REG - R.E.A.Hldgs PLC - Annual Financial Report <Origin Href="QuoteRef">REAH.L</Origin> - Part 3
25/04/2016 07:05
- Part 3: For the preceding part double click ID:nRSY1376Wb
_______ _______
5,951 8,770
_______ _______
Amounts included as additions to biological assets and construction in
progress arose on borrowings applicable to the Indonesian operations and
reflected a capitalisation rate of 27.3 per cent (2014: 16.8 per cent); there
is no directly related tax relief.
7. Tax
2015 2014
$'000 $'000
Current tax:
UK corporation tax - -
Overseas withholding tax 1,467 -
Foreign tax 50 7,711
Foreign tax - prior year 1,778 (7,000)
_______ _______
Total current tax 3,295 711
_______ _______
Deferred tax:
Current year 2,958 2,063
Prior year 378 (1,011)
_______ _______
Total deferred tax 3,336 1,052
_______ _______
Total tax 6,631 1,763
_______ _______
Taxation is provided at the rates prevailing for the relevant jurisdiction.
For Indonesia, the current and deferred taxation provision is based on a tax
rate of 25 per cent (2014: 25 per cent) and for the United Kingdom, the
taxation provision reflects a corporation tax rate of 20.25 per cent (2014:
21.5 per cent) and a deferred tax rate of 20 per cent (2014: 20 per cent).
8. (Loss)/earnings per share
2015 2014
$'000 $'000
(Loss)/earnings for the purpose of earnings per share* (3,964) 14,153
_______ _______
* being net (loss)/profit attributable to ordinary shareholders
'000 '000
Weighted average number of ordinary shares for the purposes of (loss)/earnings per share 35,455 35,085
_______ _______
9. Dividends
2015 2014
$'000 $'000
Amounts paid and recognised as distributions to equity holders:
Preference dividends of 9p per share 8,461 8,140
Ordinary dividends of 7.75p per share (2014: 7.25p) 4,168 4,280
_______ _______
12,629 12,420
_______ _______
10. Biological assets
2015 2014
$'000 $'000
Beginning of year 310,175 288,180
Opening balance adjustment (363) -
Additions to planted area and costs to maturity 24,766 20,617
Transfers to property, plant and equipment (8,202) (2,095)
Transfers to current receivables (345) (98)
Net biological gain 13,060 3,571
_______ _______
End of year 339,091 310,175
_______ _______
Net biological gain comprises:
Fair value of crops harvested during the year (46,164) (87,647)
Gain arising from movement in fair value attributable to other physical changes 43,933 76,808
Gain arising from movement in fair value attributable to price changes 15,291 14,410
_______ _______
13,060 3,571
_______ _______
The fair value determination assumed a discount rate of 15 per cent in the
case of REA Kaltim, SYB and KMS and 18 per cent in the case of all other group
companies (2014: 15 per cent in the case of REA Kaltim and SYB, 16.5 per cent
in the case of KMS and 18 per cent in the case of all other group companies)
and a standard unit margin of $63.9 per tonne of oil palm FFB (2014: standard
unit margin of $60.9 per tonne of FFB).
The valuation of the group's biological assets would have been reduced by
$17,340,000 (2014: $10,370,000) if the crops projected for the purposes of the
valuation had been reduced by 5 per cent; by $15,830,000 (2014: $9,030,000) if
the discount rates assumed had been increased by 1 per cent and by $27,160,000
(2014: $20,650,000) if the assumed unit profit margin per tonne of oil palm
FFB had been reduced by $5.
Because substantially the entire business of the group consists of
agricultural activities, the group's financial risk management strategies
relating to agricultural activities are the same as its overall financial risk
management strategies. At 31 December 2015, the group had no outstanding
forward sale contracts at fixed prices (2014: none).
At the balance sheet date, biological assets of $212.4 million (2014: $164.0
million) had been charged as security for bank loans but there were otherwise
no restrictions on titles to the biological assets (2014: none). Expenditure
approved by the directors for the development of immature areas in 2016,
subject to availability of funding, amounts to $27 million (2014: $26
million).
10. Capital expenditure on property, plant and equipment and capital
commitments
During the year, there were additions to property, plant and equipment of
$7,583,000 (2014: $12,797,000).
At the balance sheet date, the group had entered into contractual commitments
for the acquisition of property, plant and equipment amounting to $1,155,000
(2014: $3,873,000).
11. Issuance of equity securities
Changes in share capital:
• on 1 July 2015, 4,221,000 9 per cent cumulative preference shares were
issued, fully paid, by way of a placing at £1.20 a share (total consideration
£5,065,000 - $7,970,000)
• on 15 October 2015, 1,754,260 ordinary shares were issued, credited as
fully paid, by way of placing at £2.60 per share (total consideration
£4,561,000 - $7,023,000) to Mirabaud Pereire Nominees Limited, Emba Holdings
Limited, P Byrom, J Landon and M Goodliffe. The middle market price at close
of business on 2 October 2015 (being the date at which the terms of issue were
fixed) was £2.67
12. Movement in net borrowings
2015 2014
$'000 $'000
Change in net borrowings resulting from cash flows:
Decrease in cash and cash equivalents (316) (18,244)
Net increase in borrowings (20,706) (4,704)
_______ _______
(21,022) (22,948)
Issue of preference shares - 10,564
Amortisation of US dollar notes expenses (165) -
Issue of sterling notes, net of amortisation of issue expenses (4,195) -
Redemption of US dollar notes, net of amortisation of issue expenses - 6,310
_______ _______
(25,382) (6,074)
Currency translation differences (2,686) 1,555
Net borrowings at beginning of year (170,618) (166,099)
_______ _______
Net borrowings at end of year (198,686) (170,618)
_______ _______
13. Related parties
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note. Transactions between the company and its subsidiaries are dealt with in
the company's individual financial statements. The remuneration of the
directors, who are the key management personnel of the group, is set out below
in aggregate for each of the categories specified in IAS 24 "Related party
disclosures".
2015 2014
$'000 $'000
Short term benefits 2,111 2,112
Post employment benefits - -
Other long term benefits - -
Termination benefits - -
Share based payments - -
_______ _______
2,111 2,008
_______ _______
14. Events after the reporting period
There have been no material post balance sheet events that would require
disclosure or adjustment to these financial statements.
Press enquiries to:
R.E.A. Holdings plc
Tel: 020 7436 7877
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on R E A Holdings
See all newsREG-R.E.A. Holdings plc R.E.A. Holdings plc: Notification of Major Holdings
AnnouncementREG-R.E.A. Holdings plc R.E.A. Holdings plc: Notification of Major Holdings
AnnouncementREG-R.E.A. Holdings plc R.E.A. Holdings plc: Notification of Major Holdings
AnnouncementREG-R.E.A. Holdings plc R.E.A. Holdings plc: Total voting rights
AnnouncementREG-R.E.A. Holdings plc R.E.A. Holdings plc: Dividend payment in respect of 9 per cent cumulative preference shares
Announcement