6.58% fair value.
(1H 2018: 6.05%,
2018: 6.58%).
Borrowings due after one year
Long-term Based on cash flows Discount The higher the
loan discounted using rate discount rate,
an estimated current the lower the
lending rate of 6.58% fair value.
(1H 2018: 6.05%,
2018: 6.58%).
9. Report and financial information
Copies of the interim report for the Group for the period ended
30 June 2019 are available on the AEP website at
https://www.angloeastern.co.uk/.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BBLFLKVFEBBE
(END) Dow Jones Newswires
August 20, 2019 12:00 ET (16:00 GMT)
Grafico Azioni Anglo-eastern Plantations (LSE:AEP)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Anglo-eastern Plantations (LSE:AEP)
Storico
Da Mar 2023 a Mar 2024