REG - AEP Plantations PLC - Final results for the year ended 31 December 2025
30/04/2026 13:00
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RNS Number : 6377C AEP Plantations PLC 30 April 2026
30 April 2026
AEP Plantations Plc
("AEP", "Group" or "Company")
Audited results for the year ended 31 December 2025
AEP, which owns, operates and develops sustainable palm-oil production in
Indonesia and Malaysia, today announces its audited results for the year ended
31 December 2025.
Key highlights
Financial & Corporate
· Revenues rose by 25% to $465.2 million (2024:$372.3 million), as
a result of higher production volumes and stronger Crude Palm Oil ("CPO") and
Palm Kernel ("PK") prices during the year
· Profit before tax increased by 35% to $119.3 million (2024: $88.1
million), driven by higher production volumes and stronger CPO and PK prices,
as well as profit from third-party crop purchases
· Earnings per share increased by 35% to 231.42 cents (2024: 170.88
cents), reflecting the stronger operating performance for the year
· Dividend for the year 81.0 cents per share (2024: 51.0 cents per
share) with proposed final dividend per share of 43.7 cents
· Cash and cash equivalents as at 31 December 2025 of $232.3
million (2024: $181.9 million)
· In 2025, the Group repurchased 707,762 Shares at a total cost of
£8.7 million at an average price of £12.20 per Share
· Successful completion of rebranding to AEP Plantations Plc, which
took effect on 24 November 2025
Operational
· Fresh Fruit Bunch ("FFB") production totalled 1.08 million mt, a
6% increase over 1.02 million mt recorded in 2024
· FFB bought-in production increased by 18%, primarily due to new
third-party crop intake at the recently commissioned PT. Hijau Pryan Perdana
Mill (North Sumatra) and Bengkulu region
· CPO production was 7.3% higher at 425.8 thousand mt, compared to
396.7 thousand mt in 2024
· Replanting program - in 2025, 2.4k hectares were replanted, bringing
the cumulative total since 2022 to 6.5k hectares of aged, low-yielding palms
replaced
Post Balance Sheet Events
· Proposed IPO of Indonesian subsidiary, PT AEP Nusantara
Plantations Tbk - a natural progression in aligning the Group's capital
structure with its operational footprint, while broadening its investor base
and enhancing access to local capital markets
Commenting, Chairman Jonathan Law said:
"The Group delivered yet another strong performance in 2025, driven by solid
operational execution and favourable palm oil prices. This resulted in high
production volumes and strong cash generation.
As a result, the Group's financial position has strengthened, providing
greater flexibility to invest in long-term sustainability initiatives such as
replanting, pursue selective growth opportunities, and support shareholder
returns."
Enquiries:
AEP Plantations Plc +44 (0) 20 7216 4621
Marcus Chan Jau Chwen, Executive Director (Corporate Affairs)
Kevin Wong Tack Wee, Group Chief Executive Officer
Montfort
Ann-marie Wilkinson, Shireen Farhana aep@montfort.london
Cavendish Capital Markets Limited - Financial Adviser and Broker +44 (0) 20 7220 0500
Matt Goode, George Lawson, Trisyia Jamaludin (Corporate Finance)
Harriet Ward (Corporate Broking)
Chairman's Statement
We delivered a strong trading performance in 2025, supported by resilient
operational execution and favourable CPO and PK prices. We achieved increased
production volumes and strong cash generation, reflecting both the quality of
our plantation assets and the effectiveness of our operational strategy.
Operationally, we delivered a 6% increase in FFB production, primarily driven
by improved output from young and matured palms in the Bengkulu and
Kalimantan regions in Indonesia.
FFB bought-in production increased by 18%, primarily due to new third-party
crop intake at the recently commissioned PT Hijau Pryan Perdana ("HPP") Mill
(North Sumatra) and Bengkulu region. As a result, total CPO production rose by
7%, while total PK production increased by 13%.
Revenues rose by 25% to $465.2 million (2024: $372.3 million), mainly
attributable to higher production volumes and stronger CPO and PK prices
during the year.
Profit before tax increased by 35% to $119.3 million (2024: $88.1 million),
driven by higher production volumes and stronger CPO and PK prices during the
year. Earnings per share increased by 35% to 231.42 cents (2024: 170.88
cents), reflecting the stronger operating performance for the year.
The strength of our financial performance has further reinforced our balance
sheet and enhanced our strategic flexibility. It enables us to continue
investing in the long-term sustainability of our estates through replanting
programmes, pursue selective growth opportunities, support shareholder returns
and maintain a resilient financial position.
Our achievements also reflect the significant effort and disciplined execution
across our Group over the past year, as our board of directors ("Board") and
management team focused on strengthening the operational and financial
foundations of the business. Priority has been placed on rehabilitating older
plantations, enhancing estate productivity, expanding our Group's land bank
and maintaining a disciplined capital deployment. These initiatives are
intended to reinforce the long-term sustainability and resilience of our
Group's asset base.
Supported by the commitment and dedication of our teams across our Group,
these efforts have contributed to a stronger operational platform and improved
financial performance. Our Group now benefits from a robust balance sheet and
strong cash generation, providing the flexibility to continue investing in the
long-term development of our estates while also returning capital to
shareholders through dividends and share buybacks.
Our Board continues to adopt a disciplined and balanced approach to capital
allocation, ensuring that sufficient resources are retained to support organic
expansion and selective acquisitions, while delivering sustainable returns to
shareholders.
During the year, our Group marked an important milestone with the successful
completion of its rebranding to AEP Plantations Plc, which took effect on 24
November 2025.
This development represents more than a change in name; it reflects the
continuing transformation of our Group as we evolve to meet new opportunities
in a dynamic industry landscape. As the organisation grows in scale,
capability and ambition, the refreshed identity signals our readiness to move
confidently into the next phase of our journey while remaining firmly rooted
in the heritage and values that have guided us for over four (4) decades.
We continue to build on our strong legacy while strengthening our capabilities
to create enduring value for our shareholders, partners, employees, and the
communities in which we operate.
We were also pleased to have been promoted to the FTSE 250 Index, effective 17
September 2025. This advancement followed the substantial appreciation in the
Company's share price and the corresponding growth in its market
capitalisation. Our inclusion in the FTSE 250 reflects the culmination of many
years of disciplined execution, operational resilience, and the unwavering
commitment of our people across the Group. The progress we have achieved has
been built steadily over time through a clear strategic focus, prudent
management of our assets, and the collective efforts of the teams across our
organisation.
GROWTH OPPORTUNITIES AND STRATEGIC EXPANSION
Looking ahead, our Group is entering an exciting new phase of growth, with
Indonesia firmly at the centre of our long-term strategy.
A key pillar of this strategy is the proposed initial public offering of our
Indonesian subsidiary, PT AEP Nusantara Plantations Tbk ("Proposed IPO"). The
Proposed IPO represents a natural progression in aligning our capital
structure with our operational footprint, while broadening our investor base
and enhancing access to local capital markets. It is expected to support
targeted capital expenditure, including infrastructure development and
processing capacity and to accelerate our expansion in Kalimantan.
The Proposed IPO and the potential addition of PT JJU represent a balanced and
complementary growth strategy, combining capital market initiatives,
earnings-accretive acquisitions and operational expansion. These initiatives
reflect a consistent strategic logic: disciplined expansion in markets where
we have demonstrated operational capability, funded from a position of balance
sheet strength. These developments remain subject to the requisite regulatory
approvals, and we will provide further updates in due course as the process
progresses.
Our Board remains committed to pursuing growth in a disciplined and selective
manner, ensuring that all investments are aligned with our strategic
priorities and are expected to be accretive to shareholder value.
SHAREHOLDER RETURNS
AEP delivered outstanding shareholder returns in 2025, with its share price
rising 212% to £19.10, as at 8 April 2026, recording its strongest
performance since the current management team's appointment on 1 October 2024.
This significant uplift reflects our Board and management team's focused and
disciplined execution. Over the past year, we have prioritised rehabilitating
mature plantations, improving estate productivity, expanding our land bank,
and maintaining strict capital discipline. These actions have strengthened our
operational platform, enhanced financial performance, and driven strong cash
generation.
As a result, our Group now benefits from a robust balance sheet and the
financial flexibility to both invest for long-term growth and return capital
to shareholders.
In line with this, our Board has declared a final dividend of 43.7 cents per
Share. With an interim dividend of 37.3 cents per Share already paid, the
total dividend declared for the year ended 31 December 2025 will be 81.0 cents
(2024: 51.0 cents per Share), representing approximately 35% of retained
profits attributable to our Group for the year and higher than our dividend
policy. Subject to shareholder approval at the forthcoming Annual General
Meeting, the final dividend will be paid on 30 July 2026 to shareholders on
the register on 19 June 2026.
In addition to dividend distributions, our Board continues to view share
buybacks as an effective means of enhancing our shareholder value where AEP's
ordinary shares ("Share(s)") are traded at a discount to their underlying
intrinsic value. In 2025, our Group repurchased 707,762 Shares at a total cost
of £8.7 million at an average price of £12.20 per Share. Building on this, a
further share buyback programme of up to £8.0 million was announced in
January 2026.
INVESTOR ENGAGEMENT AND MARKET OUTREACH
During the year, we undertook a step change in our approach to investor
engagement and market outreach. This initiative was led by our Executive
Director, Marcus Chan, who spearheaded a structured programme of meetings and
investor roadshows with both existing and prospective shareholders.
These engagements were supported by a comprehensive investor presentation,
which articulated AEP's strategy, operational footprint, asset quality,
financial strength, sustainability agenda and long-term value proposition. The
objective was to ensure that the market gained a deeper and more accurate
understanding of the fundamentals of our business and the strategic direction
set by our Board.
The feedback received from investors has been constructive and encouraging.
This improved sentiment was further complemented by the initiation of
independent research coverage by our corporate adviser, which recognised the
strategic reset undertaken by our Board and management, the strengthening
operational and financial performance of our Group, and the growing visibility
of AEP's intrinsic value in the market.
I firmly believe that consistent, transparent and proactive communication with
the investment community is critical to building long-term trust, improving
market understanding and supporting sustainable shareholder value creation.
Our Board views this inaugural investor engagement initiative as an important
foundation for more regular and meaningful dialogue with shareholders in the
years ahead.
REPLANTING TO IMPROVE LONG-TERM YIELD
Actual Target
Total 2022 - 2024 2025 2026 Total 2027-2030
Replanting (ha) 4,101 2,440 2,750 7,074
To ensure the improvement of yields, our Company has intensified its
replanting efforts in recent years. In 2025 alone, approximately 2.4 thousand
ha of aged, low-yielding palms were replanted. Looking ahead, AEP aims to
replant around 10 thousand ha as part of its 2026-2030 programme, with 2.8
thousand ha identified for replanting in 2026. This initiative, involving the
use of higher-yielding and disease-resistant palm varieties, is expected to
significantly boost productivity and deliver improved and sustainable returns.
Our Group's replanting programme continues to progress in line with plan. By
2028, AEP expects to have replaced substantially all older palms trees in
Sumatra estates with younger planting material that is more disease-resistant,
higher yielding and capable of delivering improved oil extraction rates
compared to earlier generations.
OUR PEOPLE
Our performance is the result of the sustained efforts of our teams across our
Group, who have continued to focus on improving productivity, maintaining
operational discipline and optimising resource utilisation. Their commitment
has enabled our Group to deliver consistent operational outcomes while
navigating a dynamic market environment.
On behalf of our Board, I would like to convey our sincere thanks to our
management and employees of our Group for their dedication, loyalty,
resourcefulness, commitment, and contribution to our Group.
OUTLOOK
CPO remains competitively priced against other vegetable oils, with its
discount to soybean oil continuing to support demand, particularly in
cost-sensitive markets. In addition, Indonesia's mandatory B50 biodiesel
programme, effective from July 2026, is expected to drive stronger CPO demand
and serve as a key anchor for price stability.
Near-term volatility is expected to persist, driven by geopolitical tensions,
especially in the Middle East, which impact crude oil prices, freight costs,
and overall market sentiment. These factors are also contributing to rising
input costs, with increases in diesel and fertiliser prices, particularly
urea, weighing on plantation margins.
Notwithstanding the rising costs, given that CPO prices are expected to remain
elevated, we expect sustainable performance for 2026.
JONATHAN LAW NGEE SONG
Chairman
30 April 2026
DIRECTORS' RESPONSIBILITY
Our Directors are responsible for preparing the annual report and the
financial statements in accordance with UK adopted International Accounting
Standards ("IAS") and applicable law and regulations.
Company law requires our Directors to prepare financial statements for each
financial year. Under that law our Directors are required to prepare our Group
financial statements in accordance with UK adopted IAS. Our Directors have
elected to prepare our Company financial statements in accordance with United
Kingdom Generally Accepted Accounting Practice and other applicable United
Kingdom accounting standards and laws. Under company law, our Directors must
not approve the financial statements unless they are satisfied that they give
a true and fair view of the state of affairs of our Group and Company and of
the profit or loss of our Group for that period.
In preparing these financial statements, our Directors are required to:
• Select suitable accounting policies and then apply them
consistently;
• Make judgements and accounting estimates that are reasonable and
prudent;
• State whether they have been prepared in accordance with UK
adopted International Accounting Standards, including FRS 101 Reduced
Disclosure Framework, subject to any material departures disclosed and
explained in the financial statements;
• Prepare the financial statements on the going concern basis unless
it is inappropriate to presume that our Group and our Company will continue in
business; and
• Prepare a Directors' Report, Strategic Report and Directors'
Remuneration Report which comply with the requirements of the Companies Act
2006.
Our Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain our Company's transactions and disclose with
reasonable accuracy at any time the financial position of our Company and
enable them to ensure that the financial statements comply with the Companies
Act 2006.
They are also responsible for safeguarding the assets of our Company and hence
for taking reasonable steps for the prevention and detection of fraud and
other irregularities. Our Directors are responsible for ensuring that the
annual report and accounts, taken as a whole, are fair, balanced, and
understandable and provide the information necessary for shareholders to
assess our Group's performance, business model and strategy.
WEBSITE PUBLICATION
Our Directors are responsible for ensuring the annual report and the financial
statements are made available on a website. Financial statements are published
on our Group's website in accordance with the legislation in the UK governing
the preparation and dissemination of financial statements, which may vary from
legislation in other jurisdictions. The maintenance and integrity of our
Group's website is the responsibility of our Directors. Our Directors'
responsibility also extends to the ongoing integrity of the financial
statements contained therein.
