Anglo-Eastern Plantations Regulatory News (AEP)

28 Aug 2007 07:02

Anglo-Eastern Plantations PLC28 August 2007 Tuesday 28 August 2007 ANGLO-EASTERN PLANTATIONS - INTERIM ANNOUNCEMENT Anglo-Eastern Plantations Plc (AEP.L), which operates approximately 36,400hectares (ha) of developed plantations, primarily oil palm in Indonesia,announces a doubling of interim pre-tax profit and expectations of a furthersignificant improvement in profit in 2007. FINANCIAL HIGHLIGHTS • Revenue increased by 37% to $44.1m. • Operating profit increased by 102% to $17.1m, before biological asset (BA) adjustment, and by 98% to $17.5m, after BA adjustment. • Pre-tax profit increased by 103% to $17.3m, before BA adjustment, and by 100% to $17.7m, after BA adjustment. • Basic and diluted EPS increased by 128% to 24.4cts, before BA adjustment, and by 123% to 25.0cts, after BA adjustment, reflecting a reduced tax charge. • As was reported in the AGM Statement of 1 June 2007, revenue reflects the sale in March 2007 of about 33% of the group's production through to December 2007 at an average price of $604/mt. Revenue foregone in the first half is estimated at $3.3m. • Net cash remained largely unchanged at $9.0m compared to $9.6m at 31 December 2006 despite acquisition expenditure of $6.2m on Cahaya Pelita Andhika and development expenditure of $8.6m on Labhuan Bilik and completion of the oil mill at Bina Pitri (both of which estates were acquired in 2004). • As usual, no interim dividend has been declared. COMMERCIAL HIGHLIGHTS • The market average crude palm oil (CPO) price for the six months to 30 June 2007 of $683/mt compared to $433/mt in the same period of 2006. • Total group crops were 2.5% below the same period last year and 9% below expectations, reflecting the effect of the severe drought in the second half of 2006 on the crops in Bengkulu and Malaysia. • In June 2007, AEP acquired for $6.2m a 90% interest in Cahaya Pelita Andhika, an Indonesian company operating an estate of 4,470ha, of which about 1,020ha are planted and mature, bringing the group's total land area to 49,300ha. • In the seven months to 31 July 2007, 1,860ha were planted - 1,540ha at Labhuan Bilik and 320ha at Bengkulu. Mr Chan Teik Huat, Chairman and Chief Executive, stated "While total group cropsin the second half to date have continued to be uneven, and the pattern betweenthe estates continues, there are now signs that monthly production will returnto expectations in the last quarter of the year. If current CPO prices of around$800/mt are maintained for the rest of the year and assuming no material changesin Indonesian government policies towards the palm oil industry, then, barringunforeseen events, the group can expect a further significant improvement inprofit in 2007." Enquiries:Anglo-Eastern Plantations Plc Rollo Barnes (Financial Director) 020-7236 2838 Bankside Consultants Limited Charles Ponsonby 020- 7367 8851 CHAIRMAN'S INTERIM STATEMENT Group operating profit for the first half of 2007 was $17.1 million, beforebiological asset adjustment (BA adjustment). This was double that of the sameperiod in 2006 and a record for any of the group's first half results. The majorcontributor to the satisfactory performance was a 40% improvement in crude palmoil (CPO) prices between January, when they were already at a strong level, andJune. As the chairman's statement in the 2006 annual report warned, the severedrought in Sumatra in the second half of that year has continued to have anadverse effect on crops in 2007. In the six months to 30 June 2007 CPOproduction was 12% below expectations, and 1% below production in the sameperiod last year. The other principal features of the period were: • the purchase of a neglected palm oil estate, Cahaya Pelita Andhika (CPA), which we hope will be as successful as our purchase of Bina Pitri in 2004; • the establishment of a loan facility of $34.5 million to fund further possible acquisitions. Profit before tax was $17.7 million, compared to $8.9 million in the same periodin 2006. This includes a credit of $0.4 million, broadly unchanged from the sameperiod in 2006, in respect of the BA adjustment required by internationalaccounting standards. This adjustment has no bearing on underlying tradingperformance or cash generation. An improvement in the net cash position of thegroup gave rise to an improvement in net interest income of $ 0.2 million. Theprofit for the period also includes a one-off profit of $0.6 million on sale ofa portfolio investment, included under 'Other Income'. Earnings per share before BA adjustment were 24.4cts compared to 10.7cts in thesame period of 2006 - an increase of 128%. The more than