Our live Investing Matters Podcast Special which took place at the Master Investor Show discussing 'How undervalued is the UK stock market?', has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksAnglo-Eastern Plantations Regulatory News (AEP)

Share Price Information for Anglo-Eastern Plantations (AEP)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 696.00
Bid: 690.00
Ask: 694.00
Change: 2.00 (0.29%)
Spread: 4.00 (0.58%)
Open: 696.00
High: 696.00
Low: 696.00
Prev. Close: 694.00
AEP Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Interim Results

25 Aug 2016 17:00

RNS Number : 1582I
Anglo-Eastern Plantations PLC
25 August 2016
 

Anglo-Eastern Plantations Plc

("AEP", "Group" or "Company")

 

 

Announcement of interim results for six months ended 30 June 2016

 

 

Anglo-Eastern Plantations Plc, and its subsidiaries are a major producer of palm oil and rubber with plantations across Indonesia and Malaysia amounting to some 128,600 hectares, has today released its results for the six months ended 30 June 2016.

 

 

Financial Highlights

 

20166 monthsto 30 June$m

(unaudited)

20156 monthsto 30 June$m

(unaudited & restated)

201512 monthsto 31 December$m

(audited & restated)

Revenue

86.0

104.0

196.5

Profit before tax

19.5

21.8

6.4

Earnings per share

27.38cts

31.89cts

(20.14)cts

Total net assets

396.4

398.7

369.1

 

 

 

 

 

Enquiries:

 

Anglo-Eastern Plantations Plc

Dato' John Lim Ewe Chuan

 +44 (0)20 7216 4621

Panmure Gordon

Andrew Godber

+44 (0)20 7886 2500

 

 

 

Chairman's Interim Statement

 

I am pleased to present the interim results for the Group for the six months to 30 June 2016.

 

The revenue for the six months to 30 June was $86.0 million, 17% lower than $104.0 million for the first six months of 2015. In the same period the Group experienced an increase in operating expenses which resulted in a lower gross profit of $15.7 million compared to $22.1 million for the same period last year. Overall profit before tax fell by 10% to $19.5 million from $21.8 million for the corresponding period.

 

Fresh Fruit Bunches ("FFB") production for the first half of 2016 was 3% lower at 378,400mt compared to 388,600mt in the same period last year. The decline in production, in spite of an increase in matured area, was mainly attributed to the replanting of old palms in North Sumatera while lower crop yield was evident in Riau and Kalimantan which were affected by four months of severe drought in the second half of last year. It was reported that plantations across Indonesia faced production decline, some up to 20% for a similar reason. The Group continued to buy external crops to maximise the utilization of its mills. However, bought-in crops decreased by 22% from 338,400mt to 264,500mt due to the dry weather and intense competition particularly at its mill in Riau.

 

 

Operational and financial performance

 

For the six months ended 30 June 2016, the revenue was $86.0 million, a decrease of 17% (1H 2015: $104.0 million). Gross profit margin dropped to 18% from 21% reflecting higher operating expenses in the first half of 2016 compared to the same period in the previous year.

 

Although for the first six months of 2016 Crude Palm Oil ("CPO") price ex-Rotterdam averaged $668/mt, higher than $663/mt for the first half of 2015, the net receivable by the Group is lower due to export tax levy of $50/mt imposed by Indonesian government in July 2015. The recovery of price since the beginning of the year was due to the decline in CPO production brought on by the drought from last year.

 

The financial statements for the comparative period of 2015 were restated with the adoption of new amendments to IAS 16 and IAS 41 for bearer plants which were mandatory from 1 January 2016. The new standards require bearer plants to be treated as property, plant and equipment to be valued at historical costs less depreciation or deemed costs at last valuation. The amendment means that the movement in the fair value of biological assets in the financial statements will be replaced by a depreciation charge which is expected to be a lower amount. The amendment also requires FFB growing on the trees which are not due for harvest to be measured at fair value. The methodology and its impact are explained in detail in Note 2 - Prior periods restatement.

 

Although the company has adopted the amendments to IAS41 by valuing the FFB growing on the trees as advised by our auditors, the Company, together with three other plantation companies have written to International Financial Reporting Interpretations Committee ("IFRIC") to seek guidance on the interpretation of whether the growing produce can be reliably measured. The guidance from IFRIC would influence and encourage our peer group to a common practice with regards to the accounting treatment of the growing produce.

 

In the restatement of operating results for the year ended 31 December 2015, $34.1 million in impairment of plantations previously recognized under Biological Asset adjustment is now charged under administration expenses. Profit after tax for the six months ended 30 June 2016 was $14.0 million, 11% lower than last year of $15.7 million.

 

The resulting earnings per share for the period were reduced by 14% at 27.38cts (1H 2015: 31.89cts).

