REG - Anglo-Eastern Plant - Interim Results for six months ended 30 June 2024
23/08/2024 07:00
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RNS Number : 4892B Anglo-Eastern Plantations PLC 23 August 2024
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Announcement of interim results for the six months ended 30 June 2024
The group, comprising Anglo-Eastern Plantations Plc and its subsidiaries (the
"Group"), is a major producer of palm oil and rubber with plantations across
Indonesia and Malaysia, has today released its results for the six months
ended 30 June 2024.
Financial Highlights
Continuing operations 2024 2023 2023
6 months
6 months
12 months
to 30 June
to 30 June
to 31 December
$m
$m
$m
(unaudited) (unaudited) (audited)
Revenue 166.7 173.4 371.0
Profit before tax
- before biological assets ("BA") movement 33.5 32.2 78.7
- after BA movement 35.2 32.5 77.8
Basic Earnings per ordinary share ("EPS")
- before BA movement 67.18cts 50.27cts 130.24cts
- after BA movement 70.58cts 50.73cts 128.82cts
Enquiries:
Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Liberum
Amrit Mahbubani / Freddie Wooding +44 (0)20 3100 2000
Chairman's Interim Statement
The interim results for the Group for the six months to 30 June 2024 were as
follows:
Revenue for the six months to 30 June 2024 was $166.7 million, 4% lower than
$173.4 million reported for the same period of 2023. The Group's gross profit
after BA movement for the six months of 2024 was $36.3 million, 9% higher than
$33.2 million for the same period of 2023.
The BA movement for the first half of 2024 was a credit of $1.8 million
representing an increase in fair value of our Fresh Fruit Bunches ("FFB") as
compared to a credit of $0.3 million for the same period last year.
Profit before tax after BA movement for the first half of 2024 was 8.6% higher
at $35.3 million against $32.5 million for the same period last year. The
higher profit for the period, notwithstanding the lower sales revenue, was
primarily driven by reduced manuring costs due to cheaper fertiliser prices
and an increase in the value of biological assets, primarily because of a
greater number of unripe bunches on the trees and a higher net realisable
value in June 2024 as compared to December 2023.
FFB production for the first half of 2024 was 5% lower at 494,900 mt as
compared to 522,700 mt for the same period last year. This was primarily due
to lower FFB yield from our old-matured trees in Bengkulu region, Sumatera,
which have been earmarked for replanting and their fertiliser programs have
been withdrawn 18 months prior to replanting. In addition, there was a further
reduction of 1,814 ha of matured palm trees in Bengkulu region this year, of
which 1,074 ha of the palms were replanted in 2023, while another 740 ha were
cleared for replanting during the first half of 2024. This is part of the
Group's replanting program to replenish old and Dura palms with Tenera
seedlings which are of better quality to ensure higher FFB yields and better
crude palm oil ("CPO") extraction going forward.
Bought-in crops for the first half of 2024 decreased by 8% to 463,300 mt as
compared to 501,400 mt of outside crops purchased for the same period last
year. The lower quantity purchased was due to the loss of supply of fruits
from a competitor's estate who is now processing their own fruits in their own
mill in Central Kalimantan as well as intense competition for fruits in
Bengkulu region.
Operational and Financial Performance
For the six months ended 30 June 2024, gross profit margin increased to 21.8%
from 19.2% as compared to the same period last year. The higher gross margin
was mainly due to lower fertiliser prices together with the increase in fair
value of our biological assets as at 30 June 2024.
The average ex-Rotterdam CPO price for the first six month to 30 June 2024 was
$1,018/mt, which was 3% higher as compared to $991/mt for the same period last
year. The Group's average CPO ex-mill price for the first six month was
slightly lower at $749/mt as compared to $751/mt for the same period last
year. The ex-mill price is normally quoted at a discount to ex-Rotterdam price
as buyers factored in freight and insurance charges and deduct CPO export tax
and levy imposed by the Indonesian Government. Palm kernel prices averaged at
$411/mt, which was 14% higher for the first half year of 2024 against $361/mt
for the same period last year.
Profit after tax for the six months ended 30 June 2024 was 15.8% higher at
$27.9 million, compared to a profit after tax of $24.1 million, excluding the
loss of $2.5 million from the discontinued operations for the same period last
year.
The resulting basic earnings per share from continuing operations for the
period was 70.58cts (H1 2023: 50.73cts).
The Group's Balance Sheet remains strong with no outstanding bank loans. Net
assets as at 30 June 2024 was $519.7 million as compared to $530.7 million as
at 31 December 2023 and $617.1 million as at 30 June 2023 respectively. The
Group's net assets decreased by $11.0 million since 31 December 2023, largely
driven by a currency translation loss of $32.3 million from Rupiah to our
reporting currency in USD. This loss was partially net off by a profit of
$27.9 million for the six months ending 30 June 2024.
As of 30 June 2024, the Group's cash and cash equivalents including short-term
investments known as fixed deposits with banks, was $150.8 million (31
December 2023: $167.1 million, H1 2023: $261.3 million). The reduction in cash
& cash equivalents including short-term deposits since the beginning of
2024 was due to cash allocated for investments of $30.0 million, capital
expenditure of $12.0 million and loss in foreign currency exchange of $10.0
million net of cash generated from operations for the period of $34.8 million.
Working capital increased by $3.1 million for the period as compared to a
decrease in working capital of $24.3 million for the corresponding period last
year. The largest component of the movement in working capital related to a
$9.9 million advance payment to the Group's Share Registrar for the dividend
payment in July 2023, whereas no such advance payment was made during current
period. Other fluctuations in working capital are due to timing differences
related to normal business operations.
