REG - M. P. Evans Group - Half-year Report
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RNS Number : 2073Z M. P. Evans Group PLC 15 September 2025
M.P. EVANS GROUP PLC
("Company" or "M.P. Evans")
INTERIM RESULTS
M.P. Evans, a producer of sustainable Indonesian palm oil, announces its
unaudited interim results for the six months ended 30 June 2025.
HIGHLIGHTS
· 13% increase in mill-gate CPO price - 2025 US$868 per tonne, 2024
US$771 per tonne
· Significantly better crop mix with Group's own crop 8% higher
· 3% reduction in total crop processed - 2025 - 737,700 tonnes, 2024 -
759,700 tonnes
· 2% reduction in total crude palm oil production - 2025 - 172,800
tonnes, 2024 - 177,000 tonnes
· 10% increase in certified sustainable CPO production - 2025 - 131,300
tonnes, 2024 119,500 tonnes
· 3% decrease in cost of Group palm product - 2025 US$446 per tonne,
2024 US$458 per tonne
· 50% increase in operating profit - 2025 US$62.2 million, 2024 US$41.6
million
· 60% increase in earnings per share - 2025 - 71.7 pence, 2024 - 44.9
pence
· 20% increase in interim dividend per share - 2025 - 18 pence, 2024 -
15 pence
· Strong net cash surplus - 2025 net cash US$70.5 million, 2024 - net
debt US$7.3 million
M.P. Evans chairman, Peter Hadsley-Chaplin, commented: "The Group has
continued to make excellent strategic progress in the first half of 2025. We
are benefiting from the move to a greater proportion of production coming from
our own harvest, and results have been further enhanced by the strong
commodity-price environment. As we move into the second half of the year, the
Group has added a further 3,000 planted hectares to its portfolio, and both
CPO and PK prices remain robust."
A presentation for analysts will be held today at 9.30am at the offices of
Hudson Sandler at 25 Charterhouse Square, London, EC1M 6AE.
15 September 2025
Enquiries:
M.P. Evans Group PLC Telephone: +44 (0) 1892 516333
Peter Hadsley-Chaplin, chairman
Matthew Coulson, chief executive
Luke Shaw, chief financial officer
Cavendish Capital Markets (Nomad and broker) Telephone: +44 (0) 20 7220 0500
Matt Goode, George Lawson (Corporate Finance)
Tim Redfern, Harriet Ward (ECM)
Hudson Sandler (Financial PR) Telephone: +44 (0) 20 7796 4133
Charlie Jack, Nick Moore, Francesca Rosser
Overview
In the first six months of 2025, the Group harvested 619,100 tonnes of fresh
fruit bunches ("ffb") from the areas it managed, made up of 473,700 tonnes
(2024 - 437,900 tonnes) of its own crop and 145,400 tonnes (2024 - 128,300
tonnes) from its associated scheme-smallholder areas, increases of 8% and 13%
respectively.
Continuing a trend started in 2024, the Group is deliberately restricting the
amount of independent ffb brought into Group mills to supplement the harvest
from those areas managed by it. Typically, purchased crop is considerably more
expensive than harvested crop, and is often of a much poorer quality, leading
to lower levels of production. Management is continuing to focus on increasing
the Group's own harvest and decreasing purchased ffb. The total amount of
independent crop purchased in the first half of 2025 decreased by 39% to
118,600 tonnes (2024 - 193,500 tonnes).
As a result, the total crop available for processing in the first half of 2025
was 737,700 tonnes, a little lower than the 759,700 in the same part of 2024.
Almost all that crop was processed in the Group's six palm-oil mills, with
only 42,000 tonnes sent to outside mills, representing 6% of the total. The
average oil-extraction rate achieved in the Group's mills in the period was an
encouraging 23.5% (2024 - 23.4%), and may well have been higher but for some
particularly wet weather in the early part of the year.