 

The Group's balance sheet remains reasonable strong and cash flow remains healthy. Net assets at 30 June 2016 after restatement were $396.4 million compared to $369.1 million at 31 December 2015. The increase in net assets was attributed partly to the strengthening of Rupiah against US Dollar.

 

As at 30 June 2016 the Group's total cash balance was $93.0 million (1H 2015: $110.9 million) with total borrowings of $35.6 million (1H 2015: $34.8 million), giving a net cash position of $57.4 million, compared to $76.1 million as at 30 June 2015.

 

The decline in cash reflects the need to sustain and finance five loss making subsidiaries as the revenue of newly matured plantations cannot cover operating expenses due to the low CPO price and yield.

 

 

Operating costs

 

The operating costs per hectare for the Indonesian operations were higher in the first half of 2016 compared to the same period in 2015 mainly due to an increase in wages, fertilisers, fuel, drainage maintenance, general upkeep of plantations costs and depreciation. Higher operating costs were also partly attributed to a 4% increase in matured areas for the corresponding period.

 

 

Production and Sales

 

2016

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

mt

mt

mt

Oil palm production

FFB

- all estates

378,400

388,600

900,400

- bought-in or processed for third parties

264,500

338,400

678,200

Saleable CPO

134,100

141,300

321,400

Saleable palm kernels

30,500

33,500

74,000

Oil palm sales

CPO

130,400

144,900

326,000

Palm kernels

29,300

34,200

75,200

FFB sold outside

12,100

50,000

65,100

Rubber production

371

457

847

 

 

The Group's six mills processed a total of 630,800mt in FFB for the first half of 2016, a 7% decrease compared to 677,000mt for the same period last year.

 

Bought-in crops were 22% lower than last year due to the effect of the dry season and haze during the second half of 2015 and intense competition from private mills in Riau and North Sumatera. Overall CPO produced was lower by 5% at 134,100mt from 141,300mt due to higher oil extraction rate of 21.2% compared to 20.9% previously.

 

In spite of lower profits this year the Group continues with its commitment to reduce its carbon footprint as it began construction of a third biogas plant in Bengkulu in addition to another plant nearing commissioning in Kalimantan. Both projects upon completion will cost an estimate of $6.8 million. The existing biogas plant in North Sumatera is performing well and the final arrangements are being made to sell the surplus electricity generated from its biogas plant to the National Grid.

 

 

Commodity prices

 

CPO price hit a low of $535/mt in January 2016 before recovering fairly strongly in the second quarter of 2016. CPO price for first half of 2016 averaged $668/mt, marginally higher than last year (1H 2015: $663/mt). Despite lower production, CPO price recovery was short lived due to weakness in demand and abundance of vegetable oil.

 

Rubber price averaged $1,188/mt, 15% lower than 2015 (1H 2015: $1,393/mt).

 

 

Development

 

The Group's planted areas at 30 June 2016 comprised:

 

Total

Mature

Immature

ha

ha

Ha

North Sumatera

19,085

16,076

3,009

Bengkulu

16,938

16,933

5

Riau

4,873

4,873

-

South Sumatera

6,278

5,178

1,100

Kalimantan

13,189

8,521

4,668

Bangka

555

103

452

Plasma

947

778

169

Indonesia

61,865

52,462

9,403

Malaysia

3,696

3,380

316

Total : 30 June 2016

65,561

55,842

9,719

Total : 31 December 2015

65,068

51,957

13,111

Total : 30 June 2015

64,486

53,605

10,881

 

 

The Group's new planting for the first six months ended 30 June 2016 totalled 518ha compared to 1,016ha for the same corresponding period for 2015. The slower than anticipated rate of new planting is due to protracted land compensation negotiations and also the dry condition which was not conducive for planting.

 

The Group remains optimistic that planting will pick up in the second half of 2016. The Group's total landholding comprises some 128,600ha, of which the planted area stands around 65,561ha (1H 2015: 64,486ha).

 

Significant capital expenditure is expected in the replanting of over 1,500ha of old palms in North Sumatera which started in May 2016.

 

 

Dividend

 

As in previous years no interim dividend has been declared. The Board is mindful that given the anticipated further capital commitments the level of dividend needs to be balanced against the planned expenditure. A final dividend of 1.75 pence per share in respect of the year to 31 December 2015 was paid on 11 July 2016.

 

 

Outlook

 

The upside of CPO price is limited as the industry heads into its peak production cycle in the third quarter of 2016. But as the El Nino weather phenomenon dissipated, weather forecasters globally are predicting a 50-75% chance of La Nina developing in the second half of 2016. The emergence of La Nina and resultant rains in the region could help improve FFB yields. At the same time it will bring extreme dryness to the eastern side of the Pacific affecting regions generally known for growing soy bean. If La Nina develops, it could potentially see CPO price strengthen in the fourth quarter of 2016 especially in the wake of a wider discount to soybean oil.