Production costs
Production cost for the Group was lower during the first half of 2024 as
compared to the same period in 2023. This was mainly due to savings in
manuring cost arising from fertilisers procured at lower prices for first half
of 2024. The Group has recently concluded a tender to procure fertilisers at
rates up to 40% less than the peak prices in 2022 for the second half of 2024.
Production and Sales
2024 2023 2023
6 months 6 months Year
to 30 June to 30 June to 31 December
mt mt mt
Oil palm production
FFB
- all estates from continuing operations 494,900 522,700 1,102,100
- estates from discontinued operations - 15,700 21,600
- bought-in from third parties 463,300 501,400 1,080,200
Saleable CPO 191,200 210,900 449,000
Saleable palm kernels 44,500 48,600 103,900
Oil palm sales
CPO 189,500 201,800 450,700
Palm kernels 44,000 47,400 104,300
FFB sold outside 24,300 24,200 55,100
The Group's seven mills processed a total of 936,500mt of FFB during the first
half year of 2024, representing a decrease of 8% as compared to 1,015,600mt
for the same period last year. This was mainly due to lower internal crop
produced, coupled with lower third-party crops purchased for the same period.
Overall, CPO production for the first half of 2024 was 191,200mt, 9% lower
than the corresponding period of 210,900 mt in 2023. The Oil Extraction Rate
("OER") for the first half year was 20.4%, which was slightly lower than 20.8%
as compared to the same period last year.
Commodity prices
The ex-Rotterdam CPO price started the year at $935/mt and trended upwards
during Q1 2024 before peaking at $1,140/mt in early April 2024. It retreated
to a low of $980/mt in early June 2024 before it ended higher at $1,030/mt on
28 June 2024, the last business day of the period. CPO price ex-Rotterdam for
the first half of 2024 averaged at $1,018/mt, 3% higher than last year (H1
2023: $991/mt). The increase in CPO price was seasonal due to a lower palm
production and the higher price trend of competing vegetable oils during first
half of 2024. However, despite the price surge, Indonesian CPO exporters were
still not able to reap maximum profits due to reduced demand from several
countries, particularly China.
Development
The Group's planted areas on 30 June 2024 comprised:
Total Mature Immature
Continuing operations Ha ha Ha
North Sumatera 18,610 18,162 448
Bengkulu 16,423 13,016 3,407
Riau 4,786 4,786 -
Kalimantan 18,543 16,376 2,167
Bangka 2,766 2,437 329
Plasma 3,888 2,865 1,023
Indonesia 65,016 57,642 7,374
Malaysia 3,453 3,453 -
Total: 30 June 2024 68,469 61,095 7,374
Total: 31 December 2023 68,948 59,627 9,321
30 June 2023
Continuing operations 68,580 60,270 8,310
Discontinued operations 7,749 7,331 418
Total: 30 June 2023 76,329 67,601 8,728
The Group's new planting and replanting for the first six months of 2024
totalled 598 ha compared to 987 ha for the same period last year. In addition,
Plasma planting for the period was 42 ha (H1 2023: 89 ha).
The Group remains optimistic that planting will pick up in the second half of
2024 as rainfall normalises. The Group's total landholding comprises of 90,500
ha, of which the planted area stands at 68,469 ha (H1 2023: 68,580 ha) with an
estimated remaining plantable area of 9,400 ha (H1 2023: 9,500 ha).
The seventh mill in North Sumatera has commenced processing its estate crop
since the beginning of this year. Meanwhile, the Group has initiated the
environmental impact assessment ("EIA") for the eighth mill in Kalimantan and
the EIA has been submitted to the Ministry of Environment and Forestry for
approval before construction can begin.
Dividend and Share Buyback
The Board has decided to revert to paying a final dividend based on profits
for the year and it will be declared in accordance with the dividend policy of
at least 25% of the profit after tax for the year. Accordingly, no interim
dividend has been declared. The final dividend of 15.0 cents per share in
respect of the year ended 31 December 2023 was paid on 12 July 2024.
During the period, the Group repurchased 71,852 ordinary shares pursuant to
the share buyback programme announced on 24 August 2023. The Group's share
buyback programme expired at the conclusion of the Company's AGM on 24 June
2024.
Outlook
In the second half of 2024, palm oil production is expected to increase.
Weaker demand from major importers like India and China would exert downward
pressure on CPO prices. Additionally, the recent tropical storm Beryl brought
heavy rain to the soybean production belt in the USA, which could enhance
yields and increase the production of competing vegetable oils for the season.
Similarly, soybean production is anticipated to be higher in Brazil and
Argentina compared to the previous year. The anticipated increase in supply is
likely to push CPO prices downward.
Despite these challenges, Indonesia's ongoing Biodiesel B35 program and the
planned implementation of the B40 mandate are expected to boost domestic
consumption, thereby supporting CPO prices by tightening supply. The B35
program requires biodiesel to contain 35% palm oil, while the upcoming B40
mandate will increase this requirement to 40%. These initiatives aim to reduce
dependence on fossil fuels, promote renewable energy, and absorb more palm oil
domestically, which in turn helps to stabilize and support CPO prices by
reducing the volume available for export.
In addition, the possibility of La Niña and other extreme weather conditions
could reduce palm oil production and disrupt the supply chain, which will also
help to support CPO prices.
Barring any unforeseen circumstances, the Group expects satisfactory
performance for the remaining half of this financial year.
Principal risks and uncertainties
For the remaining six months of the financial year, the principal risks and
uncertainties include:
· CPO Price Fluctuations: Variability in CPO prices can
significantly impact revenue and profitability. Prices may be influenced by
global supply and demand dynamics, trade policies and tariffs, shifts in
consumer preferences and geopolitical crises.