DIRECTORS' RESPONSIBILITIES PURSUANT TO DISCLOSURE AND TRANSPARENCY RULES 4
("DTR4")
Our Directors confirm to the best of their knowledge:
• the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the issuer and
the undertakings included in the consolidation taken as a whole; and
• the management report includes a fair review of the development
and performance of the business and the position of the issuer and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
on behalf of the Board:
MARCUS CHAN JAU CHWEN
Executive Director of Corporate Affairs
30 April 2026
Consolidated Income Statement
For the year ended 31 December 2025
2025 2024
Note $000 $000
Continuing operations
Revenue 3 465,211 372,263
Cost of sales (339,982) (286,583)
Changes in fair value of biological assets 18 (1,408) 2,942
Gross profit 123,821 88,622
Administration expenses 5 (14,186) (9,360)
Other income 1,315 1,474
Reversal of impairment/(impairment loss) 11 710 (133)
(Loss)/gain arising from fair value of investments 14 (107) 1,131
Operating profit 111,553 81,734
Exchange (loss)/gains (176) 1,056
Finance income 4 7,997 5,365
Finance expense 4 (44) (65)
Profit before tax 5 119,330 88,090
Tax expense 8 (33,015) (20,478)
Profit for the year 86,315 67,612
Profit/(loss) for the year attributable to:
- Owners of the parent 90,882 67,514
- Non-controlling interests (4,567) 98
86,315 67,612
Earnings per share attributable to the owners of the parent during the year
Profit
- basic and diluted 9 231.42cts 170.88cts
Consolidated Income Statement
For the year ended 31 December 2025
2025
2024
Note
$000
$000
Continuing operations
Revenue
3
465,211
372,263
Cost of sales
(339,982)
(286,583)
Changes in fair value of biological assets
18
(1,408)
2,942
Gross profit
123,821
88,622
Administration expenses
5
(14,186)
(9,360)
Other income
1,315
1,474
Reversal of impairment/(impairment loss)
11
710
(133)
(Loss)/gain arising from fair value of investments
14
(107)
1,131
Operating profit
111,553
81,734
Exchange (loss)/gains
(176)
1,056
Finance income
4
7,997
5,365
Finance expense
4
(44)
(65)
Profit before tax
5
119,330
88,090
Tax expense
8
(33,015)
(20,478)
Profit for the year
86,315
67,612
Profit/(loss) for the year attributable to:
- Owners of the parent
90,882
67,514
- Non-controlling interests
(4,567)
98
86,315
67,612
Earnings per share attributable to the owners of the parent during the year
Profit
- basic and diluted
9
231.42cts
170.88cts
Earnings per share are shown in note 9.
The accompanying notes are an integral part of this consolidated income
statement.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2025
2025 2024
$000 $000
Profit for the year 86,315 67,612
Other comprehensive loss:
Items may be reclassified to profit or loss:
Loss on exchange translation of foreign operations (15,696) (23,184)
Net other comprehensive loss may be reclassified to profit or loss (15,696) (23,184)
Items not to be reclassified to profit or loss:
Remeasurement of retirement benefits plan, net of tax 1,852 378
Net other comprehensive income not being reclassified to profit or loss 1,852 378
Total other comprehensive loss for the year, net of tax (13,844) (22,806)
Total comprehensive income/(loss) for the year 72,471 44,806
Total comprehensive income/(loss) for the year attributable to:
- Owners of the parent 75,660 44,612
- Non-controlling interests (3,189) 194
72,471 44,806
The accompanying notes are an integral part of this consolidated statement of
comprehensive income.
Consolidated Statement of Financial Position
As at 31 December 2025
Company Number: 01884630
31.12.2025 31.12.2024
Note $000 $000
Non-current assets
Property, plant and equipment 11 272,547 271,170
Intangible assets 12 262 -
Investments in associates 13 1 -
Investments 14 45 5,111
Receivables 15 17,800 19,363
Deferred tax assets 16 974 1,900
291,629 297,544
Current assets
Inventories 17 27,652 18,767
Income tax receivables 8 4,992 18,316
Other tax receivables 8 41,863 43,749
Biological assets 18 6,383 8,057
Trade and other receivables 19 9,045 7,062
Investments 14 22,000 23,976
Short-term investments 20 500 1,253
Cash and cash equivalents 20 231,845 181,908
344,280 303,088
Current liabilities
Trade and other payables 21 (28,356) (21,403)
Income tax liabilities 8 (10,173) (5,466)
Other tax liabilities 8 (814) (1,201)
Dividend payables (65) (46)
Lease liabilities 22 (202) (307)
(39,610) (28,423)
Net current assets 304,670 274,665
Non-current liabilities
Deferred tax liabilities 16 (3,062) (2,225)
Retirement benefits - net liabilities 23 (7,972) (11,073)
Lease liabilities 22 (338) (453)
(11,372) (13,751)
Net assets 584,927 558,458
Issued capital and reserves attributable to owners of the parent
Note
31.12.2025
$000
31.12.2024
$000
Share capital 24 15,504 15,504
Treasury shares 24 (13,840) (2,487)
Share premium 27 23,935 23,935
Capital redemption reserve 1,087 1,087
Exchange reserves (381,476) (364,402)
Retained earnings 935,479 877,394
580,689 551,031
Non-controlling interests 4,238 7,427
Total equity 584,927 558,458
The accompanying notes are an integral part of this consolidated statement of
financial position.
Capital redemption Non- controlling interests
Share capital Treasury shares Share premium reserve Exchange reserves Retained earnings Total equity
Note Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 31 December 2023 15,504 (1,847) 23,935 1,087 (341,180) 816,140 513,639 6,976 520,615
Items of other comprehensive (loss)/income
- Remeasurement of retirement benefit plan, net of tax
- (Loss)/gain on exchange translation of foreign operations 23 - - - - - 378 378 - 378
- - - - (23,280) - (23,280) 96 (23,184)
Total other comprehensive (loss)/income - - - - (23,280) 378 (22,902) 96 (22,806)
Profit for the year - - - - - 67,514 67,514 98 67,612
Total comprehensive (loss)/income for the
year - - - - (23,280) 67,892 44,612 194 44,806
Acquisition of non-controlling interests 32 - - - - 58 (715) (657) 257 (400)
Transactions with owners in their capacity as owners
Share buy back - (640) - - - - (640) - (640)
Dividends paid - - - - - (5,923) (5,923) - (5,923)
Balance at 31 December 2024 15,504 (2,487) 23,935 1,087 (364,402) 877,394 551,031 7,427 558,458
Items of other comprehensive (loss)/ income
- Remeasurement of retirement benefit plan, net of tax
- (Loss)/gain on exchange translation of foreign operations - (17,074) -
23 - - - - 1,852 1,852 1,378 1,852
- - - - - (17,074) (15,696)
Total other comprehensive (loss)/income - - - - (17,074) 1,852 (15,222) 1,378 (13,844)
Profit/(loss) for the year - - - - - 90,882 90,882 (4,567) 86,315
Total comprehensive (loss)/income for the
Year - - - - (17,074) 92,734 75,660 (3,189) 72,471
Transactions with owners in their capacity as owners
Share buy back - (11,353) - - - - (11,353) - (11,353)
Dividends paid - - - - - (34,649) (34,649) - (34,649)
Balance at 31 December 2025 15,504 (13,840) 23,935 1,087 (381,476) 935,479 580,689 4,238 584,927
The accompanying notes are an integral part of this consolidated statement of
changes in equity.
Consolidated Statement of Cash Flows
For the year ended 31 December 2025
2025 2024
Note $000 $000
Cash flows from operating activities
Profit before tax 119,330 88,090
Adjustments for:
Changes in fair value of biological assets 18 1,408 (2,942)
Gain on disposal of property, plant and equipment (95) (380)
Depreciation 11 18,958 18,986
Retirement benefit provisions 23 2,247 2,764
Finance income 4 (7,997) (5,365)
Finance expense 4 44 65
Unrealised (gain)/loss in foreign exchange (23) 31
Loss/(gain) arising from fair value 14 107 (1,131)
Property, plant and equipment written off 11 904 451
(Reversal of impairment)/impairment loss 11 (710) 133
Reversal for expected credit loss 19 (85) (9)
Operating cash flows before changes in working capital 134,088 100,693
Increase in inventories (9,749) (2,907)
(Increase)/Decrease in non-current, trade and other receivables (1,499) 5,588
Increase/(Decrease) in trade and other payables 7,503 (5,059)
Cash inflows from operations 130,343 98,315
Retirement benefits paid (2,615) (1,984)
Overseas tax paid (13,903) (22,384)
Net cash generated from operating activities 113,825 73,947
Investing activities
Acquisition of associates 13 (1) -
Property, plant and equipment
- purchases (29,922) (29,013)
- sale proceeds 325 872
Intangible assets
- purchases 12 (262) -
Interest received 4 7,997 5,365
Additions to receivables from cooperatives under plasma scheme (2,181) (5,010)
Repayment from cooperatives under plasma scheme 3,110 2,689
Investment in investment portfolio or bond portfolio 14 (29,068) (45,990)
Disposal of investment portfolio 14 36,003 28,069
Placement of fixed deposits with original maturity of more than three months (500) (1,253)
Withdrawal of fixed deposits with original maturity of more than three months 1,253 14,076
Net cash used in investing activities (13,246) (30,195)
2025 2024
Note $000 $000
Financing activities
Dividends paid to the holders of the parent (34,630) (5,918)
Repayment of lease liabilities - principal (321) (340)
Repayment of lease liabilities - interest (44) (65)
Acquisition of non-controlling interests - (400)
Share buy back 24 (11,353) (640)
Net cash used in financing activities (46,348) (7,363)
Net increase in cash and cash equivalents 54,231 36,389
Cash and cash equivalents
At beginning of year
181,908 152,984
Exchange losses (4,294) (7,465)
At end of year 231,845 181,908
Comprising:
Cash at end of year 20 231,845 181,908
The accompanying notes are an integral part of this consolidated statement of
cash flows.
Notes
1 Basis of preparation
AEP is a company incorporated in the UK under the Companies Act 2006 and is
listed on the London Stock Exchange. The registered office of AEP is located
at Quadrant House, 6th Floor, 4 Thomas More Square, London E1W 1YW, UK. The
principal activity of the Group is plantation agriculture, mainly in the
cultivation of oil palm in Indonesia and Malaysia, of which Indonesia is the
principal place of business.
The financial information does not constitute the company's statutory accounts
for the years ended 31 December 2025 or 2024. Statutory accounts for the years
ended 31 December 2025 and 31 December 2024 have been reported on by the
Independent Auditor. The Independent Auditor's Reports on the Annual Report
and Financial Statements for the years ended 31 December 2025 and 31 December
2024 were 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.
Statutory accounts for the year ended 31 December 2024 have been filed with
the Registrar of Companies. The statutory accounts for the year ended 31
December 2025 will be delivered to the Registrar in due course.
The material accounting policies applied in the preparation of these
consolidated financial statements are set out below. These policies have been
consistently applied to all years presented.
Basis of preparation
The consolidated financial statements have been prepared in accordance with UK
adopted International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
The consolidated financial statements have been prepared on a historical cost
basis, except for the following items:
• Biological assets (note 18)
• Retirement benefits (note 23)
• Investments (note 14)
Going Concern
The Directors have carried out stress tests, factoring in the identified
uncertainties and risks such as commodity prices, together with the current
economic environment to ensure that the Group has adequate resources in a
worst-case scenario to remain as a going concern for at least twelve months
from the date of this report.
The Directors have a reasonable expectation, having made the appropriate
enquiries, that the Group has sufficient cash resources to cover the Group's
operating expenses for a period of at least twelve months from the date of
approval of these financial statements. For these reasons, the Directors
adopted a going concern basis in the preparation of the financial statements.
The Directors have made this assessment after consideration of the Group's
budgeted cash flows and related assumptions including stress testing of
identified uncertainties, as well as the impact of a 50% decrease in the
demand for palm oil. Stress testing of other identified uncertainties and
risks such as commodity prices was also undertaken.
Changes in accounting standards
(a) New standards, interpretations and amendments effective for the
first time for the accounting periods beginning on or after 1 January 2025 in
these financial statements in the current year
• IAS 21 The Effects of Changes in Foreign Exchange Rates,
amendment related to Lack of Exchangeability
(b) New standards, interpretations and amendments not yet effective.
The following new standards, interpretations and amendments are effective for
future periods (as indicated) and have not been applied in these financial
statements:
• Amendments to IFRS 9 Financial Instruments and IFRS 7
Financial Instruments: Disclosures: Classification and Measurement of
Financial Instruments (1 January 2026, not yet adopted)
• IFRS 18 Presentation and Disclosure in Financial Statements (1
January 2027, not yet adopted)
• IFRS 19 Subsidiaries without Public Accountability:
Disclosures (1 January 2027, not yet adopted).
• Annual Improvements to IFRS Accounting Standards - Volume 11
(1 January 2026, not yet adopted)
• Contracts Referencing Nature-dependent Electricity -
Amendments to IFRS 9 and IFRS 7 (1 January 2026, not yet adopted)
IFRS 18 Presentation and Disclosure in Financial Statements, issued in April
2024, will replace IAS 1 and is effective for annual periods beginning on or
after 1 January 2027.
The standard introduces new requirements for the presentation of the statement
of profit or loss, including defined categories and additional subtotals, as
well as enhanced disclosure requirements.
The Group is currently assessing the impact of IFRS 18 and expects changes in
presentation
and disclosures, with no material impact on profit, financial position or cash
flows.
None of the above new standards, interpretations and amendments are expected
to have a material effect on the Group's future financial statements.
1 Material accounting policies
(a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up
to 31 December each year. The Company controls a subsidiary if all three of
the following elements are present; power over the subsidiary, exposure to
variable returns from the subsidiary, and the ability of the Company to use
its power to affect those variable returns. The financial statements of
subsidiaries are included in the consolidated financial statements from the
date that control commences until the date control ceases. In respect of
cooperatives under the Plasma scheme, the Group has not consolidated these
entities, as it neither has control nor significant influence. All key
decisions are made independently by the cooperatives, and the Group holds no
voting rights or representation on governing bodies. The Group has assessed
the relationship with the cooperatives based on the criteria set out in IFRS,
specifically evaluating control and significant influence. Despite the Group's
involvement in the scheme, it does not exercise control, joint control or
significant influence over the cooperatives' decision-making processes.
Accordingly, the cooperatives do not meet the criteria for consolidation or
equity accounting under IFRS.
(b) Business combinations
The consolidated financial statements incorporate the results of business
combinations using the acquisition method. In the consolidated statement of
financial position, the acquiree's identifiable assets, liabilities and
contingent liabilities are initially recognised at their fair values at the
acquisition date. Acquisitions of entities that comprise principally land with
no active plantation business do not represent business combinations, in such
cases, the amount paid for each acquisition is allocated between the
identifiable assets/liabilities at the acquisition date.
(c) Foreign currency
Critical judgement on functional currency
The individual financial statements of each subsidiary are presented in the
currency of the primary economic environment in which it operates (its
functional currency). The Group's Indonesian subsidiaries have determined
Indonesian Rupiah as their functional currency, as their transactions, cash
flows and costs are predominantly denominated in IDR. The Company and its UK
subsidiaries have US Dollar as their functional currency. The consolidated
financial statements are presented in US Dollar, reflecting the Group's
economic environment and the influence of internationally traded commodity
prices, which are denominated in US Dollar.