 

The Board looks forward to reporting further progress in its next trading update.

 

 

 

 

Principal risks and uncertainties

 

The directors believe the potential impact of Britain's vote to leave the European Union, better known as Brexit, on the Group is limited. Other than maintaining its corporate presence and listing in United Kingdom ("UK"), all plantation and mill operations together with marketing are primarily based in Indonesia. Unless Brexit causes a worldwide recession which significantly reduces the consumption of CPO, the principal risks and uncertainties have broadly remained the same since the publication of the annual report for the year ended 31 December 2015.

 

A more detailed explanation of the risks relevant to the Group is on pages 19 to 25 and from pages 86 to 90 of the 2015 annual report which is available at 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

25 August 2016

 

 

 

 

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 2016 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

25 August 2016

 

 

 

Condensed Consolidated Income Statement

 

 

Continuing operations

 

Notes

 

2016

6 months to

30 June

 

 (unaudited)$000

2015

6 months to 30 June (unaudited & restated)

$000

2015

Year to

31 December (audited & restated)$000

Revenue

5

86,044

103,952

196,451

Cost of sales

(70,335)

(81,872)

(151,597)

Gross profit

15,709

22,080

44,854

Biological asset movement

3,288

2,603

(732)

Administration expenses

(3,338)

(3,360)

(40,014)

Operating profit

15,659

21,323

4,108

Exchange gain / (loss)

1,244

(1,800)

(2,354)

Finance income

3,406

3,238

6,683

Finance expense

4

(835)

(1,004)

(2,010)

Profit before tax

5

19,474

21,757

6,427

Tax expense

6

(5,472)

(6,083)

(10,385)

Profit / (Loss) for the period

14,002

15,674

(3,958)

Attributable to:

- Owners of the parent

10,852

12,640

(7,981)

- Non-controlling interests

3,150

3,034

4,023

14,002

15,674

(3,958)

Earnings per share for profit / (loss) attributable to the owners of the parent during the period

 

- basic

8

27.38cts

31.89cts

(20.14)cts

 

- diluted

8

27.38cts

31.86cts

(20.14)cts

 

 

Condensed Consolidated Statement of Comprehensive Income

2016

 

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited & restated)

(audited & restated)

$000

$000

$000

Profit / (Loss) for the period

14,002

15,674

(3,958)

Other comprehensive income

Items may be reclassified to profit or loss in subsequent periods:

Profit / (Loss) on exchange translation of foreign operations

17,814

(29,969)

(44,367)

Net other comprehensive income / (expense) may be reclassified to profit or loss in subsequent periods

17,814

(29,969)

(44,367)

Items not to be reclassified to profit or loss in subsequent periods:

Unrealised (loss) / gain on revaluation of the estates

(1,516)

(860)

4,902

Deferred tax on revaluation

398

193

(1,266)

Remeasurements of retirement benefit plan

-

-

445

Deferred tax on retirement benefit

-

-

(111)

Net other comprehensive (expenses) / income not being reclassified to profit or loss in subsequent periods

(1,118)

(667)

3,970

Total other comprehensive income / (expenses) for the period, net of tax

16,696

(30,636)

(40,397)

Total comprehensive income / (expenses) for the period

30,698

(14,962)

(44,355)

Attributable to:

- Owners of the parent

23,874

(12,028)

(40,254)

- Non-controlling interests

6,824

(2,934)

(4,101)

30,698

(14,962)

(44,355)

 

 

Condensed Consolidated Statement of Financial Position

2016

 

2015

 

2015

as at 30 June

as at 30 June

as at 31 December

(unaudited)

(unaudited & restated)

(audited & restated)

$000

$000

$000

Non-current assets

Property, plant and equipment

329,788

338,513

310,167

Receivables

3,565

3,044

3,655

Deferred tax assets

10,931

5,714

8,021

344,284

347,271

321,843

Current assets

Inventories

8,147

8,248

6,693

Tax receivables

22,856

11,158

16,679

Biological assets

7,195

7,079

3,673

Trade and other receivables

8,460

8,153

4,704

Cash and cash equivalents

92,994

110,860

104,614

139,652

145,498

136,363

Current liabilities

Loans and borrowings

(4,391)

(438)

(1,750)

Trade and other payables

(14,508)

(22,660)

(17,406)

Tax liabilities

(3,690)

(3,764)

(5,917)

Dividend payables

(1,003)

(1,869)

-

(23,592)

(28,731)

(25,073)

Net current assets

116,060

116,767

111,290

Non-current liabilities

Loans and borrowings

(31,234)

(34,375)

(32,875)

Deferred tax liabilities

(27,437)

(26,356)

(26,618)

Retirement benefits - net liabilities

(5,241)

(4,623)

(4,528)

(63,912)

(65,354)

(64,021)

Net assets

396,432

398,684

369,112

 