Total production of crude palm oil ("CPO") in the first half of the year was
172,800 tonnes (2024 - 177,000 tonnes), and sales were made at an average
ex-mill-gate price of US$868 per tonne, almost US$100 per tonne higher than in
the same part of 2024 when the average was US$771 per tonne, as the price
increases seen in the second half of 2024 were maintained into 2025. The Group
also produced 37,900 tonnes of palm kernels ("PK") (2024 - 39,200 tonnes), and
kernel pricing improved significantly from the previous period, with the
average sales price achieved in the first half of 2025 at US$747 per tonne,
71% higher than the US$437 average in the same part of 2024.
The cost of production from the Group's own crop was US$446 per tonne in the
first half of the year (2024 - US$458 per tonne). This slight decrease was, in
part, due to wet weather delaying application until the second half of the
year. This work has already taken place, and the related costs incurred, since
the end of June. Despite this, if higher cropping patterns prevail in the
second half of the year, the average cost of production is expected to fall as
the year progresses. The total cost of production in the first half of the
year, after allowing for crop purchases, from both associated scheme
smallholders and independent suppliers, was US$553 per tonne (2024 - US$529
per tonne). Whilst the Group purchased a lower proportion of independently
supplied ffb, the unit cost of supply was higher given the connection between
purchase costs and CPO prices.
The Group continues to be a responsible producer of certified sustainable palm
oil. The change in mix of crop processed in Group mills during the period,
with more input coming from areas developed and managed by the Group in
accordance with high environmental and responsible standards, has resulted in
an increase in certified sustainable production. In the first half of 2025,
the Group produced 131,300 tonnes (2024 - 119,500 tonnes) of certified
sustainable CPO, representing 76% (2024 - 68%) of total output.
Supported by the strong price environment for both CPO and PK, the Group
achieved an increase in gross margin in the first half of the year, and gross
profit was US$63.4 million (2024 US$42.1 million). Earnings per share
increased to 71.7p (2024 - 44.9p).
Dividends
In line with the Group's sustainable approach to distributions, the board is
increasing the interim dividend by 20% to 18p per share (2024 - 15p per
share). Not only does this reflect the improved results for the period and the
Group's ongoing ability to generate substantial amounts of operating cash, but
it is also an indication of the board's confidence in the future prospects for
the Group in the medium and longer term.
The Group continues to maintain its long, more than thirty-year, track record
of maintaining or increasing dividends for shareholders. Its ongoing
investment in additional planting, combined with the acquisition of further
planted areas, will provide a sound basis for future crop growth, strong cash
flows and future dividend streams.
Post balance-sheet event
On 14 July 2025, the Group announced that it had completed the acquisition of
a further 3,000 planted hectares in East Kalimantan for total consideration of
US35.1 million. The acquired area is close to the Group's Bumi Mas estate and
will be managed as part of it, bringing the size of the enlarged project to
almost 12,000 planted hectares. Since acquisition, all the crop from the newly
acquired land is being brought for processing to the Group mill at Bumi Mas.
This is in line with the Group's strategy to continue increasing mill
utilisation with its own harvest and is expected to be immediately earnings
enhancing.
Board changes
Following the annual general meeting on 13 June 2025, Bruce Tozer, the Group's
senior independent director, retired from the board, having served as a
director for the last nine years. The Group has benefited from Bruce's wealth
of knowledge and experience throughout his time as a director in areas such as
agriculture, commodities, banking, sustainability and carbon. The board thanks
Bruce for his significant contribution to the Group.
Also on 13 June 2025, Kate Coppinger was appointed as an independent
non-executive director. Kate is an experienced board director and has served
as a non-executive on several other AIM-listed companies, including as chair
of board committees. She is focused on enhancing corporate governance and is
recognised as a trusted adviser in strategic decision making.
Following Bruce's retirement, Michael Sherwin, one of the Company's
independent non-executive directors, has been appointed as senior independent
director and chair of the audit committee. Kate Coppinger has been appointed
chair of the remuneration committee.
