Announcement of interim results for the six months ended 30 June 2019
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 128,200 hectares, and has today released its results for the six months ended 30 June 2019.
Financial Highlights
2019 6 months to 30 June $m
(unaudited)
2018 6 months to 30 June $m
(unaudited)
2018 12 months to 31 December $m
(audited)
Revenue
97.9
133.3
250.9
(Loss) / Profit before tax
- before biological assets ("BA") movement
(0.2)
21.7
33.2
- after BA movement
1.6
22.0
30.9
Basic Earnings per ordinary share ("EPS")
- before BA movement
(6.72)cts
30.37cts
32.50cts
- after BA movement
(3.74)cts
30.90cts
28.79cts
Total net assets
472.7
463.8
464.6
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
The interim results for the Group for the six months to 30 June 2019 are as follows:
Revenue for the six months to 30 June was $97.9 million, 27% lower than $133.3 million reported for the first six months of 2018. The Group's gross profit was $5.3 million compared to $25.2 million for the first six months of 2018. Overall profit before tax for the first half of 2019 decreased by 93% to $1.6 million (after BA movement) versus $22.0 million for the corresponding period in 2018. This was attributed mainly to lower Crude Palm Oil ("CPO") prices.
Fresh Fruit Bunches ("FFB") production for the first half of 2019 was 1% lower at 470,300mt compared to 477,400mt in the same period last year. The decrease in production was due to a lower production trend observed in Riau, Bengkulu and South Sumatera which was similarly experienced by other planters in the region. Bought-in crops, however, decreased by 15% to 402,900mt from 473,100mt consistent with lower crop production by other planters in Riau and Bengkulu.
Operational and financial performance
For the six months ended 30 June 2019, gross profit margin decreased to 5.4% from 18.9% as the Group experienced lower CPO, palm kernel and rubber prices. Higher operational costs and the increase in newly matured areas also compressed the operating profit margin.
CPO price ex-Rotterdam averaged $527/mt for the first six months to 30 June 2019, 20% lower than $661/mt over the same period in 2018. Our Group's average ex-mill price for CPO was lower at $466/mt for the same period (1H 2018: $564/mt).
Profit after tax for the six months ended 30 June 2019 was $0.3 million, 98% lower compared to a profit of $16.2 million for the first six months of 2018.
The resulting basic earnings per share for the period decreased by 112% to a loss of 3.74cts (1H 2018: 30.90cts).
The Group's balance sheet remains strong. Net assets as at 30 June 2019 were $472.7 million compared to $463.8 million as at 30 June 2018 and $464.6 million as at 31 December 2018. The increase in net assets was attributed to a $10.5 million exchange translation gain for the first half of 2019 and similar gain of $8.1 million for the twelve months since June 2018. The Indonesian Rupiah has appreciated by 2% against the US dollar in each of the two respective periods.
As at 30 June 2019, the Group had cash and cash equivalents of $100.1 million (1H 2018: $130.1 million) and borrowings of $16.1 million (1H 2018: $25.6 million), giving it a net cash position of $84.0 million, compared to $104.5 million as at 30 June 2018.This is largely due to further investment in new planting, maintenance of immature areas and repayment of loans.
Operating costs
Operating costs per hectare for the Indonesian operations were higher in the first half of 2019 compared to the same period in 2018 mainly due to an increase in wages, estate upkeep and mill maintenance. Higher operating costs were also partly attributed to a 5% increase in newly matured areas where the yield remains relatively low.
Production and Sales
2019
2018
2018
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
mt
mt
mt
Oil palm production
FFB
- all estates
470,300
477,400
1,035,800
- bought-in from third parties
402,900
473,100
1,010,000
Saleable CPO
177,500
193,800
418,800
Saleable palm kernels
42,300
46,700
99,200
Oil palm sales
CPO
182,600
195,500
418,800
Palm kernels
41,200
45,000
99,900
FFB sold outside
23,300
14,000
24,700
Rubber production
202
291
637
The Group's six mills processed a total of 849,900mt in FFB for the first half of 2019, a 9% decrease compared to 936,500mt for the same period last year. The lower throughput was mainly due to lower production trend in Riau and Bengkulu. Production in Riau moderated after a bumper harvest last year when yield peaked at 29.4mt/ha while lower production in Bengkulu was likely weather induced. As a result of the low FFB prices, AEP estates in South Sumatera have started to sell their crops to local millers to save on the high transport costs to their own mills.