Condensed Consolidated Statement of Financial Position (continued)

 

2016

 

2015

 

2015

as at 30 June

as at 30 June

as at 31 December

(unaudited)

(unaudited & restated)

(audited & restated)

$000

$000

$000

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 reserve

23,935

23,935

23,935

Share capital redemption reserve

1,087

1,087

1,087

Revaluation reserves

58,587

56,456

59,572

Exchange reserves

(211,615)

(214,598)

(225,622)

Retained earnings

433,069

443,538

423,220

319,396

324,751

296,525

Non-controlling interests

77,036

73,933

72,587

Total equity

396,432

398,684

369,112

 

 

Condensed Consolidated Statement of Changes in Equity

 

Attributable to owners of the parent

 

 

Share

capital

 

 

Treasury

shares

 

 

Share

premium

Share

capital

redemption

reserve

 

 

Revaluation

reserve

 

Foreign

exchange

reserve

 

 

Retained

earnings

 

 

 

Total

 

Non-controlling

interests

 

 

Total

equity

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Balance at 31 December 2014

15,504

(1,171)

23,935

1,087

57,029

(190,503)

521,355

427,236

90,813

518,049

Restatement (Note 2)

-

-

-

-

-

-

(88,588)

(88,588)

(13,917)

(102,505)

Balance at 31 December 2014 after restatement

15,504

(1,171)

23,935

1,087

57,029

(190,503)

432,767

338,648

76,896

415,544

Items of other comprehensive income:

-Unrealised gain on revaluation of estates, net of tax

-

-

-

-

2,543

-

-

2,543

1,093

3,636

-Remeasurement of retirement benefit plan, net of tax

-

-

-

-

-

-

303

303

31

334

-Loss on exchange translation of foreign operations

-

-

-

-

-

(35,119)

-

(35,119)

(9,248)

(44,367)

Total other comprehensive income / (expenses)

-

-

-

-

2,543

(35,119)

303

(32,273)

(8,124)

(40,397)

(Loss) / Profit for the year

-

-

-

-

-

-

(7,981)

(7,981)

4,023

(3,958)

Total comprehensive income / (expenses) for the year

-

-

-

-

2,543

(35,119)

(7,678)

(40,254)

(4,101)

(44,355)

Dividends paid

-

-

-

-

-

-

(1,869)

(1,869)

(208)

(2,077)

Balance at 31 December 2015 after restatement

15,504

(1,171)

23,935

1,087

59,572

(225,622)

423,220

296,525

72,587

369,112

Items of other comprehensive income:

-Unrealised loss on revaluation of estates, net of tax

-

-

-

-

(985)

-

-

(985)

(133)

(1,118)

-Gain on exchange translation of foreign operations

-

-

-

-

-

14,007

-

14,007

3,807

17,814

Total other comprehensive (expenses) / income

-

-

-

-

(985)

14,007

-

13,022

3,674

16,696

Profit for the period

-

-

-

-

-

-

10,852

10,852

3,150

14,002

Total comprehensive (expenses) / income for the period

-

-

-

-

(985)

14,007

10,852

23,874

6,824

30,698

Dividend payable

-

-

-

-

-

-

(1,003)

(1,003)

(2,375)

(3,378)

Balance at 30 June 2016

15,504

(1,171)

23,935

1,087

58,587

(211,615)

433,069

319,396

77,036

396,432

Condensed Consolidated Statement of Changes in Equity (continued)

 

 

Attributable to owners of the parent

 

 

 

Share

capital

 

 

Treasury

shares

 

 

Share

premium

Share

capital

redemption

reserve

 

 

Revaluation

reserve

 

Foreign

exchange

reserve

 

 

Retained

earnings

 

 

 

Total

 

Non-controlling

interests

 

 

Total

Equity

 

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

 

Balance at 31 December 2014

15,504

(1,171)

23,935

1,087

57,029

(190,503)

521,355

427,236

90,813

518,049

Restatement (Note 2)

-

-

-

-

-

-

(88,588)

(88,588)

(13,917)

(102,505)

Balance at 31 December 2014 after restatement

15,504

(1,171)

23,935

1,087

57,029

(190,503)

432,767

338,648

76,896

415,544

Items of other comprehensive income:

-Unrealised loss on revaluation of estates, net of tax

-

-

-

-

(573)

-

-

(573)

(94)

(667)

-Loss on exchange translation of foreign operations

-

-

-

-

-

(24,095)

-

(24,095)

(5,874)

(29,969)

Total other comprehensive expenses

-

-

-

-

(573)

(24,095)

-

(24,668)

(5,968)

(30,636)

Profit for the period

-

-

-

-

-

-

12,640

12,640

3,034

15,674

Total comprehensive (expenses) / income for the period

-

-

-

-

(573)

(24,095)

12,640

(12,028)

(2,934)

(14,962)