· US Dollar to Rupiah Exchange Rates: Fluctuations in the exchange
rate between the US Dollar and the Indonesian Rupiah can affect financial
performance. As the reporting currency is USD, changes in the Rupiah's value
can lead to gains or losses when translating financial results.
· Weather and Natural Disasters: Adverse weather conditions or
natural disasters could damage palm oil plantations, affecting yields, and
production levels and disrupt supply chains.
· Regulatory Restrictions: Regulatory changes, such as the European
Union Deforestation Regulation ("EUDR"), can impact market access and
operational costs. Compliance with the EUDR will likely increase operational
costs for palm oil companies. These costs stem from the need for enhanced
monitoring, certification, and potentially shifting to more sustainable
practices, which could impact profitability. The EUDR aims to prevent
deforestation by requiring proof that products, including palm oil, are not
linked to deforestation, potentially increasing compliance costs and affecting
trade. The Group has adopted the No Deforestation, No Peat and No Exploitation
("NDPE") policy since mid-2019.
A more detailed explanation of all principal risks and mitigation steps and
other considerations are listed on pages 33 to 38 and from pages 144 to 149 of
the 2023 Annual Report which is available at https://www.angloeastern.co.uk
(http://www.angloeastern.co.uk) /.
Mr Jonathan Law Ngee Song
Chairman
22 August 2024
Responsibility Statements
We confirm that to the best of our knowledge:
a) The unaudited interim financial statements have been prepared in
accordance with International Accounting Standards ("IAS") 34: Interim
Financial Reporting as issued by the International Accounting Standards Board
and as contained in UK adopted international accounting standards;
b) The Chairman's interim statement includes a fair review of the
information required by Disclosure and Transparency Rule ("DTR") 4.2.7R (an
indication of important events during the first six months and a description
of the principal risks and uncertainties for the remaining six months of the
year); and
c) The interim financial statements include a fair review of the
information required by DTR 4.2.8R (material related party transactions in the
six months ended 30 June 2024 and any material changes in the related party
transactions described in the last Annual Report) of the DTR of the United
Kingdom Financial Conduct Authority.
By order of the Board
Dato' John Lim Ewe Chuan
Executive Director
22 August 2024
Condensed Consolidated Income Statement
2024
6 months to 30 June 2023 2023
(unaudited) 6 months to 30 June Year to 31 December
(unaudited) (audited)
Notes Result before BA movement* BA movement Total Result BA movement Total Result BA movement Total
$000
$000
$000
$000
$000
$000
$000
before BA movement* before BA movement*
$000
$000
Continuing operations
Revenue 3 166,715 - 166,715 173,449 - 173,449 370,962 - 370,962
Cost of sales (132,203) 1,764 (130,439) (140,496) 291 (140,205) (291,553) (875) (292,428)
Gross profit 34,512 1,764 36,276 32,953 291 33,244 79,409 (875) 78,534
Administration expenses (4,629) - (4,629) (4,224) - (4,224) (8,867) - (8,867)
Gain arising from fair value 514 - 514 - - - 45 - 45
Operating profit 30,397 1,764 32,161 28,729 291 29,020 70,587 (875) 69,712
Exchange gains / (losses) 721 - 721 (493) - (493) 164 - 164
Finance income 4 2,390 - 2,390 3,990 - 3,990 7,977 - 7,977
Finance expense 4 (35) - (35) (15) - (15) (45) - (45)
Profit before tax 5 33,473 1,764 35,237 32,211 291 32,502 78,683 (875) 77,808
Tax expense 6 (6,940) (390) (7,330) (8,349) (65) (8,414) (20,364) 194 (20,170)
Profit for the period from continuing operations 26,533 1,374 27,907 23,862 226 24,088 58,319 (681) 57,638
(Loss) / Gain on discontinued operations, net of tax - - - 6,611 (87) 6,524
(2,542) 67 (2,475)
26,533 1,374 27,907 21,320 293 21,613 64,930 (768) 64,162
Profit for the period attributable to:
- Owners of the parent 26,527 1,343 27,870 17,795 248 18,043 55,414 (644) 54,770
- Non-controlling interests 6 31 37 3,525 45 3,570 9,516 (124) 9,392
26,533 1,374 27,907 21,320 293 21,613 64,930 (768) 64,162
Profit for the period from continuing operations attributable to:
- Owners of the parent 26,527 1,343 27,870 19,924 184 20,108 51,524 (561) 50,963
- Non-controlling interests 6 31 37 3,938 42 3,980 6,795 (120) 6,675
26,533 1,374 27,907 23,862 226 24,088 58,319 (681) 57,638
Earnings per share attributable to the owners of the parent during the period
Profit
- basic and diluted 8 70.58cts 45.52cts 138.44cts
Profit from continuing operations
- basic and diluted 8 70.58cts 50.73cts 128.82cts
* The column represents the IFRS figures and the result before BA movement.
This Alternative Performance Measure ("APM") reflects the Group's results
before the movement in fair value of biological assets been applied. We have
opted to additionally disclose APM as management do not use the fair value of
BA movement in assessing business performance.