On consolidation, the results of overseas operations are translated into US
Dollar at average exchange rates for the year unless exchange rates fluctuate
significantly in which case the actual rate is used. All assets and
liabilities of overseas operations are translated at the rate ruling at the
balance sheet date. Exchange differences arising on re-translating the opening
net assets at opening rate and the results of overseas operations at actual
rate are recognised directly in equity (the "exchange reserves"). Exchange
differences recognised in the income statement of Group entities' separate
financial statements on the translation of long-term monetary items forming
part of the Group's net investment in the overseas operation concerned are
reclassified to the exchange reserves if the item is denominated in the
presentational currency of the Group or of the overseas operation concerned.
On disposal of a foreign operation, the cumulative exchange differences
recognised in the exchange reserves relating to that operation up to the date
of disposal are transferred to the income statement as part of the profit or
loss on disposal.
All other exchange profits or losses are credited or charged to the income
statement.
(d) Revenue recognition
The Group derives its revenue from the sale of CPO, palm kernel, FFB, shell
nut, biogas products and rubber slab. Revenue is recognised at a point in time
when control of the goods or services is transferred to the customer. Revenue
from CPO, palm kernel, FFB and shell nut is recognised upon delivery, when the
customer obtains physical possession, legal title passes, significant risks
and rewards are transferred, and the Group has a right to payment. Delivery is
generally made only upon receipt of payment. Revenue from rubber slab is
recognised at the point in time when control transfers to the customer, in
accordance with the terms of the sales contract. Revenue from biogas products
is recognised upon generation of electricity, when control is transferred to
the buyer.
The transacted price for each product is based on the market price or
predetermined monthly contract value. There is no right of return nor warranty
provided to the customers on the sale of products and services rendered. The
payment terms for CPO, palm kernel, and shell nut are mainly based on advance
payments from customers, whereby payments are typically received prior to or
upon delivery. This arrangement helps mitigate credit risk and ensures timely
cash flow for the Group's operations.
Contract liabilities represent the Group's obligation to transfer goods or
services to customers for which consideration has been received from
customers, but the related goods have not yet been delivered or collected.
(e) Tax
Tax is recognised in the consolidated income statement, except to the extent
that it relates to items recognised in other comprehensive income, or directly
in equity. In this case, tax is also recognised in other comprehensive income
or directly in equity accordingly.
UK and foreign corporation tax are provided at amounts expected to be paid or
recovered using the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date.
The directors consider that the carrying amount of tax receivables
approximates its fair value.
Uncertainty Over Income Tax Treatments - IFRIC 23
The Group applies IFRIC 23 - Uncertainty over Income Tax Treatments, which
clarifies the accounting for uncertainties in income taxes under IAS 12.
Where there is uncertainty over the income tax treatment of an item, the Group
assesses whether it is probable that the taxation authority will accept the
uncertain tax treatment. This involves:
• Considering uncertain tax treatments either individually or
collectively, depending on which approach better predicts the resolution of
the uncertainty;
• Assuming full examination by the relevant tax authorities with
complete knowledge of all related facts and circumstances;
• If it is probable that the tax authority will accept the
treatment, the entity determines taxable profit (or loss), tax bases, unused
tax losses, unused tax credits and tax rates consistently with that treatment;
• If it is not probable, the Group reflects the uncertainty
using either the most likely amount or the expected value method, depending on
which is the most predictive.
Judgements and estimates under IFRIC 23 are applied consistently to both
current and deferred tax. The Group reassesses these judgements and estimates
whenever there is a change in facts and circumstances that might affect the
outcome of the tax treatment.
(f) Dividends
Equity dividends are recognised when they become legally payable. The Company
may pay an interim dividend each year. The final dividend becomes legally
payable when approved by the shareholders at the next annual general meeting.
(g) Property, plant and equipment
Plantations comprise of the cost of planting and development of oil palm and
other plantation crops. Costs of new planting and development of plantation
crops are capitalised from the stage of land clearing up to the stage of
maturity. The costs of immature plantations consist mainly of the accumulated
cost of land clearing, planting, fertilising and maintaining the plantation
and other indirect overhead costs up to the time the trees are harvestable and
to the extent appropriate. Oil palm plantations are considered mature within
three to four years after planting and generating average annual CPO of four
to six metric tons per hectare. Immature plantations are not depreciated as
they are not yet available for use.
The Indonesian authorities have granted certain land exploitation rights and
operating permits for the estates. The land rights are usually renewed without
significant cost subject to compliance with the laws and regulations of
Indonesia therefore, the Group has classified the land rights as leasehold
land. The leasehold land is recognised at cost initially and is not
depreciated except the leasehold land in Malaysia which is depreciated over
the term of the lease as its renewal cannot be guaranteed. Costs include the
initial cost of obtaining the location permits and subsequent payments to
compensate existing land owners plus any legal costs incurred to acquire the
necessary land exploitation rights.
Construction in progress is stated at cost. The accumulated costs will be
reclassified to the appropriate class of assets when construction is completed
and the asset is ready for its intended use. Construction in progress is also
not depreciated until such time when the asset is available for use.
Social infrastructure assets, including public-benefit facilities such as
schools and other public buildings, are classified as part of the buildings
category.
Plantations, buildings and oil mills are depreciated using the straight-line
method. The yearly rates of depreciation are as follows:
Leasehold land in Malaysia - over the term of the lease Plantations: 5% per
annum
Buildings: 5% to 10% per annum Oil Mill: 5% per annum
Estate plant, equipment & vehicles: 12.5% to 50% per annum Office plant,
equipment & vehicles: 25% to 50% per annum
Although fruit yield varies annually, the straight-line method for plantations
is considered appropriate as it reflects a consistent pattern of economic
benefits over the productive life of the trees and provides a systematic
allocation of cost in accordance with IAS 16.
Plantation development costs are capitalised and depreciated over a 20-year
useful life, commencing from maturity. As of the reporting date, some
plantations have reached the end of their depreciable lives and are fully
depreciated, yet remain in use as replanting has not commenced. These
plantations continue to generate economic benefits but are carried at nil net
book value in accordance with IAS 16 Property, Plant and Equipment, until
replanting or disposal.
(h) Intangible assets
Intangible assets (other than goodwill) are stated at historical cost less
accumulated amortisation and any impairment losses. Intangible assets are
capitalized and amortized using the straight-line method over their useful
life. Estimated useful lives are reviewed at each balance-sheet date.
Amortisation on intangible assets under development commences when the assets
are ready for their intended use.
(i) Leases
Land rights are recognised at historical cost without depreciation at the
balance sheet date except for leasehold land in Malaysia where it is
recognised at historical cost and depreciated over the term of the lease.
The Group assesses whether a contract is or contains a lease, at inception of
the contract. The Group recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements in which it is the
lessee, mainly for office premises in Malaysia and Indonesia, except for
short-term leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets (such as tablets and personal computers, small
items of office furniture and telephones). For these leases, the Group
recognises the lease payments as an operating expense on a straight-line basis
over the term of the lease unless another systematic basis is more
representative of the time pattern in which economic benefits from the leased
assets are consumed.
Lease Liabilities
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted by using the
rate implicit in the lease. If this rate cannot be readily determined, the
lessee uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
• Fixed lease payments (including in-substance fixed payments), less
any lease incentives receivable.
The lease liability is presented as a separate line in the consolidated
statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount
to reflect interest on the lease liability (using the effective interest
method) and by reducing the carrying amount to reflect the lease payments
made.
Right-of-Use Assets
The right-of-use assets comprise the initial measurement of the corresponding
lease liability, lease payments made at or before the commencement day, less
any lease incentives received and any initial direct costs. They are
subsequently measured at cost less accumulated depreciation and impairment
losses.
Right-of-use assets are depreciated over the shorter period of lease term and
useful life, whichever is shorter. If a lease transfers ownership of the
underlying asset or the cost of the right-of-use asset reflects that the Group
expects to exercise a purchase option, the related right-of-use asset is
depreciated over the useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.
The right-of-use assets are presented together in property, plant and
equipment in the consolidated statement of financial position.
Lease Income - Lessor
PT United Kingdom Indonesia Plantations, a subsidiary of the Group, acts as a
lessor under various operating lease arrangements, including those related to
the use of biogas facilities. Lease income from these operating leases is
recognised as part of "Other Income" on a straight- line basis over the lease
term, in accordance with IFRS 16.
Due to the immaterial nature of the income generated from these leases, it is
not presented separately in the consolidated statement of profit or loss.
In addition, PT Tasik Raja and PT Bina Pitri Jaya, subsidiaries of the Group,
have entered into operating lease arrangements for the use of certain
biogas-related facilities. These contracts do not include any minimum lease
payments and consist entirely of variable lease payments, which are determined
based on output or usage metrics. Accordingly, no fixed lease receivables are
recognised. Lease income from these arrangements is recognised in the period
in which the related output or usage occurs.
(j) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost of
CPO and PK is determined on a weighted average basis and comprises the fair
value of FFB at the point of harvest and the related processing costs incurred
at the mills.
FFB harvested from the Group's biological assets are measured at fair value
less costs to sell at the point of harvest, which becomes the cost of
inventories in accordance with IAS 2 Inventories. Net realisable value
represents the estimated selling price in the ordinary course of business less
the estimated costs necessary to make the sale.
(k) Biological assets
Biological assets comprise an estimation of the fair value less costs to sell
of unharvested FFB. The fair value of biological assets is classified as Level
3 in the fair value hierarchy. Net movement in the fair value of biological
assets is recognised in the income statement as changes in fair value of
biological assets.
(l) Financial assets
The Group classifies its financial assets into one of the categories discussed
below, depending on the purpose for which the asset was acquired. The Group's
accounting policy for each category is as follows:
Fair value through profit or loss
Investments which are held for strategic gain are carried in the statement of
financial position at fair value with changes in fair value recognised in the
consolidated statement of income statement in gain or loss arising from fair
value. This includes quoted bonds and treasury bills managed under a trading
business model, where performance is evaluated on a fair value basis.
Amortised cost
The Group's financial assets measured at amortised cost comprise trade and
other receivables and cash and cash equivalents in the consolidated statement
of financial position. All the Group's receivables and loans are
non-derivative financial assets with cash flows that are solely payments of
principal and interest. They are recognised at fair value at inception and
subsequently at amortised cost as this is what the Group considers to be most
representative of the business model for these assets.
Cash and cash equivalents consist of cash in hand and short-term deposits at
banks with an original maturity not exceeding three months.
The Group considers a trade receivable or other receivable as credit impaired
when one or more events that have a detrimental impact on the estimated cash
flow have occurred. Trade and other receivables are written off when there is
no expectation of recovery based on the assessment performed. If the
receivables are subsequently recovered, these are recognised in the income
statement.
The Group use three categories for those receivables which reflect their
credit risk and how the loss provision is determined for those categories.
These include trade receivables using the simplified approach and debt
instruments at amortised costs other than trade receivables and financial
guarantee contracts using the three-stage approach.
(m) Financial liabilities
All the Group's financial liabilities are non-derivative financial
liabilities.
Trade and other payables are shown at fair value at recognition and
subsequently at amortised cost.
(n) Deferred tax
Deferred tax is the expected tax payable or recoverable on temporary
differences which arise between the carrying amount of assets and liabilities
in the financial statements, and the corresponding tax bases used in the
computation of taxable profit and is provided for using the liability method.
Deferred tax liabilities are generally recognised for all taxable temporary
differences, and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference
arises from goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction which affects
neither the tax profit nor the accounting profit. The Group recognises
deferred tax liabilities arising from taxable temporary differences on
investments in subsidiaries, except where the Group is able to control the
reversal of the temporary differences, and it is probable that the temporary
difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it
is possible that taxable profit will be available against which the difference
can be utilised. Deferred tax assets arising from unused tax losses are
recognised only when it is probable that future taxable profits will be
available to utilise those losses, with the critical judgment applied as
described in note 2(q).
(o) Retirement benefits
Defined contribution schemes
Contributions to defined contribution pension schemes are charged to the
consolidated income statement in the year to which they relate.
Defined benefit schemes
The Group operates a number of defined benefit schemes which include other
long-term employee benefits in respect of its Indonesian operations. The
schemes' surpluses and deficits are measured at:
• The fair value of plan assets at the reporting date; less
• Plan liabilities calculated using the projected unit credit
method discounted to its present value using yields available on Indonesian
Government bonds that have maturity dates approximating to the terms of the
liabilities; plus
• Past service costs; less
• The effect of minimum funding requirements agreed with scheme
trustees.
Remeasurements of the net defined benefit obligation are recognised in other
comprehensive income. The remeasurements include:
• Actuarial gains and losses;
• Return on plan assets (interest exclusive); and
• Any asset ceiling effects (interest inclusive).
Service costs are recognised in the income statement and include current and
past service costs as well as gains and losses on curtailments.
Net interest expense/(income) is recognised in the income statement, and is
calculated by applying the discount rate used to measure the defined benefit
obligation/(asset) at the beginning of the annual period to the balance of the
net defined benefit obligation/(asset), considering the effects of
contributions and benefit payments during the period.
Gains or losses arising from changes to scheme benefits or scheme curtailment
are recognised immediately in the income statement. Settlements of defined
benefit schemes are recognised in the period in which the settlement occurs.
The Group has agreed funding arrangements with the trustees to address the
defined benefit scheme deficit, primarily through cash contributions, and
actuarial valuations are conducted annually, with the most recent valuation
performed as of 31 December 2025.
(p) Financial guarantee contracts
Where the Company and its subsidiaries enter into financial guarantee
contracts and guarantee the indebtedness of other companies within the Group
and/or third-party entities, these are accounted for under IFRS 9. The details
of financial guarantee contracts are disclosed in note 28.
(q) Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future.
Estimates and judgements are continually evaluated based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future, actual
experience may differ from these estimates and assumptions. The estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year
are discussed below.
Judgements
• Assessment of de-facto control of cooperatives under Plasma
scheme (see note 2(a) and note 15).
• Determination of functional currency (see note 2(c)).
• Classification of land as leasehold with no depreciation charged
(see note 11).
• Carrying value of income tax receivables - determination of
historic recovery rates (see note 8).
• Measurement of plasma receivables (see note 15).
• Income taxes and deferred tax - provisions for income taxes in
various jurisdictions (see note 8 and note 16).
• Recognition of deferred tax on losses - estimate of future
profitability of respective entities (see note 16).
Estimates and assumptions
• Impairment of plantation assets - market value of the assets
(see note 11).
• Retirement benefits - actuarial assumptions (see note 23).
