TIDMAEP
RNS Number : 8817J
Anglo-Eastern Plantations PLC
26 August 2021
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Announcement of interim results for the six months ended 30 June
2021
The group, comprising Anglo-Eastern Plantations Plc and its
subsidiaries (the "Group"), is a major producer of palm oil and
rubber with plantations across Indonesia and Malaysia, amounting to
some 128,000 hectares, has today released its results for the six
months ended 30 June 2021.
Financial Highlights
2021 2020 2020
6 months 6 months 12 months
to 30 June to 30 to 31 December
June
$m $m $m
(unaudited) (unaudited) (audited)
Revenue 201.1 123.1 269.1
Profit / (Loss) before tax
- before biological assets
("BA") movement 54.2 17.1 50.4
- after BA movement 58.2 16.8 51.7
Basic Earnings per ordinary
share ("EPS")
- before BA movement 90.27cts 26.83cts 77.67cts
- after BA movement 96.79cts 26.35cts 80.32cts
Total net assets 558.2 493.2 528.6
Enquiries:
Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon (UK) Limited
Dominic Morley +44 (0)20 7886 2954
Chairman's Interim Statement
As of today, the world continues to struggle with the fallout
from the Covid-19 pandemic with worldwide infections exceeding two
hundred and twelve million and more than four million reported
deaths. While vaccination efforts are picking up in many parts of
the world, several countries are battling fresh Covid-19
infections. The emergence of a deadly Delta variant which is more
contagious and transmissible has accelerated the pandemic
especially in places where the vaccination of the mass population
is making slow progress. The resurgence of infection brought
renewed and expanded lockdowns in both Malaysia and Indonesia where
the Group operates. The Indonesian government recently imposed
large-scale movement restrictions to curb a spike in new infections
as healthcare services are overwhelmed by increasing number of
patients. In Malaysia despite a surge in the number of Covid
infections, the lockdown was relaxed to allow interstate travel in
certain circumstances and some social and commercial
activities.
Our operations in Indonesia located mainly in remote
plantations, away from main cities are generally spared from the
lockdowns which are concentrated in populated cities and towns
where infection rates are high. However, we are certainly not
spared as our Indonesian operations recently recorded a spike and
doubling of employees who have tested positive for the virus in
Bengkulu and Kalimantan regions. We continue to reiterate to our
employees to observe established safety protocols. We also
encourage our employees to register promptly for the government
vaccination programs. There are no reported Covid cases in the
Malaysian operation probably due to the small number of employees
and its remote location.
The interim results for the Group for the six months to 30 June
2021 are as follows:
Revenue for the six months to 30 June was $201.1 million, 63%
higher than $123.1 million reported for the same period of 2020.
The Group's gross profit was $59.8 million compared to $21.8
million for the first six months of 2020. Overall profit before tax
after biological assets ("BA") movement for the first half of 2021
increased more than three fold to $58.2 million against $16.8
million for the corresponding period in 2020. The overall profit
includes a reversal of impairment loss of $0.1 million for the
first half of 2021 compared to an impairment loss of $2.5 million
for the first half of 2020. The BA movement adjustment for the
first half of 2021 was a credit of $4.0 million against a debit of
$0.3 million in the last period. The higher profit was attributed
to the higher Crude Palm Oil ("CPO") prices and increased
production.
Fresh Fruit Bunches ("FFB") production for the first half of
2021 was 15% higher at 586,500mt compared to 511,700mt for the same
period last year due to better weather conditions and an increased
matured area. Our young palms in North Sumatera and Kalimantan
performed exceptionally well contributing to the higher production
numbers. Bought-in crops for the first half of 2021 also increased
by 37% to 583,400mt from 425,400mt mainly due to the increase of
crop purchases in the Bengkulu region.
Operational and financial performance
For the six months ended 30 June 2021, gross profit margin
increased to 29.8% from 17.7% as the Group experienced higher CPO
and palm kernel prices.
CPO price ex-Rotterdam averaged $1,122/mt for the first six
months to 30 June 2021, 73% higher than $648/mt over the same
period in 2020. Our Group's average ex-mill price for CPO was
higher at $706/mt for the same period (H1 2020: $551/mt). The
ex-mill prices are normally at a discount to ex-Rotterdam prices as
buyers are required to pay logistic charges and Indonesian CPO tax
and levy.
Profit after tax for the six months ended 30 June 2021 was $45.9
million, compared to a profit after tax of $12.5 million for the
first six months of 2020.
The resulting basic earnings per share for the period was
96.79cts (H1 2020: 26.35cts).
The Group's balance sheet remains strong. Net assets as at 30
June 2021 were $558.2 million compared to $493.2 million as at 30
June 2020 and $528.6 million as at 31 December 2020. The increase
in net assets from the last interim report was attributed to higher
profit and lower capital expenditure. The Indonesian Rupiah has
depreciated by 3% against the US dollar in the first half of
2021.
As at 30 June 2021, the Group had cash and cash equivalents, net
of loans and borrowings, of $159.1 million (H1 2020: $88.7 million,
31 December 2020: $115.2 million). The external bank borrowings as
at 30 June 2020 of $2.7 million which was part of the first half of
$88.7 million as mentioned above were fully repaid in 2020. The
Group has no bank borrowing in 2021.