Condensed Consolidated Statement of Comprehensive Income
2024 (Restated) 2023
2023
6 months 6 months Year
to 30 June to 30 June(#) to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Profit for the period 27,907 21,613 64,162
Other comprehensive (expenses) / income:
Items may be reclassified to profit or loss:
(Loss) / Profit on exchange translation of foreign operations (32,316) 26,488 10,182
Recycling of foreign exchange on disposal - - (10,431)
Net other comprehensive (expenses) / income may be reclassified to profit or (32,316) 26,488 (249)
loss
Items not to be reclassified to profit or loss:
Remeasurement of retirement benefits plan, net of tax 9 - (375)
Net other comprehensive income / (expenses) not being reclassified to profit 9 - (375)
or loss
Total other comprehensive (expenses) / income for the period, net of tax (32,307) 26,488 (624)
Total comprehensive (expenses) / income for the period (4,400) 48,101 63,538
Attributable to:
- Owners of the parent (4,353) 39,511 54,580
- Non-controlling interests (47) 8,590 8,958
(4,400) 48,101 63,538
(#) The prior year's restatement details are disclosed in note 11.
Condensed Consolidated Statement of Financial Position
2024 (Restated) 2023
2023
as at 30 June as at 30 June(#) as at 31 December
Notes (unaudited) (unaudited) (audited)
$000 $000 $000
Non-current assets
Property, plant and equipment 261,119 273,024 274,382
Investments 10 37,666 27 10,035
Receivables 19,556 20,142 20,306
Deferred tax assets 9,138 12,416 11,054
327,479 305,609 315,777
Current assets
Inventories 16,207 23,468 16,684
Income tax receivables 20,525 9,556 19,169
Other tax receivables 35,083 40,327 40,575
Biological assets 6,758 6,735 5,419
Trade and other receivables 8,987 17,591 10,689
Investments 10 2,911 - -
Short-term investments 881 39,040 14,076
Cash and cash equivalents 149,911 222,286 152,984
241,263 359,003 259,596
Assets in disposal groups classified as held for sale - 8,500 -
241,263 367,503 259,596
Total assets 568,742 673,112 575,373
Current liabilities
Trade and other payables (27,771) (29,909) (27,456)
Income tax liabilities (1,438) (1,501) (2,951)
Other tax liabilities (959) (1,976) (1,184)
Dividend payables (5,962) (9,941) (41)
Lease liabilities (227) (124) (300)
(36,357) (43,451) (31,932)
Net current assets 204,906 324,052 227,664
Non-current liabilities
Deferred tax liabilities (457) (731) (762)
Retirement benefits - net liabilities (11,500) (11,563) (11,298)
Lease liabilities (719) (311) (709)
(12,676) (12,605) (12,769)
Net assets 519,709 617,056 530,672
Issued capital and reserves attributable to owners of the parent
Share capital 15,504 15,504 15,504
Treasury shares (2,487) (1,171) (1,847)
Share premium 23,935 23,935 23,935
Capital redemption reserve 1,087 1,087 1,087
Exchange reserves (373,871) (268,122) (341,639)
Retained earnings 848,612 727,993 826,656
512,780 499,226 523,696
Non-controlling interests 6,929 117,830 6,976
Total equity 519,709 617,056 530,672
(#) The prior year's restatement details are disclosed in note 11.
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
Capital Non-controlling
Share Treasury Share redemption Exchange Retained interests Total
capital shares premium reserve Reserves earnings Total equity
$000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 31 December 2022 15,504 (1,171) 23,935 1,087 (289,434) 722,191 472,112 111,865 583,977
Items of other comprehensive (expenses) / income:
-Remeasurement of retirement benefits plan, net of tax - - - - - (374) (374) (1) (375)
- Recycling of foreign exchange on disposal - - - - (8,307) - (8,307) (2,124) (10,431)
-Gain on exchange translation of foreign operations - - - - 8,491 - 8,491 1,691 10,182
Total other comprehensive income / (expenses) - - - - 184 (374) (190) (434) (624)
Profit for the year - - - - - 54,770 54,770 9,392 64,162
Total comprehensive income for the year - - - - 184 54,396 54,580 8,958 63,538
Acquisition of non-controlling interests - - - - (52,389) 65,923 13,534 (101,342) (87,808)
Share buy back - (676) - - - - (676) - (676)
Dividends paid - - - - - (15,854) (15,854) (12,505) (28,359)
Balance at 31 December 2023 15,504 (1,847) 23,935 1,087 (341,639) 826,656 523,696 6,976 530,672
Items of other comprehensive (expenses) / income:
-Remeasurement of retirement benefits plan, net of tax - - - - - 9 9 - 9
-Loss on exchange translation of foreign operations - - - - (32,232) - (32,232) (84) (32,316)
Total other comprehensive (expenses) / income - - - - (32,232) 9 (32,223) (84) (32,307)
Profit for the period - - - - - 27,870 27,870 37 27,907
Total comprehensive (expenses) / income for the period - - - - (32,232) 27,879 (4,353) (47) (4,400)
Share buy back - (640) - - - - (640) - (640)
Dividends payable - - - - - (5,923) (5,923) - (5,923)
Balance at 30 June 2024 15,504 (2,487) 23,935 1,087 (373,871) 848,612 512,780 6,929 519,709
Attributable to owners of the parent
Capital Non-controlling
Share Treasury Share redemption Exchange Retained interests Total
capital shares premium reserve Reserves earnings Total equity
$000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 31 December 2022 15,504 (1,171) 23,935 1,087 (289,434) 722,191 472,112 111,865 583,977
Items of other comprehensive income:
-Remeasurement of retirement benefits plan, net of tax - - - - - - - - -
-Gain on exchange translation of foreign operations - - - - 21,468 - 21,468 5,020 26,488
Total other comprehensive income - - - - 21,468 - 21,468 5,020 26,488
Profit for the year - - - - - 18,043 18,043 3,570 21,613
Total comprehensive income for the year - - - - 21,468 18,043 39,511 8,590 48,101
Acquisition of non-controlling interests - - - - (156) (2,332) (2,488) (120) (2,608)
Dividends paid - - - - - (9,909) (9,909) (2,505) (12,414)
Balance at 30 June 2023 (after restatement) 15,504 (1,847) 23,935 1,087 (268,122) 727,993 499,226 117,830 617,056