Overall CPO produced for the first half of 2019 was 8% lower at 177,500mt from 193,800mt. The oil extraction rate for the first half of 2019 improved marginally to 20.9% from 20.7% in the same period last year.
The Group continues to reduce its greenhouse gas ("GHG") emissions by capturing the methane gas released from its effluent treatment plants to produce electricity. The three biogas plants in the Group produced over 7,470 MWh of electricity compared to 7,060 MWh in the same period last year. The third biogas plant located in Kalimantan began commercial operation in February this year.
Commodity prices
The CPO price ex-Rotterdam for first half of 2019 averaged $527/mt, 20% lower than last year (1H 2018: $661/mt). The price has gradually trended downwards from the start of the year at $517/mt to close at $501/mt on 28 June 2019 and has since increased to $522/mt as at 14 August 2019. CPO prices are expected to remain subdued in the coming months due to oversupply, competitive pricing of other vegetable oils and projection of higher production in the second half of 2019.
The Group's planted areas at 30 June 2019 comprised:
Total
Mature
Immature
ha
ha
Ha
North Sumatera
19,194
15,311
3,883
Bengkulu
16,981
16,981
-
Riau
4,873
4,873
-
South Sumatera
6,271
5,344
927
Kalimantan
15,118
12,858
2,260
Bangka
1,183
538
645
Plasma
3,423
1,818
1,605
Indonesia
67,043
57,723
9,320
Malaysia
3,460
3,460
-
Total: 30 June 2019
70,503
61,183
9,320
Total: 31 December 2018
69,792
57,909
11,883
Total: 30 June 2018
68,703
58,266
10,437
The Group's new planting for the first six months of 2019 totalled 481ha compared to 427ha for the same period last year. New planting is delayed as the Group awaits results of a peer review of high carbon stock sustainability study which will determine areas in Central Kalimantan which cannot be planted with oil palm due to high conservation and high carbon stock values.
The Group remains optimistic that planting will continue to pick up in the second half of 2019. The Group's total landholding comprises some 128,200ha, of which the planted area stands around 70,503ha (1H 2018: 68,703ha) with the balance of estimated plantable land at 21,000ha.
The earthwork for the fourth biogas reactor lagoon has been completed. The contractor will begin civil works and the lining of the lagoon membrane which are expected to be completed by the fourth quarter of 2019.The sinking and uneven settlement of soil which have affected the progress of the construction of the seventh mill in North Sumetera have been addressed and the need for additional filling is being monitored. Tenders will be invited for the civil and mechanical works by the third quarter of 2019. The mill is scheduled for completion by 2021.
Dividend
As in previous years, no interim dividend has been declared. A final dividend of 3.0 cents per share in respect of the year ended 31 December 2018 was paid on 12 July 2019.
Outlook
The Group expects CPO prices to remain subdued due to likely higher output and inventories across the market in the second half of 2019. Analysts also highlighted the spread between CPO futures and spot prices has narrowed over the past months signalling the market's negative sentiments on CPO prices going forward. We expect production volumes in the second half of the year to improve.
Principal risks and uncertainties
We believe that the potential impact on the Group of Britain's vote to leave the European Union is limited, unless Brexit causes a worldwide recession. Other than maintaining its corporate presence and listing in United Kingdom, all plantation and mill operations together with marketing are primarily based in Indonesia. The principal risks and uncertainties have broadly remained the same since the publication of the annual report for the year ended 31 December 2018.
A more detailed explanation of the risks relevant to the Group is on pages 21 to 25 and from pages 92 to 97 of the 2018 annual report which is available at https://www.angloeastern.co.uk/.
The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014.
Madam Lim Siew Kim
Chairman
20 August 2019
Responsibility Statements
We confirm that to the best of our knowledge:
a) The unaudited interim financial statements have been prepared in accordance with IAS34: Interim Financial Reporting as adopted by the European Union;
b) The Chairman's statement includes a fair review of the information required by 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 2019 and any material changes in the related party transactions described in the last Annual Report) of the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority.