RESULTS FOR THE PERIOD
Crops and production
Details of the Group's crops, production and extraction rates and average
selling prices for the first half of 2025 are shown in the following table:
6 months ended 6 months ended Year ended
30 June Increase/ 30 June 31 December
2025 (decrease) 2024 2024
Tonnes % Tonnes Tonnes
Own crops
Kota Bangun 152,000 9 138,900 284,000
Bangka 65,600 13 57,800 137,400
Pangkatan group 75,700 (4) 79,100 168,600
Bumi Mas 73,400 3 71,300 144,800
Musi Rawas 70,300 22 57,400 136,100
Simpang Kiri 36,700 10 33,400 66,100
473,700 8 437,900 937,000
Scheme-smallholder crops
Kota Bangun 55,800 9 51,000 105,500
Bangka 39,200 18 33,200 81,400
Pangkatan group 2,600 30 2,000 5,200
Bumi Mas 15,000 6 14,200 29,200
Musi Rawas 32,300 17 27,700 64,000
Simpang Kiri 500 150 200 600
145,400 13 128,300 285,900
Independent crops purchased
Kota Bangun 59,700 (11) 67,400 144,200
Bangka 30,000 (32) 44,200 91,400
Pangkatan group 8,700 (58) 20,700 37,200
Bumi Mas 2,800 (87) 21,800 39,800
Musi Rawas 17,400 (56) 39,400 73,400
118,600 (39) 193,500 386,000
737,700 (3) 759,700 1,608,900
Production
Crude palm oil
Kota Bangun 61,100 2 59,700 123,500
Bangka 31,500 2 30,900 70,200
Pangkatan group 19,700 (13) 22,600 47,200
Bumi Mas 21,500 (17) 26,000 51,300
Musi Rawas 29,700 1 29,500 64,000
163,500 (3) 168,700 356,200
Kota Bangun 900 29 700 1,000
Simpang Kiri 8,400 11 7,600 15,000
9,300 12 8,300 16,000
172,800 (2) 177,000 372,200
Palm kernels
Kota Bangun 13,400 2 13,200 27,200
Bangka 8,100 3 7,900 17,800
Pangkatan group 4,700 (11) 5,300 10,900
Bumi Mas 4,000 (18) 4,900 9,600
Musi Rawas 5,800 (6) 6,200 12,500
36,000 (4) 37,500 78,000
Kota Bangun 200 - 200 300
Simpang Kiri 1,700 13 1,500 3,000
1,900 12 1,700 3,300
37,900 (3) 39,200 81,300
Extraction rate % % %
Crude palm oil
Group mills
Kota Bangun - Bumi Permai 24.1 (2) 24.6 24.3
Kota Bangun - Rahayu 22.0 (1) 22.2 22.1
Bangka 23.4 3 22.8 22.6
Pangkatan group 22.6 1 22.3 22.4
Bumi Mas 23.6 (2) 24.2 24.0
Musi Rawas 24.7 4 23.7 23.4
23.5 - 23.4 23.2
Third party mills
Kota Bangun 20.0 12 17.9 18.3
Simpang Kiri 22.5 - 22.4 22.5
Palm kernels
Group mills
Kota Bangun - Bumi Permai 5.7 2 5.6 5.6
Kota Bangun - Rahayu 4.2 (9) 4.6 4.5
Bangka 6.0 3 5.8 5.7
Pangkatan group 5.4 4 5.2 5.2
Bumi Mas 4.5 (2) 4.6 4.5
Musi Rawas 4.8 (4) 5.0 4.6
5.2 - 5.2 5.1
Third party mills
Kota Bangun 4.5 (8) 4.9 4.9
Simpang Kiri 4.5 2 4.4 4.4
Average selling prices US$ US$ US$
CPO (cif Rotterdam) 1,179 18 999 1,084
CPO - Group mill gate 868 13 771 823
Palm kernels - Group mill gate 747 71 437 525
Mill-gate prices
The average commodity price for CPO during the first six months of 2025 was
US$1,179 per tonne. This was US$180 per tonne higher than in the first half of
2024. The Group does not receive this amount when selling its output at
mill-gate, but a lower figure to take account of freight and insurance costs,
along with the export taxes and levies charged by the Indonesian government,
which are based on published tables. In the first half of 2025, the Group
received an average of US$868 per tonne for the CPO output from its mills,
almost US$100 higher than the US$771 received in the six months to June 2024.