Condensed Consolidated Statement of Cash Flows
2024 2023
2023
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Cash flows from operating activities
Profit before tax from continuing operations 35,237 32,502 77,808
Adjustments for:
Biological assets movement (1,764) (291) 875
Gain on disposal of property, plant and equipment (18) (26) (49)
Depreciation 8,164 8,116 16,400
Retirement benefit provisions 1,002 386 2,581
Net finance income (2,355) (3,975) (7,932)
Unrealised (gain) / loss in foreign exchange (721) 493 (164)
Gain arising from fair value (514) - (45)
Property, plant and equipment written off 242 28 191
Impairment of losses - - 35
(Reversal) / Provision for expected credit loss (1) 20 331
Operating cash flows before changes in working capital 39,272 37,253 90,031
(Increase) / Decrease in inventories (578) (2,871) 3,405
Decrease / (Increase) in non- current, trade and other receivables 1,254 (15,582) (8,520)
Increase / (Decrease) in trade and other payables 2,449 (5,804) (6,939)
Cash inflows from operations 42,397 12,996 77,977
Retirement benefits paid (222) (301) (1,206)
Overseas tax paid (7,404) (22,172) (43,108)
Operating cash flows generated from / (used in) continuing operations 34,771 (9,477) 33,663
Operating cash flows used in discontinued operations - (850) (1,808)
Net cash flows generated from / (used in) operating activities 34,771 (10,327) 31,855
Investing activities
Property, plant and equipment
- purchases (12,034) (17,110) (33,421)
- sales 23 155 315
Interest received 2,390 3,990 7,977
Increase in receivables from cooperatives under plasma scheme (1,550) (1,473) (4,894)
Repayment from cooperatives under plasma scheme 1,042 - 1,921
Investment in investment portfolio (30,028) - (9,948)
Disposal of subsidiaries - - 8,500
Placement of fixed deposits with original maturity of more than three (881) (39,040) (14,076)
months
Withdrawal of fixed deposits with original maturity of more than three months 14,076 55,566 55,566
Cash (used in) / generated from investing activities from continuing (26,962) 2,088 11,940
operations
Cash used in investing activities from discontinued operations - (935) (1,786)
Net cash (used in) / generated from investing activities (26,962) 1,153 10,154
Financing activities
Dividends paid to the holders of the parent (2) - (15,845)
Dividends paid to non-controlling interests - (2,505) (12,505)
Repayment of lease liabilities - principal (160) (102) (243)
Repayment of lease liabilities - interest (35) (15) (45)
Acquisition of non-controlling interests - - (86,620)
Share buy back (640) - (676)
Cash used in financing activities from continuing operations (837) (2,622) (115,934)
Net cash used in financing activities (837) (2,622) (115,934)
Net increase / (decrease) in cash and cash equivalents 6,972 (11,796) (73,925)
Cash and cash equivalents
At beginning of period 152,984 221,476 221,476
Exchange (loss) / gain (10,045) 12,606 5,433
At end of period 149,911 222,286 152,984
Comprising:
Cash at end of period 149,911 222,286 152,984
Notes to the interim statements
1. Basis of preparation of interim financial statements
These interim consolidated financial statements have been prepared in
accordance with IAS 34, "Interim Financial Reporting" as issued by the
International Accounting Standards Board ('IASB') and as adopted by the United
Kingdom. They do not include all disclosures that would otherwise be required
in a complete set of financial statements and should be read in conjunction
with the 2023 Annual Report. The financial information for the half years
ended 30 June 2024 and 30 June 2023 does not constitute statutory accounts
within the meaning of Section 434(3) of the Companies Act 2006 and has been
neither audited nor reviewed pursuant to guidance issued by the Auditing
Practices Board.
Basis of preparation
The annual financial statements of Anglo-Eastern Plantations Plc are prepared
in accordance with UK adopted International Accounting Standards. The
comparative financial information for the year ended 31 December 2023 included
within this report does not constitute the full statutory accounts for that
period. The statutory Annual Report and Financial Statements for 2023 have
been filed with the Registrar of Companies. The Independent Auditors' Report
on the Annual Report and Financial Statements for 2023 was unqualified, did
not draw attention to any matters by way of emphasis, and did not contain a
statement under Sections 498(2) or 498(3) of the Companies Act 2006.
The Directors have a reasonable expectation, having made the appropriate
enquiries, that the Group has control of the monthly cashflows and that the
Group has sufficient cash resources to cover the fixed cashflows for a period
of at least 12 months from the date of approval of this interim report. For
these reasons, the Directors adopted a going concern basis in the preparation
of the interim report. The Directors have made this assessment after
consideration of the Group's budgeted cash flows and related assumptions
including appropriate stress testing of identified uncertainties. Stress
testing of other identified uncertainties was undertaken on primarily
commodity prices and currency exchange rates.
Changes in accounting standards
The same accounting policies, presentation and methods of computation are
followed in these condensed consolidated financial statements as were applied
in the Group's latest annual audited financial statements.
2. Foreign exchange
2024 2023 2023
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Closing exchange rates
Rp : $ 16,421 15,026 15,416
$ : £ 1.26 1.27 1.27
RM : $ 4.72 4.67 4.60
Average exchange rates
Rp : $ 15,901 15,071 15,255
$ : £ 1.26 1.23 1.24
RM : $ 4.73 4.46 4.56
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
• Enable users to understand the relationship with revenue segment
information provided in note 5.