proportionate increasein EPS compared to pre tax profit relates to the switch to profitability of theMalaysian estates in the first half of 2007 compared to losses in the sameperiod in 2006. No tax is payable on these profits because of losses broughtforward from previous years. Also withholding tax is little changed compared tothe increased profits. Production and Sales 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) mt mt mt Oil palm production FFB - all estates 227,569 231,593 513,902 - bought-in or processed for third parties 119,096 126,291 294,647 Saleable CPO 69,263 69,803 156,285 Saleable palm kernels 16,411 16,403 36,569 Oil palm sales CPO 66,258 69,918 157,326 Palm kernels 16,262 16,400 36,556 FFB sold outside 23,806 36,877 90,659 Other crops production Rubber 457 453 1,088 Cocoa - 38 46 Fresh fruit bunch (FFB) production was 3.0% higher than last year on the group'sNorth Sumatra estates and 5% higher on Bina Pitri in Riau. Crops from Bengkuluand Malaysia were down 7% and 19% respectively. These two more hilly areasappear to have been severely affected by the drought referred to above; with theresult that total group crops were 2.5% below the same period last year, and 9%below expectations. Bought in crops were also 8% lower than the same period in the previous year,with Tasik particularly affected at 12%. However the new mill at Bina Pitri hasbeen able to establish a firm position in the local crop processing market atreasonable prices. The extraction rate from estate crop at Bina Pitri was also avery satisfactory 23%, though the average fell to 22% with the introduction ofoutside crop. Produce prices CPO prices per tonne, which started the year at $570, increased strongly inApril and since May have oscillated around $800, occasionally reaching $850. Themarket average for the six months to June was $683 compared to $433 in the sameperiod in 2006. In March, believing the price was already very favourable, andto secure our cash position for an impending acquisition (which did notmaterialise) we sold forward about 33% of the group's annual production throughto December 2007 at an average price of $604. This was a departure from ourusual policy. These forward sales accounted for 40% of the group's total salesfor the six months to 30 June 2007, and the revenue forgone, compared to actualprices, is estimated at $3.3 million. In June 2007, in an attempt to reduce high cooking oil prices in the domesticmarket, the Indonesian government increased the export tax on CPO by 5% to 6.5%.Although we sell all our CPO locally, this tax has a direct effect on ex-factoryprices. If it remains at this level, then it will reduce group sales revenue byabout $2.2 million in the second half of 2007. Although throughout at a very profitable level, rubber prices fell in the secondhalf of 2006 from their all time high of $2,750/mt in June 2006 to $1,500/mt inNovember 2006, but in the first half of 2007 they have recovered to average$2,200/mt. Our small area of rubber therefore made a useful contribution. DevelopmentThe group's planted areas at 30 June 2007 were:- Total Mature Immature ha ha ha North Sumatra 12,806 11,078 1,728 Riau 4,940 3,967 973 Bengkulu 15,004 11,819 3,185 --------- --------- --------- Indonesia 32,750 26,864 5,886 Malaysia 3,696 3,425 271 --------- --------- --------- Total: 30 June 2007 36,446 30,289 6,157 --------- --------- --------- Total: 31 December 2006 33,929 27,824 6,105 --------- --------- --------- Total: 30 June 2006 33,121 27,839 5,282 --------- --------- --------- In June 2007, we acquired a 90% interest in PT Cahaya Pelita Andhika, anIndonesian company operating an estate of 4,470 ha of which about 1,020 ha areplanted and mature. The balancing 10% interest will be held by one of ourexisting local partners. There is a valid Hak Guna Usaha (HGU) land title whichexpires in 2029 and is renewable for about another 60 years. The estate islocated on the west coast of North Sumatra near the town of Sibolga and about180km from our nearest existing estate, Tasik. The property is very overgrownbut we believe the density of trees is reasonable and are comfortable that ourmanagement and labour can rehabilitate the property successfully. There is nomill and, for the next few years until we build one, it will be necessary totransport the crop to Tasik. We do not expect this estate to make a materialimpact on group results for at least two years. Planting at Labuhan Bilik has been progressing satisfactorily - 1,540 ha in theseven months to July 2007 making 1,890 ha in total since development began inMarch 2006. Total planted area of this estate is now expected to exceed 4,000ha. In spite