Dividends payable

-

-

-

-

-

-

(1,869)

(1,869)

(29)

(1,898)

Balance at 30 June 2015 after restatement

15,504

(1,171)

23,935

1,087

56,456

(214,598)

443,538

324,751

73,933

398,684

Condensed Consolidated Statement of Cash Flows

 

 

2016

 

2015

2015

 

6 months

6 months

Year

 

to 30 June

to 30 June

to 31 December

 

(unaudited)

(unaudited & restated)

(audited & restated)

 

$000

$000

$000

 

Cash flows from operating activities

Profit before tax

19,474

21,757

6,427

Adjustments for:

Biological asset movement

(3,288)

(2,603)

732

(Gain) / Loss on disposal of tangible fixed assets

(2)

41

(391)

Depreciation

7,017

6,329

12,405

Retirement benefit provisions

502

494

973

Net finance income

(2,571)

(2,234)

(4,673)

Unrealised (gain) / loss in foreign exchange

(1,244)

1,800

2,354

Tangible fixed assets written off

54

86

34,246

Operating cash flow before changes in working capital

19,942

25,670

52,073

(Increase) / Decrease in inventories

(1,140)

(959)

341

(Increase) / Decrease in trade and other receivables

(3,888)

971

4,425

(Decrease) / Increase in trade and other payables

(3,628)

2,999

(1,623)

Cash inflow from operations

11,286

28,681

55,216

Interest paid

(835)

(1,004)

(2,010)

Retirement benefit paid

-

(1)

(103)

Overseas tax paid

(15,689)

(17,259)

(27,856)

Net cash (used in) / from operations

(5,238)

10,417

25,247

Investing activities

Property, plant and equipment

- purchase

(13,366)

(19,694)

(38,562)

- sale

58

19

979

Interest received

3,406

3,238

6,683

Net cash used in investing activities

(9,902)

(16,437)

(30,900)

 

 Condensed Consolidated Statement of Cash Flows (continued)

 

 

2016

2015

 

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited & restated)

(audited & restated)

$000

$000

$000

Financing activities

Dividends paid by Company

(1,003)

-

(1,869)

Dividends paid to non-controlling interests

(1,372)

(46)

 

(228)

Drawdown of long term loans

1,250

-

-

Repayment of existing long term loans

(250)

(125)

(313)

Net cash used in financing activities

(1,375)

(171)

(2,410)

Decrease in cash and cash equivalents

(16,515)

(6,191)

(8,063)

Cash and cash equivalents

At beginning of period

104,614

125,937

125,937

Foreign exchange

4,895

(8,886)

(13,260)

At end of period

92,994

110,860

104,614

 

Comprising:

Cash at end of period

92,994

110,860

104,614

 

 

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 2015 Annual Report. The financial information for the half years ended 30 June 2016 and 30 June 2015 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 2015 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2015 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.

 

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 the following new standards that have come into effect from the previous reporting date:

· IAS 16 Amendments - Property, Plant and Equipment; and

· IAS 41 Amendments - Agriculture.

 

The nature and the impact of the amendments to IAS 16 and IAS 41 are disclosed in Note 2 - Prior periods restatement.

 

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.

 

2. Prior periods restatement

The amendments to IAS 16 and the amendments to IAS 41, which came into effect on 1 January 2016, require Biological Assets that meet the definition of bearer plants to be accounted for as Property, Plant and Equipment in accordance with IAS 16, adopting either a cost model or a revaluation model. This required retrospective application.

 

As the Biological Assets of the Group fall within the definition of bearer plants, with effect from 1 January 2016 the immature plants are stated at accumulated cost until maturity, subject to impairment reviews, and the mature plantations are stated at historical cost less accumulated depreciation. The unharvested FFB, which is agricultural produce under the revised IAS 41, are recognised as Biological Assets and are stated at fair value less cost to sell at the point of harvest, with changes recognised in profit and loss. This has resulted in the accounts for the periods ended 30 June 2015 and 31 December 2015 being restated.

 

 

2. Prior periods restatement (continued)

 

Although the company has adopted the amendments to IAS41 by valuing the FFB growing on the trees as advised by our auditors, the Company, together with three other plantation companies have written to International Financial Reporting Interpretations Committee ("IFRIC") to seek guidance on the interpretation of whether the growing produce can be reliably measured. The guidance from IFRIC would influence and encourage our peer group to a common practice with regards to the accounting treatment of the growing produce.

 

The effects of the restatements are summarised as follows:

 

2015

 

2015

6 months to

30 June

Year to

 31 December

(unaudited

 & restated)

(audited

 & restated)

$000

$000

Impact on condensed consolidated income statement

Profit for the period before restatement

3,182

(13,429)

Effect of change in restatement:

Cost of sales

(2,948)

(5,700)

Biological asset movement

19,561

63,389

Administration expenses

118

(32,188)

Tax expense

(4,239)

(16,030)

12,492

9,471

Profit for the period after restatement

15,674

(3,958)

The effect of these prior period adjustments had a positive impact on the earnings per share of 25.98cts for the period to 30 June 2015 and 17.44cts for the year to 31 December 2015.

