REG - Anglo-Eastern Plant - Final results for year ended 31 December 2024
30/05/2025 18:15
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RNS Number : 8860K Anglo-Eastern Plantations PLC 30 May 2025
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Audited results for the year ended 31 December 2024
The AEP group of companies is a producer of palm oil, operating plantations
and mills across both Indonesia and Malaysia. The group has today released its
audited results for the year ended 31 December 2024. Further to the previous
announcement made on 30 April 2025 regarding the additional time required to
complete AEP's 2024 audit, we confirm that this delay has had no impact on the
audited financial results. The 2024 performance figures remain unchanged from
those previously announced.
Financial Highlights
The Group's key performance indicators ("KPI") as per its audited results on
continuing operations are as follows:
Continuing operations 2024 2023
Operational
Yield per hectare 17.8mt/ha 19.4mt/ha
Oil extraction rate 20.2% 20.8%
Mill utilisation rate 102% 132%
Sustainability
Scope 1&2 emissions 1.2 million tCO(2)e 1.1 million tCO(2)e
Compliance with sustainability policies We are compliant certified with MSPO, ISPO, TCFD, ISO 14001, and ISCC. RSPO
certification is in progress
SPOTT Score 60.2% 51.6%
Financial
Gross profit margin 23.8% 21.1%
Net profit margin 18.2% 15.1%
Chairman's Statement
Our 2024 earnings per share ("EPS") from continuing operations grew by 37% to
171¢ per share, reflecting the strength of our business and team. In light of
this performance, the Board is pleased to declare a dividend of 51¢ per
share, reinforcing our commitment to shareholder value.
2024 HIGHLIGHTS FOR AEP GROUP ACHIEVEMENT IN ESG
AEP Group successfully acquired the remaining minority stakes in two Indonesia's first commercial BioCNG plant, built on our Blankahan Estate,
Indonesian subsidiaries, achieving full ownership of all its Indonesian officially commenced operations in January 2024.
subsidiaries.
The project, a significant milestone in sustainable energy, is a result of a
This move reinforces operational efficiency, maximises shareholder value, and strategic collaboration with PT KIS BioFuel Indonesia, highlighting our
aligns with AEP's strategy to seek quality plantation land for expansion in commitment to sustainable use of palm oil by-products.
Malaysia and Indonesia.
OPERATIONAL PERFORMANCE
Following on, I am pleased to present the production results from continuing
operations of our Group for the year ended 31 December 2024, as illustrated in
the table below:
Unit 2024 2023
FFB production ('000 mt) 1,019.9 1,102.2
Mature plantation ('000 ha) 57.2 56.7
FFB yield (mt/ha) 17.8 19.4
Mill FFB processed ('000 mt) 1,960.8 2,155.0
Internal FFB source ('000 mt) 971.9 1,074.8
External FFB source ('000 mt) 988.9 1,080.2
CPO production ('000 mt) 396.7 449.0
OER 20.2% 20.8%
In 2024, our FFB and CPO production declined by 7% and 12%, respectively,
compared to the previous year. The decline in production was partly due to our
ongoing replanting programme and further influenced by broader regional
conditions, particularly in the first half of the year, where excessive
rainfall and flooding disrupted operations in certain regions.
Years 2024 2023
($ million) ($ million)
Revenue 372.3 370.4
Operating Profit 81.7 69.7
EPS 170.88¢ 124.92¢
In 2024, revenue from continuing operations rose to $372.3 million,
representing a modest 0.5% increase from the previous year. This achievement
was underpinned by elevated CPO prices, which effectively mitigated the
challenges posed by reduced production levels.
Profit after tax from continuing operations is $67.6 million, which is 20%
higher than the $56.1 million 2023 restated, supported by a combination of
elevated CPO prices and lower expenses, including fertiliser spend. Earnings
per share increased by 37% to 170.88 cents, from 124.92 cents in 2023
following the full acquisition of minority interests in our Indonesian
subsidiaries in 2024.
RENAME TO AEP PLANTATIONS PLC
As we celebrate AEP's 40(th) anniversary, I am delighted to reflect on the
remarkable journey that has brought us here. Having started on the London
Stock Exchange with just four estates, we have grown and evolved into 14
plantations and 7 mills, supported by a robust capital structure poised for
future expansion. As a testament to the dedication, resilience, and innovation
of our team, this milestone represents a celebration of collaboration and a
steadfast commitment to sustainable growth. I extend my deepest gratitude to
our employees, past and present, for their hard work, to our shareholders for
their trust, and to the communities we work for their invaluable support.
Looking forward, we remain inspired to evolve, innovate, and lead with
purpose, ensuring continued success and value creation for all stakeholders.
In remaining steadfast to evolve and innovate in our future undertakings, we
recognise the need for our brand to reflect our evolving presence and
inclusivity for diverse stakeholders. To enhance accessibility beyond our
English-speaking market, we are rebranding to AEP Plantations Plc, a refined
name that reflects our forward-looking vision. Our new name preserves our
legacy, values, and identity while reinforcing our dedication to excellence,
sustainability, and responsible growth.
INTRODUCTION OF NEW VISION, MISSION AND CORE VALUES
In line with our strategic focus and commitment to sustainability, we have
introduced our new vision and mission to highlight our focus on yield
improvements. This renewed focus of ours will help us embark in a journey of
continuous improvement in our operations as well as to shareholders. Looking
forward, we hope to see improvements in governance and communications.
VISION MISSION
To become a key high-yielding player in sustainable palm oil production We responsibly cultivate sustainable plantations by utilising best practices,
driving continuous improvements, and embracing ESG principles
CORE VALUES
We R
WALK THE BLOCK RESULT-DRIVEN
We walk the field to grasp its dynamics and be in it to win it We set clear goals, evaluate progress and achieve meaningful outcomes
A E P
ACCOUNTABILITY EXCELLENCE TOGETHER PEOPLE
We own our actions, maintaining openness and integrity in everything we do We aim to do better every day, pursuing continuous improvement and learning to We recognise talent and reward performance, promoting the growth and success
deliver our best as a team of our people
SUSTAINABILITY CERTIFICATIONS AND TARGETS
AEP remains steadfast in its commitment to sustainable practices across our
plantations in Indonesia and Malaysia, adhering to national standards such as
Indonesian Sustainable Palm Oil and Malaysian Sustainable Palm Oil.
Recognising the growing global emphasis on deforestation regulations,
particularly from the European Union, the Board has resolved to pursue
membership in the Roundtable on Sustainable Palm Oil ("RSPO") during the year
under review. This decision reflects AEP's dedication to achieving a more
robust and globally recognised certification for sustainable palm oil,
addressing critical concerns related to the European Union Deforestation
Regulation ("EUDR") and broader sustainability challenges. Presently, this
does not directly impact AEP as we sell our CPO to Indonesian refineries.
However, we will closely monitor developments to assess emerging impacts and
strategic opportunities as such regulations influence market dynamics for
compliant products. Further details on this initiative can be found in the
Strategic Report.
The EUDR, set for enforcement by 31 December 2025, represents a pivotal shift
in global trade practices. This regulation prohibits imports into the European
Union ("EU") of agricultural products derived from deforestation or illegal
sources, ensuring that goods consumed within the EU contribute neither to
deforestation nor forest degradation worldwide since 2020. Commodities,
including palm oil, must meet stringent due diligence requirements throughout
the supply chain to gain access to the EU market.
Although AEP's customers have not yet imposed mandatory EUDR compliance
requirements, we have proactively undertaken measures to enhance traceability
within our supply chains, particularly in the sourcing of FFB. These
initiatives underscore AEP's unwavering commitment to sustainability,
transparency, and alignment with evolving industry standards.
REPLANTING TO IMPROVE LONG TERM YIELD
Actual Target
2022 2023 2024 2025
Replanting (ha) 1,100 1,301 1,700 2,575
To ensure the improvement of yields, our Company has intensified its
replanting efforts in recent years. In 2024 alone, approximately 1.7 thousand
hectares ("ha") of aged, low-yielding palms were replanted. Looking ahead, AEP
aims to replant around 10 thousand ha as part of its 2025-2030 programme, with
2.6 thousand ha identified for replanting in 2025. 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.
DIVIDEND AND SHARE BUY-BACK
The Board has taken a balanced approach to the requirement of funds in AEP for
expansion in planted area as well as acquisitions of land or plantations, and
at the same time cognisant of shareholders' wishes to have dividends as a form
of income. Considering the results achieved in the year, the Board has
declared a first and final dividend of 51.0 cents per share (2023: 30.0 cents
(interim and final)), in line with our reporting currency, in respect of the
year up to 31 December 2024. This represents approximately 30% of the retained
profits attributable to our Group for the year. The ex-dividend date is set
for 19 June 2025.
In the absence of any specific instructions up to the date of closing of the
register on 20 June 2025, shareholders with addresses in the UK will be deemed
to have elected to receive their dividends in Pounds Sterling and those with
addresses outside of UK will be deemed to have elected to receive their
dividends in US Dollars. Subject to the approval by shareholders at the AGM,
the final dividend will be paid on 18 July 2025 to those shareholders on the
register on 20 June 2025.
In addition to dividend distributions, AEP repurchased 71,852 Ordinary Shares
at a cost of £0.5 million (equivalent to $0.6 million) with an average price
of £7.05 per Ordinary Share in 2024. However, AEP intensified its efforts in
2025 and deployed £5 million via a non-discretionary programme managed by
Panmure Liberum to repurchase Ordinary Shares via the open market from 20
March 2025 up to the date of AGM. AEP intends to continue with its share
buy-back programme as the shares are undervalued relative to AEP strong
fundamentals and growth potential. By repurchasing shares, AEP aims to enhance
EPS and provide greater value to its remaining shareholders.
