RNS Number:6197P
Anglo-Eastern Plantations PLC
11 September 2003

ANGLO-EASTERN PLANTATIONS PLC - INTERIM ANNOUNCEMENT


* Anglo-Eastern Plantations, which owns approximately 24,000ha of oil palm
plantations, primarily in Indonesia, announces that the strong performance of
the second half of 2002 continued into the first half of 2003, whose pre-tax
profits (in sterling) were double those of the first half of 2002.

                                              2003          2002   Change

Turnover (#000)                             12,665         6,113          +107%
Operating profit (#000)                      4,601         2,267          +103%
Pre-tax profit (#000)                        4,441         2,181          +104%
Basic earnings per share (p)                   6.2           2.8          +121%
Net assets per share (p)                       132           139           -5%


* The profit increase reflects increases in both average CPO (crude palm
oil) prices to $420 from $360 in the first half of 2002 and FFB (fresh fruit
bunches) crops, which were some 35% better than in the first half of 2002.


* Net debt at 31 December 2002 of $1.7 million was converted into net cash
at 30 June 2003 of $0.2 million.


* The 5% fall in net assets per share reflects the weakening of sterling
to $1.65: #1 from $1.52: #1 at 30 June 2002. In US$ terms, net assets per share
increased by 3%.


* Work commenced in May on a 20mt/hr oil mill to service our three small
estates around Medan in North Sumatra, the rate of new planting in Bengkulu is
being accelerated, and the mill in Bengkulu is to be expanded by 20mt/hr early
in 2004 - some nine months earlier than orginally scheduled.


* Mr T H Chan, Chairman, commented "Operations in our estates are
satisfactory. The new management installed at our Malaysian estates are showing
results. However, oil palm crops since June have fallen due to seasonal effects,
but we still expect to maintain a substantial improvement in 2003 over 2002.


CPO prices have been holding recently around $400/mt. If they continue to hold
around that level and barring adverse circumstances, we can expect the current
improvement in profits over 2002 to continue."



Enquiries:


Anglo-Eastern Plantations plc                                    020-7236 2838
Rollo Barnes (Financial Director)

Bankside Consultants Limited                                     020-7444 4166
Charles Ponsonby




Financial overview

The strong performance of the second half of 2002 continued into the first half
of 2003. Although the average price of CPO (crude palm oil) was lower than that
in the second half of 2002, output of FFB (fresh fruit bunches) was helped by
the increasing maturity of our Bengkulu estates in South Sumatra and better
yields experienced in our Malaysian estates.

Crop output and average prices in the first half of 2003 were substantially
higher than the corresponding period in the previous year. As a result, profit
before tax for the six months to 30 June 2003 was $7.2 million (#4.4 million)
compared to $3.3 million (#2.2 million) for the same period in 2002. Turnover
was $20.4 million (#12.7 million) compared to $10.8 million (#6.1 million) for
the same period in 2002.

The results reflect FFB crops some 35% better than in the same period in 2002,
together with satisfactory prices for palm oil as well as for rubber and cocoa.

Earnings per share for the six months were 10.0 cts (6.2p) compared to 4.1 cts
(2.8p) for the same period in 2002.

As in previous years, no interim dividend is being declared.

Borrowings net of cash reduced from $1.7 million at 31 December 2002 to a cash
net surplus of $0.2 million at 30 June 2003. While cash generation from
operations has been strong, there were heavy tax payments in respect of 2002
profits together with loan repayments of $1.0 million and a dividend double that
paid in 2002.

Production and sales

                                              2003           2002         2002
                                          6 months       6 months      year to
                                        to 30 June     to 30 June       31 Dec
                                       (unaudited)    (unaudited)    (audited)
                                                mt            mt             mt

Oil palm production
FFB
- own estates                              171,491        126,823      294,062
- bought in or processed for third          66,978         36,994       99,029
parties
Saleable CPO                                40,147         24,363       63,240

Oil palm sales
CPO                                         37,923         21,550       63,042
FFB sold outside                            44,606         50,277       93,929

Other crops production
Rubber                                         737            653        1,491
Cocoa                                           80             71          193

Of the increase of 44,668 mt in total FFB production, 18,842 mt (+21%) came from
the North Sumatra estates, 21,860 mt (+90%) from Bengkulu and 3,966 mt (+30%)
from Cenderung in Malaysia. These results are all ahead of expectations and it
is particularly pleasing that this was the case in Cenderung, where previously
we have repeatedly reported weak performance.