It is normal for mill-gate PK prices to be lower than those for CPO but PK
prices as a proportion of CPO prices improved markedly during the first half
of the year, with a beneficial impact on Group margins. On average during the
first half of 2025, the Group received US$747 per tonne (2024 US$437 per
tonne), an increase of 71% on the first six months of the previous year.
Sustainability
The Group continues to be committed to the production of certified sustainable
palm oil. The steps taken during 2025 to change the balance of crop inputs to
Group mills, with an increase in the amount of own-harvested crop and a
decrease in the amount taken from independent suppliers, have benefited
sustainable production. During the first half of the year, 76% of the Group's
CPO (2024 - 68%) was certified as sustainable.
The Group benefits financially from selling its output, both CPO and PK, as
certifiably sustainable. During the first half of 2025, the Group received
additional income of US$2.8 million (2024 US$3.0 million) from these sales.
The Group is also working towards the introduction of the EU Deforestation
Regulations ("EUDR"), due to become effective from the start of 2026. Based on
customer interaction, the Group expects to start supplying EUDR compliant palm
oil from the start of next year.
Costs
The Group remains committed to being an efficient and low-cost producer of
sustainable palm oil and palm kernels. During the first half of 2025, the cost
per tonne of palm product (a tonne of either CPO or PK), when produced from
crop harvested in areas owned by the Group, was US$446. This compares
favourably with US$458 per tonne in the first half of 2024. Part of the
decrease was as a result of lower fertiliser costs, caused by a delay in
application, due to wet weather in the early months of 2025. The Group also
benefited from a weaker Indonesian currency in the first half of the year. The
Group expects unit costs to fall in the second half of the year as volumes
increase, but also due to the phasing of some other operational costs. The
full-year cost per tonne in 2024 was US$410.
Costs associated with purchasing crop for processing were higher in the first
half of 2025. This includes both purchases from the Group's associated scheme
smallholders and purchases from independent suppliers. In both cases, the
purchase cost is connected to the commodity price for CPO and PK and, given
that they were both high during the period, the cost to purchase crop for
processing was also elevated. The Group continues to work in partnership with
its associated scheme smallholders and manages those areas to the same high
standard as its own land, ensuring that the crop harvested is of high quality.
However, as previously explained, the Group is restricting purchases from
independent suppliers where that quality cannot be guaranteed. The increased
purchase costs in the first half of the year resulted in the Group's total
cost of palm product, after allowing for all sources, to rise to US$553 per
tonne (2024 US$529 per tonne).
Planting
The Group has continued to plant new areas of oil palm in 2025, both in
Sumatra and in East Kalimantan. Wherever new planting takes place, it is based
on the Group's commitment to being a responsible producer, and only land
suitable for cultivation is planted. Environmental assessments are carried
out, and estate management work alongside on-site sustainability staff,
ensuring that the Group complies with its own policies and those of the
Roundtable on Sustainable Palm Oil ("RSPO").
At the Musi Rawas estate in South Sumatra, additional planting took place in
the first half of 2025, and the Group maintained the previous pace of planting
with 250 hectares being planted by the end of June, bringing the total planted
area at the estate to 11,090 hectares. The Group has already secured further
areas for development, and more planting will take place in the second half of
the year.
As reported in the 2024 annual report, at Kota Bangun, where 8,000 planted
hectares were acquired in 2023, the Group embarked on a planting programme at
the end of 2024 to increase further the size of the estate, setting a target
to plant at least 1,000 hectares before the end of 2025. Good progress has
been made, and by the end of June, a total of 450 hectares had been planted
towards that target. Elsewhere in the acquired area at Kota Bangun,
approximately 500 hectares have been replanted to secure high yields in future
years.