On behalf of the Board of Directors, 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 the Group.
I would also like to take this opportunity to thank shareholders, business
associates, government authorities and all other stakeholders for their
continued confidence, understanding and support for the Group.
Mr. Jonathan Law Ngee Song
Chairman
30 May 2025
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 the Directors are required to prepare our Group
financial statements in accordance with UK adopted IAS and have elected to
prepare our Company financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards
and applicable law). Under company law, the 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 for 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, 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, a 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 the 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 provides the information necessary for shareholders to
assess the 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 the Company'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
the Company's website is the responsibility of the Directors. The 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 have been prepared in accordance with
the applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit and loss of the Group.
• The annual report includes a fair review of the development
and performance of the business and the financial position of our Group and
Company, 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 May 2025
Consolidated Income Statement
For the year ended 31 December 2024
(Restated)
Note 2024 2023*
$000 $000
Continuing operations
Revenue 3 372,263 370,435
Cost of sales (286,583) (291,553)
Changes in fair value of biological assets 17 2,942 (875)
Gross profit 88,622 78,007
Administration expenses (8,980) (8,832)
Other income 1,094 527
Impairment loss (133) (35)
Gain arising from fair value of investments 13 1,131 45
Operating profit 81,734 69,712
Exchange gains 1,056 164
Finance income 4 5,365 7,977
Finance expense 4 (65) (45)
Profit before tax 5 88,090 77,808
Tax expense 8 (20,478) (21,715)
Profit for the year from continuing operations 67,612 56,093
Gain on discontinued operations, net of tax 9 - 6,524
67,612 62,617
Profit for the year attributable to:
- Owners of the parent 67,514 53,225
- Non-controlling interests 98 9,392
67,612 62,617
Profit for the year from continuing operations attributable to:
- Owners of the parent 67,514 49,418
- Non-controlling interests 98 6,675
67,612 56,093
Earnings per share attributable to the owners of the parent during the year
Profit
- basic and diluted 10 170.88cts 134.54cts
Profit from continuing operations
- basic and diluted 10 170.88cts 124.92cts
Earnings per share are shown in note 10.
* The details of prior year restatement are disclosed in note 32.
There have been two classification changes made to the financial statements
resulting in comparative amounts for the year ended 31 December 2023 being
reclassified. In 2023, $527,000 was reclassified from revenue to other income
to better reflect its nature (refer to Note 3). In addition, administrative
expenses amounted to $8,867,000, including an impairment loss of $35,000,
which has been presented separately in the comparative figures.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
(Restated)
2024 2023*
$000 $000
Profit for the year 67,612 62,617
Other comprehensive loss:
Items may be reclassified to profit or loss:
(Loss)/profit on exchange translation of foreign operations (23,184) 9,957
Recycling of foreign exchange on disposal - (10,431)
Net other comprehensive loss may be reclassified to profit or loss (23,184) (474)
Items not to be reclassified to profit or loss:
Remeasurement of retirement benefits plan, net of tax 378 (375)
Net other comprehensive income/(loss) not being reclassified to profit or loss 378 (375)
Total other comprehensive loss for the year, net of tax (22,806) (849)
Total comprehensive income for the year 44,806 61,768
Total comprehensive income for the year attributable to:
- Owners of the parent 44,612 52,840
- Non-controlling interests 194 8,928
44,806 61,768
* The details of prior year restatement are disclosed in note 32.
Consolidated Statement of Financial Position
As at 31 December 2024
Company Number: 01884630
Note (Restated) (Restated)
31.12.2024 31.12.2023* 31.12.2022*
$000 $000 $000
Non-current assets
Property, plant and equipment 12 271,170 274,382 252,414
Investments 13 5,111 10,035 42
Receivables 14 19,363 17,617 17,042
Deferred tax assets 15 1,900 2,126 3,950
297,544 304,160 273,448
Current assets
Inventories 16 18,767 16,684 19,590
Income tax receivables 8 18,316 17,497 4,122
Other tax receivables 8 43,749 40,575 37,576
Biological assets 17 8,057 5,419 6,161
Trade and other receivables 18 7,062 13,378 5,389
Investments 13 23,976 - -
Short-term investments 19 1,253 14,076 55,566
Cash and cash equivalents 19 181,908 152,984 221,476
303,088 260,613 349,880
Assets in disposal groups classified as held for sale 9 - - 9,000
303,088 260,613 358,880
Current liabilities
Trade and other payables 20 (21,403) (26,862) (33,372)
Income tax liabilities 8 (5,466) (2,951) (10,230)
Other tax liabilities 8 (1,201) (1,184) (1,221)
Dividend payables (46) (41) (32)
Lease liabilities 21 (307) (300) (73)
(28,423) (31,338) (44,928)
Net current assets 274,665 229,275 313,952
Non-current liabilities
Deferred tax liabilities 15 (2,225) (813) (805)
Retirement benefits - net liabilities 22 (11,073) (11,298) (10,874)
Lease liabilities 21 (453) (709) (31)
(13,751) (12,820) (11,710)
Net assets 558,458 520,615 575,690
Note (Restated) (Restated)
31.12.2024 31.12.2023* 31.12.2022*
$000 $000 $000
Issued capital and reserves attributable to owners of the parent
Share capital 23 15,504 15,504 15,504
Treasury shares 23 (2,487) (1,847) (1,171)
Share premium 23,935 23,935 23,935
Capital redemption reserve 1,087 1,087 1,087
Exchange reserves (364,402) (341,180) (288,891)
Retained earnings 877,394 816,140 715,631
551,031 513,639 466,095
Non-controlling interests 7,427 6,976 109,595
Total equity 558,458 520,615 575,690
*The details of prior year restatements are disclosed in note 32.
Consolidated Statement of Changes in Equity
As at 31 December 2024
Note Share capital Treasury shares Share premium Capital redemption reserve Exchange reserves Retained earnings Total Non-controlling interests 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
Restatements 32 - - - - 543 (6,560) (6,017) (2,270) (8,287)
Balance at 31 December 2022 (Restated) 15,504 (1,171) 23,935 1,087 (288,891) 715,631 466,095 109,595 575,690
Items of other comprehensive income/(loss)
-Remeasurement of retirement benefit plan, net of tax 22 - - - - - (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 (Restated) - - - - 8,296 - 8,296 1,661 9,957
Total other comprehensive loss (Restated) - - - - (11) (374) (385) (464) (849)
Profit for the year (Restated) - - - - - 53,225 53,225 9,392 62,617
Total comprehensive income for the year (Restated) - - - - (11) 52,851 52,840 8,928 61,768
Acquisition of non-controlling interests (Restated) 31 - - - - (52,278) 63,512 11,234 (99,042) (87,808)
Share buy back - (676) - - - - (676) - (676)
Dividends paid - - - - - (15,854) (15,854) (12,505) (28,359)
Balance at 31 December 2023 (Restated) 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 22 - - - - - 378 378 - 378
-Loss on exchange translation of foreign operations - - - - (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 31 - - - - 58 (715) (657) 257 (400)
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
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
2024 2023
$000 $000
Cash flows from operating activities
Profit before tax from continuing operations 88,090 77,808
Adjustments for:
Changes in fair value of biological assets (2,942) 875
Gain on disposal of property, plant and equipment (380) (49)
Depreciation 18,986 16,400
Retirement benefit provisions 2,764 2,581
Finance income (5,365) (7,977)
Finance expense 65 45
Unrealised loss/(gain) in foreign exchange 31 (164)
Gain arising from fair value (1,131) (45)
Property, plant and equipment written off 451 191
Impairment losses 133 35
(Reversal)/Provision for expected credit loss (9) 331
Operating cash flows before changes in working capital 100,693 90,031
(Increase)/Decrease in inventories (2,907) 3,405
Decrease/(Increase) in non-current, trade and other receivables 5,588 (8,520)
Decrease in trade and other payables (5,059) (6,939)
Cash inflows from operations 98,315 77,977
Retirement benefits paid (1,984) (1,206)
Overseas tax paid (22,384) (43,108)
Operating cash flows from continuing operations 73,947 33,663
Operating cash flows used in discontinued operations - (1,808)
Net cash generated from operating activities 73,947 31,855
Investing activities
Property, plant and equipment
- purchases (29,013) (33,421)
- sales 872 315
Interest received 5,365 7,977
Increase in receivables from cooperatives under plasma scheme (5,010) (4,894)
Repayment from cooperatives under plasma scheme 2,689 1,921
Investment in investment portfolio or bond portfolio (45,990) (9,948)
Disposal of investment portfolio 28,069 -
Disposal of subsidiaries - 8,500
Placement of fixed deposits with original maturity of more than three months (1,253) (14,076)
Withdrawal of fixed deposits with original maturity of more than three months 14,076 55,566
Cash (used in)/generated from investing activities from continuing operations (30,195) 11,940
Cash used in investing activities from discontinued operations - (1,786)
Net cash (used in)/generated from investing activities (30,195) 10,154
2024 2023
Note $000 $000
Financing activities
Dividends paid to the holders of the parent (5,918) (15,845)
Dividends paid to non-controlling interests - (12,505)
Repayment of lease liabilities - principal (340) (243)
Repayment of lease liabilities - interest (65) (45)
Acquisition of non-controlling interests (400) (86,620)
Share buy back (640) (676)
Cash used in financing activities from continuing operations (7,363) (115,934)
Cash used in financing activities from discontinued operations - -
Net cash used in financing activities (7,363) (115,934)
Net increase/(decrease) in cash and cash equivalents 36,389 (73,925)
Cash and cash equivalents
At beginning of year 152,984 221,476
Exchange (losses)/gains (7,465) 5,433
At end of year 181,908 152,984
Comprising:
Cash at end of year 19 181,908 152,984
The variance of finance income from the prior year relates to the
reclassification of finance expenses, which are now disclosed separately.