Operating costs
Operating costs for the Indonesian operations were higher in the
first half of 2021 compared to the same period in 2020 mainly due
to the increase in bought-in crops from third parties, higher
upkeep of plantations and mills and higher harvesting cost related
to the increase in production and the increase in matured area.
Production and Sales
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
mt mt mt
Oil palm production
FFB
- all estates 586,500 511,700 1,103,100
- bought-in from third parties 583,400 425,400 913,200
Saleable CPO 238,700 189,900 406,100
Saleable palm kernels 57,100 45,300 97,100
Oil palm sales
CPO 237,900 195,900 400,400
Palm kernels 55,400 45,200 94,700
FFB sold outside 13,400 19,000 44,300
Rubber production 206 215 465
The Group's six mills processed a total of 1,156,500mt in FFB
for the first half of 2021, a 26% increase compared to 918,100mt
for the same period last year. The higher throughput was due to the
higher FFB supplied from both our own estates and bought-in crops
from third parties as explained earlier.
Overall CPO produced for the first half of 2021 was 26% higher
at 238,700mt from 189,900mt. The oil extraction rate for the first
half of 2021 was 20.6% compared to 20.7% in the same period last
year. External crops made up 50% of the crop processed compared to
46% in the first half of 2020, which have historically always had a
lower oil content.
Commodity prices
The CPO price ex-Rotterdam for the first half of 2021 averaged
$1,122/mt, 73% higher than last year (H1 2020: $648/mt). The price
was volatile for the first half of 2021. It started the year at
$1,014/mt, gradually trended upwards to peak in May at $1,345/mt
before dropping to a low of $975/mt towards the middle of June,
before recovering and closing at $1,050/mt on 30 June 2021. The
rally in the first half of 2021 was built upon speculation of
unfavourable weather conditions in prime soybean-producing
countries which may adversely affect the supply of soybean oil.
This has resulted in a positive spill-over effect in the demand for
CPO which is the closest substitute for soybean oil.
Rubber price averaged $1,734/mt, 48% higher than H1 2020 at
$1,174/mt.
Development
The Group's planted areas at 30 June 2021 comprised:
Total Mature Immature
Ha ha Ha
North Sumatera 19,113 18,310 803
Bengkulu 16,750 15,725 1,025
Riau 4,873 4,873 -
South Sumatera 6,468 5,742 726
Kalimantan 16,764 14,208 2,556
Bangka 2,519 816 1,703
Plasma 4,191 3,077 1,114
------- ------- ---------
Indonesia 70,678 62,751 7,927
Malaysia 3,453 3,453 -
------- ------- ---------
Total: 30 June 2021 74,131 66,204 7,927
------- ------- ---------
Total: 31 December 2020 73,600 63,414 10,186
------- ------- ---------
Total: 30 June 2020 72,441 64,040 8,401
------- ------- ---------
The Group's new planting and replanting for the first six months
of 2021 totalled 1,025ha compared to 971ha for the same period last
year . In addition, Plasma planting for the period was 187ha (H1
2020: 216ha).
The Group remains optimistic that it will meet substantially its
total planting target of 3,800ha in 2021. The Group's total
landholding comprises some 128,000ha, of which the planted area
stands at around 74,131ha (H1 2020: 72,441ha) with the balance of
estimated plantable land at 17,900ha.
The construction of the seventh mill in North Sumatera has been
delayed by the frequent lockdowns caused by the pandemic in the
country, affecting the deployment of manpower at construction site,
as well as fabrication of mechanical works, interruption of supply
chain and the transport of building materials. The mill is now
likely to be completed at the end of Q2, 2022.
Dividend
As in previous years, no interim dividend has been declared. A
final dividend of 1.0 cents per share in respect of the year ended
31 December 2020 was paid on 16 July 2021.
Outlook
India, the world's largest edible oil importer in its effort to
tame its domestic inflation has at the end of June 2021 cut its
taxes on CPO and other palm oil products for three months while
maintaining the existing tax rates on other vegetable oils. This is
likely to lead to a bigger import and improved demand at the
expense of other vegetable oils.
The industry also welcomed the Indonesian government decision to
reduce the CPO export levy at the start of the second half of 2021.
Export levy is payable on a gradual basis starting at $55/mt when
CPO price reaches $670/mt. The previous maximum export levy was
$255/mt when CPO price exceeds $995/mt. The revised maximum export
levy is $175/mt when CPO price exceeds $1000/mt.
On the whole CPO prices are expected to moderate in the second
half of 2021 as the industry enters into the high production season
and palm oil inventory inches higher over the next few months.
Prices nevertheless are expected to remain volatile depending on
how production levels unfold amidst a change in global weather
pattern.
Despite the increase in the vaccination rate, there are rising
concerns over the emergence of a new virus variant which has
already spread to Indonesia and could interrupt our operations or
in a worst case scenario shutdown our estates and mill operations.
A prolonged pandemic in our main export markets may also hurt
demand in the short term. The Group has policies in place and would
be in a good position to mitigate these risks should they arise to
limit the impact to the Group.
Principal risks and uncertainties
The principal risks and uncertainties, including the risks due
to the Coronavirus pandemic, have broadly remained the same since
the publication of the annual report for the year ended 31 December
2020.