 

 

2. Prior periods restatement (continued)

 

2015

2015

 

 

6 months to 30 June

Year to 31 December

 

 

(unaudited & restated)

(audited & restated)

 

 

$000

$000

 

Impact on condensed consolidated statement of comprehensive income

Other comprehensive expenses for the period before restatement

(37,559)

(50,585)

Effect of change in restatement:

Loss on exchange translation of foreign operations

6,945

10,228

Deferred tax on revaluation

(22)

(40)

6,923

10,188

Other comprehensive expenses for the period after restatement

(30,636)

(40,397)

 

Impact on condensed consolidated statement of financial position

 

Non-current assets - Biological assets

$000

Property, plant and equipment

$000

Deferred tax

$000

Current assets - Biological assets

$000

Revaluation reserves

$000

Exchange reserves

$000

Retained earnings

$000

Non-controlling interests

$000

 

6 months to 30 June 2015 (unaudited & restated)

Balance as reported 30 June 2015

225,728

217,241

(34,929)

-

(56,468)

220,612

(521,828)

(84,735)

Effect of restatement during the period

(225,728)

121,272

14,287

7,079

12

(6,014)

78,290

10,802

Restated balance at 30 June 2015

-

338,513

(20,642)

7,079

(56,456)

214,598

(443,538)

(73,933)

Year to 31 December 2015 (audited & restated)

Balance as reported 31 December 2015

179,010

219,990

(20,911)

-

(59,594)

234,490

(504,892)

(82,607)

Effect of restatement during the year

(179,010)

90,177

2,314

3,673

22

(8,868)

81,672

10,020

Restated balance at 31 December 2015

-

310,167

(18,597)

3,673

(59,572)

225,622

(423,220)

(72,587)

 

3. Foreign exchange

 

 

2016

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited)

(audited)

Average exchange rates

Rp : $

13,420

12,968

13,392

$ : £

1.43

1.52

1.53

RM : $

4.10

3.64

3.91

Closing exchange rates

Rp : $

13,180

13,332

13,795

$ : £

1.34

1.57

1.48

RM : $

4.03

3.78

4.29

 

 

4. Finance costs

 

2016

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited)

(audited)

$000

$000

$000

Payable

835

1,004

2,010

 

 

5. Segment information

 

North

Sumatera

Bengkulu

South Sumatera

Riau

Bangka

Kalimantan

Total Indonesia

Malaysia

UK

Total

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

6 months to 30 June 2016 (unaudited)

Total sales revenue (all external)

- - CPO

33,302

30,876

1

11,771

5

7,526

83,481

1,637

-

85,118

- - Rubber

441

-

-

-

-

-

441

-

-

441

- - Biomass products

107

-

-

-

-

-

107

-

-

107

Other income

90

252

-

27

-

9

378

-

-

378

Total revenue

33,940

31,128

1

11,798

5

7,535

84,407

1,637

-

86,044

Profit / (loss) for the period before tax

9,377

7,971

(2,453)

3,415

(78)

479

18,711

148

615

19,474

Depreciation

(1,920)

(1,934)

(799)

(439)

6

(1,601)

(6,687)

(330)

-

(7,017)

Inter-segment transactions

1,683

(1,060)

(384)

(305)

-

(637)

(703)

673

30

-

Income tax

(3,816)

(1,309)

1,634

(1,286)

25

673

(4,079)

(116)

(1,277)

(5,472)

Total Assets

160,798

113,213

31,069

38,053

10,363

102,449

455,945

23,296

4,695

483,936

Non-Current Assets

97,092

74,309

29,340

19,851

10,142

94,537

325,271

18,435

578

344,284

Non-Current Assets - Additions

3,353

1,576

1,228

525

254

6,399

13,335

31

-

13,366

 

 

5. Segment information (continued)

 

North

Sumatera

Bengkulu

South Sumatera

Riau

Bangka

Kalimantan

Total Indonesia

Malaysia

UK

Total

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

6 months to 30 June 2015 (unaudited & restated)

Total sales revenue (all external)

- - CPO

36,594

38,458

38

21,377

-

3,615

100,082

1,691

-

101,773

- - Rubber

633

-

-

-

-

-

633

-

-

633

- - Biomass products

299

-

-

-

-

-

299

-

-

299

Other income

553

302

2

362

-

-

1,219

28

-

1,247

Total revenue

38,079

38,760

40

21,739

-

3,615

102,233

1,719

-

103,952

Profit / (loss) for the period before tax

10,239

8,308

(548)

8,651

15

(4,287)