(r) Fair value measurement
Fair value measurement - a number of assets and liabilities included in the
Group's financial statements require measurement at, and/or disclosure of,
fair value. The fair value measurement of the Group's financial and
non-financial assets and liabilities utilises market observable inputs and
data as far as possible. Inputs used in determining fair value measurements
are categorised into different levels based on how observable the inputs used
in the valuation technique utilised are (the 'fair value hierarchy'):
- Level 1 - quoted prices (unadjusted) in active markets for
identical assets or liabilities;
- Level 2 - inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly or
indirectly; and
- Level 3 - unobservable inputs for the asset or liability.
The classification of an item into the above levels is based on the lowest
level of the inputs used that has a significant effect on the fair value
measurement of the item. Transfers of items between levels are recognised in
the period they occur.
The Group measures the following assets at fair value:
- Biological assets (note 18).
- Investment (note 14).
3 Revenue
Disaggregation of Revenue
The Group has disaggregated revenue into various categories in the following
table which is intended to:
• depict how the nature, amount and uncertainty of revenue and
cash flows are affected by timing of revenue recognition; and
•
palm Year to 31 December 2025 kernel Shell nut Biogas products
FFB Rubber Others Total
$000 $000 $000 $000 $000 $000 $000
Contract counterparties - 21,446 - - - 5,288 - 6
Government 495 495
-
Non-government
- 464,716
-Wholesalers 437,976
437,976 21,446 - 5,288 495 6 465,211
enable users to understand the relationship with revenue segment information provided in note 6. CPO and
Timing of transfer of goods
Delivery to customer
premises 21,446 - - - - 21,446
-
Delivery to port of
departure - - - - - 83,113
83,113
Customers collect from
our mills/estates 354,863 - - 5,288 - - 360,151
Upon generation/others - - - - 495 6 501
437,976 21,446 - 5,288 495 6 465,211
Year to 31 December 2024 Contract counterparties
Government -
- - - 637 - 637
Non-government
- Wholesalers 358,745 8,923 112 3,840 - 6 371,626
358,745 8,923 112 3,840 637 6 372,263
Timing of transfer of goods
Delivery to customer
premises - 8,923 112 - - - 9,035
Delivery to port of departure 74,767 - - - - - 74,767
Customers collect from our
mills/estates
283,978 - - 3,840 - - 287,818
Upon generation/others - - - - 637 6 643
358,745 8,923 112 3,840 637 6 372,263
The Group recognised contract liabilities of $4,637,000 as disclosed in Note
21 at the beginning of the period. These contract liabilities primarily relate
to advance payments received from customers for goods and services to be
delivered in future periods.
During the period, these contract liabilities were subsequently recognised as
revenue as the Group satisfied the related performance obligations. The Group
applies the practical expedient under IFRS 15 and does not disclose remaining
performance obligations as contracts are short-term.
4 Finance income and expense
Finance income Interest receivable on:
2025
$000
2024
$000
Credit bank balances and time
deposits
7,997 5,365
Finance expense Interest payable on:
Interest expense in lease liabilities (note
22)
(44) (65) Net finance income
recognised in income statement
7,953
5,300
5 Profit before tax
2025 2024
$000 $000
Profit before tax is stated after charging:
Purchase of FFB 224,355 174,022
Depreciation (note 11) 18,958 18,986
(Reversal of impairment)/impairment losses (note 11) (710) 133
Reversal for expected credit loss (note 19) (85) (9)
Exchange loss/(gains) 176 (1,056)
Staff costs (note 7) 66,290 59,266
Remuneration received by the Group's auditor or associates of the
Group's auditor:
- Audit of parent company 5 5
- Audit of consolidated financial statements 444 289
- Audit of consolidated financial statements (previous auditor in prior year) 409 -
- Audit of UK subsidiaries 13 13
Subtotal - audit services (Group auditor) 871 307
Non-audit service
- Audit related assurance service (interim review) - 13
Subtotal - non-audit service - 13
Audit of overseas subsidiaries
- Malaysia 36 27
- Indonesia 182 150
- Indonesia (prior year) 28 -
Subtotal - overseas audit services 246 177
Total auditor's remuneration 1,117 497
Administrative expense
Legal and professional fees 1,406 1,371
Auditor's remuneration 1,117 497
Property, plant and equipment written off 904 451
Indonesian operations 8,442 5,297
Malaysia operations 287 276
Head office 2,030 1,468
14,186 9,360
6 Segment information
Description of the types of products and services from which each reportable
segment derives its revenues
In the opinion of the Directors, the operations of the Group comprise one
class of business which is the cultivation of plantations in Indonesia and
Malaysia. From the cultivation of plantations, the Group produced the crude
palm oil and associated products such as palm kernel, biogas products and
rubber.
Factors that management used to identify reportable segments in the Group
The reportable segments in the Group are strategic business units based on the
geographical spread. Operating segments are consistent with the internal
reporting provided to the Board of Directors. The Board of Directors is
responsible for allocating resources and assessing the performance of the
operating segments. The Board's decisions are implemented by both Executive
and Management Committee. The Executive Committee consists of the Chairman,
the Executive Director, and the Group CEO. The Management Committee includes
the Group CEO, the Chief Corporate Planning & ESG Officer, the Group
Finance Manager, Group Legal Counsel in Malaysia, and senior management in
Indonesia. The Indonesian senior management team comprises the CEO, Plantation
Director, Finance Director, and Head of Mill & Engineering.
The Management Committee functions as the main executive body responsible for
implementing the Board's strategic directives. It also provides the Board with
operational reports segmented by geographical regions, which serve as the
basis for resource allocation and performance evaluation.
Measurement of operating segment profit or loss, assets and liabilities
The Group evaluates segmental performance on the basis of profit or loss
before tax calculated in accordance with IFRS.
Inter-segment transactions are made based on terms mutually agreed by the
parties to maximise the utilisation of Group's resources at a rate acceptable
to local tax authorities. This policy was applied consistently throughout the
current and prior period.
The Group's assets are allocated to segments based on geographical location.
Inter-segment revenue and transactions are eliminated at the segment level and
are not included in the total segment revenue presented above. Accordingly,
the segment revenue disclosed represents external revenue and reconciles
directly to the consolidated revenue in the financial statements. There are no
material reconciling items.
Inter-segment revenues of $35,086,000 (2024: $39,200,000) are eliminated at
the segment level and are excluded from segment revenue totals above. There
are no other reconciling items between segment totals and the consolidated
financial statements.
North Sumatera Total Indonesia
Bengkulu Riau Bangka Kalimantan Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
2025
Total sales revenue (all external)
- CPO and palm kernel 172,049 137,421 60,179 - 68,327 437,976 - - 437,976
- FFB 102 - - 6,602 11,286 17,990 3,456 - 21,446
- Shell nut 2,421 1,416 1,412 - 39 5,288 - - 5,288
- Biogas products 3 133 - - 359 495 - - 495
- Others - - - - - - 6 - 6
Total revenue 174,575 138,970 61,591 6,602 80,011 461,749 3,462 - 465,211
Profit/(loss) before tax for the year per consolidated income statement
54,534 25,427 13,372 1,671 27,339 122,343 (1,086) (1,927) 119,330
Interest income 5,070 1,247 926 2 249 7,494 26 477 7,997
Interest expense (8) - - - - (8) (19) (17) (44)
Depreciation (7,114) (3,634) (841) (561) (6,349) (18,499) (336) (123) (18,958)
Reversal of impairment /(impairment losses)
- - - - 711 711 (1) - 710
Reversal/(Provision) for expected credit loss
92 (3) - - (4) 85 - - 85
Inter-segment transactions 5,835 (2,678) (1,000) (448) (3,024) (1,315) 1,040 275 -
Inter-segmental revenue (eliminated within segments)
25,292 2,439 - - 7,355 35,086 - - 35,086
Tax expense (15,181) (4,954) (3,005) (249) (5,276) (28,665) (179) (4,171) (33,015)
Total assets 270,277 104,340 63,272 19,832 152,042 609,763 21,536 4,610 635,909
Non-current assets 76,011 56,699 8,515 16,669 105,799 263,693 8,469 385 272,547
Non-current assets - additions 6,070 10,272 1,589 1,022 10,478 29,431 404 55 29,890
Total liabilities (18,736) (13,459) (5,760) (590) (10,812) (49,357) (802) (823) (50,982)
North Sumatera Total Indonesia
Bengkulu Riau Bangka Kalimantan Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
2024
Total sales revenue (all external)
- CPO and palm kernel 134,013 96,639 59,405 - 68,688 358,745 - - 358,745
- FFB - - - 3,212 2,821 6,033 2,890 - 8,923
- Rubber 112 - - - - 112 - - 112
- Shell nut 1,281 1,148 1,368 - 43 3,840 - - 3,840
- Biogas products 87 216 - - 334 637 - - 637
- Others - - - - - - 6 - 6
Total revenue 135,493 98,003 60,773 3,212 71,886 369,367 2,896 - 372,263
Profit/(loss) before tax for the year per consolidated income statement
43,663 11,281 13,351 (731) 22,941 90,505 (857) (1,558) 88,090
Interest income 3,569 877 792 3 70 5,311 49 5 5,365
Interest expense (22) - - - - (22) (23) (20) (65)
Depreciation (7,281) (3,703) (831) (598) (6,200) (18,613) (277) (96) (18,986)
Impairment losses - - - - - - (133) - (133)
(Provision)/Reversal for expected credit loss
(4) 1 - (1) 13 9 - - 9
Inter-segment transactions 6,354 (2,804) (802) (455) (3,059) (766) 715 51 -
Inter-segmental revenue (eliminated within segments)
23,812 2,489 - - 12,899 39,200 - - 39,200
Tax (expense)/credit (11,607) (1,723) (3,066) 268 (4,180) (20,308) (167) (3) (20,478)
Total assets 251,963 113,498 40,488 20,079 145,586 571,614 25,259 3,759 600,632
Non-current assets 80,473 52,375 8,171 16,838 105,239 263,096 7,621 453 271,170
Non-current assets - additions 7,021 9,823 1,199 1,576 9,009 28,628 287 208 29,123
Total liabilities (16,097) (11,222) (5,164) (534) (7,624) (40,641) (865) (668) (42,174)
The following table represents the revenue from the Group's top four
customers. In accordance with IFRS 8.34, revenue from Customer 1 exceeded 10%
of the Group's total external revenue in both 2025 and 2024, and is therefore
mandatorily disclosed. Customers 2 to 4 are disclosed voluntarily as
supplementary information on the Group's major buyer relationships. There was
no over-reliance on any single customer, as procurement by buyers is conducted
through a competitive weekly tendering process involving numerous market
participants. Three of the top four customers were the same as in the prior
year.
North Sumatera Total Indonesia
Bengkulu Riau Bangka Kalimantan Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
2025
Customer 1 12,715 35,498 13,774 - 29,397 91,384 - - 91,384
Customer 2 21,371 - 15,682 - - 37,053 - - 37,053
Customer 3 - 34,859 - - - 34,859 - - 34,859
Customer 4 29,771 - - - - 29,771 - - 29,771
63,857 70,357 29,456 - 29,397 193,067 - - 193,067
North Sumatera Total Indonesia
Bengkulu Riau Bangka Kalimantan Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
2024
Customer 1 14,772 19,944 20,968 - 28,948 84,632 - - 84,632
Customer 2 - 31,809 - - - 31,809 - - 31,809
Customer 3 26,392 6 - - - 26,398 - - 26,398
Customer 4 14,943 - 7,973 - - 22,916 - - 22,916
56,107 51,759 28,941 - 28,948 165,755 - - 165,755
North Sumatera Total Indonesia
Bengkulu Riau Bangka Kalimantan Malaysia UK Total
% % % % % % % % %
2025
Customer 1 2.7 7.6 3.0 - 6.3 19.6 - - 19.6
Customer 2 4.6 - 3.4 - - 8.0 - - 8.0
Customer 3 - 7.5 - - - 7.5 - - 7.5
Customer 4 6.4 - - - - 6.4 - - 6.4
13.7 15.1 6.4 - 6.3 41.5 - - 41.5
2024
Customer 1 4.0 5.4 5.6 - 7.8 22.8 - - 22.8
Customer 2 - 8.5 - - - 8.5 - - 8.5
Customer 3 7.1 - - - - 7.1 - - 7.1
Customer 4 4.0 - 2.1 - - 6.1 - - 6.1
15.1 13.9 7.7 - 7.8 44.5 - - 44.5
Save for a small amount of rubber, all the Group's operations are devoted to
oil palm and associated byproducts. The Group's report is by geographical
area, as each area tends to have different agricultural conditions.
7 Employees' and Directors' Remuneration
2025 2024
Number Number
Average numbers employed (primarily overseas) during the year:
- full-time 7,407 7,486
- part-time field workers 7,807 7,954
15,214 15,440
2025 2024
$000 $000
Staff costs comprise:
Wages and salaries 59,604 53,622
Social security costs 4,025 3,798
Retirement benefit costs
- United Kingdom - -
- Indonesia 2,528 1,776
- Malaysia 133 70
66,290 59,266
2025 2024
$000 $000
Directors' 444
emoluments
710
2025 2024
$000 $000
Remuneration expense for key management personnel comprise:
Short-term employee 2,478
benefits
2,571
Post-employment -
benefits
-
2,571 2,478
The Executive Director, Non-Executive Directors and senior management (general managers
and above) are considered to be the key management personnel. No short-term
employee benefits have been provided to the Directors.
8 Tax expense
2025 2024
$000 $000
Foreign corporation tax - current year 29,932 18,163
Foreign corporation tax - prior year 1,821 828
Deferred tax adjustment - reversal of temporary differences (note 16) 1,044 1,628
Deferred tax - prior year (note 16) 218 (141)
Total tax charge for year 33,015 20,478
Corporation tax rate in Indonesia is at 22% (2024: 22%) whereas Malaysia is at
24% (2024: 24%). The standard rate of corporation tax in the UK for the
current year is 25% (2024: 25%). The Group's charge for the year differs from
the standard Indonesian rate of corporation tax as explained below:
2025 2024
$000 $000
Profit before tax 119,330 88,090
Profit before tax multiplied by standard rate of Indonesia corporation
tax of 22% (2024: 22%) 26,253 19,380
Effects of:
Irrecoverable withholding tax 4,765 782
Group accounting adjustments not subject to tax 1,315 (136)
Expenses not allowable for tax 100 860
Deferred tax assets not recognised 53 89
Income not subject to tax (1,510) (1,184)
Under provision of prior year income tax 1,821 828
Under/(over) provision of prior year deferred tax 218 (141)
Total tax charge for year 33,015 20,478
The above reconciliation has been prepared by reference to the Indonesian tax
rate rather than the UK tax rate as, in accordance with IAS 12, this is the
applicable tax rate that provides the most meaningful information, given this
is the country in which the majority of tax arises.