A more detailed explanation of the risks relevant to the Group
is on pages 34 to 39 and from pages 114 to 119 of the 2020 annual
report which is available at https:// www.angloeastern.co.uk /.
Madam Lim Siew Kim
Chairman
26 August 2021
Responsibility Statements
We confirm that to the best of our knowledge:
a) The unaudited interim financial statements have been prepared
in accordance with International Accounting Standards ("IAS") 34:
Interim Financial Reporting as adopted by the European Union;
b) The Chairman's interim statement includes a fair review of
the information required by Disclosure and Transparency Rule
("DTR") 4.2.7R (an indication of important events during the first
six months and a description of the principal risks and
uncertainties for the remaining six months of the year); and
c) The interim financial statements include a fair review of the
information required by DTR 4.2.8R (material related party
transactions in the six months ended 30 June 2021 and any material
changes in the related party transactions described in the last
Annual Report) of the DTR of the United Kingdom Financial Conduct
Authority.
By order of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
26 August 2021
Condensed Consolidated Income Statement
2021 2020 2020
6 months to 30 June 6 months to 30 June Year to 31 December
(unaudited) (unaudited) (audited)
--------------------------------- --------------------------------- ------------------------ ----------
Notes Result Result Result
Continuing before before before
operations BA BA BA BA BA BA
movement* movement Total movement movement Total movement movement Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
--------------------- ------ ---------- --------- ---------- --------- ---------- ----------- ----------- ----------
Revenue 3 201,105 - 201,105 123,098 - 123,098 269,060 - 269,060
Cost of sales (145,214) 3,951 (141,263) (100,989) (298) (101,287) (213,370) 1,274 (212,096)
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Gross profit 55,891 3,951 59,842 22,109 (298) 21,811 55,690 1,274 56,964
Administration
expenses (3,334) - (3,334) (3,336) - (3,336) (8,134) - (8,134)
Reversal of
impairment
/ (Impairment
losses) 54 - 54 (2,491) - (2,491) 2,008 - 2,008
Provision for
expected
credit loss - - - (313) - (313) (1,485) - (1,485)
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Operating profit /
(loss) 52,611 3,951 56,562 15,969 (298) 15,671 48,079 1,274 49,353
Exchange (losses)
/ gains 300 - 300 (11) - (11) (268) - (268)
Finance income 4 1,333 - 1,333 1,376 - 1,376 2,876 - 2,876
Finance expense 4 (12) - (12) (236) - (236) (292) - (292)
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Profit / (Loss)
before
tax 5 54,232 3,951 58,183 17,098 (298) 16,800 50,395 1,274 51,669
Tax expense 6 (11,441) (873) (12,314) (4,415) 75 (4,340) (13,660) (66) (13,726)
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Profit / (Loss) for
the period 42,791 3,078 45,869 12,683 (223) 12,460 36,735 1,208 37,943
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Attributable to:
- Owners of the
parent 35,781 2,581 38,362 10,633 (190) 10,443 30,784 1,051 31,835
- Non-controlling
interests 7,010 497 7,507 2,050 (33) 2,017 5,951 157 6,108
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
42,791 3,078 45,869 12,683 (223) 12,460 36,735 1,208, 37,943
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ----------- ----------- ----------
Earnings per share
for profit
attributable
to the owners of
the
parent during the
period
- basic 8 96.79cts 26.35cts 80.32cts
- diluted 8 96.79cts 26.35cts 80.32cts
* The total column represents the IFRS figures and the result
before BA movement is an Alternative Performance Measure ("APM").
We have opted to additionally disclose this APM as the BA movement
is considered to be a fair value calculation which does not
appropriately represent the Group's result for the year.