There is no right of return and warranty provided to the customers on the sale
of products and services rendered.
CPO, palm kernel and FFB Shell nut Biogas products Total
6 months to 30 June 2024 Rubber Others
$000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - 389 - 389
Non-government
- Wholesalers 163,872 106 1,730 - 618 166,326
163,872 106 1,730 389 618 166,715
Timing of transfer of goods
Delivery to customer premises
3,780 106 - - - 3,885
Customer collect from our mills / estates
160,092 - 1,730 - - 161,822
Upon generation / others - - - 389 618 1,007
163,872 106 1,730 389 618 166,715
CPO, palm kernel and FFB Shell nut Biogas products Total
6 months to 30 June 2023 Rubber Others
$000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - 550 - 550
Non-government
- Wholesalers 169,920 327 2,337 - 315 172,899
169,920 327 2,337 550 315 173,449
Timing of transfer of goods
Delivery to customer premises 3,339 327 - - - 3,666
Customer collect from our mills / estates
166,581 - 2,337 - - 168,918
Upon generation / others - - - 550 315 865
169,920 327 2,337 550 315 173,449
CPO, palm kernel and FFB Shell nut Biogas products Total
Year to 31 December 2023 Rubber Others
$000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - 1,081 - 1,081
Non-government
- Wholesalers 363,967 529 4,844 - 541 369,881
363,967 529 4,844 1,081 541 370,962
Timing of transfer of goods
Delivery to customer premises 6,784 529 - - - 7,313
Customer collect from our mills / estates
357,183 - 4,844 - - 362,027
Upon generation / others - - - 1,081 541 1,622
363,967 529 4,844 1,081 541 370,962
4. Finance income and expense
2024 2023 2023
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Finance income
Interest receivable on:
Bank balances and time deposits 2,390 3,990 7,977
Finance expense
Interest payable on:
Interest expense on lease liabilities (35) (15) (45)
Net finance income recognised in income statement 2,355 3,975
7,932
5. Segment information
North Bengkulu Riau Bangka Kalimantan Total Indonesia Malaysia UK Total
Sumatera
$000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2024 (unaudited)
Total sales revenue (all external)
- CPO, palm kernel and FFB 58,336 44,025 26,263 1,792 32,184 162,600 1,272 - 163,872
- Rubber 106 - - - - 106 - - 106
- Shell nut 491 660 552 - 27 1,730 - - 1,730
- Biogas products 74 137 - - 178 389 - - 389
- Others 366 108 2 18 120 614 3 1 618
Total revenue 59,373 44,930 26,817 1,810 32,509 165,439 1,275 1 166,715
Profit / (loss) before tax 16,606 5,199 5,414 (262) 7,374 34,331 (342) (516) 33,473
BA movement 921 241 275 (7) 256 1,686 78 - 1,764
Profit / (loss) for the period before tax per consolidated income 17,527 5,440 5,689 (269) 7,630 36,017 (264) (516) 35,237
statement
Finance income 1,530 412 390 1 34 2,367 20 3 2,390
Finance expense (14) - - - - (14) (11) (10) (35)
Depreciation (3,246) (1,141) (161) (350) (3,092) (7,990) (131) (43) (8,164)
Impairment losses - - - - - - - - -
(Provision) / Reversal for expected credit loss (4) - - - 5 1 - - 1
Inter-segment transactions 3,264 (1,397) (401) (226) (1,524) (284) 274 10 -
Inter-segmental revenue 10,884 1,768 - - 6,338 18,990 - - 18,990
Tax (expense) / credit (4,213) (748) (1,222) 109 (1,186) (7,260) (69) (1) (7,330)
Total assets 232,684 110,017 52,728 18,241 140,741 554,411 10,042 4,289 568,742
Property, plant and equipment 79,319 48,861 7,913 15,843 101,350 253,286 7,380 453 261,119
Property, plant and equipment - 2,582 4,317 388 571 3,577 11,435 165 155 11,755
additions
North Bengkulu Riau Bangka Kalimantan Total Indonesia Malaysia UK Total South* Sumatera
Sumatera
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2023 (unaudited)
Total sales revenue (all external)
- CPO, palm kernel and FFB 57,802 46,763 22,485 1,679 40,169 168,898 1,022 - 169,920 2,789
- Rubber 327 - - - - 327 - - 327 -
- Shell nut 1,171 337 785 - 44 2,337 - - 2,337 -
- Biogas products 168 187 - - 195 550 - - 550 -
- Others 213 58 - 20 14 305 8 2 315 69
Total revenue 59,681 47,345 23,270 1,699 40,422 172,417 1,030 2 173,449 2,858
Profit / (loss) before tax 11,795 6,734 5,747 (67) 8,973 33,182 (513) (458) 32,211 (696)
BA movement 366 (1) (77) 30 (76) 242 49 - 291 86
Profit / (loss) for the period before tax per consolidated income 12,161 6,733 5,670 (37) 8,897 33,424 (464) (458) 32,502 (610)
statement
Finance income 2,164 1,267 501 - 21 3,953 36 1 3,990 2
Finance expense (13) - - - - (13) (2) - (15) -
Depreciation (2,571) (1,749) (419) (239) (3,054) (8,032) (84) - (8,116) -
Provision for expected credit loss (4) (8) - - (7) (19) - (1) (20) (9)
Inter-segment transactions 2,046 (945) (270) (146) (996) (311) 301 10 - -
Inter-segmental revenue 16,269 3,540 - - 5,230 25,039 - - 25,039 2,023
Tax (expense) / credit (3,093) (1,299) (1,200) 44 (1,554) (7,102) (96) (1,216) (8,414) 471
Total assets 261,948 141,814 51,847 19,054 155,488 630,151 10,342 11,677 652,170 9,478
Property, plant and equipment 86,369 46,374 8,145 16,399 108,633 265,920 7,104 - 273,024 -
Property, plant and equipment - 6,104 5,102 377 1,036 5,162 17,781 12 - 17,793 137
additions
* South Sumatera represents the operations which have been discontinued and
have therefore been separated from the continuing operations.