The tax receivables represent the corporate income tax ("CIT") and value added
tax ("VAT") that have yet to be refunded by the Indonesia tax authority. The
tax receivables relating to CIT arose due to over payment of tax. The tax
receivables relating to VAT as shown in the table below under other taxes
arose because the majority of the Groups' CPO was sold to bonded zones which
do not attract output VAT whilst input VAT on purchases is claimable. Upon
submission of a tax return (for CIT) or a request letter (for VAT refund), a
tax audit will be conducted by the tax authority and whilst every effort is
made to resolve this quickly, the process can sometimes take more than 12
months.
The breakdown of the tax receivables and tax liabilities is as follows:
2025 2024
$000 $000
Tax Receivables
Income tax 4,992 18,316
Other taxes 41,863 43,749
46,855 62,065
Tax Liabilities
Income tax (10,173) (5,466)
Other taxes (814) (1,201)
(10,987) (6,667)
The classification of other tax receivables is based on management's
assessment of the expected timing of recovery from the tax authorities. Based
on this assessment, the majority of the balances are expected to be recovered
within the normal operating timeframe, although the exact timing of recovery
is subject to the tax authorities' processes.
Critical judgement on carrying value of income tax receivables and provision
for income taxes Management has exercised significant judgement in determining
the recoverability of income tax receivables, which mainly comprise claims
from the Indonesian tax authority. Given the prolonged settlement timeline and
uncertainty around the outcome, the Group assessed these balances based on
historical recovery trends, legal interpretations, and advice from local tax
advisors. Where recovery is uncertain, a provision has been made. Judgement is
also applied in estimating provisions for income tax liabilities, reflecting
potential exposures from differing interpretations of tax laws in various
jurisdictions. Changes in assumptions or tax developments could materially
impact these balances.
9 Earnings per ordinary share ("EPS")
2025 2024
$000 $000
Earnings used in basic and diluted EPS 90,882 67,514
2025 2024
Number Number
'000 '000
Weighted average number of shares in issue in the year
- used in basic EPS 39,272 39,510
- dilutive effect of outstanding share options - -
- used in diluted EPS 39,272 39,510
Basic and diluted EPS 231.42cts 170.88cts
10 Dividends
2025 2024
$000 $000
Paid during the year
Final dividend of 51.0cts per ordinary share for the year ended 31
December 2024 (2023: 15.0cts) 20,091 5,923
Interim dividend of 37.3cts per ordinary share for the year ended 31
December 2025 (2024: 0cts) 14,558 -
Proposed final dividend of 43.7cts per ordinary share for the year
ended 31 December 2025 (2024: 51.0cts) 16,802 20,139
The proposed dividend for 2025 is subject to shareholders' approval at the
forthcoming annual general meeting and has not been included as a liability in
these financial statements.
11 Property, plant and equipment
Estate plant, equipment & vehicle Office plant, equipment & vehicle
Right
Leasehold -of-use assets# Construction in progress
Plantations Mill land Buildings Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
Cost
At 1 January 2024 198,766 79,254 53,123 63,971 17,262 2,121 1,572 23,846 439,915
Exchange translations (8,628) (4,111) (1,770) (2,977) (692) (57) (4) (719) (18,958)
Reclassification - 21,757 - 5,793 47 - - (27,597) -
Additions 348 3,964 2,641 477 1,644 464 82 8,039 17,659
Development costs
capitalised 11,464 - - - - - - - 11,464
Disposals (1,344) (1,352) - - (121) (26) - - (2,843)
Written off (2,431) (1,150) (3) (528) (984) (81) - - (5,177)
At 31 December 2024 198,175 98,362 53,991 66,736 17,156 2,421 1,650 3,569 442,060
Exchange translations (6,097) (3,675) (594) (2,377) (440) 23 63 (222) (13,319)
Reclassification - 1,893 - 4,652 22 - - (6,567) -
Additions 175 2,983 1,109 130 1,966 485 49 11,427 18,324
Development costs capitalised
11,566 - - - - - - - 11,566
Disposals - (1,507) - - (103) (80) - - (1,690)
Written off (2,539) (1,325) - (192) (650) (707) (94) - (5,507)
At 31 December 2025 201,280 96,731 54,506 68,949 17,951 2,142 1,668 8,207 451,434
Estate plant, equipment & vehicle Office plant, equipment & vehicle
Right
Leasehold -of-use assets# Construction in progress
Plantations Mill land Buildings Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
Accumulated depreciation and impairment
At 1 January 2024 82,534 34,880 3,810 29,511 13,218 970 610 - 165,533
Exchange translations (3,196) (1,682) 52 (1,339) (503) (17) - - (6,685)
Reclassification - (18) - 4 14 - - - -
Charge for the year 7,761 6,092 113 3,146 1,308 267 299 - 18,986
Impairment losses - - - 67 1 - 65 - 133
Disposal (882) (1,327) - - (120) (22) - - (2,351)
Written off (2,289) (1,037) - (381) (941) (78) - - (4,726)
At 31 December 2024 83,928 36,908 3,975 31,008 12,977 1,120 974 - 170,890
Exchange translations (1,800) (1,432) 325 (1,047) (290) 14 42 - (4,188)
Reclassification - - - - - - - - -
Charge for the year 7,567 6,091 121 3,299 1,310 283 287 - 18,958
Impairment loss/(reversal) - - (711) - 1 - - - (710)
Disposal - (1,320) - - (84) (56) - - (1,460)
Written off (2,351) (1,248) - (142) (627) (108) (127) - (4,603)
At 31 December 2025 87,344 38,999 3,710 33,118 13,287 1,253 1,176 - 178,887
Carrying amount
At 31 December 2023 116,232 44,374 49,313 34,460 4,044 1,151 962 23,846 274,382
At 31 December 2024 114,247 61,454 50,016 35,728 4,179 1,301 676 3,569 271,170
At 31 December 2025 113,936 57,732 50,796 35,831 4,664 889 492 8,207 272,547
# Right-of-use assets have been disclosed in note 22.
The average capitalisation rate of borrowing costs was 0% (2024: 0%) as there
were no borrowings in either 2025 or 2024 from which borrowing costs could be
capitalised. The estates included $nil (2024: $nil) of interest and $2,864,000
(2024: $2,458,000) of overheads capitalised during the year in respect of
expenditure on estates under development.
The Indonesian authorities have granted certain land exploitation rights and
operating permits for the estates. In the case of established estates in North
Sumatera, these rights and permits expire between 2026 and 2060 with rights of
renewal thereafter. As of estates in Bengkulu land titles were issued between
1994 and 2016 and the titles expire between 2028 and 2051 with rights of
renewal thereafter for two consecutive periods of 25 and 35 years
respectively. In Riau, land titles were issued in 2003 and expire in 2033 with
rights of renewal thereafter. In Kalimantan, land titles were issued between
2015 and 2019 and expire between 2049 and 2054 with rights of renewal
thereafter. In Bangka, land titles were issued in 2018 and expire in 2053.
Critical judgement on classification of land as leasehold with no depreciation
charge
Subject to compliance with the laws and regulations of Indonesia, land rights
are usually renewed. The cost of renewing the land rights is not significant.
On the basis that the Group has an indefinite right to renew, leasehold land
is not depreciated except leasehold land in Malaysia. The land title of the
estate in Malaysia is a long-term lease expiring in 2084.
Critical estimate on impairment of plantation assets
In accordance with IAS 36, management assesses indicators of impairment at
each reporting date. These indicators include historical production levels,
comparisons between historical and forecasted CPO and FFB prices, average
historical and forecasted EBITDA, environmental factors and the expected
recovery period of the CGU's carrying amount.
An impairment loss of $1,000 (2024: $133,000) related to building and
right-of-use asset in Malaysia was provided for 2025 as the recoverable
amounts based on its value-in-use were lower than the carrying amounts and the
reason of acquisition of the plant and equipment was for corporate social
responsibility purposes. The recoverable amounts are $nil (2024: $nil) as the
subsidiary in Malaysia is making losses.
A reversal of impairment of $711,000 was recognised in 2025 in respect of land
in Indonesia (2024: $nil). The reversal was due to an increase in the
recoverable amount of the land following improvements in market conditions.
The recoverable amount was determined based on fair value less costs of
disposal, using market comparable transactions for similar plantations and
land. Following the reversal, the carrying amount of the land does not exceed
the amount that would have been determined had no impairment been recognised
previously.
Impairment for cash generating units ("CGUs") is measured by comparing their
carrying amount with their recoverable amount, which is the higher of the fair
value less cost to sell or their value in use. The impairment assessment is
performed against the combined cost of PPE and other working capital for each
company, which represents the CGUs. This is because the plantations within
each company are located in close proximity and share similar soil and climate
conditions, as well as interdependent assets, thereby operating as a single
cash-generating unit. The recoverable amount has been determined based on fair
value less costs of disposal, using a price per hectare approach. For this
purpose, management engaged an external expert to assist in the valuation.
Based on the assessment carried out by management, no impairment has been
recognised in 2025 in respect of land and plantations in Indonesia (2024:
$nil).
Valuations were performed for certain CGUs, including CPA, BML and KAP, using
the market approach based on comparable transactions of similar oil palm
estates in Indonesia. Management engaged an independent external valuer, MV
Valuers, to assist in determining the fair value. The recoverable amounts were
determined based on fair value less costs of disposal. The valuation utilised
observable market data, including recent transaction prices of comparable
estates, adjusted for differences in factors such as land size, maturity
profile of oil palms, production yields and prevailing market conditions. The
valuation also applied a price per hectare methodology, with differential
weighting assigned to planted and unplanted areas. As significant inputs are
not directly observable in the market, the fair value measurement is
categorised within Level 3 of the fair value hierarchy.
The key unobservable inputs used in the fair value measurements include
assumptions relating to price per hectare and projected yields. These inputs
are not directly observable in the market and are based on management's best
estimates, taking into account external valuation reports and available
industry data.
Changes in these unobservable inputs could have a significant impact on the
fair value of the assets. In particular, a decrease in projected yields or
market price per hectare would result in a lower fair value measurement, while
increases in these inputs would increase the fair value. Management considers
the current assumptions to be reasonable and reflective of prevailing market
conditions.
In 2024, the recoverable amounts for certain CGUs, including Alno and HPP,
were determined based on value in use using a discounted cash flow ("DCF")
model. Projected future cash flows were estimated over the expected economic
life of the assets, ranging from 13 to 25 years, and discounted using a
pre-tax discount rate of 12.2%. No discounted cash flow model was applied in
2025, as the recoverable amounts of the relevant CGUs were determined based on
fair value less costs of disposal. The projections used in 2024 were based on
historical performance, industry trends, prevailing economic conditions and
other available information, including the potential impact of climate change.
Compliance with changing regulations, changes in buyer preferences,
development of new products and use of lower emission sources of energy will
affect the FFB production, CPO price and its growth. Heavy rainfall &
flooding, droughts and fires will have an effect on company specific risk
within the calculation of our discount rate as well as potential impacts on
the ability of our plants to produce FFB. Pests & disease will impact the
upkeeping cost.
12 Intangible assets
2025
$000
Beginning of year -
Additions 262
End of year 262
Amortisation:
Beginning/end of year -
Carrying amount:
At 31 December 2025 262
At 31 December 2024 -
Intangible assets are development expenditure on computer
software that is not integral to an item of PPE and is therefore recognised
separately as an intangible asset and costs of easements.
13 Investments in associates
The Group hold 20% equity interests in two solar energy companies incorporated
in Malaysia. The investments are accounted for using the equity method. These
associates are not individually material to the Group. There are no
significant restrictions on the ability of the associate to transfer funds to
the Group in the form of dividends or repayments, and the Group does not have
any material commitments or contingent liabilities relating to its investments
in associates.
2025
$000
Acquisition during the year 1
Share of profit for the year -
1
Details of the associated undertakings as at 31 December 2025 are as follows:
Unlisted Issued fully-paid up capital % Country of incorporation and principal place of business Principal activities
held
Re Kemaman Sdn Bhd RM 10,000 20 Malaysia Operation of generation facilities that produce electric energy
Re Kemaman II Sdn Bhd RM 10,000 20 Malaysia Operation of generation facilities that produce electric energy
14 Investment
Investment analysed as:
2025 2024
$000 $000
Non- current 45 5,111
Current 22,000 23,976
22,045 29,087
Details of the associated undertakings as at 31 December 2025 are as follows:
Unlisted Issued fully-paid up capital % Country of incorporation and principal place of business Principal activities
held
Re Kemaman Sdn Bhd RM 10,000 20 Malaysia Operation of generation facilities that produce electric energy
Re Kemaman II Sdn Bhd RM 10,000 20 Malaysia Operation of generation facilities that produce electric energy
14 Investment
Investment analysed as:
2025 2024
$000 $000
Non- current 45 5,111
Current 22,000 23,976
22,045 29,087
The movement of the fair value through profit and loss investment is:
2025 2024
$000 $000
1 January 29,087 10,035
Additions 29,068 45,990
Disposal (36,003) (28,069)
Change in fair value recognised in profit and loss (107) 1,131
31 December 22,045 29,087
Fair value through profit and loss financial assets includes the following:
2025 2024
$000 $000
Quoted:
Equity securities - United Kingdom 45 27
Bonds - Indonesia 18,000 18,014
Bond - Singapore 4,000 -
Treasury Bills - United States - 5,962
Unquoted:
Investment portfolio - Luxembourg - 5,084
22,045 29,087
Fair value through profit and loss financial assets are denominated in the
following currencies:
2025 2024
$000 $000
Currency
Sterling 45 27
US Dollar 22,000 29,060
22,045 29,087
The quoted bonds have an average remaining maturity of less than one year,
reflecting the Group's short-term trading strategy. The fair value of quoted
investments, including listed equity securities, bonds and treasury bills, is
classified as Level 1 in the fair value hierarchy, as they are traded in
active markets and valued based on quoted market prices at the reporting date.
The fair value of unquoted investment portfolio, which comprises
capital-protected investments, is classified as Level 2 in the fair value
hierarchy and is determined based on valuations provided by the custodian
bank, using observable market inputs including quoted prices of similar
instruments and market interest rates. Where the fair value was below the
original cost, the Group had historically recognised these investments at
cost, taking into consideration the capital protection feature. In 2025, the
Group disposed of the investment portfolio.
15 Receivables: non-current
2025 2024
$000 $000
Due from cooperatives under Plasma scheme
Current (note 19) 2,220 2,278
Non-current 17,800 19,363
20,020 21,641
Critical judgement on de-facto control of cooperative under Plasma scheme
Plasma scheme is an initiative by the Indonesian Government that mandated
plantation owners to allocate a percentage of their land acquired to the
surrounding community and to further provide financial and technical
assistance to cultivate oil palm on that land to improve the income and
welfare of the community or cooperatives. The Group does not have de facto
control or significant influence over the decision-making processes of the
cooperatives. Refer to Note 2(a) for further details.
The Group makes finance available to its associated co-operatives under Plasma
scheme, covering both the immature stage of initial plantings and working
capital needs for mature areas. Furthermore, the Group provides financial
guarantees for certain bank loans outstanding amounting to $0.2 million (2024:
$0.3 million), as disclosed in Note 28.