Condensed Consolidated Statement of Comprehensive Income
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
--------------------------------------------------------------- ------------ ------------ ---------------
Profit for the period 45,869 12,460 37,943
--------------------------------------------------------------- ------------ ------------ ---------------
Other comprehensive expenses:
Items may be reclassified to profit or loss:
Loss on exchange translation of foreign operations (14,879) (13,973) (5,490)
--------------------------------------------------------------- ------------ ------------ ---------------
Net other comprehensive expenses may be reclassified
to profit or loss (14,879) (13,973) (5,490)
--------------------------------------------------------------- ------------ ------------ ---------------
Items not to be reclassified to profit or loss:
Unrealised (loss) / gain on revaluation of leasehold
land, net of tax (1,014) (932) 1,309
Remeasurement of retirement benefits plan, net
of tax - - (649)
--------------------------------------------------------------- ------------ ------------ ---------------
Net other comprehensive (expenses) / income not
being reclassified to profit or loss (1,014) (932) 660
--------------------------------------------------------------- ------------ ------------ ---------------
Total other comprehensive expenses for the period,
net of tax (15,893) (14,905) (4,830)
Total comprehensive income / (expenses) for the
period 29,976 (2,445) 33,113
Attributable to:
- Owners of the parent 25,492 (1,560) 27,722
- Non-controlling interests 4,484 (885) 5,391
--------------------------------------------------------------- ------------ ------------ ---------------
29,976 (2,445) 33,113
--------------------------------------------------------------- ------------ ------------ ---------------
Condensed Consolidated Statement of Financial Position
2021 2020 2020
as at 30 June as at 30 June as at 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
------------------------------------------ -------------- -------------- ------------------
Non-current assets
Property, plant and equipment 356,170 355,006 365,353
Receivables 24,153 17,895 22,236
Deferred tax assets 9,317 12,470 8,817
------------------------------------------- -------------- -------------- ------------------
389,640 385,371 396,406
------------------------------------------ -------------- -------------- ------------------
Current assets
Inventories 15,038 6,297 12,541
Income tax receivables 10,034 14,225 10,071
Other tax receivables 34,717 35,803 41,618
Biological assets 12,443 7,054 8,783
Trade and other receivables 5,492 6,108 4,693
Short-term investments 1,539 - 1,957
Cash and cash equivalents 159,140 91,442 115,211
------------------------------------------- -------------- -------------- ------------------
238,403 160,929 194,874
------------------------------------------ -------------- -------------- ------------------
Current liabilities
Loans and borrowings - (2,734) -
Trade and other payables (27,223) (17,178) (26,310)
Income tax liabilities (11,863) (3,409) (5,981)
Other tax liabilities (1,171) (1,258) (1,089)
Dividend payables (420) (221) (24)
Lease liabilities (244) (221) (236)
------------------------------------------- -------------- -------------- ------------------
(40,921) (25,021) (33,640)
------------------------------------------ -------------- -------------- ------------------
Net current assets 197,482 135,908 161,234
------------------------------------------- -------------- -------------- ------------------
Non-current liabilities
Deferred tax liabilities (14,659) (15,984) (15,467)
Retirement benefits - net liabilities (14,220) (11,792) (13,383)
Lease liabilities (90) (328) (217)
------------------------------------------- -------------- -------------- ------------------
(28,969) (28,104) (29,067)
------------------------------------------ -------------- -------------- ------------------
Net assets 558,153 493,175 528,573
------------------------------------------- -------------- -------------- ------------------
Issued capital and reserves attributable
to owners of the parent
Share capital 15,504 15,504 15,504
Treasury shares (1,171) (1,171) (1,171)
Share premium 23,935 23,935 23,935
Capital redemption reserve 1,087 1,087 1,087
Revaluation reserves 48,465 47,530 49,367
Exchange reserves (245,502) (240,146) (233,534)
Retained earnings 611,459 552,660 573,493
------------------------------------------- -------------- -------------- ------------------
453,777 399,399 428,681
Non-controlling interests 104,376 93,776 99,892
------------------------------------------- -------------- -------------- ------------------
Total equity 558,153 493,175 528,573
------------------------------------------- -------------- -------------- ------------------
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
-----------------------------------------------------------------------------------------------
Capital Non-controlling
Share Treasury Share redemption Revaluation Exchange Retained interests Total
capital shares premium reserve reserves Reserves earnings Total equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ---------
Balance at 31 December
2019 15,504 (1,171) 23,935 1,087 48,413 (229,026) 542,415 401,157 94,661 495,818
Items of other comprehensive
income:
* Unrealised gain on revaluation of leasehold land,
net
of tax - - - - 954 - - 954 355 1,309
* Remeasurement of retirement benefits plan, net of
tax - - - - - - (559) (559) (90) (649)
* Loss on exchange translation of foreign operations - - - - - (4,508) - (4,508) (982) (5,490)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
income / (expenses) - - - - 954 (4,508) (559) (4,113) (717) (4,830)
Profit for the year - - - - - - 31,835 31,835 6,108 37,943
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive income
/ (expenses) for the year - - - - 954 (4,508) 31,276 27,722 5,391 33,113
Dividends paid - - - - - - (198) (198) (160) (358)
---------------------------------------------------------- ---------
Balance at 31 December
2020 15,504 (1,171) 23,935 1,087 49,367 (233,534) 573,493 428,681 99,892 528,573
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (902) - - (902) (112) (1,014)
* Loss on exchange translation of foreign operations - - - - - (11,968) - (11,968) (2,911) (14,879)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
expenses - - - - (902) (11,968) - (12,870) (3,023) (15,893)
Profit for the period - - - - - - 38,362 38,362 7,507 45,869
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive (expenses)
/ income for the period - - - (902) (11,968) 38,362 25,492 4,484 29,976
Dividends payable - - - - - - (396) (396) - (396)
Balance at 30 June 2021 15,504 (1,171) 23,935 1,087 48,465 (245,502) 611,459 453,777 104,376 558,153
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Attributable to owners of the parent
---------------------------------------------------------------------------------------------------