Planting new areas, along with maintaining the high productivity of
established Group estates through regular replanting, supports future growth
and the further utilisation of the Group's mills with own-harvested crop.
New land
The Group is continuing to prioritise making the best use of its milling
capacity, focusing wherever possible on processing crop harvested from areas
managed by the Group's expert agronomic team. The addition, just after the end
of the period, of a further 3,000 planted hectares close to Bumi Mas, will
support this ambition. Alongside this, the Group continues to review
opportunities for further acquisitions and, at the same time, consider the
potential to secure additional sustainable plantings from within its existing
land portfolio.
Associated companies
In Malaysia, property sales were a little slower in the first half of 2025
than in the first half of the previous year at Bertam Properties Sdn Berhad,
the Group's 40%-owned property development company. However, it continued to
make good progress with developing high-quality and affordable homes in the
state of Penang. During the first half of the year, the Group's share of its
profit was US$0.1 million (2024 US$0.3 million). The Group's 38%-owned
oil-palm associate in Indonesia, PT Kerasaan Indonesia, achieved a similar
profit to the first half of last year, with the Group's share being US$0.6
million (2024 US$0.5 million).
Result
The higher CPO and PK prices in the first half of 2025 resulted in an increase
in turnover to US$179.4 million (2024 - US$163.7 million), even though output
was slightly lower, and the Group did not experience the same working-capital
benefit this year that pushed up sales in the first six months of 2024. The
gross margin increased to 35% from 26% in the same part of last year with,
again, price being the biggest factor, but Group profitability benefited from
the change in input mix, with more of its own harvest being processed this
year. There were also benefits in the first half from lower fertiliser costs,
mainly due to the timing of application, and a weakening Indonesian currency,
making those costs incurred in Indonesian rupiah lower when expressed in the
Group's functional currency of US dollars. As a result, gross profit increased
by 51% to US$63.4 million (2024 US$42.1 million).
The Group's other income was lower in the first half of 2025 at US$0.7 million
(2024 US$1.7 million) as fewer by-product kernel shells were sold during the
period, and there was a significant fall in financing costs to US$0.7 million
(2024 US$1.8 million) as the Group repaid its main US-dollar finance facility
during the period. The tax charge for the first half increased on higher
profits and, after accounting for the Group's share of the profits of
associated companies, the profit for the period was US$49.6 million, 56%
higher than the US$31.7 million in 2024. Following the acquisition of minority
interests in 2024, a lower amount of the higher profits was shared with the
Group's minority partner resulting in a proportionately higher increase in
earnings per share to 71.7 pence (2024 - 44.9 pence).
CURRENT TRADING AND PROSPECTS
8 months ended 8 months ended
31 August Increase/ 31 August
2025 (decrease) 2024
Tonnes % Tonnes
Own crops 639,400 8 593,900
Scheme-smallholder crops 189,400 11 170,900
Independent crops purchased 162,200 (38) 263,500
991,000 (4) 1,028,300
The Group's cropping levels during July and August have continued to be higher
than during the same period in 2024, despite some dry weather, although some
welcome rain returned in the second half of August which bodes well for
further crop increases. During the two months to August, the total crop
harvested from the areas managed by the Group was 209,700 tonnes (2024 -
198,600 tonnes). The Group has continued with its strategy of, where
appropriate, restricting the purchase of more expensive and lower quality
independent crop for processing, and during the two months to August 2025, a
further 43,600 tonnes were purchased, 38% lower than the purchases during the
same part of 2024. Overall, the total crop processed by the Group remains
similar to the previous year, but the continuing change in input mix will
support the Group's commitment to increase productivity and profitability.
Based on the latest field analysis, monthly cropping levels are expected to
increase in the latter part of the year, which would be consistent with the
Group's experience in recent years.