of possession of a formal title, planting of the final 1,100 ha inBengkulu has been slowed by compensation claims from local villagers. It isimportant these are handled sensitively and fairly, which requires considerablemanagement time. 320 ha have been planted so far in 2007. When complete theBengkulu estates will total 15,850 ha. The total area of the group remaining for planting in Indonesia is now 7,000 hawhich we expect to be complete by 2009. We continue our search, for eitherexisting estates or unplanted land, preferably near our existing estates butalso farther afield. Outlook While total group crops in the second half to date have continued to be uneven,and the pattern between estates remains as described above, there are now signsthat monthly production will return to expectations in the last quarter of theyear. If current CPO prices of around $800/mt are maintained for the rest of the yearand assuming no material changes in Indonesian government policies towards thepalm oil industry, then, barring unforeseen events, the group can expect afurther significant improvement in profit for 2007 Chan Teik Huat 28 August 2007Chairman and Chief Executive CONSOLIDATED INCOME STATEMENT 2007 2006 2006 6 months to 30 June 6 months to 30 June year to 31 December (unaudited) (unaudited) (audited) --------- ---- --------- -------- -------- --------- -------- -------- --------- -------- -------- Continuing Result Result BA Result operations before BA BA before BA adjust before BA BA adjust adjust adjust ment adjust adjust ment mant Total mnet Total Total ment ment Total Notes $000 $000 $000 $000 $000 $000 $000 $000 $000 --------- ---- --------- -------- -------- --------- -------- -------- --------- -------- --------Revenue 44,071 44,071 32,185 32,185 79,094 79,094Cost of sales (25,569) (25,569) (22,227) (22,227) (50,089) (50,089)--------- ---- --------- -------- -------- --------- -------- -------- --------- -------- --------Gross profit 18,502 18,502 9,958 9,958 29,005 29,005Biologicalassetrevaluationmovement (BAadjustment) 2 402 402 345 345 2,312 2,312Other income 697 697 14 14 13 13Administrationexpenses (2,080) (2,080) (1,474) (1,474) (2,748) (2,748)--------- ---- --------- -------- -------- --------- -------- -------- --------- -------- --------Operatingprofit 17,119 402 17,521 8,498 345 8,843 26,270 2,312 28,582Exchange losses 3 (84) (84) (31) (31) 368 368Finance income 563 563 244 244 538 538Finance costs 4 (295) (295) (191) (191) (448) (448)--------- ---- --------- -------- -------- --------- -------- -------- --------- -------- --------Profit beforetax 5 17,303 402 17,705 8,520 345 8,865 26,728 2,312 29,040Tax 6 (5,762) (121) (5,883) (3,528) (103) (3,631) (8,595) (694) (9,289)--------- ---- --------- -------- -------- --------- -------- -------- --------- -------- --------Profit for theperiod 11,541 281 11,822 4,992 242 5,234 18,133 1,618 19,751--------- ---- --------- -------- -------- --------- -------- -------- --------- -------- --------Attributable to:- equityholders of theparent 9,638 217 9,855 4,217 185 4,402 15,153 1,321 16,474- minorityinterests 1,903 64 1,967 775 57 832 2,980 297 3,277--------- ---- --------- -------- -------- --------- -------- -------- --------- -------- -------- 11,541 281 11,822 4,992 242 5,234 18,133 1,618 19,751--------- ---- --------- -------- -------- --------- -------- -------- --------- -------- --------Earnings pershare- basic 25.0cts 11.2cts 41.7cts- diluted 25.0cts 11.2cts 41.7cts CONSOLIDATED STATEMENT OF TOTAL RECOGNISED INCOME AND EXPENSES 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) Notes $000 $000 $000 Profit for the period 11,822 5,234 19,751 Unrealised surplus/(deficit) on 10 3,936 (5,075) 6,016 revaluation of the estates Deferred tax on revaluation 10 (774) 427 (3,327) (Loss)/profit on exchange translation 10 (109) 7,087 11,718 ------------------------ ------ --------- --------- -------- Total recognised income and expense 14,875 7,673 34,158 for the period ------------------------ ------ --------- --------- -------- Attributable to: - equity holders of the parent 12,058 6,450 28,002 - minority interest 2,817 1,223 6,156 ------------------------ ------ --------- --------- -------- 14,875 7,673 34,158 ------------------------ ------ --------- --------- -------- CONSOLIDATED BALANCE SHEET 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) Notes $000 $000 $000 Non-current assets Biological assets 2 34,163 28,542 33,255 Property, plant and equipment 142,057 108,001 127,568 Receivables 1,363 1,071 1,071 ------------------------ ------ --------- --------- -------- 177,583 137,614 161,894 ------------------------ ------ --------- --------- -------- Current