As mentioned in the last annual report, buying outside crop in the Tasik region
of North Sumatra has become more competitive and the total increase of 29.984 mt
masks a fall of 4,005 mt for the Tasik mill. However, supplies in Bengkulu
continue to be reasonably plentiful and the total of 39,035 mt for the six
months compares with 27,452 mt in the second half of 2002.

Prices

While CPO prices for January and February averaged $450, they then fell to about
$415 by the end of June, averaging about $ 420 for the six months period. This
compares with an average of $360 for the first half of 2002 and $400 for 2002 as
a whole.

Cocoa and rubber prices have been strong, averaging 13% and 24% better than for
2002 as a whole.

Development

The group's planted areas at 30 June 2003 comprise:

                                                 Mature         Immature        Total
                                                     ha               ha           ha
               North Sumatra                      9,910              438       10,348
               Bengkulu                           8,720            1,109        9,829
                                       ----------------  ---------------  -----------
                                                 18,630            1,547       20,177
               Malaysia                           3,267              549        3,816
                                       ----------------  ---------------  -----------
               Total: 30 June 2003               21,897            2,096       23,993
                                       ----------------  ---------------  -----------
               Total: 31 December                20,375            3,498       23,873
               2002                    ----------------  ---------------  -----------


We have decided to accelerate the rate of new planting in Bengkulu and aim to
complete 1,000 ha during 2003, leaving plantable reseves of about 5,000ha. By
June, preparation of about 500 ha was in hand but not finally planted and
therefore the table above shows only a small increase of 120 ha in planted area.


Work commenced in May on a 20 mt/hr oil mill to service our three small estates
around Medan in North Sumatra. Completion is expected in the second half of
2004. Cost is expected to be about $2.7 million.


In view of the availability of outside crop and the improving performance of the
Bengkulu estates, we now plan to begin expanding the mill there early in 2004 to
80mt/hr capacity from 40mt/hr- some nine months earlier than originally
scheduled at an expected cost of $2.6 million.



Outlook

Operations in our estates are satisfactory. The new management installed at our
Malaysian estates is showing results. However, oil palm crops since June have
fallen due to seasonal effects, but we still expect to maintain the substantial
improvement in 2003 over 2002.


CPO prices have been holding recently around $400/mt. If they continue to hold
around that level and barring adverse circumstances, we can expect the current
improvement in profits over 2002 to continue.



Chan Teik Huat

Chairman and Chief Executive    11 September 2003


                      CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                US DOLLARS                                     STERLING

                                         2003           2002         2002              2003           2002        2002
                                      6 mnths        6 mnths      year to           6 mnths        6 mnths     year to
                                  to 30 June      to 30 June       31 Dec        to 30 June     to 30 June      31 Dec
                                  (unaudited)    (unaudited)    (audited)       (unaudited)    (unaudited)    (audited)
                         Note           $'000          $'000        $'000             #'000          #'000        #'000
Turnover                               20,390         10,784       31,139            12,665          6,113       20,622
Profit before exchange
and revaluation
provisions                              7,423          3,302       11,939             4,610          2,277        9,003
                                        
Exchange (losses)/           1            (15)           (15)         828                (9)           (10)        (548)
profits                              --------       --------     --------         ---------      ---------     --------
Operating profit                        7,408          3,287       12,767             4,601          2,267        8,455
Interest   -  receivable                   60             16           50                37             11           33
           -  payable                    (385)          (303)        (945)             (239)          (209)        (626)
           -  capitalised                  67            162          220                42            112          146
                                     --------       --------     --------         ---------      ---------     --------