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, 6(th) 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 2024 or 2023. Statutory accounts for the years
ended 31 December 2024 and 31 December 2023 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 2024 and 31 December
2023 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 2023 have been filed with
the Registrar of Companies. The statutory accounts for the year ended 31
December 2024 will be delivered to the Registrar in due course.
The principal 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 17)
• Retirement benefits (note 22)
• Investments (note 13)
The Directors have carried out stress tests, factoring in the identified
uncertainties and risks such as commodity prices, together with the current
economic 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. The US tariff war had no
material impact on the Indonesian palm oil industry during the reporting
period.
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 2024 in
these financial statements in the current year
• IAS 1 Presentation of Financial Statements, amendment
related to Classification of Liabilities as Current or Non-Current
• IAS 1 Presentation of Financial Statements, amendment
related to Non-current Liabilities with Covenants
• IFRS 16 Leases, amendment related to Lease Liability in a
Sale and Leaseback
• IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures, amendment related to Supplier Finance Arrangements
(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:
• IAS 21 The Effects of Changes in Foreign Exchange Rates,
amendment related to Lack of Exchangeability (1 January 2025, not yet adopted)
• 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).
None of the above new standards, interpretations and amendments are expected
to have a material effect on the Group's future financial statements.
2 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 investor 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 de facto control or 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 country in which it operates (its functional currency), being
the currency in which the majority of their transactions are denominated. The
Company and its UK subsidiaries present in their financial statements in US
Dollar, which is also their functional currency. The presentation currency for
the consolidated financial statements is also US Dollar, chosen because, as
internationally traded commodities, the price of the bulk of the Group's
products are ultimately linked to the 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 for CPO, palm kernel, shell nut
and FFB are recorded net of sales taxes, including export taxes and recognised
when the customer has taken delivery of the goods or the goods has been
delivered, which is deemed to be the point at which the performance obligation
is satisfied. The collection/delivery of the goods will not take place until
the goods are paid for. Sales of rubber slab are recognised on signing of the
sales contract, this being the point at which control is transferred to the
buyer. Sales of biogas products are recognised upon generation, when control
over the generated electricity 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.
Advance receipts represent the Group's obligation to transfer goods to a
customer for which the Group has received consideration but the goods have yet
to be delivered to/collected by the customer.
(e) Tax
Tax is recognised in the consolidated income statement, except to the extent
that is 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 & vehicle: 12.5% to 50% per annum
Office plant, equipment & vehicle: 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) 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.
Right-of-Use Assets
The Group recognises right-of-use assets and corresponding lease liabilities
for leases in which it is the lessee, mainly for office premises in Malaysia
and Indonesia. These are measured at cost and depreciated over the lease term
or useful life, whichever is shorter. Refer to Note 21 Leases for further
details.
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.
(i) Inventories
Inventories are initially recognised at cost, and subsequently at the lower of
cost and net realisable value. In the case of processed produce for sale which
comprises palm oil and kernel, cost represents the monthly weighted-average
cost of production and appropriate production overheads. Estate and mill
consumables are valued on a weighted average cost basis.
(j) 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.
(k) 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.
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. Bank overdrafts
are shown within loans and borrowings under current liabilities on the
statement of financial position.
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.
(l) 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.
(m) 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.
extent that it is probable that taxable profits will be available against
which deductible temporary differences can be utilised.
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(p).
(n) 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 2024.
(o) 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 27.
(p) 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 14).
• Determination of functional currency (see note 2(c)).
• Classification of land as leasehold with no depreciation
charged (see note 12).
• Carrying value of income tax receivables - determination of
historic recovery rates (see note 8).
• Measurement of plasma receivables (see note 14).
• Income taxes and deferred tax - provisions for income taxes in
various jurisdictions (see note 8 and note 15).
• Recognition of deferred tax on losses - estimate of future
profitability of respective entities (see note 15).
Estimates and assumptions
• Impairment of plantation assets - determination of the
discount rate and other assumptions (see note 12).
• Expected credit losses ("ECL") on amounts due from
cooperatives under Plasma scheme - determination of possible outcomes and
their weighted probability (see note 14).
• Valuation of biological assets - oil content of FFB (note 17)
• Retirement benefits - actuarial assumptions (see note 22).
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 17).
- Investment (note 13).
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 6.
CPO and palm kernel Biogas products Total
Year to 31 December 2024 FFB Rubber Shell nut Others
$000 $000 $000 $000 $000 $000 $000
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
Year to 31 December 2023
Contract counterparties
Government - - - - 1,081 - 1,081
Non-government
- Wholesalers 357,183 6,784 529 4,844 - 14* 369,354*
357,183 6,784 529 4,844 1,081 14* 370,435*
Timing of transfer of goods
Delivery to customer premises - 6,784 529 - - - 7,313
Delivery to port of departure 77,044 - - - - - 77,044
Customers collect from our mills/estates 280,139 - - 4,844 - - 284,983
Upon generation/others - - - - 1,081 14* 1,095*
357,183 6,784 529 4,844 1,081 14* 370,435*
The Group recognised advance receipts of $6,666,000 as disclosed in Note 20 as
contract liabilities 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.
*As part of the review in FY2024, the Group has reclassified $527,000 from
Revenue to Other Income for FY2023. This reclassification reflects a more
accurate presentation, as the amount pertains to various non-operating items,
such as management fees from plasma, asset disposals, or other incidental
income, which were previously classified under revenue. Additionally, the
FY2023 reconciliation table has been represented to show 'delivery to port of
departure' as a new line item, providing more relevant and helpful
information. This change improves the transparency of the Group's earnings by
clearly distinguishing between core operational revenue and other income
sources. As a result, Revenue for FY2023 has decreased by $527,000, and Other
Income has increased by $527,000.
4 Finance income and expense
2024 2023
$000 $000
Finance income
Interest receivable on:
Credit bank balances and time deposits 5,365 7,977
Finance expense
Interest payable on:
Interest expense in lease liabilities (note 21) (65) (45)
Net finance income recognised in income statement 5,300 7,932
5 Profit before tax
2024 2023
$000 $000
Profit before tax is stated after charging:
Purchase of FFB 174,022 160,692
Depreciation (note 12) 18,986 16,400
Impairment losses (note 12) 133 35
Impairment loss on adjustments to fair value of assets held for sale - 1,376
(Reversal)/Provision for expected credit loss (note 18):
- continuing operations (9) 331
- discontinued operations - 7
(9) 338
Exchange gains (1,056) (164)
Legal and professional fees 1,371 1,426
Staff costs (note 7) 59,266 64,823
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 289 299
- Audit of UK subsidiaries 13 13
Total audit services 307 317
Non-audit service
- Audit related assurance service (interim review) 13 10
Total audit and non-audit service 320 327
Audit of overseas subsidiaries
- Malaysia 27 22
- Indonesia 150 152
Total audit services 177 174
Total auditor's remuneration 497 501
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 plantation in Indonesia and
Malaysia. From the cultivation of plantation, 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 decision is implemented by the Management
Committee, that is made up of a Group Chief Executive Officer, Chief Corporate
Planning & ESG Officer and Group Accountant in Malaysia, the President
Director, the Chief Operating Officer, Finance Director and the Engineering
Director in Indonesia.
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.
North Sumatera Bengkulu Riau Bangka Kalimantan Total Indonesia Malaysia UK Total from continuing operations
$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 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 (16,096) (11,222) (5,164) (534) (7,624) (40,640) (865) (668) (42,173)
North Sumatera Bengkulu Riau Bangka Kalimantan Total Indonesia Malaysia UK Total from continuing operations South* Sumatera
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
2023
Total sales revenue (all external)
- CPO and palm kernel 120,788 100,998 53,193 - 82,204 357,183 - - 357,183 3,810
- FFB - - - 3,315 1,426 4,741 2,043 - 6,784 -
- 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 -(#) -(#) - -(#) -(#) -(#) 14 -(#) 14(#) 122
Total revenue 123,669(#) 102,647(#) 54,672 3,315(#) 84,075(#) 368,378(#) 2,057 -(#) 370,435(#) 3,932
Profit/(loss) before tax for the year per consolidated income statement
31,876 15,363 13,432 (90) 19,403 79,984 (890) (1,286) 77,808 (1,947)
Interest income 4,392 2,358 1,106 1 47 7,904 69 4 7,977 3
Interest 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 (Restated) (7,659) (2,619) (1,368) 68 (4,921) (16,499) 17 (5,233) (21,715) (584)
Total assets (Restated) 231,013(#) 107,389 41,794(#) 18,951 149,629 548,776(#) 10,519 5,478 564,773(#) -
Non-current assets 85,235 48,846 8,196 16,648 107,574 266,499 7,542 341 274,382 -
Non-current assets - additions 9,792 10,612 1,100 1,945 10,041 33,490 496 365 34,351 -
Total liabilities (Restated) (17,401) (10,938) (4,006) (310) (10,256) (42,911) (606) (641) (44,158) -
The details of prior year restatements are disclosed in
note 32.
* South Sumatera represents the operations which have been discontinued and
have therefore been separated from the continuing operations. The details of
discontinued operations for South Sumatera are disclosed in note 9.
(#) A reclassification of certain revenue amounts to other income, totalling
$527,000, was made for the year ended 31 December 2023. Further details are
provided in Note 3, which also includes the reclassification of plasma from
non-current to current receivables, the correction of deferred tax on
temporary differences, and the reversal of an immaterial provision, as
disclosed in Note 32.