By order of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
20 August 2019
Condensed Consolidated Income Statement
2019
6 months to 30 June
(unaudited)
2018
6 months to 30 June
(unaudited)
2018
Year to 31 December
(audited)
Continuing operations
Notes
Result before BA movement $000
BA movement $000
Total $000
Result
before BA movement $000
BA movement $000
Total $000
Result
before BA movement $000
BA movement $000
Total $000
Revenue
4
97,863
-
97,863
133,331
-
133,331
250,859
-
250,859
Cost of sales
(94,432)
1,845
(92,587)
(108,458)
332
(108,126)
(206,224)
(2,286)
(208,510)
Gross profit
3,431
1,845
5,276
24,873
332
25,205
44,635
(2,286)
42,349
Administration expenses
(3,190)
-
(3,190)
(3,544)
-
(3,544)
(9,368)
-
(9,368)
Impairment losses
(2,337)
-
(2,337)
-
-
-
(4,339)
-
(4,339)
Operating (loss) / profit
(2,096)
1,845
(251)
21,329
332
21,661
30,928
(2,286)
28,642
Exchange gains / (losses)
163
-
163
(1,222)
-
(1,222)
(1,250)
-
(1,250)
Finance income
2,257
-
2,257
2,374
-
2,374
5,048
-
5,048
Finance expense
3
(569)
-
(569)
(793)
-
(793)
(1,511)
-
(1,511)
(Loss) / Profit before tax
4
(245)
1,845
1,600
21,688
332
22,020
33,215
(2,286)
30,929
Tax expense
5
(804)
(461)
(1,265)
(5,739)
(83)
(5,822)
(13,633)
571
(13,062)
(Loss) / Profit for the period
(1,049)
1,384
335
15,949
249
16,198
19,582
(1,715)
17,867
Attributable to:
- Owners of the parent
(2,664)
1,181
(1,483)
12,037
209
12,246
12,882
(1,469)
11,413
- Non-controlling interests
1,615
203
1,818
3,912
40
3,952
6,700
(246)
6,454
(1,049)
1,384
335
15,949
249
16,198
19,582
(1,715)
17,867
Earnings per share for (loss) / profit attributable to the owners of the parent during the period
- basic
7
(3.74)cts
30.90cts
28.79cts
- diluted
7
(3.74)cts
30.87cts
28.79cts
Condensed Consolidated Statement of Comprehensive Income
2019
2018
2018
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Profit for the period
335
16,198
17,867
Other comprehensive expenses:
Items may be reclassified to profit or loss:
Profit / (loss) on exchange translation of foreign operations
10,523
(27,093)
(29,550)
Net other comprehensive income / (expenses) may be reclassified to profit or loss
10,523
(27,093)
(29,550)
Items not to be reclassified to profit or loss:
Unrealised (loss) / gain on revaluation of leasehold land, net of tax
(1,521)
(531)
137
Remeasurement of retirement benefits plan, net of tax
-
-
894
Net other comprehensive (expenses) / income not being reclassified to profit or loss
(1,521)
(531)
1,031
Total other comprehensive income / (expenses) for the period, net of tax
9,002
(27,624)
(28,519)
Total comprehensive income / (expenses) for the period
9,337
(11,426)
(10,652)
Attributable to:
- Owners of the parent
5,475
(10,906)
(11,527)
- Non-controlling interests
3,862
(520)
875
9,337
(11,426)
(10,652)
Condensed Consolidated Statement of Financial Position
2019
2018
2018
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
350,914
337,719
340,367
Receivables
13,343
8,746
11,020
Deferred tax assets
15,318
10,857
11,147
379,575
357,322
362,534
Current assets
Inventories
10,015
10,718
9,540
Tax receivables
38,521
34,327
44,310
Biological assets
6,041
6,695
4,093
Trade and other receivables
6,159
6,308
5,203
Cash and cash equivalents
100,123
130,127
112,212
160,859
188,175
175,358
Current liabilities
Loans and borrowings
(13,328)
(11,844)
(11,078)
Trade and other payables
(17,452)
(20,553)
(20,083)
Tax liabilities
(4,847)
(4,688)
(5,626)
Dividend payables
(1,262)
(1,617)
(37)
(36,889)
(38,702)
(36,824)
Net current assets
123,970
149,473
138,534
Non-current liabilities
Loans and borrowings
(2,734)
(13,719)
(8,203)
Deferred tax liabilities