Profit before taxation                  7,150          3,162       12,092             4,441          2,181        8,008
Taxation
Foreign corporation                    (2,389)        (1,122)      (4,170)           (1,484)          (774)      (2,762)
tax
Foreign withholding                      (144)          (145)        (372)              (89)          (100)        (246)
tax
Deferred tax                              127             48          175                79             33          116
adjustment                           --------       --------     --------         ---------      ---------     --------
Profit after taxation                   4,744          1,943        7,725             2,947          1,340        5,116

Minority interests (all
equity interests)                        (825)          (327)      (1,250)             (513)          (226)        (828)
                                     --------       --------     --------         ---------      ---------     -------- 
Profit attributable to
shareholders                            3,919          1,616        6,475             2,434          1,114        4,288
                                        
Dividend                                    -              -       (1,571)                -              -       (1,040)
                                     --------       --------     --------         ---------      ---------     --------
                                        3,919          1,616        4,904             2,434          1,114        3,248
                                     ========       ========     ========         =========      =========     ========
Earnings per share
- basic                               10.0cts        4.1cts       16.5cts              6.2p           2.8p        10.9p
- diluted                              9.9cts        4.1cts       16.4cts              6.1p           2.8p        10.9p
Dividend per share           5          -              -           4.0cts               -              -          2.58p
Av. shares in issue                    39,347         39,227       39,227            39,347         39,227       39,227
('000)


NOTES

1.            At 30 June 2003, there was an exchange translation surplus of
$199,000 (30 June 2002: $900,000)arising on third party US dollar borrowings by
two Indonesian subsidiaries net of cash balances. In view of the
unpredictability of the rupiah/dollar exchange rate, this has been held in
exchange reserves at 30 June 2003 pending determination of the final profit or
loss at 31 December 2003.

2.            The unaudited accounts for the six months ended 30 June 2003 were
approved by the board of directors on 10 September 2003 and have been prepared
in accordance with applicable Accounting Standards in the United Kingdom. The
accounting principles applied, including the valuation of fixed assets, are
those set out in the annual report for the year ended 31 December 2002 together
with any subsequent requirements thereafter.

3.            The results for the year ended 31 December 2002 are extracted from
the group's full statutory accounts for that year.

4.            The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 240 of the Companies Act
1985. Full statutory accounts for the year ended 31 December 2002 incorporating
an unqualified auditors' report have been delivered to the Registrar of
Companies.

5.            The final and only dividend in respect of 2002 was paid on 18 June
2003.

6.            Copies of the interim statement of results are available from the
company's registered office at 6/7 Queen Street, London EC4N 1SP.


                           CONSOLIDATED BALANCE SHEET

                                 US DOLLARS                                     STERLING

                          2003           2002         2002              2003           2002         2002
                      6 months       6 months      year to          6 months       6 months      year to
                    to 30 June     to 30 June       31 Dec        to 30 June     to 30 June       31 Dec
             Notes  (unaudited)    (unaudited)    (audited)       (unaudited)    (unaudited)    (audited)
                         $'000          $'000        $'000             #'000          #'000        #'000
Fixed assets
Tangible assets        105,917        107,797      103,558            64,192         70,719       64,322
                      --------      ---------     --------         ---------      ---------     --------

Current assets
Stocks                   1,526          1,296          928               925            850          576
Debtors                  3,965          3,408        2,001             2,403          2,236        1,243
Investments                290            293          234               176            192          145
Cash at bank and         9,268          1,793        8,416             5,617          1,176        5,227
in hand            
                      --------      ---------     --------         ---------      ---------     --------
                        15,049          6,790       11,579             9,121          4,454        7,191
                      --------      ---------     --------         ---------      ---------     --------
Current
liabilities
Creditors:
falling due
within one year
Borrowings       7      (2,041)        (1,378)      (2,040)           (1,237)          (904)      (1,267)
Other creditors         (8,592)        (6,136)      (7,717)           (5,207)        (4,025)      (4,793)
                      --------      ---------     --------         ---------      ---------     --------
                       (10,633)        (7,514)       9,757            (6,444)        (4,929)      (6,060)
                      --------      ---------     --------         ---------      ---------     --------