Below is an analysis of revenue from the Group's top 4 customers,
incorporating all those contributing greater than 10% of the Group's external
revenue in accordance with the requirements of IFRS 8. In year 2024, revenue
from top 4 customers of the Indonesian segment represents approximately
$165.8m (2023: $194.2m) of the Group's total revenue for continuing
operations. Although Customer 1 to 4 made up over 10% of the Group's total
revenue, there was no over reliance on these Customers as tenders were
performed on a weekly basis involving numerous other potential customers.
Three of the top four customers were the same as in the prior year.
North Sumatera Bengkulu Riau Bangka Kalimantan Total Indonesia 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
2023
Customer 1 - 15,001 25,203 - 24,565 64,769 - - 64,769
Customer 2 - 53,607 - - - 53,607 - - 53,607
Customer 3 41,735 1,362 - - - 43,097 - - 43,097
Customer 4 32,738 - - - - 32,738 - - 32,738
74,473 69,970 25,203 - 24,565 194,211 - - 194,211
% % % % % % % % %
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
2023
Customer 1 - 4.0 6.8 - 6.6 17.4 - - 17.4
Customer 2 - 14.5 - - - 14.5 - - 14.5
Customer 3 11.3 0.4 - - - 11.7 - - 11.7
Customer 4 8.8 - - - - 8.8 - - 8.8
20.1 18.9 6.8 - 6.6 52.4 - - 52.4
Save for a small amount of rubber, all the Group's operations are devoted to
oil palm. The Group's report is by geographical area, as each area tends to
have different agricultural conditions.
7 Employees' and Directors' remuneration
2024 2023
Number Number
Average numbers employed (primarily overseas) during the year:
- full-time 7,486 7,515
- part-time field workers 7,954 7,812
15,440 15,327
2024 2023
$000 $000
Staff costs (including discontinued operations) comprise:
Wages and salaries 53,622 57,173
Social security costs 3,798 4,058
Retirement benefit costs
- United Kingdom - -
- Indonesia 1,776 3,543
- Malaysia 70 49
59,266 64,823
2024 2023
$000 $000
Directors' emoluments 444 321
2024 2023
$000 $000
Remuneration expense for key management personnel comprise:
Short-term employee benefits 2,478 2,170
Post-employment benefits - -
2,478 2,170
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
(Restated)
2024 2023
$000 $000
Foreign corporation tax - current year 18,163 19,450
Foreign corporation tax - prior year 828 308
Deferred tax adjustment - reversal of temporary differences (note 15) 1,628 1,904
Deferred tax - prior year (note 15) (141) 53
Total tax charge for year 20,478 21,715
Corporation tax rate in Indonesia is at 22% (2023: 22%) whereas Malaysia is at
24% (2023: 24%). The standard rate of corporation tax in the UK for the
current year is 25% (2023: 23.5%). The Group's charge for the year differs
from the standard Indonesian rate of corporation tax as explained below:
(Restated)
2024 2023
$000 $000
Profit before tax from continuing operations 88,090 77,808
Profit before tax multiplied by standard rate of Indonesia corporation tax of 19,380 17,118
22% (2023: 22%)
Effects of:
Irrecoverable withholding tax 782 5,183
Group accounting adjustments not subject to tax (136) 1,154
Expenses not allowable for tax 860 970
Deferred tax assets not recognised 89 84
Income not subject to tax (1,184) (1,737)
Under provision of prior year income tax 828 308
Utilisation of tax losses not previously recognised - (1,418)
Under provision of prior year deferred tax (141) 53
Total tax charge for year 20,478 21,715
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 provision for tax expenses under Foreign corporation tax - current year in
2023 has been restated from $17,760,000 to $19,450,000, and the deferred tax
adjustment has changed from $2,049,000 to $1,904,000 due to the restatement of
deferred tax assets. The restatement relates to the non-recognition of
deferred tax assets in respect of tax losses, as well as the deferred tax
impact of group-level adjustments. As a result, additional tax expense has
been recorded from $20,170,000 to $21,175,000. Please refer to Note 32 for
details of the prior year adjustments.
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:
(Restated)
2024 2023
$000 $000
Tax Receivables
Income tax 18,316 17,497
Other taxes 43,749 40,575
62,065 58,072
Tax Liabilities
Income tax (5,466) (2,951)
Other taxes (1,201) (1,184)
(6,667) (4,135)
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
long-outstanding 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 Assets held for sale and discontinued operations
PT Riau Agrindo Agung, PT Karya Kencana Sentosa Tiga and PT Empat Lawang Agro
Perkasa ("South Sumatera Plantations"), subsidiaries of the Group, had on 5
July 2023, completed the disposal of its entire 100% equity interest to Mrs
Lina (also known as Liena Efendy) and Miss Lenny Nurimba for a total cash
consideration of $8,500,000.
The entire operations of the disposal group are presented within the South
Sumatera operating segment disclosed in Note 7 and represent a separate
geographical area of operations. The activities for the financial year ended
31 December 2023 have been classified as discontinued operations in the
consolidated income statement as a single line.
The post-tax loss on disposal of discontinued operations was determined as
follows:
Note 2023
$000
Discontinued operations
Revenue 6 3,932
Cost of sales (5,707)
Changes in fair value of biological assets (111)
Gross loss (1,886)
Administration expenses (56)
Impairment loss 12 -
Provision for expected credit loss 18 (7)
Operating loss (1,949)
Exchange loss (1)
Finance income 3
Finance expense -
Loss before tax 6 (1,947)
Tax expense (584)
Loss for the year from discontinued operations (2,531)
Impairment loss on adjustment to fair value (1,376)
Recycling of foreign exchange on disposal 10,431
6,524
Attributable to:
- Owners of the parent 3,807
- Non-controlling interests 2,717
6,524
Earnings per share attributable to the owners of the parent during the year
- Basic and diluted EPS 9.62cts
Statement of cash flows
The statement of cash flows includes the following amounts relating to
discontinued operations:
2023
$000
Operating activities (1,808)
Investing activities (1,786)
Financing activities -
Net decrease in cash and cash equivalents from discontinued operations (3,594)
The following major classes of assets relating to the discontinued operations
have been classified as held for sale in the consolidated statement of
financial position before their respective dates of disposal:
2023
$000
Property, plant and equipment 26,017
Impairment loss on adjustment to fair value (26,017)
Property, plant and equipment net of impairment losses -
Non-current receivables 5,763
Impairment loss on adjustment to fair value (230)
Non-current receivables net of impairment losses 5,533
2,821
Deferred tax assets
Inventories 108
Income tax receivable 35
Biological assets -
Trade and other receivables 3
Exchange differences -
Total assets held for sale 8,500
In 2023, an accumulated impairment loss of $26,247,000 on the measurement of
the disposal group to fair value less cost to sell has been recognised and was
included in discontinued operations. The difference of impairment loss was due
to exchange in translation and further impairment of $1,376,000 in 2023. The
fair value is based on the actual selling price. They are categorised as
level 3 non-recurring fair value measurements. The fair value measurement is
based on the above items' highest and best uses, which do not differ from
their actual use.
Details of the assets, liabilities and net cashflow arising from the disposal
of the subsidiaries are as follows:
2023
$000
Consideration received 8,500
Property, plant and equipment net of impairment losses -
Non-current receivables 5,533
Deferred tax assets 2,821
Inventories 108
Income tax receivable 35
Trade and other receivables 3
Net assets disposed 8,500
Gain before reclassification adjustment -
Recycling of foreign exchange on disposal 10,431
Gain on disposal of the subsidiaries 10,431
Consideration received 8,500
Less: cash and cash equivalents in the subsidiaries -
Net cash inflow from disposal of subsidiaries 8,500
10 Earnings per ordinary share ("EPS")
(Restated)
2024 2023
$000 $000
Earnings used in basic and diluted EPS
Total operations 67,514 53,225
Continuing operations 67,514 49,418
Discontinued operations - 3,807
Number Number
'000 '000
Weighted average number of shares in issue in the year
- used in basic EPS 39,510 39,560
- dilutive effect of outstanding share options - -
- used in diluted EPS 39,510 39,560
Basic and diluted EPS
Total operations 170.88cts 134.54cts
Continuing operations 170.88cts 124.92cts
Discontinued operations - 9.62cts
The details of prior year restatement are disclosed in note 32.
11 Dividends
2024 2023
$000 $000
Paid during the year
Final dividend of 15.0cts per ordinary share for the year ended 31 December
2023
5,923 9,909
(2022: 25.0cts)
Interim dividend of 15.0cts per ordinary share for the year ended 31 December
2024
- 5,945
(2023: 15.0cts)
Proposed final dividend of 51.0cts per ordinary share for the year ended 31
December 2024 (2023: 15.0cts)
20,139 5,923
The proposed dividend for 2024 is subject to shareholders' approval at the
forthcoming annual general meeting and has not been included as a liability in
these financial statements.
12 Property, plant and equipment
Mill Leasehold Buildings Estate plant, Office plant, Right-of-use assets(#) Construction Total
Plantations land equipment & vehicle equipment & vehicle in progress
$000 $000 $000 $000 $000 $000 $000 $000 $000
Cost
At 1 January 2023 185,446 73,587* 49,803 57,262 16,109 1,926 883 19,232* 404,248
Exchange translations 3,062 1,506 345 1,036 209 (1) (5) 302 6,454
Reclassification - 25 - 5,531 3 (9) - (5,550) -
Additions 4,430 5,935 2,159 419 1,580 439 1,160 9,862 25,984
Development costs capitalised 7,545 - 819 - 3 - - - 8,367
Disposals (161) (210) - - (144) (157) - - (672)
Written off (1,556) (1,589) (3) (277) (498) (77) (466) - (4,466)
At 31 December 2023 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
Accumulated depreciation and impairment
At 1 January 2023 75,606 31,928 3,809 26,167 12,353 1,088 883 - 151,834
Exchange translations 860 628 (113) 442 139 (11) - - 1,945
Reclassification - 8 - - (8) - - - -
Charge for the year 7,593 4,009 114 3,066 1,313 112 193 - 16,400
Impairment losses - - - - 35 - - - 35
Disposal - (139) - - (128) (139) - - (406)
Written off (1,525) (1,554) - (164) (486) (80) (466) - (4,275)
At 31 December 2023 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
Carrying amount
At 31 December 2022 109,840 41,659* 45,994 31,095 3,756 838 - 19,232* 252,414
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
(#) Right-of-use assets had been disclosed in note 21.