assets Inventories 4,301 2,504 1,785 Tax receivables 1,669 1,770 2,684 Trade and other receivables 2,167 2,032 1,918 Cash and cash equivalents 28,636 7,010 17,246 ------------------------ ------ --------- --------- -------- 36,773 13,316 23,633 ------------------------ ------ --------- --------- -------- Current liabilities Bank loans and other financial liabilities (4,772) (2,361) (2,167) Trade and other payables (6,705) (4,966) (5,308) Tax liabilities (3,366) (2,118) (3,235) ------------------------ ------ --------- --------- -------- (14,843) (9,445) (10,710) ------------------------ ------ --------- --------- -------- Net current assets 21,930 3,871 12,923 ------------------------ ------ --------- --------- -------- Non-current liabilities Bank loans and other financial liabilities (14,867) (3,077) (5,454) Deferred tax liabilities (22,226) (16,730) (21,152) Retirement benefit net (1,235) (610) (834) liabilities ------------------------ ------ --------- --------- -------- Net assets 5 161,185 121,068 147,377 ------------------------ ------ --------- --------- -------- Equity Share capital 15,495 15,484 15,495 Treasury shares (1,387) (1,387) (1,387) Share premium reserve 10 23,904 23,869 23,904 Share capital redemption reserve 10 1,087 1,087 1,087 Revaluation and exchange reserves 10 4,610 (7,073) 2,407 Retained earnings 10 90,305 68,378 80,450 ------------------------ ------ --------- --------- -------- Equity attributable to equity holders of 134,014 100,358 121,956 the parent Minority interests 27,171 20,710 25,421 ------------------------ ------ --------- --------- -------- Total equity 161,185 121,068 147,377 ------------------------ ------ --------- --------- -------- CONSOLIDATED CASH FLOW STATEMENT 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 Operating profit 17,540 8,843 28,582 Adjustments for: Biological asset adjustment (402) (345) (2,312) (Profit)/loss on disposal of fixed and current asset investments (549) (25) 158 Depreciation 2,019 1,711 3,551 Share based remuneration expense 20 14 20 Retirement benefit provisions 401 4 232 Foreign exchange 1,619 179 715 ------------------------ ------ --------- --------- -------- Operating cash flow before changes in working capital 20,648 10,381 30,946 (Increase)/decrease in inventories (2,516) (5) 714 (Increase)/decrease in trade and other receivables (249) (29) 85 Increase in trade and other payables 1,021 1,469 1,007 ------------------------ ------ --------- --------- -------- Cash flow from operations 18,904 11,816 32,752 Interest paid (381) (229) (541) Overseas tax paid (4,437) (4,432) (9,321) ------------------------ ------ --------- --------- -------- Net cash flow from operations 14,086 7,155 22,890 ------------------------ ------ --------- --------- -------- Investing activities Property, plant and equipment - purchase (8,641) (6,766) (15,370) - sale 25 105 119 Purchase of subsidiary 9 (6,226) - - Interest received 563 244 538 ------------------------ ------ --------- --------- -------- Net cash used in investing activities (14,279) (6,417) (14,713) ------------------------ ------ --------- --------- -------- CONSOLIDATED CASH FLOW STATEMENT (continued) 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 Financing activities Dividends paid by parent company - (3,560) (3,560) Share options exercised - 4 50 Repayment of existing long term loans (848) (819) (1,645) Drawdown of new long term loan 10,000 - 3,200 Finance lease drawdown/(repayment) 40 (31) (11) Dividends paid to minority shareholders (711) (1,032) (460) Repayment by minority shareholders 286 - - New loan to minority shareholders (578) - - Purchase of portfolio investments (1,668) - - Receipt from sale of portfolio investments 2,236 271 267 ------------------------ --------- --------- -------- Net cash used in financing activities 8,757 (5,167) (2,159) ------------------------ --------- --------- -------- Increase/(decrease) in cash and cash equivalents 8,564 (4,429) 6,018 Cash and cash equivalents less overdrafts At beginning of period 16,823 10,805 10,805 ------------------------ --------- --------- -------- At end of period 25,387 6,376 16,823 ------------------------ --------- --------- -------- ANALYSIS OF NET CASH 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 Cash at end of period 28,636 7,010 17,246 Overdraft at end of period (3,249) (634) (423) --------- --------- -------- 25,387 6,376 16,823 Borrowings due within one year (1,471) (1,687) (1,694) Borrowings due after one year (14,762) (3,020) (5,388) Finance leases (157) (97) (116) ------------------------ --------- --------- -------- 8,997 1,572 9,625 ------------------------ --------- --------- -------- NOTES TO THE INTERIM STATEMENTS 1. Basis of preparation of interim financial statements The financial information in this statement does not constitute full statutoryaccounts within the meaning of Section 240 of the Companies Act 1985. Fullstatutory accounts for the year ended 31 December 2006 have been delivered tothe Registrar of Companies. Those accounts received an unqualified audit reportwhich did not contain statements under Section 273(2) or (3) of the CompaniesAct 1985. The interim statements for the six months ended 30 June 2007 and 30 June 2006are unaudited. Those for the six months ended 30 June 2007 were approved by theboard on 28 August 2007. The statements are prepared in accordance withInternational Financial Reporting Standards (IFRS and IFRIC interpretations)issued by the International Accounting Standards Board (IASB) as adopted by theEU, which the group expects to be applicable as at 31 December 2007, and withthose parts of the Companies Act 1985 applicable to companies preparing accountsunder IFRS. IFRS are subject to amendment and interpretation by the IASB andthere is an ongoing process of review and endorsement by the EuropeanCommission. The comparative figures for the year ended 31 December 2006 are anextract from the audited financial statements for the year. 2. Biological assets Group fixed assets are valued in total on the same "value in use" basis asdisclosed in the group's accounting policies within the annual financialstatements. Within this total, the value of biological assets has been estimatedseparately and, as required by IAS41, the movement in valuation surplus ofbiological assets has been charged or credited (BA adjustment) to the incomestatement for the relevant period. 3. Foreign exchange 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) Average exchange rates Rp : $ 9,052 9,166 9,141 $ : £ 1.98 1.80 1.86 RM : $ 3.46 3.68 3.66 Closing exchange rates Rp : $ 9,054 9,300 9,020 $ : £ 2.01 1.85 1.96 RM : $ 3.45 3.67 3.53 4. Finance costs 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 Payable 381 229 541 Capitalised (86) (38) (93) --------- --------- -------- 295 191 448 --------- --------- -------- 5. Segment information Profit/(loss) before tax ---------------------- --------- --------- -------- 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 North Sumatra 11,188 6,529 19,080 Bengkulu 5,758 3,148 9,130 Riau 735 391 2,084 --------- --------- -------- Total Indonesia 17,681 10,068 30,294 Malaysia 302 (353) 132 UK (278) (850) (1,386) --------- --------- -------- Total 17,705 8,865 29,040 --------- --------- -------- Net assets ---------------------- --------- --------- -------- 2007 2006 2006 30 June 30 June 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 North Sumatra 63,565 44,101 60,150 Bengkulu 52,546 49,473 51,726 Riau 15,995 7,575 13,176 --------- --------- -------- Total Indonesia 132,106 101,149 125,052 Malaysia 20,315 18,368 20,113 UK 8,764 1,551 2,212 --------- --------- -------- Total 161,185 121,068 147,377 --------- --------- -------- 6. Tax 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 Foreign corporation tax 5,101 2,783 7,794 Foreign withholding tax 482 509 590 Deferred tax adjustment 300 339 905 --------- --------- -------- 5,883 3,631 9,289 --------- --------- -------- 7. Dividend The final and only dividend in respect of 2006, amounting to 10.80cts per share,or $4,265,000, was paid on 9 July 2007. (2005: 8.80cts per share, or $3,560,000,paid on 28 June 2006). In common with previous years no interim dividend hasbeen declared. 8. Earnings per share 2007 2006 2006 6 months 6 months Year to 30 June to 30 June to 31 Dec (unaudited) (unaudited) (audited) $000 $000 $000 Earnings before BA adjustment 9,639 4,217 15,153 Net BA adjustment 217 185 1,321 --------- --------- -------- Earnings after BA adjustment 9,856 4,402 16,474 --------- --------- -------- Number Number Number Weighted average number of shares in issue in period - used in basic EPS 39,490 39,467 39,478 - dilutive effect of outstanding share 73 60 55 options --------- --------- -------- - used in diluted EPS 39,563 39,527 39,533 --------- --------- -------- Shares in issue at period end excluding 468,000 shares held in treasury 39,490 39,468 39,490 --------- --------- -------- Basic earnings per share before 24.4 cts 10.7 cts 38.3 cts BA adjustment Basic earnings per share after 25.0 cts 11.2 cts 41.7 cts BA adjustment There is no significant difference between basic and diluted earnings per share. 