Pricing for both CPO and PK has remained firm since the end of June. By the
end of August, the Group's year-to-date average mill-gate prices for its
output had not changed significantly from those at the end of June. Following
successful tendering for the two-month period, the year-to-date averages for
CPO and PK had become US$865 and US$737 respectively. If Group cropping levels
increase in the coming months, and this pattern is experienced more widely,
there may be some downward pressure on prices, but the Group would also expect
some associated downward pressure on unit costs of production from increasing
volumes at the same time and, in addition, the pricing levels already achieved
in the first eight months of the year are indicative of a robust average for
the year as a whole.
Since taking over management control in July, the Group has made significant
progress on the integration of the newly acquired hectarage at Bumi Mas.
Improvements have already been made to estate infrastructure, the support and
training of the workforce, and the upkeep and maintenance of the planted
areas. The amount of crop being sent to the Bumi Mas mill for processing is
increasing and management is confident that this new area will rapidly become
a core part of the enlarged Bumi Mas estate.
Looking to the Group as a whole and its future prospects, the board remains
committed to the Group's strategy of continued development and growth. The
cultivated area continues to increase, both from further planting and through
acquisition, and the Group is producing an ever-greater volume of certified
sustainable output. There is a focus on innovation and efficiency, and the
Group is delivering strong margins and robust cash flows to support further
investment and progressive shareholder returns.
UNAUDITED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2025
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Note US$'000 US$'000 US$'000
Continuing operations
Revenue 3 179,443 163,737 352,839
Cost of sales (116,073) (121,628) (236,249)
Gross profit 3 63,370 42,109 116,590
(Loss)/gain on biological assets (896) 185 1,847
Foreign-exchange gains/(losses) 1,762 640 (23)
Other administrative expenses (2,801) (3,120) (5,930)
Other income 739 1,746 3,211
Operating profit 62,174 41,560 115,695
Finance income 1,482 523 1,236
Finance costs (684) (1,838) (3,441)
Profit before taxation 62,972 40,245 113,490
Tax on profit on ordinary activities (14,048) (9,392) (25,213)
Profit after tax 48,924 30,853 88,277
Share of associated companies' profit after tax 3 680 808 2,355
Profit for the period 49,604 31,661 90,632
Attributable to:
Owners of M.P. Evans Group PLC 48,654 30,084 87,851
Non-controlling interests 950 1,577 2,781
49,604 31,661 90,632
US cents US cents US cents
Continuing operations
Basic earnings per 10p share 93.2 56.6 165.9
Diluted earnings per 10p share 92.7 56.3 165.1
Pence Pence Pence
Basic earnings per 10p share
Continuing operations 71.7 44.9 129.6
UNAUDITED CONSOLIDATED BALANCE SHEET
As at 30 June 2025
30 June 30 June 31 December
2025 2024 2024
Note US$'000 US$'000 US$'000
Non-current assets
Goodwill 17,083 17,083 17,083
Other intangible assets 761 944 852
Property, plant and equipment 477,637 482,693 480,983
Investments in associates 11,689 10,418 10,524
Investments 65 57 61
Deferred-tax asset 1,831 1,180 1,808
509,066 512,375 511,311
Current assets
Biological assets 4,739 3,973 5,635
Inventories 21,258 15,121 22,788
Trade and other receivables 22,618 24,370 20,847
Current-tax asset 3,501 9,990 7,777
Current-asset investments 204 213 214
Cash and cash equivalents 91,123 35,709 79,223
143,443 89,376 136,484
Total assets 652,509 601,751 647,795
Current liabilities
Borrowings 2,240 22,820 12,953
Trade and other payables 30,965 24,107 33,122
Current-tax liabilities 8,651 5,520 13,029
41,856 52,447 59,104
Net current assets 101,587 36,929 77,380
Non-current liabilities
Borrowings 18,625 20,381 20,074
Deferred-tax liability 21,824 21,083 22,007
Retirement-benefit obligations 13,591 12,262 13,141
54,040 53,726 55,222
Total liabilities 95,896 106,173 114,326
Net assets 556,613 495,578 533,469
Equity
Share capital 5 8,933 9,019 8,922
Other reserves 54,934 53,886 53,887