22,378

(311)

(310)

21,757

Depreciation

(1,977)

(1,977)

(237)

(376)

14

(1,369)

(5,922)

(407)

-

(6,329)

Inter-segment transactions

1,835

(1,078)

(380)

(310)

-

(619)

(552)

522

30

-

Income tax

(3,824)

(1,622)

649

(2,263)

3

1,247

(5,810)

(248)

(25)

(6,083)

Total Assets

146,792

108,695

46,638

55,718

12,535

94,122

464,500

23,854

4,415

492,769

Non-Current Assets

93,132

72,314

45,034

17,308

12,375

87,717

327,880

18,198

1,193

347,271

Non-Current Assets - Additions

3,520

1,342

1,812

584

646

11,689

19,593

101

-

19,694

 

 

 

5. Segment information (continued)

 

North

Sumatera

Bengkulu

South Sumatera

Riau

Bangka

Kalimantan

Total Indonesia

Malaysia

UK

Total

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Year to 31 December 2015 (audited & restated)

Sales revenue (all external)

- - CPO

67,978

73,661

37

37,129

1

11,426

190,232

3,132

-

193,364

- - Rubber

1,075

-

-

-

-

-

1,075

-

-

1,075

- - Biomass products

327

-

-

-

-

-

327

-

-

327

Other income

513

812

10

225

38

87

1,685

-

-

1,685

Total revenue

69,893

74,473

47

37,354

39

11,513

193,319

3,132

-

196,451

Profit / (loss) for the year before tax

12,799

15,032

(22,905)

15,216

(1,061)

(10,828)

8,253

(783)

(1,043)

6,427

Depreciation

(3,809)

(3,824)

(309)

(842)

37

(2,905)

(11,652)

(753)

-

(12,405)

Inter-segment transactions

3,546

(2,169)

(765)

(624)

-

(1,427)

(1,439)

1,157

282

-

Income tax

(7,309)

(3,053)

1,373

(3,868)

-

2,647

(10,210)

(70)

(105)

(10,385)

Total Assets

145,288

105,275

27,361

54,020

9,606

90,734

432,284

21,628

4,294

458,206

Non-Current Assets

91,516

71,341

26,243

18,929

9,451

85,592

303,072

17,578

1,193

321,843

Non-Current Assets - Additions

8,923

3,623

4,219

2,658

1,012

17,986

38,421

141

-

38,562

 

 

5. Segment information (continued)

 

In the 6 months to 30 June 2016, revenues from 4 customers of the Indonesian segment represent approximately $47.5m of the Group's total revenues. In the year of 2015, revenues from 4 customers of the Indonesian segment represent approximately $107.2m of the Group's total revenues. An analysis of these revenues is provided below. Although Customer 1 to 3 are 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 2015.

 

2016

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited)

(audited)

$m

%

$m

%

$m

%

Major Customers

Customer 1

16.9

19.6

19.7

18.9

35.1

17.9

Customer 2

13.6

15.8

16.9

16.2

32.6

16.6

Customer 3

10.7

12.4

14.7

14.2

19.9

10.1

Customer 4

6.4

7.5

10.1

9.7

19.6

10.0

Total

47.6

55.3

61.4

59.0

107.2

54.6

 

 

6. Tax

 

2016

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited & restated)

(audited & restated)

$000

$000

$000

Foreign corporation tax - current year

7,963

8,155

15,069

Foreign corporation tax - prior year

-

-

208

Deferred tax adjustment - current year

(2,491)

(2,072)

(4,892)

5,472

6,083

10,385

 

 

7. Dividend

The final and only dividend in respect of 2015, amounting to 1.75p per share, or $1,002,785 was paid on 11 July 2016 (2014: 3.0p per share, or $1,869,091, paid on 10 July 2015). As in previous years no interim dividend has been declared.

 

 

8. Earnings per ordinary share (EPS)

 

2016

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited & restated)

(audited & restated)

$000

$000

$000

Earnings used in basic and diluted EPS

10,852

12,640

 

(7,981)

Number

Number

Number

'000

'000

'000

Weighted average number of shares in issue in period

- used in basic EPS

39,636

39,636

39,636

- dilutive effect of outstanding share options

-

43

 

-

- used in diluted EPS

39,636

39,679

39,636

 

Shares in issue at period end

39,976

39,976

39,976

Less: Treasury shares

(340)

(340)

(340)

Shares in issue at period end excluding treasury shares

39,636

39,636

39,636

Basic EPS

27.38cts

31.89cts

(20.14)cts

Dilutive EPS

27.38cts

31.86cts

(20.14)cts

 

 

9. 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:  

 

2016

2015

2015

6 months

6 months

Year

to 30 June

to 30 June

to 31 December

(unaudited)

(unaudited)

(audited)

Carrying amount

Fair value

Carrying amount

Fair value

Carrying amount

Fair value

$000

$000

$000

$000

$000

$000

Non-current receivables

Due from non-controlling interests

578

424

1,193

924

1,193

924

Due from cooperatives under Plasma scheme

2,987

2,843

1,612

1,527

2,231

2,056

Due from village smallholder schemes

-

-

239

220

231

213

3,565

3,267

3,044

2,671

3,655

3,193

Borrowings due after one year

Long term loan

31,234

31,433

34,375

34,499

32,875

32,306

 

Financial instruments not measured at fair value includes 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.