9. Acquisition In June 2007 the group acquired a 90% interest in PT Cahaya Pelita Andhika (CPA)for a consideration of $6,226,000, including borrowings of $1,024,000. CPA ownsa planted oil palm estate of 4,469 ha in North Sumatra. This acquisition wasaccounted for by the acquisition method and the assets and liabilities of CPAwere brought into the group financial statements at a fair value equivalent tothe consideration paid. The assets and liabilities and their fair valueadjustment were assessed as follows: Book Revaluation value to fair value Fair value $000 $000 $000 Fixed assets 1,255 5,549 6,804 Cash - - - Current borrowings (1,024) - (1,024) Other net current (liabilities) - - - --------- --------- -------- Net assets acquired 231 5,549 5,780 --------- --------- -------- Group share - 90% 5,202 -------- 10. Reserves and minority interests Attributable to equity holders of the parent ------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Share capital redemp Revalua Foreign Share Treasury Share tion tion exchange Retained Minority Total capital shares premium reserve Reserve reserve earnings Total interests equity $000 $000 $000 $000 $000 $000 $000 $000 $000 $000Balance at 31December 2005 15,481 (1,387) 23,868 1,087 71,160 (80,281) 67,536 97,464 20,519 117,983------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Direct changes inequity for 2005Unrealisedsurplus/(deficit) onrevaluation ofestates - - - - 5,502 (853) - 4,649 1,367 6,016Deferred taxon revaluation - - - - (3,014) 256 - (2,758) (569) (3,327)Profit onexchangetranslation - - - - - 9,637 - 9,637 2,081 11,718------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Net income andexpenserecogniseddirectly inequity - - - - 2,488 9,040 - 11,528 2,879 14,407Profit for year - - - - - - 16,474 16,474 3,277 19,751------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Totalrecognisedincome andexpense forthe year - - - - 2,488 9,040 16,474 28,002 6,156 34,158Dividends paid - - - - - - (3,560) (3,560) (1,254) (4,814)Share capitalsubscription 14 - 36 - - - - 50 - 50------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Balance at 31December 2006 15,495 (1,387) 23,904 1,087 73,648 (71,241) 80,450 121,956 25,421 147,377------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Direct changes inequity for six monthsto 30 June 2007Unrealisedsurplus onrevaluation ofestates - - - - 2,912 - - 2,912 1,024 3,936Deferred taxon revaluation - - - - (613) - - (613) (161) (774)(Loss)/profiton exchangetranslation - - - - - (96) - (96) (13) (109)------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Net income andexpenserecogniseddirectly inequity - - - - 2,299 (96) - 2,203 850 3,053Profit forperiod - - - - - - 9,855 9,855 1,967 11,822------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Totalrecognisedincome andexpense forthe period - - - - 2,299 (96) 9,855 12,058 2,817 14,875Dividends paid - - - - - - - - (1,067) (1,067)Share capital - - - - - - - - - -subscription ------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Balance at 30June 2007 15,495 (1,387) 23,904 1,087 75,947 (71,337) 90,305 134,014 27,171 161,185------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 10. Reserves and minority interests (continued) Attributable to equity holders of the parent ------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Share capital redemp Revalua Foreign Share Treasury Share tion tion exchange Retained Minority Total capital shares premium reserve Reserve reserve earnings Total interests equity $000 $000 $000 $000 $000 $000 $000 $000 $000 $000Balance at 31December 2005 15,481 (1,387) 23,868 1,087 71,160 (80,281) 67,536 97,464 20,519 117,983------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Direct changes in equity forsix months to 30 June 2005Unrealised(deficit) onrevaluation ofestates - - (4,112) - - (4,112) (963) (5,075)Deferred taxon revaluation - - - - 315 - - 315 112 427Profit onexchangetranslation - - - - - 5,845 - 5,845 1,242 7,087------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Net income andexpenserecogniseddirectly inequity - - - - (3,797) 5,845 - 2,048 391 2,439Profit forperiod - - - - - - 4,402 4,402 832 5,234------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Totalrecognisedincome andexpense forthe period - - - - (3,797) 5,845 4,402 6,450 1,223 7,673Dividends paid - - - - - - (3,560) (3,560) (1,032) (4,592)Share capital subscription 3 - 1 - - - - 4 - 4------------------- ------- ------- ------- -------- -------- ------- ------- ------- ------- -------Balance at 30June 2006 15,484 (1,387) 23,869 1,087 67,363 (74,436) 68,378 100,358 20,710 121,068--------------------- ------- ------- ------- -------- ------- ------- ------- ------- ------- ------- This information is provided by RNS The company news service from the London Stock Exchange