Retained earnings 485,474 423,163 462,938
Equity attributable to the
owners of M.P. Evans Group PLC 549,341 486,068 525,747
Non-controlling interests 7,272 9,510 7,722
Total equity 556,613 495,578 533,469
UNAUDITED STATEMENT OF CHANGES IN CONSOLIDATED TOTAL EQUITY
For the six months ended 30 June 2025
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
US$'000 US$'000 US$'000
Profit for the period 49,604 31,661 90,632
Other comprehensive income/(expense) for the period 1,066 (426) 1,178
Total comprehensive income for the period 50,670 31,235 91,810
Issue of share capital 11 - 107
Share buybacks - (3,516) (13,367)
Dividends paid (27,812) (23,341) (36,789)
Acquisition of non-controlling interests - (14,041) (14,041)
Credit to equity for equity-settled share-based payments 275 168 676
Transactions with owners (27,526) (40,730) (63,414)
At 1 January 533,469 505,073 505,073
Balance at period end 556,613 495,578 533,469
UNAUDITED CONSOLIDATED CASH-FLOW STATEMENT
For the six months ended 30 June 2025
Six months *Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Note US$'000 US$'000 US$'000
Net cash generated by operating activities 6 58,273 47,532 135,800
Investing activities
Purchase of property, plant and equipment (10,515) (9,555) (21,630)
Purchase of intangible assets - (24) (24)
Interest received 1,482 337 1,050
Repayment of loans made to smallholder co-operatives 458 1,856 2,291
New loans to smallholder co-operatives (160) (1,030) (1,608)
Bank deposits treated as current asset investments 8 - 44
Proceeds on disposal of property, plant and equipment 193 47 548
Net cash used by investing activities (8,534) (8,369) (19,329)
Financing activities
Acquisition of non-controlling interests - (6,000) (6,000)
New borrowings - - 637
Repayment of borrowings (11,665) (9,916) (21,145)
Dividends paid to Company shareholders (26,412) (21,891) (32,339)
Dividends paid to non-controlling interest - (145) (3,145)
Issue of Company shares 11 - 107
Buyback of Company shares - (3,516) (13,367)
Net cash used by financing activities (38,066) (41,468) (75,252)
Net increase/(decrease) in cash and cash equivalents 11,673 (2,305) 41,219
Cash and cash equivalents at 1 January 79,223 39,324 39,324
Effect of foreign-exchange rates on cash and cash
equivalents 227 (1,310) (1,320)
Net cash and cash equivalents at period end 91,123 35,709 79,223
* Certain cash flows relating to balances with smallholder co-operatives have
been amended above and in note 6 for consistency with current period
treatment.
NOTES TO THE INTERIM STATEMENTS
For the six months ended 30 June 2025
Note 1 General information
The financial information for the six-month periods ended 30 June 2025 and
2024 has been neither audited nor reviewed by the Group's auditors and does
not constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. The financial information for the year ended 31 December
2024 is abridged from the statutory accounts. The 31 December 2024 statutory
accounts have been reported on by the Group's auditors for that year, BDO LLP,
and have been filed with the Registrar of Companies. The report of the
auditors thereon was unqualified and did not contain a statement under section
498(2) or (3) of the Companies Act 2006, nor did it contain any matters to
which the auditors drew attention without qualifying their audit report.
Note 2 Accounting policies
The consolidated financial results have been prepared in accordance with
International Financial Reporting Standards (IFRS and IFRIC interpretations)
issued by the International Accounting Standards Board (IASB), and with those
parts of the Companies Act 2006 applicable to companies preparing accounts
under IFRS.
The accounting policies of the Group follow those set out in the annual
financial statements at 31 December 2024. The Group has made a number of
critical accounting judgements and key estimates in the preparation of this
interim report, and they remain consistent with those set out in note 3(r) to
the 2024 annual financial statements.
Note 3 Segment information
The Group's reportable segments are distinguished by location and product:
Indonesian oil-palm plantation products in Indonesia and Malaysian property
development.