* As part of the FY2024 review, the Group has reclassified the cost and net
book value as of 1 January 2023, amounting to $2,246,000, from mills into
construction in progress. This reclassification provides a more accurate
representation of the assets, with no impact on the net book value of
property, plant, and equipment. Accordingly, the balances as of 31 December
2023 have also been reclassified, transferring $2,246,000 from mills to
construction in progress.
The average capitalisation rate of borrowing costs was 0% (2023: 0%) as there
were no borrowings in either 2024 or 2023 from which borrowing costs could be
capitalised. The estates included $nil (2023: $nil) of interest and $2,458,000
(2023: $412,000) 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 2058 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, and the expected recovery period of the
CGU's carrying amount.
An impairment loss of $133,000 (2023: $35,000) related to building and
right-of-use asset in Malaysia was provided for 2024 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 (2023: $nil) as the
subsidiary in Malaysia is making losses.
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, except Alno, which has been split into 2
CGUs as Alno and Sumindo. 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
value in use calculations. However, where value in use could not be reliably
measured, management has determined recoverable amount 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 2024 in respect of land and plantations in Indonesia (2023:
$nil).
The value in use for certain CGUs, including Alno and HPP, have been
determined by management using a discounted cash flow ("DCF") model. Projected
future cash flows are assessed over the expected economic life of the assets,
which ranges from 13 to 25 years, and discounted at 12.2% (2023: 13.5%). These
projections are based on historical data, industry performance, economic
conditions, and other available information, including the impact of climate
change.
For remaining CGUs, including KAP, BML, Sumindo, MPM valuations have been
performed using market comparisons conducted by independent valuers, MV
Valuers from Malaysia. These valuations take into account prevailing market
conditions, recent transactions, and other relevant industry benchmarks.
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.
The key assumptions have been identified as the CPO CIF-Rotterdam price, the
pre-tax discount rate and the inflation rate. Based on sensitivity analysis
performed, there are no reasonably possible changes in these assumptions which
would have a material impact on impairment.
13 Investment
Investment analysed as:
2024 2023
$000 $000
Non-current 5,111 10,035
Current 23,976 -
29,087 10,035
The movement of the fair value through profit and loss investment as
following:
2024 2023
$000 $000
1 January 10,035 42
Additions 45,990 9,948
Disposal (28,069) -
Change in fair value recognised in profit and loss 1,131 45
31 December 29,087 10,035
Fair value through profit and loss financial assets includes the following:
2024 2023
$000 $000
Quoted:
Equity securities - United Kingdom 27 27
Bonds - Indonesia 18,014 -
Treasury Bills - United States 5,962 -
Unquoted:
Investment portfolio - Luxembourg 5,084 10,008
29,087 10,035
Fair value through profit and loss financial assets are denominated in the
following currencies:
2024 2023
$000 $000
Currency
Sterling 27 27
US Dollar 29,060 10,008
29,087 10,035
The fair value of investment for quoted equity securities is 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 are obtained from the active
market while for unquoted investment portfolio is obtained from the custodian
bank. For investment portfolios subject to capital protection arrangements,
where the fair value was below the original cost in 2023, the Group
historically recognised these investments at cost, relying on the capital
protection feature to guarantee recovery of the initial investment amount. In
2024, the fair value of the investment portfolio has risen above cost.
14 Receivables: non-current
2024 2023
$000 $000
Due from cooperatives under Plasma scheme
Current (note 18) 2,278 2,689
Non-current 19,363 17,617
21,641 20,306
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 $0.3 million (2023:
$0.9 million), as disclosed in Note 27.
Throughout the year, certain subsidiary companies collectively funded Plasma
with a gross amount of $22,105,000 (2023: $20,788,000) before ECL, recoverable
from the cooperatives. Details on ECL are provided in note 18. The Group
incurred additional capital expenditure of $5,010,000 in FY2024 (2023:
$4,894,000) and received repayments of $2,689,000 in 2024 through the sale of
FFB from the cooperative (2023: $1,921,000).
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. However, the Group may grant extended financing periods at its
discretion. The directors consider that the carrying amount due from
cooperatives under Plasma scheme closely approximates their fair value. There
is no discounting applied to these amounts, as they are repayable on demand.
The amounts due 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 settled or recovered within 12 months from the reporting date.
Prior year reclassification
During the financial year ended 31 December 2024, the Group undertook a review
of the classification of receivables due from cooperatives under the plasma
scheme. Following this reassessment, the Group determined that certain amounts
previously presented as non-current assets in the statement of financial
position as at 31 December 2023 should be more appropriately classified as
current assets, given that these receivables were settled during 2024. As a
result, the Group retrospectively reclassified $2,689,000 and $1,921,000 from
non-current assets to current assets in FY2023 and FY2022, respectively. This
change reflects a reclassification in presentation and does not constitute a
correction of an error under IAS 8. The reclassification has no impact on
total assets, net profit, or retained earnings in either the current or prior
year.
15 Deferred tax
The movement on the deferred tax account as shown below:
(Restated)
2024 2023
$000 $000
At 1 January 1,313 3,146
Recognised in income statement from continuing operations (1,487) (1,957)
Recognised in other comprehensive income (95) 93
Exchange differences (56) 31
At 31 December (325) 1,313
The deferred tax assets as at 1 January 2023 have been restated from
$12,026,000 to $3,146,000, and the amount recognised in the income statement
from continuing operations has been revised from $2,102,000 to $1,957,000.
These adjustments reflect the restatement of deferred tax assets related to
tax losses and the recognition of deferred tax assets arising from other
temporary differences. Further details are provided in Note 32.
The most significant movement in deferred tax was due to the utilisation of
some of the losses against taxable profits during the year.
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 (Charged)/
income statement credited
Asset Liability Net $000 to equity
$000 $000 $000 $000
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)
(Charged)/
credited to (Charged)/
income statement credited
Asset Liability Net $000 to equity
$000 $000 $000 $000
2023 (Restated)
Impairment of land 167 - 167 - -
Retirement benefits 1,920 - 1,920 305 93
Biological assets - (1,193) (1,193) 192 -
Unutilised tax losses 779 - 779 (572) -
Unremitted earnings - (567) (567) - -
Other temporary differences 573 (366) 207 (1,882) -
Tax assets/(liabilities) 3,439 (2,126) 1,313 (1,957) 93
Set off of tax (1,313) 1,313 - - -
Net tax assets/(liabilities) 2,126 (813) 1,313 (1,957) 93
The deferred tax assets of unutilised tax losses have been restated from
$10,331,000 to $779,000 as well as charge to income statement restated from
$2,262,000 to $572,000. The deferred tax assets related to other temporary
differences have been restated from nil to $573,000. In addition, the charge
to the income statement has been restated by $1,545,000, increasing from
$337,000 to $1,882,000. Further details are provided in Note 32.
2024 2023
$000 $000
A deferred tax asset has not been recognised for the following items:
Unutilised tax losses 30,721 21,206
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 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 2024, the relevant time limits are 5 years in
Indonesia, 7 years in Malaysia and unlimited in UK.
At 31 December 2024, all unutilised tax losses were recognised in Indonesia.
The unutilised tax losses will expire as per below:
Year $000
2025 316
2027 333
2028 94
2029 409
1,152
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 $839,135,000 (2023: $845,774,000).
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 2024
by the subsidiaries.
16 Inventories
2024 2023
$000 $000
Estate and mill consumables 6,902 9,443
Processed produce for sale 11,865 7,241
18,767 16,684
The movement on the inventories as shown below:
2024 2023
$000 $000
As at 1 Jan 16,684 19,590
Purchase of FFB 174,022 160,317
Labour and production overheads 115,468 127,693
Total purchase production cost 289,490 288,010
Less: cost of sales recognised in income statement (286,583) (291,553)
Reversal of inventory write-down - 210
Exchange differences (824) 427
18,767 16,684
During the financial year, inventories recognised as an expense amounted to
$286,583,000 (2023: $291,553,000).
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. In FY2023, it also includes reversals of such write-downs
that were recognised in previous periods.
17 Biological assets
2024 2023
$000 $000
At 1 January 5,419 6,161
Changes in fair value less cost to sell 165,924 146,616
Decreases due to harvest (162,982) (147,491)
Fair value gain/(loss) recognised in the income statement for continuing 2,942 (875)
operations
Exchange translations (304) 133
At 31 December 8,057 5,419
Critical estimate on valuation of biological assets
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: in
terms of tonnage at any given month end, equivalent to 50% of the following
month's crop.
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 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:
Item Valuation approach Inputs used Inter-relationship between key unobservable inputs and fair value
Biological assets - Unharvested produce Based on FFB weight multiplied by the sum of FFB selling price less harvesting FFB weight The higher the weight, the higher the fair value
cost
FFB selling price The higher the selling price, the higher the fair value
Harvesting cost The higher the harvesting cost, the lower the fair value
The key assumptions are considered to be the computation of oil content of FFB
based on research studies, selling price less harvesting costs and FFB
production and a decrease of 1% in any of these would result in an $81,000
decrease in the valuation.