North Bengkulu Riau Bangka Kalimantan Total Indonesia Malaysia UK Total South* Sumatera
Sumatera
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Year to 31 December 2023 (audited)
Total sales revenue (all external)
- CPO, palm kernel and FFB 120,788 100,998 53,193 3,315 83,630 361,924 2,043 - 363,967 3,810
- Rubber 529 - - - - 529 - - 529 -
- Shell nut 2,013 1,299 1,479 - 53 4,844 - - 4,844 -
- Biogas products 339 350 - - 392 1,081 - - 1,081 -
- Others 369 49 - 33 54 505 14 22 541 122
Total revenue 124,038 102,696 54,672 3,348 84,129 368,883 2,057 22 370,962 3,932
Profit / (loss) before tax 31,960 15,718 13,606 (95) 19,676 80,865 (896) (1,286) 78,683 (1,836)
BA movement (84) (355) (174) 5 (273) (881) 6 - (875) (111)
Profit / (loss) for the year before tax per consolidated income
statement
31,876 15,363 13,432 (90) 19,403 79,984 (890) (1,286) 77,808 (1,947)
Finance income 4,392 2,358 1,106 1 47 7,904 69 4 7,977 3
Finance expense (26) - - - - (26) (11) (8) (45) -
Depreciation (5,139) (3,561) (854) (488) (6,131) (16,173) (203) (24) (16,400) -
Impairment losses - - - - - - (35) - (35) -
(Provision) / Reversal for expected credit loss (17) 57 - - (387) (347) - 16 (331) (7)
Inter-segment transactions (1,011) (2,310) (6,815) (358) 3,464 (7,030) 533 50 (6,447) 6,447
Inter-segmental revenue 33,790 5,296 - - 10,947 50,033 - - 50,033 2,716
Tax (expense) / credit (6,114) (2,619) (1,368) 68 (4,921) (14,954) 17 (5,233) (20,170) (584)
Total assets 231,839 107,389 51,568 18,951 149,629 559,376 10,519 5,478 575,373 -
Property, plant and equipment 85,235 48,846 8,196 16,648 107,574 266,499 7,542 341 274,382 -
Property, plant and equipment - 9,792 10,612 1,100 1,945 10,041 33,490 496 365 34,351 -
additions
* South Sumatera represents the operations which have been discontinued and
have therefore been separated from the continuing operations.
In the 6 months to 30 June 2024, revenue from 4 customers of the Indonesian
segment represent approximately $84.5m (H1 2023: $85.8m) of the Group's total
revenue. In the year 2023, revenue from 4 customers of the Indonesian segment
represent approximately $194.2m of the Group's total revenue for continuing
operations. An analysis of this revenue is provided below. Although Customers
1 to 2 each contribute over 10% of the Group's total revenue, there was no
over reliance on these Customers as tenders were performed on a weekly basis.
Three of the top four customers were the same as in the year to 31 December
2023.
2024 2023 2023
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$m % $m % $m %
Major Customers
Customer 1 32.3 19.3 27.9 16.1 64.8 17.4
Customer 2 24.6 14.8 23.1 13.3 53.6 14.5
Customer 3 16.4 9.9 17.7 10.2 43.1 11.7
Customer 4 11.2 6.7 17.1 9.9 32.7 8.8
Total 84.5 50.7 85.8 49.5 194.2 52.4
6. Tax expense
2024 (Restated) 2023
2023
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Foreign corporation tax - current year 6,296 7,490 17,760
Foreign corporation tax - prior year 39 - 308
Deferred tax adjustment - origination and reversal of temporary differences 995 924
2,049
Deferred tax - prior year - - 53
7,330 8,414 20,170
Corporation tax rate in Indonesia is at 22% (H1 2023: 22%, 2023: 22%) whereas
Malaysia is at 24% (H1 2023: 24%, 2023: 24%). The standard rate of corporation
tax in the UK for the current year is 25% (H1 2023: 19%, 2023: 23.5%).
7. Dividend
The interim dividend in respect of 2023, amounting to 15.0 cents per share, or
$5,944,516 was paid on 6 October 2023 (2022: No interim dividend).
The final dividend in respect of 2023, amounting to 15.0 cents per share, or
$5,923,289 was paid on 12 July 2024 (2022: 25.0 cents per share, or $9,909,093
paid on 7 July 2023).