Net current              
assets/               
(liabilities)            4,416           (724)       1,822             2,677           (475)       1,131
                      --------      ---------     --------         ---------      ---------     --------
Total assets less
current
liabilities            110,333        107,073      105,380            66,869         70,244       65,453

Non-current
assets/
liabilities
Creditors:
falling due after
more than one
year
Borrowings              (7,073)        (6,196)      (8,085)           (4,286)        (4,065)      (5,022)
Deferred                 1,442          1,115        1,215               873            731          755
taxation             
                      --------      ---------     --------         ---------      ---------     --------
Net assets             104,702        101,992       98,510            63,456         66,910       61,186
                      ========      =========     ========         =========      =========     ========

Capital and
reserves
Called-up share         15,249         15,171       15,171             9,856          9,808        9,808
capital
Share premium           23,610         23,570       23,570            15,353         15,329       15,329
account
Share capital            1,087          1,087        1,087               663            663          663
redemption
reserve
Revaluation and
exchange
reserve                  7,381         11,990        6,586             2,811          8,194        3,028
                         
Profit and loss         38,638         31,431       34,719            23,417         20,620       21,565
account                 
                      --------      ---------     --------         ---------      ---------     --------
Shareholders'
funds - all
equity
interests               85,965         83,249       81,133            52,100         54,614       50,393
                      --------      ---------     --------         ---------      ---------     --------
Minority
interests - all
equity
interests               18,737         18,743       17,377            11,356         12,296       10,793
                        
                      --------      ---------     --------         ---------      ---------     --------
Total capital          104,702        101,992       98,510            63,456         66,910       61,186
employed              ========      =========     ========         =========      =========     ========

Notes

7.                      (2,020)        (1,180)      (2,020)           (1,224)          (774)      (1,255)
Element of
borrowings
falling due
within one year
which relate to
repayment of long
term loan

8.   Shares in          39,419         39,227       39,227            39,419         39,227       39,227
issue ('000)

9.   Asset value        218cts         212cts       207cts              132p           139p         128p
per share             ========      =========     ========         =========      =========     ========



                        CONSOLIDATED CASH FLOW STATEMENT

                              US DOLLARS                                       STERLING

                       2003           2002         2002                2003           2002         2002
                   6 months       6 months      year to            6 months       6 months      year to
                 to 30 June     to 30 June       31 Dec          to 30 June     to 30 June       31 Dec
                (unaudited)    (unaudited)    (audited)         (unaudited)    (unaudited)    (audited)
                      $'000          $'000        $'000               #'000          #'000        #'000
                   --------      ---------     --------           ---------      ---------     --------
Net cash
inflow from
operating
activities            9,299          5,183       13,691               5,637          3,529        8,670
                      
                   --------      ---------     --------           ---------      ---------     --------
Returns on
investments
and servicing
of finance               60             16           50                  37             11           33

Interest                 
received
Interest               (385)          (303)        (942)               (239)          (209)        (624)
paid
Interest
element of
finance lease
payments                  -              -           (3)                  -              -           (2)
                          
                   --------      ---------     --------           ---------      ---------     --------
Dividends paid
to minority
shareholders              -              -         (263)                  -              -         (174)
                          
                   --------      ---------     --------           ---------      ---------     --------
                       (325)          (287)      (1,158)               (202)          (198)        (767)
                   --------      ---------     --------           ---------      ---------     --------
Taxation
Foreign tax          (3,173)        (1,856)      (2,424)             (1,971)        (1,280)      (1,605)
paid
UK tax paid              (7)            (6)           -                  (4)            (4)           -
                   --------      ---------     --------           ---------      ---------     --------
                     (3,180)        (1,862)      (2,424)             (1,975)        (1,284)      (1,605)
                   --------      ---------     --------           ---------      ---------     --------
Capital
expenditure
Payment to
acquire
tangible fixed
assets               (2,496)        (3,735)      (6,136)             (1,550)        (2,575)      (4,064)
                     