Capital Non-controlling
Share Treasury Share redemption Revaluation Exchange Retained interests Total
capital shares premium reserve reserves reserves earnings Total Equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Balance at 31 December
2019 15,504 (1,171) 23,935 1,087 48,413 (229,026) 542,415 401,157 94,661 495,818
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (883) - - (883) (49) (932)
* Loss on exchange translation of foreign operations - - - - - (11,120) - (11,120) (2,853) (13,973)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Total other comprehensive
expenses - - - - (883) (11,120) - (12,003) (2,902) (14,905)
Profit for the period - - - - - - 10,443 10,443 2,017 12,460
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Total comprehensive expenses
for the period - - - - (883) (11,120) 10,443 (1,560) (885) (2,445)
Dividends payable - - - - - - (198) (198) - (198)
Balance at 30 June 2020 15,504 (1,171) 23,935 1,087 47,530 (240,146) 552,660 399,399 93,776 493,175
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- -----------
Condensed Consolidated Statement of Cash Flows
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
-------------------------------------- ------------ ------------ ---------------
Cash flows from operating
activities
Profit before tax 58,183 16,800 51,669
Adjustments for:
Biological assets movement (3,951) 298 (1,274)
(Gain) / Loss on disposal
of property, plant and equipment (1) 26 (2)
Depreciation 9,379 8,993 18,143
Retirement benefit provisions 1,357 932 1,793
Net finance income (1,321) (1,140) (2,584)
Unrealised (gain) / loss
in foreign exchange (300) 11 268
Property, plant and equipment
written off 139 263 587
(Reversal of impairment)
/ Impairment losses (54) 2,491 (2,008)
(Reversal) / Provision for
expected credit loss (1) 313 1,485
Operating cash flows before
changes in working capital 63,430 28,987 68,077
(Increase) / Decrease in
inventories (2,835) 2,209 (3,915)
Decrease / (Increase) in
non-current, trade and other
receivables 1,789 (372) (12)
Increase in trade and other
payables 1,737 1,786 10,554
-------------------------------------- ------------ ------------ ---------------
Cash inflows from operations 64,121 32,610 74,704
Interest paid - (217) (258)
Retirement benefits paid (141) (175) (434)
Overseas tax paid (1,351) (6,147) (8,917)
-------------------------------------- ------------ ------------ ---------------
Net cash flows from operating
activities 62,629 26,071 65,095
-------------------------------------- ------------ ------------ ---------------
Investing activities
Property, plant and equipment
- purchases (12,031) (11,141) (21,277)
- sales 1 50 83
Interest received 1,333 1,376 2,876
Increase in receivables
from cooperatives under
plasma scheme (5,197) (1,792) (4,563)
Placement of fixed deposits
with original maturity of
more than three months 418 - (1,957)
Net cash used in investing
activities (15,476) (11,507) (24,838)
-------------------------------------- ------------ ------------ ---------------
Financing activities
Dividends paid to the holders
of the parent - - (197)
Dividends paid to non-controlling
interests - - (160)
Repayment of existing long-term
loans - (5,425) (8,167)
Repayment of lease liabilities
- principal (106) (106) (223)
Repayment of lease liabilities
- interest (12) (19) (34)
Net cash used in financing
activities (118) (5,550) (8,781)
----------------------------------- -------- -------- --------
Net increase in cash and
cash equivalents 47,035 9,014 31,476
Cash and cash equivalents
At beginning of period 115,211 84,846 84,846
Exchange losses (3,106) (2,418) (1,111)
----------------------------------- -------- -------- --------
At end of period 159,140 91,442 115,211
----------------------------------- -------- -------- --------
Comprising:
Cash at end of period 159,140 91,442 115,211
----------------------------------- -------- -------- --------
Notes to the interim statements
1. Basis of preparation of interim financial statements
These interim consolidated financial statements have been
prepared in accordance with IAS 34, "Interim Financial Reporting",
as adopted by the European Union. They do not include all
disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the
2020 Annual Report. The financial information for the half years
ended 30 June 2021 and 30 June 2020 does not constitute statutory
accounts within the meaning of Section 434(3) of the Companies Act
2006 and has been neither audited nor reviewed pursuant to guidance
issued by the Auditing Practices Board.
Basis of preparation
The annual financial statements of Anglo-Eastern Plantations Plc
are prepared in accordance with International Financial Reporting
Standards ("IFRSs") as adopted by the European Union. The
comparative financial information for the year ended 31 December
2020 included within this report does not constitute the full
statutory accounts for that period. The statutory Annual Report and
Financial Statements for 2020 have been filed with the Registrar of
Companies. The Independent Auditors' Report on the Annual Report
and Financial Statements for 2020 was 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.
The Directors have a reasonable expectation, having made the
appropriate enquiries, that the Group has control of the monthly
cashflows and that the Group has sufficient cash resources to cover
the fixed cashflows for a period of at least 12 months from the
date of approval of this interim report. For these reasons, the
Directors adopted a going concern basis in the preparation of the
interim report. The Directors have made this assessment after
consideration of the Group's budgeted cash flows and related
assumptions including appropriate stress testing of identified
uncertainties, specifically on the potential shut down of the
entire operations if all the plantations are infected with
Coronavirus as well as the impact on the demand for palm oil due to
the Coronavirus pandemic. Stress testing of other identified
uncertainties was undertaken on primarily commodity prices and
currency exchange rates.
Changes in accounting standards
The same accounting policies, presentation and methods of
computation are followed in these condensed consolidated financial
statements as were applied in the Group's latest annual audited
financial statements.
In November 2020, the President of Republic of Indonesia enacted
a Job Creation Law that will have an impact on employee benefit
obligations. As at 31 December 2020, the Group has calculated the
employee benefit obligation based on the law that was in effect
prior to this Job Creation Law, namely UU No. 13/2003, due to the
fact that the basis of the calculation for employee benefit
obligations is further regulated in an implementing regulation
which was only enacted on 16 February 2021. Until the completion
date of this report, the Group is still calculating the impact of
the implementation of this regulation, and its effect on the
Group's financial statements.