18 Trade and other receivables
2024 2023
$000 $000
Trade receivables 458 1,040
Other receivables 852 4,752
Prepayments and accrued income 3,474 4,897
Due from cooperatives under Plasma scheme (note 2,278 2,689
14)
7,062 13,378
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.
Critical estimate of ECL on amount due from cooperatives under Plasma scheme
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.
Prior year reclassification
During the financial year ended 31 December 2024, the Group reassessed the
classification of amounts due from cooperatives under the plasma scheme
between current and non-current assets. The Group has retrospectively
reclassified $2,689,000 from non-current assets to current assets in the
financial statements for FY2023, as the amounts were received in FY2024. This
reclassification has no impact on total assets, net income, or retained
earnings, and reflects the appropriate classification of the receivables for
both FY2023 and FY2024, as detailed in note 14.
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 settled or 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:
2024 2023
$000 $000
At 1 January 508 1,622
Loss provision during the year (9) 331
Written off during the year - (1,441)
Exchange difference (23) (4)
At 31 December 476 508
At 31 December 2024, the expected loss provision for receivables is as
follows:
Gross carrying amount Loss provision Net carrying amount
$000 $000 $000
2024
Trade receivable 462 (4) 458
Other receivables 857 (5) 852
Receivables: non-current (note 14)
- Due from cooperatives under Plasma scheme 22,105 (464) 21,641
23,424 (473) 22,951
Financial guarantee contracts (note 27) - (3) (3)
23,424 (476) 22,948
Gross carrying amount Loss provision Net carrying amount
$000 $000 $000
2023
Trade receivables 1,051 (11) 1,040
Other receivables 4,758 (6) 4,752
Receivables: non-current (note 14)
- Due from cooperatives under Plasma scheme 20,788 (482) 20,306
26,597 (499) 26,098
Financial guarantee contracts (note 27) - (9) (9)
26,597 (508) 26,089
19 Notes supporting statement of cash flows
Cash and cash equivalents for purposes of the statement of cash flows
comprised:
2024 2023
$000 $000
Cash at bank available on demand 103,866 92,682
Short-term deposits 77,988 60,289
Cash in hand 54 13
As reported in statement of financial position 181,908 152,984
Short-term investments 1,253 14,076
183,161 167,060
The short-term with licensed banks refer to the fixed deposits with original
maturity of more than three months but less than one year.
An amount of $108,000, 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
27. 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:
2024 2023
$000 $000
Property, plant and equipment purchased but not yet paid at year end 81 53
Repayment of amounts due from cooperatives under the plasma scheme through 2,689 1,921
the purchase of FFB (restated)
Increase in receivables from cooperatives under plasma scheme (5,010) (4.894)
The repayment of amounts due from cooperatives under the plasma scheme,
recognised through the sale of FFB, has been restated from $6,776,000 to
$1,921,000. The previously reported amount included 100% of FFB sales from
plasma cooperatives to the Group; however, only 30% of these sales represented
actual repayments to the Group.
The increase in receivables from cooperatives under the plasma scheme
represents financing for new planting, development of immature plantation
areas, land cost, and other charges for which the group expects to be
reimbursed.
Non-cash transactions from financing activities are shown in the
reconciliation of liabilities from financing transactions as follows:
Non-current lease liabilities Current lease 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 year - (65) (65)
(453) (307) (760)
Non-current lease liabilities Current lease liabilities
Total
$000 $000 $000
At 1 January 2023 (31) (73) (104)
Cash Flows - 288 288
Non-cash flows
- Effect of foreign exchange 1 3 4
- New lease (709) (443) (1,152)
- Lease liabilities classified as non-current at 31 December 2022 becoming
current during 2023
30 (30) -
- Interest accruing during the year - (45) (45)
(709) (300) (1,009)
20 Trade and other payables
(Restated)
2024 2023
$000 $000
Trade payables 6,900 9,572
Other payables 442 1,041
Advance receipts 4,637 6,666
Accruals 9,424 9,583
21,403 26,862
The trade and other payables have been restated from $27,456,000 to
$26,862,000, relating to the reversal of accruals amounting to $594,000.
Further details are provided in Note 32.
The carrying amount of trade and other payables classified as
financial liabilities measured at amortised cost approximates fair value.
Advance receipts from customers are expected to be recognised in full as
revenue in the subsequent year. The advance receipts at 31 December 2023 have
been recognised in revenue in the current period.
21 Leases
2024 2023
$000 $000
Lease liabilities analysed as:
Non-current (453) (709)
Current (307) (300)
(760) (1,009)
The weighted average incremental borrowing rate per annum was 7.6% (2023:
7.3%).
Maturity analysis for the lease liabilities has been given in note 28.
Amounts recognised in income statement:
2024 2023
$000 $000
Depreciation expense on right-of-use assets (note 12) (299) (193)
Interest expense on lease liabilities (65) (45)
Expense relating to short-term leases (12) (269)
Expense relating to leases of low value assets (4) (4)
(380) (511)
At 31 December 2024, the Group was committed to $0.01 million (2023: $0.01
million) for short-term leases.
All the leases are fixed payments. The total cash outflow for leases amount to
$0.42 million (2023: $0.56 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. (2023: 1 to 5 years). On expiry
the Group has the option to renew based on mutually agreed future rental. The
right-of-use assets is classified as part of property, plant and equipment in
note 12.
Right-of-Use assets
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
Land Building Total
$000 $000 $000
At 1 January 2023 - - -
Additions - 1,160 1,160
Amortisation - (193) (193)
Effect of foreign exchange - (5) (5)
At 31 December 2023 - 962 962
Lease liabilities
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)
Land Building Total
$000 $000 $000
At 1 January 2023 (104) - (104)
Additions - (1,152) (1,152)
Interest expense (3) (42) (45)
Lease payments 73 215 288
Effect of foreign exchange 4 - 4
At 31 December 2023 (30) (979) (1,009)
The tables above relates to a right of use asset and is presented in note 12.
22 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.
Defined contribution plan 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:
2024 2023
Rate of increase in wages 8.0% 8.0%
Discount rate 7.3% 6.8%
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.
2024 2023
$000 $000
Service cost
Current service cost 1,703 1,539
Past service cost 473 375
Net interest expense 664 616
Remeasurements on net defined benefit liability (76) 51
Total employee benefits expense 2,764 2,581
The reconciliation on the remeasurement of retirement benefit plan as shown
below:
2024 2023
$000 $000
Included in other comprehensive income:
Continuing operations (378) 375
Discontinued operations - -
Remeasurement of retirement benefit plan, net of tax recognised in other
comprehensive income
(378) 375
Included in other comprehensive income:
Remeasurement of retirement benefit plan (473) 468
Deferred tax on retirement benefits 95 (93)
Remeasurement of retirement benefit plan, net of tax recognised in other
comprehensive income
(378) 375
(i) Reconciliation of defined benefit obligation and fair value of
scheme assets including discontinued operations
Defined benefit obligation Fair value of scheme assets Net defined scheme liability
Funded Unfunded Funded Unfunded Funded Unfunded
scheme scheme Total scheme scheme Total scheme scheme Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
At 1 January 2023 (4,211) (8,098) (12,309) 1,435 - 1,435 (2,776) (8,098) (10,874)
Service cost - current (722) (817) (1,539) - - - (722) (817) (1,539)
Service cost - past (373) (2) (375) - - - (373) (2) (375)
Adjustment due to change in attribution method
(2,114) 2,114 - - - - (2,114) 2,114 -
Interest (cost)/income (370) (351) (721) 105 - 105 (265) (351) (616)
Remeasurements on net defined benefit liability - (51) (51) - - - - (51) (51)
Included in income statement (3,579) 893 (2,686) 105 - 105 (3,474) 893 (2,581)
Remeasurement (loss)/gain
Actuarial (loss)/gain from:
Adjustments (experience) (179) 197 18 - - - (179) 197 18
Financial assumptions (242) (232) (474) - - - (242) (232) (474)
Return on plan assets (exclude interest) - - - (12) - (12) (12) - (12)
Included in other comprehensive income (421) (35) (456) (12) - (12) (433) (35) (468)
Effect of movements in exchange rates (53) (193) (246) 26 - 26 (27) (193) (220)
Employer contribution - - - 742 - 742 742 - 742
Benefits paid 689 324 1,013 (516) - (516) 173 324 497
Cost of termination - payment - 1,956 1,956 - - - - 1,956 1,956
Cost of termination 196 (546) (350) - - - 196 (546) (350)
Other movements 832 1,541 2,373 252 - 252 1,084 1,541 2,625
At 31 December 2023 (7,379) (5,699) (13,078) 1,780 - 1,780 (5,599) (5,699) (11,298)
Defined benefit obligation Fair value of scheme assets Net defined scheme liability
Funded Unfunded Funded Unfunded Funded Unfunded
scheme scheme Total scheme scheme Total scheme scheme Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
At 1 January 2024 (7,379) (5,699) (13,078) 1,780 - 1,780 (5,599) (5,699) (11,298)
Service cost - current (1,131) (572) (1,703) - - - (1,131) (572) (1,703)
Service cost - past (291) (182) (473) - - - (291) (182) (473)
Adjustment due to change in attribution method
(3,014) 3,014 - - - - (3,014) 3,014 -
Interest (cost)/income (607) (189) (796) 132 - 132 (475) (189) (664)
Remeasurements on net defined benefit liability - 76 76 - - - - 76 76
Included in income statement (5,043) 2,147 (2,896) 132 - 132 (4,911) 2,147 (2,764)
Remeasurement (loss)/gain
Actuarial (loss)/gain from:
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) - (33) 373 100 473
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)
(ii) Disaggregation of defined benefit scheme assets
The fair value of the funded assets is analysed as follows:
2024 2023
$000 $000
Bonds
- Government bonds 1,529 1,090
- Corporate bonds - -
1,529 1,090
Cash / deposits 1,481 690
3,010 1,780
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%) (1,018) 1,146
Growth in wages (+/- 1%) 1,185 (1,070)
The weighted average duration of the defined benefit obligation is 8.61 years
(2023: 8.78 years).