Payments to               -              -         (620)                  -              -         (411)
acquire land         
Proceeds from
sale of
tangible fixed
assets                   18             16           34                  11             11           23
                   --------      ---------     --------           ---------      ---------     --------
                     (2,478)        (3,719)      (6,722)             (1,539)        (2,564)      (4,452)
                   --------      ---------     --------           ---------      ---------     --------
Equity
dividends
paid
Parent               (1,571)          (785)        (785)               (976)          (541)        (520)
company            --------      ---------     --------  ---      ---------      ---------     --------
Cash inflow/
(outflow)
before
financing             1,745         (1,470)       2,602                 945         (1,058)       1,326
                   --------      ---------     --------           ---------      ---------     --------
Financing
Employee share          118              -            -                  73              -            -
option
subscription
(Repayment)/
drawdown of
long term
loans                (1,011)           916        3,663                (628)           632        2,427
                     
Finance lease           (14)             -          (29)                 (9)             -          (19)
repayments         --------      ---------     --------           ---------      ---------     --------
                       (907)           916        3,634                (564)           632        2,408
                   --------      ---------     --------           ---------      ---------     --------
Increase/
(decrease) in
cash and cash
equivalents             838           (554)       6,236                 381           (426)       3,734
                   ========      =========     ========           =========      =========     ========

Cash in hand
and at bank
less short
term
borrowings
Opening               8,416          2,149        2,180               5,227          1,493        1,493
Closing               9,254          1,595        8,416               5,608          1,067        5,227
                   --------      ---------     --------           ---------      ---------     --------
Net inflow/             838           (554)       6,236                 381           (426)       3,734
(outflow)          ========      =========     ========           =========      =========     ========



                       RECONCILIATION OF OPERATING PROFIT

                  TO NET CASH INFLOW FROM OPERATING ACTIVITIES
                                                 US DOLLARS
                                              2003           2002        2002
                                          6 months       6 months     year to
                                        to 30 June     to 30 June      31 Dec
                                       (unaudited)    (unaudited)    (audited)
                                             $'000          $'000        $'000

Operating profit                             7,408          3,287       12,767
Depreciation and                             1,293          1,311        2,411
amortisation
(Profit)/loss on sale of                       (12)            (9)           5
fixed assets
Movement in market value of                    (56)           (27)          32
investments
(Increase) in stocks                          (599)          (696)        (328)
(Increase) in debtors                         (287)          (267)        (263)
Increase/(decrease) in                       1,417          1,025         (815)
creditors
Foreign exchange                               135            559         (118)
                                     -------------      ---------     --------

Net cash flow from operating                 9,299          5,183       13,691
activities                           =============      =========     ========


                 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                                 US DOLLARS

                                              2003           2002         2002
                                          6 months       6 months      year to
                                        to 30 June     to 30 June       31 Dec
                                        (unaudited)    (unaudited)    (audited)
                                             $'000          $'000        $'000

Profit for the period                        3,919          1,616        6,475
Unrealised (deficit) on                     (4,568)       (11,845)     (15,375)
revaluation of the estates
Profit on exchange                           5,363         12,849       10,975
                                      ------------     ----------     --------

Total recognised gains                       4,714          2,620        2,075
                                      ============      =========     ========


               RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

                                                 US DOLLARS

                                              2003           2002         2002
                                          6 months       6 months      year to
                                        to 30 June     to 30 June       31 Dec
                                        (unaudited)    (unaudited)    (audited)
                                             $'000          $'000        $'000

Total recognised gains                       4,714          2,620        2,075
Dividend                                         -              -       (1,571)
Issue of shares on exercise                    118              -            -
of employee options                 --------------      ---------     --------
Net increase in shareholders'                4,832          2,620          504
funds                               --------------      ---------     --------

Beginning of period                         81,133         80,629       80,629
                                    --------------      ---------     --------

End of period                               85,965         83,249       81,133
                                    ==============      =========     ========








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