8. Earnings per ordinary share ("EPS")
2024 2023 2023
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Total operations
Profit for the period attributable to owners of the Company before BA movement 26,527 17,795 55,414
BA movement 1,343 248 (644)
Earnings used in basic and diluted EPS 27,870 18,043 54,770
Continuing operations
Profit for the period attributable to owners of the Company before BA movement 26,527 19,924 51,524
BA movement 1,343 184 (561)
Earnings used in basic and diluted EPS 27,870 20,108 50,963
Discontinued operations
Loss for the period attributable to owners of the Company before BA movement - (2,129) 3,890
BA movement - 64 (83)
Earnings used in basic and diluted EPS - (2,065) 3,807
Number Number Number
'000 '000 '000
Weighted average number of shares in issue in the period
- used in basic EPS 39,489 39,636 39,560
- dilutive effect of outstanding share options - -
-
- used in diluted EPS 39,489 39,636 39,560
Total operations
- Basic and diluted EPS before BA movement 67.18cts 44.90cts 140.07cts
- Basic and diluted EPS after BA movement 70.58cts 45.52cts 138.44cts
Continuing operations
- Basic and diluted EPS before BA movement 67.18cts 50.27cts 130.24cts
- Basic and diluted EPS after BA movement 70.58cts 50.73cts 128.82cts
Discontinued operations
- Basic and diluted EPS before BA movement - (5.37)cts 9.83cts
- Basic and diluted EPS after BA movement - (5.21)cts 9.62cts
9. Fair value measurement of financial instruments
The carrying amounts and fair values of the financial instruments which are
not recognised at fair value in the Statement of Financial Position are
exhibited below:
2024 2023 2023
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value
$000 $000 $000 $000 $000 $000
Non-current receivables
Due from non-controlling interests - - 434 434 - -
Due from cooperatives under Plasma scheme 19,556 12,766 19,708 13,390 20,306 14,757
19,556 12,766 20,142 13,824 20,306 14,757
Financial instruments not measured at fair value include non-current
receivables, cash and cash equivalents, trade and other receivables, trade and
other payables due within one year and lease liabilities for both current and
non-current.
Due to their short-term nature, the carrying value of cash and cash
equivalents, trade and other receivables, trade and other payables and due
from non-controlling interests due within one year approximates their fair
value.
All non-financial current assets and non-current receivables are classified as
Level 3 in the fair value hierarchy.
The valuation techniques and significant unobservable inputs used in
determining the fair value measurement of non-current receivables and
borrowings due after one year, as well as the inter-relationship between key
unobservable inputs and fair value, are set out in the table below:
Item Valuation approach Inputs used Inter-relationship between key unobservable inputs and fair value
Non-current receivables
Due from non-controlling interests Based on cash flows discounted using current lending rate of 6% (H1 2023 and Discount rate The higher the discount rate, the lower the fair value.
2023: 6%).
Due from cooperatives under Plasma scheme Based on cash flows discounted using an estimated current lending rate of Discount rate The higher the discount rate, the lower the fair value.
10.25% (H1 2023 and 2023: 10.25%).
10. Investments
The breakdown for the investments is split between current and non-current
based on the maturity of the investments as follows:
2024 2023 2023
as at 30 June as at 30 June As at 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Non-current 37,666 27 10,035
Current 2,911 - -
40,577 27 10,035
The movement of the fair value through profit and loss investment is as
follows:
2024 2023 2023
as at 30 June as at 30 June As at 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
1 January 10,035 42 42
Exchange differences - - -
Additions 30,028 - 9,948
Change in fair value recognised in profit and loss 514 (15)
45
40,577 27 10,035
Fair value through profit and loss financial assets
includes the following:
2024 2023 2023
as at 30 June as at 30 June As at 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Quoted:
Equity securities - United Kingdom 33 27 27
Bonds - Indonesia 30,189 - -
Unquoted:
Investment portfolio - Luxembourg 10,355 - 10,008
40,577 27 10,035
The maturity of the Bond is between 1 to 10 years (2023: nil). The coupon
rates are between 4.9% to 7.0% (2023: nil).
Financial assets measured at fair value through profit and loss include the
Group's strategic to aim for higher return. In January 2024, the Group
allocated $30,028,000 to our bank's fund manager to invest in Indonesian
Government Bonds.
In FY2023, the Board allocated $10,000,000 to a fund manager to invest in
structured products. These structured products are nevertheless capital
protected as the Board exercised prudence, amidst generally low risk appetite.
Out of the $10,000,000 allocated, the fund manager had invested of $9,948,000
in FY2023.
Fair value through profit and loss financial assets are denominated in the
following currencies:
2024 2023 2023
as at 30 June as at 30 June As at 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Currency
Sterling 33 27 27
US Dollar 10,355 - 10,008
Indonesian Rupiah 30,189 - -
40,577 27 10,035
The fair value of investment for quoted equity securities and bonds are
classified as Level 1 in the fair value hierarchy and fair value of investment
for unquoted investment portfolio is classified as Level 2.
The valuation inputs for quoted equity securities and bonds are obtained from
the active market while for unquoted investment portfolio is obtained from the
custodian bank. Where this value of unquoted investment is below the amount
initially invested, the fair value has been determined to be the cost of the
investment due to protected capital arrangements in place.
11. Prior year restatement
The deferred tax assets were not recognised in FY2022 because of the
understanding that generally capital losses cannot be utilised to offset
against future trading profit. Following the finalisation of the 2022 accounts
and through further research, the Group identified a provision in the
Indonesian tax law which allows capital losses from trading assets to be
offset against future trading profit.
6 months to
30 June 2023
$000
Impact on consolidated statement of comprehensive income
Other comprehensive income for the year before restatement 25,971
Effect of change in restatement:
Gain on exchange translation of foreign operations 517
517
Other comprehensive expenses for the year after restatement 26,488
The following table summarises the impact of this prior year restatement on
the Consolidated Statement of Financial Position:
Balance as reported Restated balance at
30 June 2023 30 June 2023
$000 Effect of restatement $000
$000
Impact on consolidated statement of financial position
Deferred tax assets 2,310 10,106 12,416
Income tax receivables 8,198 1,358 9,556
Deferred tax liabilities (783) 52 (731)
Exchange reserves (267,990) (132) (268,122)
Retained earnings 718,721 9,272 727,933
Non-controlling interests 115,454 2,376 117,830
12. Report and financial information
Copies of the interim report for the Group for the period ended 30 June 2024
are available on the AEP website at https://www.angloeastern.co.uk/.
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