Plantation Property
Indonesia Malaysia Other Total
US$'000 US$'000 US$'000 US$'000
6 months ended 30 June 2025
Revenue 179,391 - 52 179,443
Gross profit 63,318 - 52 63,370
Share of associated companies' profit after tax 615 65 - 680
6 months ended 30 June 2024
Revenue 163,737 - - 163,737
Gross profit 42,109 - - 42,109
Share of associated companies' profit after tax 459 349 - 808
Year ended 31 December 2024
Revenue 352,839 - - 352,839
Gross profit 116,590 - - 116,590
Share of associated companies' profit after tax 1,396 959 - 2,355
Note 4 Dividends
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
US$'000 US$'000 US$'000
2023 final dividend - 32.5p per 10p share - 21,891 21,891
2024 interim dividend - 15p per 10p share - - 10,448
2024 final dividend - 37.5p per 10p share 26,412 - -
26,412 21,891 32,339
Subsequent to 30 June 2025, the board has declared an interim dividend of 18p
per 10p share. The dividend will be paid on or after 7 November 2025 to those
shareholders on the register at the close of business on 10 October 2025.
Note 5 Share capital
30 June 30 June 31 December 30 June 30 June 31 December
2025 2024 2024 2025 2024 2024
Number Number Number US$'000 US$'000 US$'000
Shares of 10p each
At 1 January 52,176,292 53,289,690 53,289,690 8,922 9,062 9,062
Issued 80,000 - 70,000 11 - 9
Redeemed - (34,134) 1,183,398 - (43) (149)
At period end 52,256,292 52,949,556 52,176,292 8,933 9,019 8,922
During the period, in anticipation of the exercise of share options, the
Company issued 80,000 10p shares for US$11,000 cash consideration.
Note 6 Analysis of movements in cash flow
Six months *Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
US$'000 US$'000 US$'000
Operating profit 62,174 41,560 115,695
Biological loss/(gain) 896 (185) (1,847)
Disposal of property, plant and equipment 216 534 523
Release of deferred profit (20) (22) (100)
Depreciation of property, plant and equipment 13,453 13,196 26,491
Amortisation of intangible assets 92 92 184
Retirement-benefit obligation 554 593 2,161
Share-based payments 275 168 676
Operating cash flows before movements
in working capital 77,640 55,936 143,783
Decrease in inventories 1,542 9,035 1,367
Increase in receivables (1,531) (2,493) (1,296)
Decrease in payables (614) (2,830) (910)
(Increase)/decrease in trading balances with
smallholder co-operatives (4,318) (453) 9,694
Cash generated by operating activities 72,719 59,195 152,638
Dividends from associated companies 594 - 2,425
Income tax paid (14,356) (9,825) (15,822)
Interest paid (684) (1,838) (3,441)
Net cash generated by operating activities 58,273 47,532 135,800
* See footnote to consolidated cash-flow statement.
Note 7 Exchange rates
30 June 30 June 31 December
2025 2024 2024
US$1=Indonesian Rupiah - average 16,417 15,897 15,855
- period end 16,235 16,375 16,095
US$1=Malaysian Ringgit - average 4.31 4.73 4.57
- period end 4.21 4.72 4.47
£1=US Dollar - average 1.30 1.26 1.28
- period end 1.37 1.26 1.25
Note 8 Post balance-sheet event
On 14 July 2025, the Group completed its acquisition of the entire issued
share capital of two Indonesian plantation companies, PT Setara Kilau Mas
Adicita ("SKMA") and PT Sumber Bumi Serasi ("SBS").
As a result, the Group acquired 3,000 planted hectares (inclusive of 250
scheme-smallholder hectares) close to its Bumi Mas estate in East Kalimantan.
Total consideration was US$35.1 million, equivalent to US$12,600 per
Group-owned planted hectare. This was settled using existing cash resources
and an initial payment of US$22.5 million was made on completion, including
adjustments for working capital and net debt acquired. Immediately following
completion, the Group repaid loans in the acquired companies of US$12.6
million.
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