(19,032)
(20,023)
(20,040)
Retirement benefits - net liabilities
(9,107)
(9,246)
(8,244)
(30,873)
(42,988)
(36,487)
Net assets
472,672
463,807
464,581
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
49,864
50,789
51,308
Exchange reserves
(236,768)
(244,088)
(245,170)
Retained earnings
523,815
526,545
526,487
376,266
372,601
371,980
Non-controlling interests
96,406
91,206
92,601
Total equity
472,672
463,807
464,581
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
Share
capital
Treasury
shares
Share
premium
Capital
redemption
reserve
Revaluation
reserves
Exchange
Reserves
Retained
earnings
Total
Non-controlling
interests
Total
equity
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Balance at 31 December 2017
15,504
(1,171)
23,935
1,087
51,288
(221,435)
515,884
385,092
91,799
476,891
Items of other comprehensive income:
-Unrealised gain on revaluation of leasehold land, net of tax
-
-
-
-
20
-
-
20
117
137
-Remeasurement of retirement benefits plan, net of tax
-
-
-
-
-
-
775
775
119
894
-Loss on exchange translation of foreign operations
-
-
-
-
-
(23,735)
-
(23,735)
(5,815)
(29,550)
Total other comprehensive income / (expenses)
-
-
-
-
20
(23,735)
775
(22,940)
(5,579)
(28,519)
Profit for the year
-
-
-
-
-
-
11,413
11,413
6,454
17,867
Total comprehensive income / (expenses) for the year
-
-
-
-
20
(23,735)
12,188
(11,527)
875
(10,652)
Dividends paid
-
-
-
-
-
-
(1,585)
(1,585)
(73)
(1,658)
Balance at 31 December 2018
15,504
(1,171)
23,935
1,087
51,308
(245,170)
526,487
371,980
92,601
464,581
Items of other comprehensive income:
-Unrealised loss on revaluation of leasehold land, net of tax
-
-
-
-
(1,444)
-
-
(1,444)
(77)
(1,521)
-Gain on exchange translation of foreign operations
-
-
-
-
-
8,402
-
8,402
2,121
10,523
Total other comprehensive (expenses) / income
-
-
-
-
(1,444)
8,402
-
6,958
2,044
9,002
(Loss) / Profit for the period
-
-
-
-
-
-
(1,483)
(1,483)
1,818
335
Total comprehensive (expenses) / income for the period
-
-
-
-
(1,444)
8,402
(1,483)
5,475
3,862
9,337
Dividends payable
-
-
-
-
-
-
(1,189)
(1,189)
(57)
(1,246)
Balance at 30 June 2019
15,504
(1,171)
23,935
1,087
49,864
(236,768)
523,815
376,266
96,406
472,672
Attributable to owners of the parent
Share
capital
Treasury
shares
Share
premium
Capital
redemption
reserve
Revaluation
reserves
Exchange
reserves
Retained
earnings
Total
Non-controlling
interests
Total
Equity
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Balance at 31 December 2017
15,504
(1,171)
23,935
1,087
51,288
(221,435)
515,884
385,092
91,799
476,891
Items of other comprehensive income:
-Unrealised loss on revaluation of leasehold land, net of tax
-
-
-
-
(499)
-
-
(499)
(32)
(531)
-Gain on exchange translation of foreign operations
-
-
-
-
-
(22,653)
-
(22,653)
(4,440)
(27,093)
Total other comprehensive (expenses) / income
-
-
-
-
(499)
(22,653)
-
(23,152)
(4,472)
(27,624)
Profit for the period
-
-
-
-
-
-
12,246
12,246
3,952
16,198
Total comprehensive (expenses) / income for the period
-
-
-
-
(499)
(22,653)
12,246
(10,906)
(520)
(11,426)
Dividends payable
-
-
-
-
-
-
(1,585)
(1,585)
(73)
(1,658)
Balance at 30 June 2018
15,504
(1,171)
23,935
1,087
50,789
(244,088)
526,545
372,601
91,206
463,807
Condensed Consolidated Statement of Cash Flows
2019
2018
2018
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
1,600
22,020
30,929
Adjustments for:
Biological assets movement
(1,845)
(332)
2,286
Gains on disposal of property, plant and equipment
(21)
(8)
(21)
Depreciation
8,511
8,375
16,752
Retirement benefit provisions
764
878
1,250
Net finance income
(1,688)
(1,581)
(3,537)
Unrealised (gains) / losses in foreign exchange