The total contribution paid into the defined contribution plan in 2024
amounted to $224,000 (2023: $227,000). The Group expects to pay contributions
of $459,000 to the funded plans in 2025. For the unfunded plans, the Group
pays the benefits directly to the individuals; the Group expects to make
direct benefit payments of $1,376,000 for defined benefit plan and $220,000
for defined contribution plan in 2025.
23 Share capital and treasury shares
Issued and Issued and Issued and
Authorised fully paid Authorised fully paid Authorised fully paid
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
2024 2023 2024 2023
Treasury shares: Number Number $'000 $'000
Beginning of year 415,826 339,900 (1,847) (1,171)
Share buy back 71,852 75,926 (640) (676)
End of year 487,678 415,826 (2,487) (1,847)
Market value of treasury shares: $'000
Beginning of year (670.0p/share) 3,551
End of year (654.0p/share) 3,996
71,852 treasury share was purchased in 2024 (2023: 75,926).
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.
24 Ultimate controlling shareholder
At 31 December 2024, Genton International Limited ("Genton"), a
company registered in Hong Kong, held 20,247,814 (2023: 20,247,814) shares of
the Company representing 51.3% (2023: 51.2%) of the Company's issued share
capital, excluding treasury shares. Together with other deemed interested
parties, Genton's shareholding totals 20,551,914 or 52.0%. The ultimate
beneficial shareholders of Genton International Limited are vested in the
estates of Madam Lim with the application for probate in progress.
25 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 $166,800 (2023: $246,317). There was no balance outstanding at the
year end (2023: Nil).
In 2024, the final dividend paid to Genton International Limited, a company
controlled by the late Madam Lim Siew Kim, was $3,037,172 for the year ended
31 December 2023 (2023: $5,061,954 for the year ended 31 December 2022) and no
interim dividend was paid to Genton International Limited for the year ended
31 December 2024 (2023: $3,037,172). The final dividend paid to other
companies controlled by the late Madam Lim Siew Kim was $45,615 for the year
ended 31 December 2023 (2023: $76,025 for the year ended 31 December 2022).
There was no balance outstanding at the year end (2023: Nil). No interim
dividend paid to other companies controlled by the late Madam Lim Siew Kim for
the year ended 31 December 2024 (2023: $45,615 for the year ended 31 December
2023).
26 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.
27 Guarantees and other financial commitments
2024 2023
$000 $000
Capital commitments at 31 December
Contracted but not provided - normal estate operations 184 282
Contracted but not provided - mill development - 23
Authorised but not contracted - plantation and mill development 45,790 34,143
A subsidiary company, PT Sawit Graha Manunggal ("SGM") has provided a
corporate guarantee to Koperasi Bartim Sawit Sejahtera ("KBSS"), a party under
Plasma scheme as disclosed in note 14, in relation to a loan taken by KBSS
from PT Bank Mandiri (Persero) Tbk. of Rp226.02 billion ($14.7million). The
guarantee that was in place as at 31 December 2023 has been settled as the
loan has been settled during 2024.
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) (2023: Rp8.75 billion, $0.6
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 2024 (31
December 2023: $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 2024, the outstanding bank loans amounted to $0.3 million,
compared to $0.9 million in 2023.
The Group's loss provision on these financial guarantee contracts was
immaterial for 2023 and 2024.
28 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 advance receipts 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 2024 and 2023 were:
Fair value through profit and loss Financial assets at amortised cost Financial
$000 $000 liabilities at Total carrying value
amortised cost $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
Fair value through profit and loss Financial assets at amortised cost Financial
$000 $000 liabilities at Total carrying value
amortised cost $000
$000
2023 (Restated)
Investments 10,035 - - 10,035
Non-current receivables - 17,617 - 17,617
Trade and other receivables - 8,481 - 8,481
Short-term investments - 14,076 - 14,076
Cash and cash equivalents - 152,984 - 152,984
Trade and other payables - - (20,196) (20,196)
10,035 193,158 (20,196) 182,997
The trade and other payables have been restated from $20,790,000 to
$20,196,000, relating to the reversal of accruals amounting to $594,000.
Further details are provided in Note 32.
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 $10,808,000 (2023 (Restated):
$10,808,000), while the statement of financial position value of the Group's
share of underlying assets at 31 December 2024 amounted to $551,031,000 (2023:
$513,639,000).
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 (2023: 0.19% higher) than on US
Dollar deposits. The unmatched balance at 31 December 2024 was represented by
the $33,435,000 shown in the table below (2023: $6,844,000).
The table below shows the net monetary assets and liabilities of the Group as
at 31 December 2024 and 2023 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 $000
2024
Rupiah 17,853 - 17,853
US Dollar - 2,621 2,621
Ringgit 15,582 - 15,582
Total 33,435 2,621 36,056
2023
Rupiah 6,538 - 6,538
US Dollar - 990 990
Ringgit 306 - 306
Total 6,844 990 7,834
The following table summarises the sensitivity of the Group's financial assets
and financial liabilities to foreign exchange risk. The impact on equity if
Ringgit or Rupiah strengthen or weaken by 10% against US Dollar:
2024 2023 (Restated)
Carrying -10% in +10% in Carrying -10% in +10% in
Amount US$ Rp : $ and Rp : $ and Amount Rp : $ and Rp : $ and
RM : $ RM : $ US$ RM : $ RM : $
$000 $000 $000 $000 $000 $000
Financial Assets
Non-current receivables 19,363 (1,760) 2,151 17,617 (1,602) 1,957
Trade and other receivables 3,588 (320) 391 8,481 (450) 551
Short-term investments 1,253 - - 14,076 (1,280) 1,564
Cash and cash equivalents 181,908 (16,359) 19,995 152,984 (13,763) 16,822
Financial Liabilities
Trade and other payables (16,766) 1,493 (1,825) (20,196) 1,800 (2,200)
Total (decrease)/increase (16,946) 20,712 (15,295) 18,694
The trade and other payables have been restated from $20,790,000 to
$20,196,000, relating to the reversal of accruals amounting to $594,000.
Further details are provided in Note 32.
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 2024, the Group had no external loans and facilities.
The following table sets out the undiscounted contractual
cashflows of financial liabilities:
Less than 1 year Between 1 and 2 years Between 2 and 5 years More than 5 years Total
$000 $000 $000 $000 $000
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)
At 31 December 2023
Trade and other payables (10,613) - - - (10,613)
Accruals (Restated)* (9,583) - - - (9,583)
Lease liabilities (364) (333) (453) - (1,150)
(20,560) (333) (453) - (21,346)*
*The accruals have been restated from $10,177,000 to $9,583,000, relating to
the reversal of accruals amounting to $594,000. Further details are provided
in Note 32. The total also restated from $21,940,000 to $21,346,000,
respectively.
The figures for trade and other payables exclude accruals and advance
receipts.
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 2024. 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.
2024 2023
Carrying amount -1% in interest rate +1% in interest rate Carrying amount -1% in interest rate +1% in interest rate
$000 $000 $000 $000 $000 $000
Financial Assets
Short-term investments 1,253 (10) 6 14,076 (208) 74
Cash and cash equivalents 181,908 (1,681) 1,799 152,984 (1,407) 1,543
Total (decrease)/increase (1,691) 1,805 (1,615) 1,617
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 2024 was 4.72% (2023: 4.30%) and Rupiah
deposit rate was 4.60% (2023: 4.49%).
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 list of the principal banks used by the
Group is given on the inside of the back cover of this report.
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 2023 is disclosed in note 18. The ECL has been calculated at 1%
on trade receivables balances while the remaining amount in 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 costs other than trade
receivables are considered to have a low credit risk except amount due from
cooperatives under Plasma scheme. Whilst Plasma receivables are generally
considered to have a relatively higher credit risk, at the reporting date as
these were considered to be performing, have low risks of default and
historically there were minimal instances where contractual cash flow
obligations have not been met, the credit risk was considered to be low. There
has not been a significant increase in credit risk since initial recognition.
The 12-month ECL has been calculated at 1% on the majority of balances (unless
it has been considered there to be no ECL), with the exception of amounts due
from cooperatives under Plasma scheme where the ECL is largely calculated,
having considered various probability weighted outcomes, as being the balance
of the receivable in excess of the recovery from the future cashflows of the
cooperative or via bank financing which effectively would be returned to the
Company if the receivable is not repaid.
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 14 and 18 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 $551,031,000 at 31 December 2024 (2023:
$513,639,000).
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 2024,
the Group had no borrowings (2023: nil), but depending on market conditions,
the Board is prepared for the Group to have borrowings.
Plantation industry risk
Please refer to principal and emerging risks and uncertainties in the
Strategic Report.