2. Foreign exchange
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Closing exchange rates
Rp : $ 14,496 14,302 14,105
$ : GBP 1.38 1.24 1.36
RM : $ 4.15 4.28 4.02
Average exchange rates
Rp : $ 14,298 14,600 14,572
$ : GBP 1.39 1.26 1.28
RM : $ 4.10 4.25 4.20
3. Revenue
Disaggregation of Revenue
The Group has disaggregated revenue into various categories in
the following table which is intended to:
-- Depict how the nature, amount and uncertainty of revenue and
cash flows are affected by timing of revenue recognition; and
-- Enable users to understand the relationship with revenue
segment information provided in note 5.
There is no right of return and warranty provided to the
customers on the sale of products and services rendered.
CPO, palm
6 months to 30 June kernel Rubber Shell Biomass Biogas Others
2021 and FFB nut products products Total
$000 $000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - - 423 - 423
Non-government
- Wholesalers 197,552 356 2,187 218 - 369 200,682
---------- --------- -------- ---------- ---------- --------- ----------
197,552 356 2,187 218 423 369 201,105
---------- --------- -------- ---------- ---------- --------- ----------
Timing of transfer
of goods
Delivery to customer
premises 2,502 356 - - - - 2,858
Delivery to port of
departure - - - 218 - - 218
Customer collect from
our mills / estates 195,050 - 2,187 - - - 197,237
Upon generation / others - - - - 423 369 792
---------- --------- -------- ---------- ---------- --------- ----------
197,552 356 2,187 218 423 369 201,105
---------- --------- -------- ---------- ---------- --------- ----------
CPO, palm
6 months to 30 June kernel Rubber Shell Biomass Biogas Others
2020 and FFB nut products products Total
$000 $000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - - 551 - 551
Non-government
- Wholesalers 120,002 252 1,649 213 - 431 122,547
120,002 252 1,649 213 551 431 123,098
---------- --------- -------- ---------- ---------- --------- ----------
Timing of transfer
of goods
Delivery to customer
premises 2,073 252 - - - - 2,325
Delivery to port of
departure - - - 213 - - 213
Customer collect from
our mills / estates 117,929 - 1,649 - - - 119,578
Upon generation / others - - - - 551 431 982
120,002 252 1,649 213 551 431 123,098
---------- --------- -------- ---------- ---------- --------- ----------
CPO, palm
Year to 31 December kernel Rubber Shell Biomass Biogas Others
2020 and FFB nut products products Total
$000 $000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - - 970 - 970
Non-government
- Wholesalers 262,348 631 3,959 427 - 725 268,090
---------- --------- -------- ---------- ---------- --------- ----------
262,348 631 3,959 427 970 725 269,060
---------- --------- -------- ---------- ---------- --------- ----------
Timing of transfer
of goods
Delivery to customer
premises 5,613 631 - - - - 6,244
Delivery to port of
departure - - - 427 - - 427
Customer collect from
our mills / estates 256,735 - 3,959 - - - 260,694
Upon generation / others - - - - 970 725 1,695
---------- --------- -------- ---------- ---------- --------- ----------
262,348 631 3,959 427 970 725 269,060
---------- --------- -------- ---------- ---------- --------- ----------
4. Finance income and expense
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Finance income
Interest receivable on:
Credit bank balances and time
deposits 1,333 1,376 2,876
Finance expense
Interest payable on:
Development loans - (217) (257)
Interest expense on lease liabilities (12) (19) (35)
------------ ------------ ---------------
(12) (236) (292)
------------ ------------ ---------------
Net finance income recognized
in income statement 1,321 1,140 2,584
------------ ------------ ---------------
5. Segment information
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2021
(unaudited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 57,451 70,051 198 31,239 925 36,442 196,306 1,246 - 197,552
* Rubber 356 - - - - - 356 - - 356
* Shell nut 663 648 - 746 - 130 2,187 - - 2,187
* Biomass products 218 - - - - - 218 - - 218
* Biogas products - 220 - - - 203 423 - - 423
* Others 45 48 88 21 11 143 356 13 - 369
Total revenue 58,733 70,967 286 32,006 936 36,918 199,846 1,259 - 201,105
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ ---------
Profit / (loss)
before
tax 16,480 16,640 (2,198) 8,441 131 15,503 54,997 (169) (596) 54,232
BA movement 1,550 770 86 206 54 1,132 3,798 153 - 3,951
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ ---------
Profit / (loss) for
the
period before tax
per consolidated
income statement 18,030 17,410 (2,112) 8,647 185 16,635 58,795 (16) (596) 58,183
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ ---------
Interest income 969 297 2 52 - 10 1,330 3 - 1,333
Interest expense (9) - - - - - (9) (3) - (12)
Depreciation (2,601) (2,075) (982) (452) (172) (2,829) (9,111) (268) - (9,379)
Reversal of
impairment - - - - - 133 133 - - 133
Impairment losses - - (79) - - - (79) - - (79)