(163)
1,222
1,250
Property, plant and equipment written off
46
17
620
Impairment losses
2,337
-
4,339
Operating cash flows before changes in working capital
9,541
30,591
53,868
Increase in inventories
(246)
(1,877)
(746)
Increase in non-current, trade and other receivables
(3,383)
(1,062)
(2,173)
(Decrease) / Increase in trade and other payables
(2,774)
4,629
4,148
Cash inflows from operations
3,138
32,281
55,097
Interest paid
(569)
(793)
(1,511)
Retirement benefits paid
(103)
(83)
(257)
Overseas tax paid
(162)
(19,636)
(36,508)
Net cash flows from operating activities
2,304
11,769
16,821
Investing activities
Property, plant and equipment
- purchases
(15,992)
(13,279)
(30,282)
- sales
52
41
42
Interest received
2,257
2,374
5,048
Net cash used in investing activities
(13,683)
(10,864)
(25,192)
Financing activities
Dividends paid to the holders of the parent
-
-
(1,585)
Dividends paid to non-controlling interests
(57)
(73)
(73)
Repayment of existing long-term loans
(3,219)
(2,313)
(8,594)
Net cash used in financing activities
(3,276)
(2,386)
(10,252)
Net decrease in cash and cash equivalents
(14,655)
(1,481)
(18,623)
Cash and cash equivalents
At beginning of period
112,212
139,489
139,489
Exchange gains / (losses)
2,566
(7,881)
(8,654)
At end of period
100,123
130,127
112,212
Comprising:
Cash at end of period
100,123
130,127
112,212
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 2018 Annual Report. The financial information for the half years ended 30 June 2019 and 30 June 2018 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 IFRSs as adopted by the European Union. The comparative financial information for the year ended 31 December 2018 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2018 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2018 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.
After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue operations for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
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, except for those that relate to new standards and interpretations effective for the first time for periods beginning on 1 January 2019 and will be adopted in the 2019 annual financial statements. The new standard impacting the Group that will be adopted in the annual financial statements for the year ended 31 December 2019, and which has given rise to changes in the Group's accounting policies is IFRS 16 Leases.
Details of the impact of this standard are given below. Other new and amended standards and Interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the Group as they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.
IFRS 16 Leases
IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a leased liability representing its obligation to make lease payments. The impact to the Group is immaterial.
2. Foreign exchange
2019
2018
2018
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
Closing exchange rates
Rp : $
14,141
14,404
14,481
$ : £
1.27
1.32
1.28
RM : $
4.13
4.04
4.13
Average exchange rates
Rp : $
14,197
13,753
14,246
$ : £
1.29
1.38
1.33
RM : $
4.12
3.94
4.04
3. Finance expense
2019
2018
2018
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Payable
569
793
1,511
4. Segment information
North
Sumatera
Bengkulu
South Sumatera
Riau
Bangka
Kalimantan
Total Indonesia
Malaysia
UK
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
6 months to 30 June 2019 (unaudited)
Total sales revenue (all external)
- CPO, palm kernel and FFB
34,900
28,837
813
15,902
217
14,474
95,143
854
-
95,997
- Rubber
266
-
-
-
-
-
266
-
-
266
- Shell nut
189
242
-
290
-
17
738
-
-