29 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
2024 2023 2024 2023
Principal sub-holding company
Anglo-Indonesian Oil Palms Limited** United Kingdom 100% 100% - -
Management company
Anglo-Eastern Plantations Management Sdn Bhd** Malaysia 100% 100% - -
PT Anglo-Eastern Plantations Management Indonesia Indonesia 100% 100% - -
Operating companies
Anglo-Eastern Plantations (M) Sdn Bhd** Malaysia 55% 55% 45% 45%
All For You Sdn Bhd Malaysia 100% 100% - -
PT Alno Agro Utama Indonesia 100% 100% - -
PT Anak Tasik Indonesia 100% 100% - -
PT Bangka Malindo Lestari* Indonesia 100% 95% - 5%
PT Bina Pitri Jaya Indonesia 100% 100% - -
PT Cahaya Pelita Andhika Indonesia 100% 100% - -
PT Hijau Pryan Perdana Indonesia 100% 100% - -
PT Kahayan Agro Plantation* Indonesia 100% 99.5% - 0.5%
PT Mitra Puding Mas Indonesia 100% 100% - -
PT Musam Utjing Indonesia 100% 100% - -
PT Sawit Graha Manunggal Indonesia 100% 100% - -
PT Simpang Ampat Indonesia 100% 100% - -
PT Tasik Raja Indonesia 100% 100% - -
PT United Kingdom Indonesia Plantations Indonesia 100% 100% - -
Dormant companies
The Ampat (Sumatra) Rubber 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% - -
*The Group purchased some of the shares of the non-controlling interest during
the year. Hence, the Company's effective ownership has increased.
** Direct subsidiaries of the Company
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
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, 6(th) Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
Malaysia registered subsidiaries 7(th) Floor, Wisma Equity
150 Jalan Ampang
50450 Kuala Lumpur
Malaysia
Indonesia registered subsidiaries Sinar Mas Land Plaza, 3(rd) Floor #301, Jl. Pangeran Diponegoro No. 18
Kelurahan Madras Hulu, Kecamatan Medan Polonia
Medan 20152, North Sumatera
Indonesia
30 Non-controlling interests
In 2024 and 2023, none of the subsidiaries which have non-controlling
interests ("NCI") contributed more than 10% of the Group's total assets.
31 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 657
in Equity)
Acquisition of additional interest in 2023.
In June 2023, the Group acquired some additional 0.4% and 4.5% interest in the
voting shares of PT Sawit Graha Manunggal ("SGM") and PT Kahayan Agro
Plantation ("KAP"), respectively, increasing the Group ownership interest to
almost 100% with a consideration of $2.6 million.
In July 2023, the Group also completed the acquisition of 25% of the issued
share capital of PT United Kingdom Indonesia Plantations and the 10% of the
issued share capital of PT Mitra Puding Mas, from PT. Canadianty Corporindo,
the minority shareholder in Indonesia, for a total cash consideration of
$25.2million, increasing the Group ownership interest to 100%.
In November 2023, the Group also completed the acquisition of 20% of the
issued share capital of PT Tasik Raja, PT Hijau Pryan Perdana, PT Bina Pitri
Jaya, the 10% of the issued share capital of PT Alno Agro Utama and the 25% of
the issued share capital of PT Musam Utjing, from PT Marison Nauli Ventura,
the minority shareholder in Indonesia, for a total cash consideration of $60
million, increasing the Group ownership interest to 100%.
(Restated)
2023
$000
Consideration paid to non-controlling shareholders 87,808
Carrying value of the additional interest (99,042)
Difference recognised in retained earnings (Consolidated Statement of Changes (11,234)
in Equity)
The total consideration of $86.6 million was in cash with the remaining $1.2
million being offset against an existing loan.
The carrying value of the additional interest has been restated from
$101,342,000 to $99,042,000 due to the restatement of deferred tax assets as
of 1 January 2023, which reduced the non-controlling interest. Following the
acquisition of the non-controlling interest during FY2023, the carrying amount
of the additional interest was adjusted to reflect the reduction. However,
this adjustment had no impact on the balance of non-controlling interest as at
31 December 2023.
32 Prior year restatements
Nature of the Restatement
In the 2023 financial statements, the Group recognised a deferred tax asset in
relation to capital losses incurred in Indonesia. This recognition was based
on management's interpretation of the Indonesian Income Tax Law, which was
understood to permit capital losses arising from trading assets to be offset
against future taxable profits.
However, during a reassessment undertaken in the 2024 financial year,
management concluded that the recognition did not satisfy the criteria under
IAS 12 Income Taxes and relevant Indonesian tax regulations. As such, a prior
period error was identified, and the Group restated its comparative financial
information in accordance with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors to reflect the appropriate accounting
treatment.
As of the approval date of the 2024 financial statements, the Indonesian tax
assessment related to the capital losses remains ongoing.
In addition, the Group identified and corrected the following additional
accounting misstatements:
- A historical error in the recognition of deferred tax assets associated with
temporary differences between the accounting and tax bases of property, plant
and equipment.
- The reversal of certain accruals included in trade and other payables that
were deemed no longer necessary.
The effects of the restatements are summarised as follows:
2023
$000
Impact on consolidated income statement
Profit for the year 64,162
Effect of change in restatement:
Tax expense (1,545)
Profit for the year after restatement 62,617
The prior year adjustments reduced earnings per share from continuing
operations by 3.9 cents, from 128.82 cents to 124.92 cents for the year ended
31 December 2023.
2023
$000
Impact on consolidated statement of comprehensive income
Other comprehensive loss for the year before restatement (624)
Effect of change in restatement:
Loss on exchange translation of foreign operations (225)
Other comprehensive loss for the year after restatement (849)
The following table summarises the impact of these prior year restatements on
the Consolidated Statement of Financial Position:
Balance as reported Restated balance at
1 January 2023 1 January 2023
$000 Effect of restatements $000
$000
Impact on Consolidated Statement of Financial Position
Deferred tax assets 12,773 (8,823) 3,950
Deferred tax liabilities (747) (58) (805)
Trade and other payables (33,966) 594 (33,372)
Exchange reserves (289,434) 543 (288,891)
Retained earnings 722,191 (6,560) 715,631
Non-controlling interests 111,865 (2,270) 109,595
Balance as reported Restated balance at
31 December 2023 31 December 2023
$000 Effect of restatements $000
$000
Impact on Consolidated Statement of Financial Position
Deferred tax assets 11,054 (8,928) 2,126
Income tax receivable 19,169 (1,672) 17,497
Deferred tax liabilities (762) (51) (813)
Trade and other payables (27,456) 594 (26,862)
Exchange reserves (341,639) 459 (341,180)
Retained earnings 826,656 (10,516) 816,140
Detailed Explanation of Adjustments
Deferred Tax Assets
- As at 1 January 2023, deferred tax assets were restated by a net
decrease of $8.8 million, comprising a $10.9 million reversal of deferred tax
assets related to investment losses and a $2.1 million recognition of deferred
tax assets related to property, plant and equipment.
- As at 31 December 2023, deferred tax assets were restated by a
net decrease of $8.9 million, reflecting a $9.5 million reversal for
investment loss-related deferred tax assets and a $0.6 million recognition for
property, plant and equipment-related temporary differences. This $0.6 million
recognition represents a $2.1 million deferred tax asset arising from
temporary differences, which was partially offset by a $1.5 million reversal
of deferred tax assets that was recognised through the income statement during
the year.
Deferred Tax Liabilities
- As at 1 January 2023, deferred tax liabilities increased by
$58,000. These increases resulted from the shift in the net deferred tax
position from an asset to a liability due to the reversal of the deferred tax
asset previously recognised for investment losses.
- As at 31 December 2023, deferred tax liabilities increased by
$51,000. These increases resulted from the shift in the net deferred tax
position from an asset to a liability due to the reversal of the deferred tax
asset previously recognised for investment losses.
Income Tax Receivables
- As at 31 December 2023, income tax receivables were restated by
a decrease of $1.7 million. This adjustment arose from the recognition of
additional tax liabilities, as the Group could no longer utilise the tax
losses previously associated with investment losses.
Trade and Other Payables
- As at both 1 January and 31 December 2023, trade and other
payables were reduced by $594,000 following the reversal of previously
recognised accruals that were no longer required.
Exchange Reserves
- As at 1 January 2023, exchange reserves increased by $0.5
million. This comprises a $0.6 million positive adjustment from exchange
differences on the deferred tax asset, partially offset by a $0.1 million
adjustment related to non-controlling interests.
- As at 31 December 2023, exchange reserves increased by a further
$0.5 million, driven by continued foreign exchange effects linked to the tax
asset reversal.
Retained Earnings
- As at 1 January 2023, retained earnings were restated by a net
decrease of $6.6 million. This consisted of:
- Reduction of $11.7 million ($10.9 million at closing rate) from
the reversal of deferred tax assets on investment losses;
- Increase of $2.4 million resulting from the reallocation of
adjustments to non-controlling interests;
- Increase of $0.6 million from the reversal of accruals;
- Increase of $2.1 million from the recognition of deferred tax
assets on property, plant and equipment.
- As at 31 December 2023, retained earnings were restated by a net
decrease of $10.5 million, comprising:
- Reduction of $11.7 million ($10.9 million at closing rate) from
the reversal of deferred tax assets on investment losses;
- Increase of $0.6 million from the reversal of accruals;
- Net increase of $0.6 million related to deferred tax assets on
property, plant and equipment, which included the recognition of $2.1 million
offset by a $1.5 million reversal recognised through the income statement.
Non-Controlling Interests
- As at 1 January 2023, non-controlling interests were restated by
a net decrease of $2.3 million, comprising a $2.4 million decrease related to
the reversal of deferred tax assets and a $0.1 million increase from related
exchange rate adjustments.
- As at 31 December 2023, there was no impact on non-controlling
interests as the affected subsidiaries were wholly owned during the reporting
period.
33 Events after the reporting period
The Company on 20 March 2025, 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 2025, 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.
Note: The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse Regulation 596/2014.
Enquiries:
Anglo-Eastern Plantations Plc +44 (0) 20 7216 4621
Marcus Chan Jau Chwen, Executive Director (Corporate Affairs)
Kevin Wong Tack Wee, Group Chief Executive Officer
Panmure Liberum +44 (0) 20 3100 2000
Amrit Mahbubani / Freddie Wooding
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