(Provision) /
Reversal
of expected credit
loss - (1) 1 - - (1) (1) - 1 -
Inter-segment
transactions 2,549 (1,002) (378) (288) (141) (968) (228) 218 10 -
Inter-segmental
revenue 18,561 637 3,140 - - 4,075 26,413 - - 26,413
Tax expense (4,484) (3,402) 670 (1,800) (17) (3,153) (12,186) (127) (1) (12,314)
Total assets 245,486 124,423 40,142 36,003 16,630 137,654 600,338 20,859 6,846 628,043
Non-current assets 108,443 68,525 29,375 17,008 14,761 101,808 339,920 16,250 - 356,170
Non-current assets
- additions 2,638 2,285 1,308 391 930 3,949 11,501 370 - 11,871
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2020
(unaudited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 36,438 42,582 53 20,307 466 19,014 118,860 1,142 - 120,002
* Rubber 252 - - - - - 252 - - 252
* Shell nut 513 335 - 692 - 109 1,649 - - 1,649
* Biomass products 213 - - - - - 213 - - 213
* Biogas products 151 219 - - - 181 551 - - 551
* Others 46 62 91 21 7 204 431 - - 431
Total revenue 37,613 43,198 144 21,020 473 19,508 121,956 1,142 - 123,098
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss)
before
tax 6,244 9,000 (3,592) 5,466 (113) 1,098 18,103 (155) (850) 17,098
BA movement 302 (123) (64) (144) 12 (337) (354) 56 - (298)
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss) for
the
period before tax
per consolidated
income statement 6,546 8,877 (3,656) 5,322 (101) 761 17,749 (99) (850) 16,800
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Interest income 1,028 300 2 14 - 16 1,360 15 1 1,376
Interest expense (13) - - - - (217) (230) (6) - (236)
Depreciation (2,279) (2,102) (1,048) (436) (180) (2,679) (8,724) (269) - (8,993)
Impairment losses - - (23) - - (2,468) (2,491) - - (2,491)
(Provision) /
Reversal
of expected credit
loss (58) - (255) - - (1) (314) - 1 (313)
Inter-segment
transactions 2,546 (981) (370) (282) (97) (975) (159) 71 88 -
Inter-segmental
revenue 12,402 653 1,661 - - 1,394 16,110 - - 16,110
Tax expense (2,501) (1,887) 1,105 (1,257) 43 184 (4,313) (29) 2 (4,340)
Total assets 208,010 104,609 38,880 30,438 15,069 123,131 520,137 20,077 6,086 546,300
Non-current assets 110,228 69,317 30,649 17,481 13,529 97,807 339,011 15,995 - 355,006
Non-current assets
- additions 2,610 621 1,173 267 2,048 4,025 10,744 85 - 10,829
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Year to 31 December 2020 (audited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 81,764 85,699 1,561 46,865 1,026 43,103 260,018 2,330 - 262,348
* Rubber 631 - - - - - 631 - - 631
* Shell nut 1,232 956 - 1,586 - 185 3,959 - - 3,959
* Biomass products 427 - - - - - 427 - - 427
* Biogas products 152 444 - - - 374 970 - - 970
* Others 60 105 176 - 16 355 712 6 7 725
--------- --------- ---------- --------- ------- ----------- ---------- --------- ---------- ---------
Total revenue 84,266 87,204 1,737 48,451 1,042 44,017 266,717 2,336 7 269,060
--------- --------- ---------- --------- ------- ----------- ---------- --------- ---------- ---------
Profit / (loss)
before
tax 18,915 16,809 (6,639) 12,341 (76) 11,174 52,524 (682) (1,447) 50,395
BA movement 550 130 71 126 36 344 1,257 17 - 1,274
--------- --------- ---------- --------- ------- ----------- ---------- --------- ---------- ---------
Profit / (loss) for
the
year before tax
per consolidated
income statement 19,465 16,939 (6,568) 12,467 (40) 11,518 53,781 (665) (1,447) 51,669
--------- --------- ---------- --------- ------- ----------- ---------- --------- ---------- ---------
Interest income 2,121 670 3 34 - 25 2,853 22 1 2,876
Interest expense (25) - - - - (257) (282) (10) - (292)
Depreciation (4,741) (4,253) (2,090) (886) (308) (5,387) (17,665) (478) - (18,143)
Reversal of
impairment - - 31 - - 2,165 2,196 - - 2,196
Impairment losses - - - - - - - (188) - (188)
Reversal /
(Provision)
for expected
credit loss 65 (1) (1,383) - (1) (167) (1,487) 1 1 (1,485)
Inter-segment
transactions 4,744 (1,966) (741) (564) (195) (1,913) (635) 467 168 -
Inter-segmental
revenue 27,668 3,293 3,505 - - 4,167 38,633 - - 38,633
Tax expense (6,734) (3,218) 1,361 (2,742) 25 (1,594) (12,902) (737) (87) (13,726)
Total assets 227,471 111,470 39,554 33,572 16,580 134,973 563,620 21,682 5,978 591,280
Non-current assets 111,483 70,332 30,320 17,543 14,713 104,295 348,686 16,667 - 365,353
Non-current assets
- additions 4,582 2,413 2,319 342 4,474 6,868 20,998 127 - 21,125
In the 6 months to 30 June 2021, revenues from 4 customers of
the Indonesian segment represent approximately $112.6m (H1 2020:
$63.5m) of the Group's total revenues. In the year 2020, revenues
from 4 customers of the Indonesian segment represent approximately
$130.8m of the Group's total revenues. An analysis of this revenue
is provided below. Although Customers 1 and 2 each contribute over
10% of the Group's total revenue, there was no over reliance on
these Customers as tenders were performed on a weekly basis. Two of
the top four customers were the same as in the year to 31 December
2020.