Throughout the year, certain subsidiary companies collectively funded Plasma
with a gross amount of $20,377,000 (2024: $22,105,000) before ECL, recoverable
from the cooperatives. Details on ECL are provided in note 19. The Group made
additional advances of $2,181,000 in FY2025 (2024: $5,010,000) and received
repayments of $3,110,000 in 2025 through the sale of FFB from the cooperative
(2024: $2,689,000).
Critical judgement on measurement of plasma receivables
All balances due from cooperatives under the Plasma scheme, including those
related to immature areas, are repayable on demand as there are no formal
terms in place, although the Group may grant extended financing periods at its
discretion.
The amounts are classified between current and non-current portions, based on
expected recovery. The non-current portion comprises amounts not expected to
be recovered within 12 months from the reporting date.
16 Deferred tax
The movement on the deferred tax account as shown below:
2025 2024
$000 $000
At 1 January (325) 1,313
Recognised in income statement (1,262) (1,487)
Recognised in other comprehensive income (522) (95)
Exchange differences 21 (56)
At 31 December (2,088) (325)
The deferred tax asset and liability, together with the amounts recognised in
income statement and other comprehensive income are detailed as follows:
(Charged)/ credited to income
statement (Charged)/ credited to
Asset Liability Net equity
$000 $000 $000 $000 $000
2025
Impairment of land - - - (212) -
Retirement benefits 1,452 - 1,452 (4) (522)
Biological assets - (1,407) (1,407) 308 -
Unutilised tax losses 528 - 528 (601) -
Unremitted earnings - (2,107) (2,107) (746) -
Other temporary differences
1,116 (1,670) (554) (7) -
Tax assets/(liabilities) 3,096 (5,184) (2,088) (1,262) (522)
Set off of tax (2,122) 2,122 - - -
Net tax assets/(liabilities) 974 (3,062) (2,088) (1,262) (522)
2024
Impairment of land 159 - 159 - -
Retirement benefits 2,036 - 2,036 299 (95)
Biological assets - (1,757) (1,757) (630) -
Unutilised tax losses 1,152 - 1,152 417 -
Unremitted earnings - (1,360) (1,360) - -
Other temporary
differences 638 (1,193) (555) (1,573) -
Tax assets/(liabilities) 3,985 (4,310) (325) (1,487) (95)
Set off of tax (2,085) 2,085 - - -
Net tax assets/(liabilities) 1,900 (2,225) (325) (1,487) (95)
2025 2024
$000 $000
A deferred tax asset has not been recognised for the following items:
Unutilised tax losses 41,132 30,721
Critical judgement on deferred tax on losses
The Group had recognised tax assets arising from the unutilised tax losses of
certain subsidiaries as the Group believes that the tax assets of these
subsidiaries can be realised in the future periods based on their budget, as
their respective plantation assets becoming more mature and historically
resulting in the companies becoming profitable. However, the Group does not
recognise the tax losses in certain companies within the Group as tax assets
in UK and Malaysia as the future recoverability of losses of these companies
cannot be certain and there are insufficient forecast future taxable profits.
The time limit on utilisation of tax losses is subject to the tax laws in
various countries. As of 31 December 2025, the relevant time limits are 5
years in Indonesia, 7 years in Malaysia and unlimited in UK.
At 31 December 2025, all unutilised tax losses were recognised in Indonesia.
The unutilised tax losses will expire as per below:
Year $000
2027 321
2029 207
528
At the balance sheet date, the aggregate amount of temporary differences
associated with undistributed earnings of subsidiaries for which deferred tax
liabilities have not been recognised was
$899,449,000 (2024: $839,135,000). No liability has been recognised in respect
of these differences because either the Group is in a position to control the
timing of the reversal of the temporary differences and does not expect such a
reversal to occur in the foreseeable future, or such a reversal would not give
rise to an additional tax liability. The deferred tax liability on unremitted
earnings recognised at the balance sheet date was related to the estimated
dividend declared for 2025 by the subsidiaries.
17 Inventories
2025 2024
$000 $000
Estate and mill consumables 9,048 6,902
Processed produce for sale 18,604 11,865
27,652 18,767
The movement on the inventories as shown below:
2025 2024
$000 $000
As at 1 Jan 18,767 16,684
Purchase of FFB 224,355 174,022
Labour and production overheads 125,376 115,468
Total purchase production cost 349,731 289,490
Less: cost of sales recognised in income statement (339,982) (286,583)
Exchange differences (864) (824)
27,652 18,767
During the financial year, inventories recognised as an expense amounted to
$339,982,000 (2024:
$286,583,000).
This includes the cost of raw materials (including purchases of Fresh Fruit
Bunches), direct labour, and production overheads related to inventories sold
during the year.
No write-down of inventories to net realisable value nor reversal of such
write-down was recognised during the financial year (2024: $nil).
18 Biological assets
2025 2024
$000 $000
At 1 January 8,057 5,419
Changes in fair value less cost to sell 155,386 165,924
Decreases due to harvest (156,794) (162,982)
Fair value (loss)/gain recognised in the income statement (1,408) 2,942
Exchange differences (266) (304)
At 31 December 6,383 8,057
The fair value of biological assets is classified as Level 3 in the fair value
hierarchy. During the year, all of the opening balance of biological assets
was harvested while all of the closing balance arose in the year due to
movements in fair value less costs to sell. The gain or loss recognised in the
income statement represents the net movement in the fair value of biological
assets during the year.
The estimation in respect of FFB prior to harvest is based on the market price
of FFB in each of the Group's locations on 31 December, less the cost of
harvesting and transport to mill. The market price is applied to a weight of
FFB. This weight derives from the assumption that value accrues exponentially
to FFB from the increase in oil content in the two weeks prior to harvest.
The valuation techniques and significant unobservable inputs used in
determining the fair value measurement of biological assets, as well as the
inter-relationship between key unobservable inputs and fair value, are set out
in the table below:
Valuation approach Inter-relationship between key unobservable inputs and fair value
Item Inputs used
Biological assets Based on FFB weight multiplied by the sum of FFB selling price less harvesting FFB weight: approximately 40,190 mt (2024: 41,957 mt) The higher the weight, the higher the fair value
cost
- Unharvested produce
FFB selling price:
USD 150 - USD 233/mt (2024: $157 - $244/mt) The higher the selling price, the higher the fair value
Harvesting costs: The higher the harvesting cost, the lower the fair value
$10 - $74/mt (2024: $9 - $61/mt)
The Group's biological assets are not subject to any material restrictions on
title and are not pledged as security for liabilities. There are no material
commitments for the development or acquisition of biological assets as at the
reporting date.
The Group manages financial risks relating to agricultural activity, including
fluctuations in FFB prices and production yields, through continuous
monitoring of market conditions and operational performance.
The assumptions applied in determining the fair value of fresh fruit bunches
("FFB") include the
estimated oil content of FFB, which is based on relevant research studies, the
expected selling
price net of harvesting costs, and forecast FFB production volumes. A decrease
of 1% in any of
these assumptions would reduce the valuation by approximately $64,000.
19 Trade and other receivables
2025 2024
$000 $000
Trade receivables 764 458
Other receivables 3,637 852
Prepayments 2,424 3,474
Due from cooperatives under Plasma scheme (note 15) 2,220 2,278
9,045 7,062
The carrying amount of trade and other receivables classified as amortised
cost approximates fair value.
Trade receivables
The Group applies the IFRS 9 simplified approach to measure ECL using a
lifetime ECL provision for trade receivables. To measure ECL on a collective
basis, trade receivables are grouped based on similar credit risk and age.
The expected loss rate is based on a combination of the Group's historical
credit losses experienced over the 5-year period prior to the year end and
forward-looking information on macroeconomic factors affecting the Group's
customers. The ECL has been calculated at 1% on trade receivables balances.
Other receivables
The Group assesses the ECL associated with its debt instruments carried at
amortised cost on a forward-looking basis using the three-stage approach. The
impairment methodology applied depends on whether there has been a significant
increase in credit risk.
The Group considers the probability of default upon initial recognition of an
asset and whether there has been significant increase in credit risk on an
on-going basis at each reporting date. To assess whether there is a
significant increase in credit risk, the Group compares the risk of default
occurring on the asset as at the reporting date with the risk of default as at
the date of initial recognition. The Group considers available, reasonable and
supportable forward-looking information, such as:
- internal credit rating;
- external credit rating (as far as available);
- actual or expected significant adverse changes in business,
financial or economic conditions that are expected to cause a significant
change to the debtor's ability to meet its obligation;
- significant changes in the value of the collateral supporting
the obligation or in the quality of third-party guarantees or credit
enhancements; and
- significant changes in the expected performance or behaviour of
the debtor, including changes in the payment status of the debtor.
There has not been a significant increase in credit risk since initial
recognition on any of the group's financial assets therefore 12-month ECL have
continued to be recognised on all balances other than trade receivables which
are discussed above.
The Group assesses the ECL on amounts due from cooperatives under Plasma
scheme by considering various probability weighted outcomes. The possible
outcome is considered to be:
- recovery is limited to the future cashflows of the cooperative,
being the FFB revenue less development costs; and
- recovery in full via bank financing obtained by the cooperative.
- partial recovery arising from lower-than-expected FFB production
or prices, which may result in extended recovery periods or shortfall in
repayment.
The amounts due from cooperative under plasma scheme are classified between
the portions that are current and non-current. The non-current portion relates
to the amounts that are not expected to be recovered within 12 months from the
reporting date.
Movements on the Group's loss provision on current, non-current other
receivables and financial guarantee contracts are as follows:
2025 2024
$000 $000
At 1 January 476 508
Reversal of loss provision during the year (85) (9)
Exchange difference (17) (23)
At 31 December 374 476
At 31 December 2025, the expected loss provision for receivables is as
follows:
Gross carrying Loss provision Net carrying
amount amount
$000 $000 $000
2025
Trade receivable 771 (7) 764
Other receivables 3,645 (8) 3,637
Receivables: non-current (note 15)
- Due from cooperatives under Plasma scheme 20,377 (357) 20,020
24,793 (372) 24,421
Financial guarantee contracts (note 28) - (2) (2)
24,793 (374) 24,419
Gross carrying Net carrying
Loss
amount Provision amount
$000 $000 $000
2024
Trade receivables 462 (4) 458
Other receivables 857 (5) 852
Receivables: non-current (note 15)
- Due from cooperatives under Plasma scheme 22,105 (464) 21,641
23,424 (473) 22,951
Financial guarantee contracts (note 28) - (3) (3)
23,424 (476) 22,948
20 Notes supporting statement of cash flows
Cash and cash equivalents for purposes of the statement of cash flows
comprised:
2025 2024
$000 $000
Cash at bank available on demand 166,637 103,866
Short-term deposits 65,196 77,988
Cash in hand 12 54
As reported in statement of financial position 231,845 181,908
Short-term investments 500 1,253
232,345 183,161
Cash and cash equivalents include investments in a USD-denominated liquidity
fund which is highly liquid, maintains a stable net asset value, and is
redeemable on demand with no significant risk of changes in value. The fund is
held for short-term cash management purposes.
The short-term investments refer to the fixed deposits with original maturity
of more than three months but less than one year.
An amount of $104,000, included within cash and cash equivalents, has been
pledged as collateral for a loan facility granted to a cooperative under the
plasma scheme, and is secured by Bank Syariah Mandiri, as disclosed in Note
28. While the amount remains classified as cash and cash equivalents, it is
subject to a pledge and is not freely available for use.
Significant non-cash transactions from investing activities are as follows:
2025 2024
$000 $000
Property, plant and equipment purchased but not yet paid at year end - 81
Non-cash transactions from financing activities are shown in the
reconciliation of liabilities from financing transactions as follows:
Non-current Current
lease liabilities lease liabilities Total
$000 $000 $000
At 1 January 2025 (453) (307) (760)
Cash Flows - 365 365
Non-cash flows
- Effect of foreign exchange (24) (28) (52)
- New lease (25) (24) (49)
- Lease liabilities classified as non-current at 31 December 2024 becoming
current during 2025
164 (164) -
- Interest accruing during the year - (44) (44)
(338) (202) (540)
Non-current Current
lease lease
liabilities liabilities Total
$000 $000 $000
At 1 January 2024 (709) (300) (1,009)
Cash Flows - 405 405
Non-cash flows
- Effect of foreign exchange - (9) (9)
- New lease (25) (57) (82)
- Lease liabilities classified as non-current at 31
December 2023 becoming current during 2024 281 (281) -
- Interest accruing during the (65) (65)
year
-
(453) (307) (760)
21 Trade and other payables
2025 2024
$000 $000
Trade payables 8,938 6,900
Other payables 833 442
Contract liabilities 5,032 4,637
Accruals 13,553 9,424
28,356 21,403
The carrying amount of trade and other payables classified as financial
liabilities measured at amortised cost approximates fair value. Contract
liabilities to customers are expected to be recognised in full as revenue in
the subsequent year. The contract liabilities at 31 December 2024 have been
recognised in revenue in the current period.
22 Leases
2025 2024
$000 $000
Lease liabilities analysed as:
Non-current 338 453
Current 202 307
540 760
The weighted average incremental borrowing rate per annum was 7.0% (2024:
7.6%).
Maturity analysis for the lease liabilities has been given in note 29.
Amounts recognised in income statement:
2025 2024
$000 $000
Depreciation expense on right-of-use assets (note 11) (287) (299)
Interest expense on lease liabilities (note 4) (44) (65)
Expense relating to short-term leases (12) (12)
Expense relating to leases of low value assets - (4)
(343) (380)
At 31 December 2025, the Group was committed to $0.01 million (2024: $0.01
million) for short- term leases.
All the leases are fixed payments. The total cash outflow for leases amount to
$0.38 million (2024:
$0.42 million).
The Group leases a piece of land and office under the right-of-use assets. The
remaining lease term is between 1 to 5 years. (2024: 1 to 5 years). On expiry
the Group has the option to renew based on mutually agreed future rental. In
determining the lease term, management has assessed whether it is reasonably
certain that renewal options will be exercised. Based on this assessment,
renewal options have not been included in the lease term as they are subject
to future negotiations and are not considered reasonably certain at the
reporting date. The right-of-use assets is classified as part of property,
plant and equipment in note 11.
Right-of-Use assets
Land Building Total
$000 $000 $000
At 1 January 2025 - 676 676
Additions - 49 49
Amortisation - (287) (287)
Written off - 33 33
Effect of foreign exchange - 21 21
At 31 December 2025 - 492 492
Land Building Total
$000 $000 $000
At 1 January 2024 - 962 962
Additions 82 - 82
Amortisation (16) (283) (299)
Impairment losses (65) - (65)
Effect of foreign exchange (1) (3) (4)
At 31 December 2024 - 676 676
Lease liabilities
Land Building Total
$000 $000 $000
At 1 January 2025 (42) (718) (760)
Additions - (49) (49)
Interest expense (2) (42) (44)
Lease payments 21 344 365
Effect of foreign exchange (5) (47) (52)
At 31 December 2025 (28) (512) (540)
Land Building Total
$000 $000 $000
At 1 January 2024 (30) (979) (1,009)
Additions (82) - (82)
Interest expense (2) (63) (65)
Lease payments 75 330 405
Effect of foreign exchange (3) (6) (9)
At 31 December 2024 (42) (718) (760)
The tables above relates to a right of use asset and is presented in note 11.