 

 

9. Fair value measurement of financial instruments (continued)

 

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 non-controlling interests

Based on cash flows discounted using current lending rate of 6% (1H 2015 and 2015: 6%)

 

Discount rate

The higher the discount rate, the lower the fair value

 

Due from cooperatives under Plasma scheme

Based on cash flows discounted using an estimated current lending rate of 5.57% (1H 2015: 5.55%, 2015: 5.57%)

 

Discount rate

The higher the discount rate, the lower the fair value

 

Borrowings due after one year

Long term loan

Based on cash flows discounted using an estimated current lending rate of 5.57% (1H 2015: 5.55%, 2015: 5.57%)

 

Discount rate

The higher the discount rate, the lower the fair value

 

 

10. Report and financial information

 

Copies of the interim report for the Group for the period ended 30 June 2016 are available on the AEP website at www.angloeastern.co.uk.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LLFFLTIIEFIR
Date   Source Headline
6th Mar 20247:00 amRNSTransaction in Own Shares
4th Mar 20247:00 amRNSTransaction in Own Shares
29th Feb 20247:00 amRNSTransaction in Own Shares
20th Feb 20247:00 amRNSTransaction in Own Shares
16th Feb 20247:00 amRNSTransaction in Own Shares
14th Feb 20247:00 amRNSTransaction in Own Shares
2nd Feb 20243:46 pmRNSFirst Commercial BioCNG Plant Completed
31st Jan 20247:00 amRNSTransaction in Own Shares
30th Jan 20247:00 amRNSTransaction in Own Shares
11th Jan 20247:00 amRNSTransaction in Own Shares
9th Jan 20247:00 amRNSTransaction in Own Shares
29th Dec 20239:05 amRNSTransaction in Own Shares
28th Dec 20237:00 amRNSTransaction in Own Shares
21st Dec 202312:31 pmRNSUpdate Statement on 2023 Annual GM Voting Results
21st Dec 20237:00 amRNSTransaction in Own Shares
18th Dec 20237:00 amRNSTransaction in Own Shares
15th Dec 20237:00 amRNSTransaction in Own Shares
14th Dec 20237:00 amRNSTransaction in Own Shares
13th Dec 20239:09 amRNSTransaction in Own Shares
8th Dec 20237:00 amRNSTransaction in Own Shares
4th Dec 20237:00 amRNSTransaction in Own Shares
30th Nov 20239:29 amRNSConsolidation of Holdings-Indonesian Subsidiaries
29th Nov 20237:00 amRNSTransaction in Own Shares
24th Nov 20237:00 amRNSTransaction in Own Shares
16th Nov 20237:00 amRNSTransaction in Own Shares
14th Nov 20237:00 amRNSTransaction in Own Shares
13th Nov 20237:00 amRNSTransaction in Own Shares
9th Nov 20237:00 amRNSTransaction in Own Shares
7th Nov 20237:00 amRNSTransaction in Own Shares
6th Nov 20237:00 amRNSTrading Statement
2nd Nov 20237:00 amRNSTransaction in Own Shares
31st Oct 20237:00 amRNSTransaction in Own Shares
25th Oct 20237:00 amRNSTransaction in Own Shares
20th Oct 20238:59 amRNSTransaction in Own Shares
19th Oct 20237:00 amRNSTransaction in Own Shares
12th Oct 20237:00 amRNSTransaction in Own Shares
10th Oct 20237:00 amRNSTransaction in Own Shares
6th Oct 20237:00 amRNSTransaction in Own Shares
5th Oct 20237:00 amRNSTransaction in Own Shares
28th Sep 20237:00 amRNSTransaction in Own Shares
26th Sep 20237:00 amRNSTransaction in Own Shares
25th Sep 20237:00 amRNSTransaction in Own Shares
19th Sep 202310:00 amRNSDividend Declaration
19th Sep 20237:00 amRNSTransaction in Own Shares
15th Sep 20238:59 amRNSTransaction in Own Shares
14th Sep 20237:00 amRNSTransaction in Own Shares
13th Sep 20237:00 amRNSTransaction in Own Shares
12th Sep 20237:00 amRNSTransaction in Own Shares
8th Sep 20237:00 amRNSTransaction in Own Shares
5th Sep 20237:00 amRNSTransaction in Own Shares

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.