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$m % $m % $m %
Major Customers
Customer 1 53.7 26.7 19.5 15.8 53.6 20.0
Customer 2 23.5 11.7 16.0 13.0 31.6 11.7
Customer 3 18.4 9.2 15.1 12.2 25.0 9.3
Customer 4 17.0 8.5 12.9 10.4 20.6 7.6
------------------ --------- --------- ---------- -------- -------- --------
Total 112.6 56.1 63.5 51.4 130.8 48.6
------------------ --------- --------- ---------- -------- -------- --------
6. Tax expense
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Foreign corporation tax
- current year 13,194 6,036 9,920
Foreign corporation tax
- prior year - 50 287
Deferred tax adjustment
- origination and reversal
of temporary differences (880) (1,746) 2,832
Recognition of previously
unrecognized deferred tax
assets - - 687
12,314 4,340 13,726
------------ ------------ ---------------
Corporation tax rate in Indonesia is at 22% (H1 2020: 25%, 2020:
22%) whereas Malaysia is at 24% (H1 2020: 24%, 2020: 24%). The
standard rate of corporation tax in the UK for the current year is
19% (H1 2020: 19%, 2020: 19%).
7. Dividend
The final and only dividend in respect of 2020, amounting to 1.0
cents per share, or $396,364 was paid on 16 July 2021 (2019: 0.5
cents per share, or $198,182, paid on 17 July 2020). As in previous
years, no interim dividend has been declared.
8. Earnings per ordinary share ("EPS")
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Profit for the period attributable
to owners of the Company before
BA movement 35,781 10,633 30,784
BA movement 2,581 (190) 1,051
------------ ------------ ---------------
Earnings used in basic and
diluted EPS 38,362 10,443 31,835
------------ ------------ ---------------
Number Number Number
'000 '000 '000
Weighted average number of
shares in issue in the period
- used in basic EPS 39,636 39,636 39,636
- dilutive effect of outstanding
share options - - -
------------ ------------ ---------------
- used in diluted EPS 39,636 39,636 39,636
------------ ------------ ---------------
Basic and diluted EPS before
BA movement 90.27cts 26.83cts 77.67cts
Basic and diluted EPS after
BA movement 96.79cts 26.35cts 80.32cts
9. Fair value measurement of financial instruments
The carrying amounts and fair values of the financial
instruments which are not recognised at fair value in the Statement
of Financial Position are exhibited below:
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value
$000 $000 $000 $000 $000 $000
Non-current receivables
Due from non-controlling
interests 5,413 3,032 3,487 1,974 5,493 3,050
Due from cooperatives
under Plasma
scheme 18,740 17,061 14,408 13,626 16,743 14,857
24,153 20,093 17,895 15,600 22,236 17,907
--------- ------- ------------ ------- --------- -------
Financial instruments not measured at fair value include cash
and cash equivalents, trade and other receivables, trade and other
payables, and borrowings due within one year.
Due to their short-term nature, the carrying value of cash and
cash equivalents, trade and other receivables, trade and other
payables and borrowings due within one year approximates their fair
value.
All non-current assets, non-current receivables and long-term
loan are classified as Level 3 in the fair value hierarchy.
Reconciliation - Level 3 recurring fair value measurements:
2021 2020 2020
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Non-current assets - Land
Opening balance 142,276 137,936 137,936
Addition 1,567 2,581 4,858
Disposal (321) - (243)
Net unrealised loss recognised
during the period (1,300) (1,243) (1,142)
Reversal of impairment
loss / (Impairment loss) 54 (1,338) 2,196
Exchange difference (3,901) (4,131) (1,329)
Closing balance 138,375 133,805 142,276
------------ ------------ ---------------
The valuation techniques and significant unobservable inputs
used in determining the fair value measurement of non-current
receivables and borrowings due after one year, as well as the
inter-relationship between key unobservable inputs and fair value,
are set out in the table below:
Item Valuation approach Inputs used Inter-relationship
between key unobservable
inputs and fair
value
----------------- ------------------------- ------------ ---------------------------
Non-current receivables
Due from Based on cash flows Discount The higher the
non-controlling discounted using rate discount rate,
interests current lending rate the lower the
of 6% (H1 2020 and fair value.
2020: 6%).
Due from Based on cash flows Discount The higher the
cooperatives discounted using rate discount rate,
under Plasma an estimated current the lower the
scheme lending rate of 6.75% fair value.
(H1 2020: 6.78%,
2020: 6.75%).
10. Report and financial information
Copies of the interim report for the Group for the period ended
30 June 2021 are available on the AEP website at
https://www.angloeastern.co.uk/.
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END
IR VQLBLFVLZBBK
(END) Dow Jones Newswires
August 26, 2021 04:59 ET (08:59 GMT)
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