23 Retirement benefits
The Group provides Post-Employment Benefit plans to its employees in Indonesia
in accordance with Job Creation Law No.11/2020, Government Regulation
No.35/2021 effective since February 2021 and Collective Labour Agreements.
These are defined benefit plans and provide lump sum benefits to employees on
retirement, death, disability and voluntary resignation. There is no
requirement for the Group to advance fund these benefits.
The Group has set up a separate fund with PT Asuransi Allianz Life Indonesia
to fund the Post- Employment Benefit plan obligation for Staff employees. The
assets in the fund can only be used to pay the employees' benefits.
The defined contribution plan is managed by Dana Pension Lembaga Keuangan AIA
Financial ("DPLK AIAF") and allocated to the individual participants. From
2020 onwards, these employees will receive the higher of the benefit from DPLK
AIAF and the Post-Employment Benefit plan. The DPLK AIAF plan covers a smaller
proportion of the overall Post-Employment Benefit obligation.
The Group provides other long-term employee benefits in the form of Long
Service Awards for Staff and Non-Staff employees in Indonesia. The Long
Service Awards are for amounts of up to 2 months of basic salary, paid on
completion of 10 or 20 years' continuous service (Staff) and on completion of
25, 30, 35, and 40 years' continuous service (Non-Staff). These benefits are
unfunded.
Critical estimates on actuarial assumptions on retirement benefits
The defined benefit plans are valued by an actuary at the end of each
financial year. The major assumptions used by the actuary were:
2025 2024
Rate of increase in wages 6.5% 8.0%
Discount rate 6.5% 7.3%
Mortality rate* 100% TMI4 100% TMI4
Disability rate 10% TMI4 10% TMI4
* Mortality Table used in this calculation is Tabel Mortalita Indonesia IV
(TMI IV) which was released in December 2019. This is the latest table which
reflects the mortality rate of Indonesia's population. The mortality rate in
the table differs by age and gender.
2025 2024
$000 $000
Service cost
Current service cost 1,655 1,703
Past service cost 69 473
Net interest expense 686 664
Remeasurements on net defined benefit liability (163) (76)
Total employee benefits expense 2,247 2,764
The reconciliation on the remeasurement of retirement benefit plan as shown
below:
2025 2024
$000 $000
Included in other comprehensive income:
Remeasurement of retirement benefit plan (2,374) (473)
Deferred tax on retirement benefits 522 95
Remeasurement of retirement benefit plan, net of tax recognised in
other comprehensive income (1,852) (378)
(i) Reconciliation of defined benefit obligation and fair value of
scheme assets
Funded scheme Unfunded scheme Funded scheme Unfunded scheme Funded scheme Unfunded scheme
Total Total Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
(7,379) (5,699) (13,078) 1,780 - 1,780 (5,599) (5,699) (11,298)
(1,131) (572) (1,703) - - - (1,131) (572) (1,703)
(291) (182) (473) - - - (291) (182) (473)
(3,014) 3,014 - - - - (3,014) 3,014 -
(607) (189) (796) 132 - 132 (475) (189) (664)
- 76 76 - - - - 76 76
(5,043) 2,147 (2,896) 132 - 132 (4,911) 2,147 (2,764)
Defined benefit obligation Fair value of scheme assets Net defined scheme liability
At 1 January 2024
Service cost - current Service cost - past
Adjustment due to change in attribution method
Interest (cost)/income
Remeasurements on net defined benefit liability
Included in income statement
Adjustments (experience) 3 120 123 - 3 120 123
- -
Financial assumptions 403 (20) 383 - 403 (20) 383
- -
Return on plan assets (exclude interest) - - - (33) (33) - (33)
- (33)
Included in other comprehensive income 406 100 506 (33) 373 100 473
- (33)
Effect of movements in exchange rates 419 217 636 (107) - (107) 312 217 529
Employer contribution - - - 1,562 - 1,562 1,562 - 1,562
Benefits paid 644 121 765 (343) - (343) 301 121 422
Other 223 (239) (16) 19 - 19 242 (239) 3
Other movements 1,286 99 1,385 1,131 - 1,131 2,417 99 2,516
At 31 December 2024 (10,730) (3,353) (14,083) 3,010 - 3,010 (7,720) (3,353) (11,073)
Remeasurement (loss)/gain Actuarial (loss)/gain from:
Funded scheme Unfunded scheme Funded scheme Unfunded scheme Funded scheme Unfunded scheme
Total Total Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
(10,730) (3,353) (14,083) 3,010 - 3,010 (7,720) (3,353) (11,073)
(1,385) (270) (1,655) - - - (1,385) (270) (1,655)
- (69) (69) - - - - (69) (69)
(1,464) 1,464 - - - - (1,464) 1,464 -
(791) (135) (926) 240 - 240 (551) (135) (686)
- 163 163 - - - - 163 163
(3,640) 1,153 (2,487) 240 - 240 (3,400) 1,153 (2,247)
Defined benefit obligation Fair value of scheme assets Net defined scheme liability
At 1 January 2025
Service cost - current Service cost - past
Adjustment due to change in attribution method
Interest (cost)/income
Remeasurements on net defined benefit liability
Included in income statement
Adjustments (experience) 904 123 1,027 - 904 123 1,027
- -
Demographic assumptions 317 69 386 - 317 69 386
- -
Financial assumptions 734 191 925 - 734 191 925
- -
Return on plan assets (exclude interest)
Remeasurement (loss)/gain Actuarial (loss)/gain from:
income 1,955 383 2,338 36 - 36 1,991 383 2,374
Effect of movements in exchange rates
410 94 504 (146) - (146) 264 94 358
Employer contribution - - - 2,322 - 2,322 2,322 - 2,322
Benefits paid 915 79 994 (700) - (700) 215 79 294
Other movements 1,325 173 1,498 1,476 - 1,476 2,801 173 2,974
At 31 December 2025 (11,090) (1,644) (12,734) 4,762 - 4,762 (6,328) (1,644) (7,972)
Included in other comprehensive
(ii) Disaggregation of defined benefit scheme assets
The fair value of the funded assets is analysed as follows:
2025 2024
$000 $000
Bonds
- Government bonds 2,083 1,529
2,083 1,529
Cash/deposits 2,679 1,481
4,762 3,010
None of the plan assets are invested in the Group's own financial instruments,
property or other assets used by the Group. All plan assets invested in bonds
which have a quoted market price in an active market.
(iii) Defined benefit obligation - sensitivity analysis
The following table exhibits the sensitivity of the Group's retirement
benefits to the fluctuation in the discount rate, wages and mortality rate:
Reasonably Defined benefit obligation
Possible Increase Decrease
Change $000 $000
Discount rate (+/- 1%) (932) 1,032
Growth in wages (+/- 1%) 1,076 (986)
The weighted average duration of the defined benefit obligation is 8.51 years
(2024: 8.61 years).
The total contribution paid into the defined contribution plan in 2025
amounted to $221,000 (2024: $224,000). The Group expects to pay contributions
of $442,000 to the funded plans in 2026.
The expected maturity profile of the retirement benefits is as follows:
2025
$000
Within 1 year 117
Between 2 - 5 years 562
Between 6 - 10 years 1,085
Beyond 10 years 6,208
Total 7,972
24 Share capital and treasury shares
Issued Issued
and fully paid Issued and fully paid and fully paid
Authorised Authorised Authorised
Number Number £000 £000 $000 $000
Ordinary shares of 25p each
Beginning and
end of year 60,000,000
39,976,272 15,000 9,994 23,865 15,504
Cost Cost
2025 2024 2025 2024
Number Number $000 $000
Treasury shares:
Beginning of year 487,678 415,826 (2,487) (1,847)
Share buy back 707,762 71,852 (11,353) (640)
End of year 1,195,440 487,678 (13,840) (2,487)
Market value of treasury
shares:
$000
Beginning of year
(654.0p/share)
3,996
End of year
(1,370.0p/share)
22,029
707,762 treasury share was purchased in 2025 (2024: 71,852).
All fully paid ordinary shares have full voting rights, as well as to receive
the distribution of dividends and repayment of capital upon winding up of
company.
25 Ultimate controlling shareholder
At 31 December 2025, Genton International Limited ("Genton"), a company
registered in Hong Kong, held 20,247,814 (2024: 20,247,814) shares of the
Company representing 52.2% (2024: 51.3%) of the Company's issued share
capital, excluding treasury shares. Together with other deemed interested
parties, Genton's shareholding totals 20,551,914 or 53.0%. The ultimate
beneficial shareholders of Genton International Limited are vested in the
estates of Madam Lim Siew Kim with the application for probate in progress.
26 Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
An office premises lease agreement was entered with Infra Sari Sdn Bhd, a
company controlled by the late Madam Lim Siew Kim. The rental paid during the
year was $178,192 (2024: $166,800). There was no balance outstanding at the
year end (2024: Nil).
In 2025, the final dividend paid to Genton International Limited, a company
controlled by the Estate of the late Madam Lim Siew Kim, was $10,326,385 for
the year ended 31 December 2024 (2024: $3,037,172 for the year ended 31
December 2023) and an interim dividend was paid to Genton International
Limited was $7,552,435 for the year ended 31 December 2025 (2024: nil). The
final dividend paid to other companies controlled by the late Madam Lim Siew
Kim was $155,091 for the year ended 31 December 2024 (2024: $45,615 for the
year ended 31 December 2023). There was no balance outstanding at the year end
(2024: Nil). The interim dividend paid to other companies controlled by the
late Madam Lim Siew Kim was $113,429 for the year ended 31 December 2025
(2024: nil for the year ended 31 December 2024).
27 Reserves
Nature and purpose of each reserve:
Share capital Amount of shares
subscribed at nominal value.
Share premium Amount subscribed for share capital
in excess of nominal value.
Capital redemption reserve Amounts transferred from share capital on
redemption of issued shares. Treasury shares Cost of own shares
held in treasury.
Exchange reserves Gains/losses arising from
translating the net assets of overseas
operations into US Dollar.
Retained earnings Cumulative net gains and losses recognised
in the consolidated income statement.
28 Guarantees and other financial commitments
Capital commitments at 31 December
2025
$000
2024
$000
Contracted but not provided - normal estate
operations
- 184
Contracted but not provided - mill
development
878 -
Authorised but not contracted - plantation and mill
development 34,251 45,790
On 3 February 2017, a subsidiary company, PT Alno Agro Utama and Koperasi
Perkebunan Plasma Maju Sejahtera ("KPPM") signed a Refinancing Agreement with
PT Bank Syariah Mandiri ("BSM") to fund its plasma development. The Agreement
provides a loan of Rp 8.75 billion ($0.5 million) (2024: Rp8.75 billion, $0.5
million), with 10 (Ten) years maturity period effective from 24 July 2017 with
an interest rate of 13.25% per annum and in 2021 decreased to 12.5% per annum.
This loan is collateralized by 125.4 hectares of KPPM's land located in Desa
Serami Baru, Kecamatan Malin Deman, Kabupaten Mukomuko, Bengkulu and its
plantation with a carrying amount of $0.6 million as at 31 December 2025 (31
December 2024: $0.6 million) as security under the agreement while the Company
provides corporate guarantee amounting to Rp 8.75 billion ($0.5 million). As
of 31 December 2025, the outstanding bank loans amounted to $0.2 million,
compared to $0.3 million in 2024.
The Group's loss provision on these financial guarantee
contracts was immaterial for 2024 and 2025.
29 Disclosure of financial instruments and other risks
The Group's principal financial instruments comprised investment, cash, short
and long-term bank loans, trade receivables excluding prepayments and payables
excluding contract liabilities and receivables from local partners in respect
of their investments.
The Group's accounting classification of each class of financial asset and
liability at 31 December 2025 and 2024 were:
Financial
Fair value Financial liabilities
through assets at at Total
profit and amortised amortised carrying
loss cost cost value
$000 $000 $000 $000
2025
Investments 22,045 - - 22,045
Non-current receivables - 17,800 - 17,800
Trade and other receivables - 6,621 - 6,621
Short-term investments - 500 - 500
Cash and cash equivalents - 231,845 - 231,845
Trade and other payables - - (23,324) (23,324)
22,045 256,766 (23,324) 255,487
Financial liabilities
Fair value Financial
through profit and assets at amortised at amortised Total carrying
loss cost cost value
$000 $000 $000 $000
2024
Investments 29,087 - - 29,087
Non-current receivables - 19,363 - 19,363
Trade and other receivables - 3,588 - 3,588
Short-term investments - 1,253 - 1,253
Cash and cash equivalents - 181,908 - 181,908
Trade and other payables - - (16,766) (16,766)
29,087 206,112 (16,766) 218,433
Financial instruments not measured at fair value
Financial instruments not measured at fair value include cash and cash
equivalents, trade and other receivables, trade and other payables, borrowings
due within one year and non-current receivables.
Due to their short-term nature, the carrying value of cash and cash
equivalents, trade and other receivables, trade and other payables
approximates their fair value. The non-current receivables were measured at
cost less ECL.
The principal financial risks to which the Group is exposed are:
- commodity price risk; and
- currency risk;
which, in turn, can affect financial instruments and/or operating performance.
The Company does not hedge any of its risks. Its trade credit risks are low.
Financial assets that are held at fair value through the profit or loss
include investment to generate higher return.
The Board is directly responsible for setting policies in relation to
financial risk management and monitors the levels of the main risks through
review of regular operational reports.
Commodity price risk
The Group is exposed to fluctuations in the market prices of palm produce,
which directly affect the revenue. The Group does not normally contract to
sell produce more than one month ahead.
Currency risk
Most of the Group's operations are in Indonesia. The Company and Group
accounts are prepared in US Dollar which is not the functional currency of the
operating subsidiaries. The Group does not hedge its net investment in its
overseas subsidiaries and is therefore exposed to a currency risk on that
investment. The historical cost of investment (including intercompany loans)
by the parent in its subsidiaries amounted to $12,641,000 (2024: $10,808,000),
while the statement of financial position value of the Group's share of
underlying assets at 31 December 2025 amounted to $580,689,000 (2024:
$551,031,000).
All the Group's sales are made in local currency and any trade receivables are
therefore denominated in local currency. No hedging is therefore necessary.
Selling prices of the Group's produce are directly related to the US Dollar
denominated world prices. Appreciation of local currencies, therefore, reduces
profits and cash flow of the Indonesian and Malaysian subsidiaries in US
Dollar terms and vice versa.
There are no borrowings in the Group and therefore there is no longer any
currency risk for the Group in respect of this. The average interest rate on
local currency deposits was 0.12% higher (2024: 0.12% higher) than on US
Dollar deposits. The unmatched balance at 31 December 2025 was represented by
the $99,329,000 shown in the table below (2024: $33,435,000).
The table below shows the net monetary assets and liabilities of the Group as
at 31 December 2025 and 2024 that were not denominated in the operating or
functional currency of the operating unit involved.
Net foreign currency assets/(liabilities)
US Dollar Sterling Total
Functional currency of Group operation $000 $000 $000
2025
Rupiah 91,801 - 91,801
US Dollar - 873 873
Ringgit 7,528 - 7,528
Total 99,329 873 100,202
2024
Rupiah 17,853 - 17,853
US Dollar - 2,621 2,621
Ringgit 15,582 - 15,582
Total 33,435 2,621 36,056
The following table summarises the sensitivity of the Group's financial assets
and financial liabilities to foreign exchange risk. The impact on equity if
Ringgit or Rupiah strengthen or weaken by 10% against US Dollar:
2025
2024
Carrying Amount -10% in Rp : $ and +10% in Rp : $ and Carrying Amount -10% in Rp : $ and +10% in Rp : $ and
US$ RM : $ RM : $ US$ RM : $ RM : $
$000 $000 $000 $000 $000 $000
Financial Assets
Non-current receivables 17,800 (1,618) 1,978 19,363 (1,760) 2,151
Trade and other
receivables 6,621 (547) 669 3,588 (320) 391
Short-term investments 500 (45) 56 1,253 - -
Cash and cash
equivalents 231,845 (20,751) 25,363 181,908 (16,359) 19,995
payables (23,324) 2,073 (2,533) (16,766) 1,493 (1,825)
Total (decrease)/increase (20,888) 25,533 (16,946) 20,712
Financial Liabilities Trade and other
Liquidity risk
Profitability of new sizable plantations normally requires a period of between
six and seven years before cash flow turns positive. Because oil palms do not
begin yielding significantly until four years after planting, this development
period and the cash requirement is affected by changes in commodity prices.
The Group attempts to ensure that it is likely to have either self-generated
funds or further loan/ equity capital to complete its development plans and to
meet loan repayments. Long-term forecasts are updated twice a year for review
by the Board. In the event that falling commodity prices reduce self-generated
funds below expectations and to a level where Group resources may be
insufficient, further new planting may be restricted. Consideration is given
to the funds required to bring existing immature plantings to maturity.
The Group's trade and tax payables are all due for settlement within a year.
At 31 December 2025, the Group had no external loans and facilities.
The following table sets out the undiscounted contractual cashflows of
financial liabilities:
Less than Between 1 and 2 Between 2 and 5 More than
1 year years years 5 years
Total
$000 $000 $000 $000 $000
At 31 December 2025
Trade and other payables (9,771) - - - (9,771)
Accruals (13,553) - - - (13,553)
Lease liabilities (229) (218) (137) - (584)
(23,553) (218) (137) - (23,908)
At 31 December 2024
Trade and other payables (7,342) - - - (7,342)
Accruals (9,424) - - - (9,424)
Lease liabilities (347) (199) (291) - (837)
(17,113) (199) (291) - (17,603)
The figures for trade and other payables exclude accruals and contract
liabilities.
The Group does not face a significant liquidity risk with regard to its
financial liabilities.
Interest rate risk
The Group's surplus cash is subject to variable interest rates. The Group had
net cash throughout 2025. A 1% change in the deposit interest rate would not
have a significant impact on the Group's reported results as shown in the
table below.
2025 2024
-1% in interest +1% in interest -1% in interest +1% in interest
Carrying Carrying
amount rate rate amount rate rate
$000 $000 $000 $000 $000 $000
Financial Assets
Short-term
investments 500 (5) 5 1,253 (10) 6
Cash and cash
equivalents 231,845 (2,259) 2,336 181,908 (1,681) 1,799
Total (decrease)/
increase (2,264) 2,341 (1,691) 1,805
There is no policy to hedge interest rates, partly because of the net cash
position and the net interest income position of the Group.
Average US Dollar deposit rate in 2025 was 4.42% (2024: 4.72%) and Rupiah
deposit rate was 4.54% (2024: 4.60%).
Credit risk
The Group has two types of financial assets that are subject to the ECL model:
• trade receivables for sales of goods and services; and
• current and non-current receivables carried at amortised cost.
The Group also has financial guarantee contracts for which the ECL model is
also applicable.
While cash and cash equivalents are also subject to the impairment
requirements as set out in IFRS 9, there is no impairment loss identified
given the financial strength of the financial institutions in which the Group
have a relationship with. Credit risk arises from cash and cash equivalents
and deposits with banks and financial institutions. The Group has taken
necessary steps and precautions in minimising the credit risk by lodging cash
and cash equivalents only with reputable licensed banks, and particularly in
Indonesia, independently rated banks with a minimum rating of "A". The cash
and cash equivalents are in US dollars, Rupiah, Ringgit and Sterling according
to the requirements of the Group.
The Group use three categories for those receivables which reflect their
credit risk and how the loss provision is determined for those categories.
(i) Trade receivables using the simplified approach
The Group applies the simplified approach under IFRS 9 to measure ECL, which
uses a lifetime expected loss provision for all trade receivables. To measure
the expected losses, trade receivables have been grouped based on shared
credit risk characteristics and days past due.
The expected loss rates are based on historical payment profiles of sales and
the corresponding historical credit losses experienced during these periods.
The historical loss rates are adjusted to reflect current and forward-looking
information on macroeconomic factors (such as palm product prices and crude
oil price) affecting the ability of the customers to settle the receivables.
The historical loss rates will be adjusted based on the expected changes in
these factors. No significant changes to estimation techniques or assumptions
were made during the reporting period.
In determining the expected loss rates, the Group also takes into
consideration the collateral or payments received in advance, as set out
below:
Receivables are generally collected within the credit term and therefore there
is minimal exposure to doubtful debts. Upfront payments are also collected for
certain sales made by the Group's subsidiaries in Indonesia.
The Group's maximum exposure to credit risk and loss provision recognised as
at 31 December 2025 is disclosed in note 19. The ECL has been calculated at 1%
on trade receivables balances while the remaining amount on which no ECL
provision was recognised is deemed to be recoverable, with low probability of
default. Default is defined by the management as the non- repayment of the
balance.
(ii) Other receivables at amortised costs other than trade receivables
using the three-stage approach
All of the Group's debt instruments at amortised cost other than trade
receivables are considered to have low credit risk, except for amounts due
from cooperatives under the Plasma scheme. Plasma receivables are assessed
separately due to their longer recovery profile; however, they are considered
to be performing, with no significant increase in credit risk since initial
recognition and no significant history of default. Accordingly, these balances
are classified within Stage 1.
The 12-month ECL for other receivables is calculated using a simplified rate
of approximately 1% on the majority of balances, unless assessed to be
immaterial. For amounts due from cooperatives under the Plasma scheme, the ECL
is determined using probability-weighted scenarios. These include recovery
from future cash flows of the cooperatives, based on FFB revenue less
development costs, recovery in full via bank financing obtained by the
cooperatives, and a downside scenario reflecting potential partial recovery
arising from adverse changes in operating conditions. Downside scenarios were
assessed based on a reduction of approximately 10% in FFB selling prices and
10% in production yields, reflecting reasonably possible adverse changes in
market and operating conditions.
The Group determines expected credit losses using a probability-weighted
approach, taking into account possible recovery scenarios and the time value
of money where applicable. The key inputs in the assessment include expected
future cash flows from cooperatives, FFB selling prices, production yields and
development costs. Forward-looking information is incorporated into the
assessment by considering reasonably possible changes in market conditions and
operational factors, including fluctuations in FFB prices, weather conditions
and crop yields. There have been no significant changes in the estimation
techniques or key assumptions used in determining expected credit losses
during the financial year.
The maximum exposure to credit risks for debt instruments at amortised cost
other than trade receivables are represented by the carrying amounts
recognised in the statements of financial position.
(iii) Financial guarantee contracts using the three-stage approach
All of the financial guarantee contracts are considered to be performing, have
low risks of default and historically there were no instances where these
financial guarantee contracts were called upon by the parties of which the
financial guarantee contracts were issued.
Information regarding other non-current assets and trade and other receivables
is disclosed in notes 15 and 19 respectively.
Deposits with banks and other financial institutions and investment securities
are placed, or entered into, with reputable financial institutions or
companies with high credit ratings and no history of default.
Capital
The Group defines its Capital as Share capital and Reserves, shown in the
statement of financial position as "Issued capital attributable to owners of
the parent" and amounting to $580,689,000 at 31 December 2025 (2024:
$551,031,000).
Group policy presently attempts to fund development from self-generated funds
and loans and not from the issue of new share capital. At 31 December 2025,
the Group had no borrowings (2024: nil), excluding lease liabilities
recognised under IFRS 16. However, depending on market conditions, the Board
is prepared for the Group to obtain borrowings.
Plantation industry risk
Please refer to principal and emerging risks and uncertainties in the
Strategic Report.
30 Subsidiary companies
The principal subsidiaries of the Company all of which have been included in
these consolidated financial statements are as follows:
Name
Country of incorporation and principal place of business
Proportion of ownership interest at
31 December
Non-controlling interests ownership/voting interest at
31 December
2025 2024 2025 2024
Principal sub-holding company
Anglo-Indonesian Oil Palms
Limited* 100% 100% - -
United Kingdom
Management company
AEP Plantations Management Sdn Bhd*
Malaysia 100% 100% - -
PT Anglo Eastern Plantations Management Indonesia
Indonesia 100% 100% - -
Operating companies
Malaysia 55% 55% 45% 45%
Malaysia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
Indonesia 100% 100% - -
AEP Plantations (M) Sdn Bhd*
All For You Sdn Bhd PT Alno Agro Utama PT Anak Tasik
PT Bangka Malindo Lestari
PT Bina Pitri Jaya
PT Cahaya Pelita Andhika PT Hijau Pryan Perdana
PT Kahayan Agro Plantation
PT Mitra Puding Mas
PT Musam Utjing
PT AEP Nusantara
Plantations Tbk
PT Simpang Ampat
PT Tasik Raja
PT United Kingdom Indonesia Plantations
Name
Country of incorporation and principal place of business
Proportion of ownership interest at
31 December
Non-controlling interests ownership/voting interest at
31 December
Dormant companies
The Ampat (Sumatra) Rubber
2025 2024 2025 2024
Estate (1913) Limited United Kingdom 100% 100% - -
Gadek Indonesia (1975) Limited United Kingdom 100% 100% - -
Mergerset (1980) Limited United Kingdom 100% 100% - -
Musam Indonesia Limited United Kingdom 100% 100% - -
Indopalm Services Limited* United Kingdom 100% 100% - -
AEP Strategic Investments Sdn Bhd#
Malaysia 100% - - -
AEP Nusantara Holdings Limited# Hong Kong 100% - - -
AEP Sumatra Holdings Limited# Hong Kong 100% - - -
* Direct subsidiaries of the Company
# Direct subsidiaries of the Company and newly incorporated in FY2025
The principal United Kingdom sub-holding company, and UK dormant companies are
registered in England and Wales. The Malaysian operating companies and
management company are incorporated in Malaysia. The Indonesian operating
companies and management company are incorporated in Indonesia. The Hong Kong
dormant companies are incorporated in Hong Kong. The principal activity of the
operating companies is plantation agriculture. The registered office of the
principal subsidiaries is disclosed below:
Subsidiaries by country Registered address
UK registered subsidiaries Quadrant House, 6th Floor
4 Thomas More Square London E1W 1YW United Kingdom
Malaysia registered subsidiaries 7th Floor, Wisma Equity
150 Jalan Ampang
50450 Kuala Lumpur Malaysia
Indonesia registered subsidiaries Sinar Mas Land Plaza, 3rd Floor #301,
Jl. Pangeran
Diponegoro No. 18
Kelurahan Madras Hulu, Kecamatan Medan Polonia Medan 20152, North Sumatera
Indonesia
Hong Kong registered subsidiaries Unit D, 17/F, Nathan Commercial Building,
430-436 Nathan Road,
Kowloon,
Hong Kong
31 Non-controlling interests
In 2025 and 2024, none of the subsidiaries which have non-controlling
interests ("NCI") contributed more than 10% of the Group's total assets or
profits.
32 Acquisition of non-controlling interests
In October 2024, the Group acquired some additional 5% of the issued share
capital of PT Bangka Malindo Lestari ("BML") and 0.5% of the issued share
capital of PT Kahayan Agro Plantation ("KAP") for a total consideration of
$0.4mil, increasing the Group ownership interest to 100%.
The following is the schedule of additional interest:
2024
$000
Consideration paid to non-controlling shareholders 400
Carrying value of the additional net liability 257
Difference recognised in retained earnings (Consolidated Statement of Changes
in
Equity) 657
33 Events after the reporting period
The following events occurred after the reporting period and are classified as
non-adjusting events under IAS 10 Events after the Reporting Period, as they
do not give evidence of conditions that existed at the end of the reporting
period.
Share buyback programme
The Company on 6 January 2026, announced that it has entered into an
irrevocable commitment with Panmure to manage a programme to repurchase up to
3,963,637 ordinary shares of 25 pence each in the capital of the Company
representing approximately 10% of the Ordinary Shares in issued. This
authority expires on 30 June 2026, of if earlier, at the conclusion of the
forthcoming annual general meeting. All such purchases will be market
purchases made through the London Stock Exchange. Companies can hold their own
shares which have been purchased in this way in treasury rather than having to
cancel them.
Proposed acquisition of Admiral Potential Sdn Bhd
As announced on 14 October 2025, the Group has entered into a conditional
agreement to acquire Admiral Potential Sdn Bhd, which owns PT Jaya Jadi Utama
in Central Kalimantan, for a total consideration of Rp150 billion
(approximately USD 9.0 million).
Progress on the proposed acquisition continues and remains subject to the
satisfactory completion of due diligence and conditions precedent. A further
announcement will be made on completion.
Proposed Initial Public Offering ("IPO") of PT AEP Nusantara Plantations Tbk
As announced on 16 April 2026, the Company is exploring a proposed IPO of its
Indonesian subsidiary, PT AEP Nusantara Plantations Tbk, on the Indonesia
Stock Exchange, subject to regulatory approvals and market conditions. The IPO
is expected to involve the issuance of approximately 15% of shares and aims to
fund capital expenditure, including infrastructure and a new palm oil mill.
Completion is anticipated by mid-2026.
Note: The information communicated in this announcement is inside information
for the purposes of Article 7 of Market Abuse Regulation 596/2014 as it forms
part of UK domestic law by virtue of the European Union (Withdrawal) Act
2018.
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