738
- Biomass products
303
-
-
-
-
-
303
-
-
303
- Biogas products
33
229
-
-
-
123
385
-
-
385
- Others
34
29
25
-
-
28
116
58
-
174
Total revenue
35,725
29,337
838
16,192
217
14,642
96,951
912
-
97,863
Profit / (loss) before tax
701
1,509
(3,533)
3,941
(242)
(1,451)
925
(401)
(769)
(245)
BA movement
805
651
50
(42)
13
348
1,825
20
-
1,845
Profit / (loss) for the period before tax per consolidated income statement
1,506
2,160
(3,483)
3,899
(229)
(1,103)
2,750
(381)
(769)
1,600
Interest income
1,012
962
2
180
-
16
2,172
83
2
2,257
Depreciation
(2,026)
(2,142)
(1,205)
(447)
(135)
(2,306)
(8,261)
(250)
-
(8,511)
impairment losses
-
-
(115)
-
-
(2,222)
(2,337)
-
-
(2,337)
Inter-segment transactions
2,514
(1,010)
(367)
(290)
(61)
(972)
(186)
58
128
-
Inter-segment revenue
10,314
560
622
-
-
624
12,120
-
-
12,120
Tax expense
(2,730)
(59)
2,155
(2,216)
154
1,593
(1,103)
(117)
(45)
(1,265)
Total assets
176,332
120,118
45,785
33,772
12,600
124,385
512,992
21,553
5,889
540,434
Non-current assets
108,550
71,925
43,493
17,975
12,238
105,731
359,912
16,630
3,033
379,575
Non-current assets - additions
4,377
2,127
1,521
111
1,935
5,540
15,611
95
-
15,706
North
Sumatera
Bengkulu
South Sumatera
Riau
Bangka
Kalimantan
Total Indonesia
Malaysia
UK
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
6 months to 30 June 2018 (unaudited)
Total sales revenue (all external)
- CPO, palm kernel and FFB
43,054
44,177
-
22,318
143
19,597
129,289
1,234
-
130,523
- Rubber
393
-
-
-
-
-
393
-
-
393
- Shell nut
289
281
-
421
-
12
1,003
-
-
1,003
- Biomass products
310
-
-
-
-
-
310
-
-
310
- Biogas products
226
266
-
-
-
-
492
-
-
492
- Others
531
-
10
18
-
51
610
-
-
610
Total revenue
44,803
44,724
10
22,757
143
19,660
132,097
1,234
-
133,331
Profit / (loss) before tax
5,191
10,303
(2,694)
7,208
(226)
3,121
22,903
(57)
(1,158)
21,688
BA movement
583
80
(56)
(28)
(2)
(241)
336
(4)
-
332
Profit / (loss) for the period before tax per consolidated income statement
5,774
10,383
(2,750)
7,180
(228)
2,880
23,239
(61)
(1,158)
22,020
Interest income
788
1,309
1
182
-
11
2,291
82
1
2,374
Depreciation
(2,008)
(2,033)
(1,276)
(463)
(119)
(2,215)
(8,114)
(261)
-
(8,375)
impairment losses
-
-
-
-
-
-
-
-
-
-
Inter-segment transactions
2,569
(1,051)
(364)
(301)
(49)
(880)
(76)
46
30
-
Inter-segment revenue
11,867
568
1,959
-
-
194
14,588
-
-
14,588
Tax expense
(3,613)
(2,177)
2,077
(2,802)
133
641
(5,741)
(52)
(29)
(5,822)
Total assets
168,247
147,978
40,952
34,332
11,305
111,967
514,781
24,261
6,455
545,497
Non-current assets
100,619
69,203
39,232
17,973
11,038
98,390
336,455
17,869
2,998
357,322
Non-current assets - additions
3,786
1,597
1,382
315
677
5,417
13,174
105
-
13,279
North
Sumatera
Bengkulu
South Sumatera
Riau
Bangka
Kalimantan
Total Indonesia
Malaysia
UK
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Year to 31 December 2018 (audited)
Total sales revenue (all external)
- CPO, palm kernel and FFB
84,771
79,652
1
43,970
261
34,848
243,503
2,092
-
245,595
- Rubber
792
-
-
-
-
-
792
-
-
792
- Shell nut
651
432
-
930
-
34
2,047
-
-
2,047
- Biomass products
914
-
-
-
-
-
914
-
-
914
- Biogas products
417
446
-
-
-
-
863
-
-
863
- Others
519
38
18
-
-
73
648
-
-
648
Total revenue
88,064
80,568
19
44,900
261
34,955
248,767
2,092
-
250,859
Profit / (loss) before tax
12,993
18,753
(7,445)
13,112
(531)
(557)
36,325
(894)
(2,216)
33,215
BA movement
(296)
(1,074)
(93)
(272)
(4)
(479)
(2,218)
(68)
-
(2,286)
Profit / (loss) for the period before tax per consolidated income statement
12,697
17,679
(7,538)
12,840
(535)
(1,036)
34,107
(962)
(2,216)
30,929
Interest income
1,594
2,978
3
318
-
20
4,913
133
2
5,048
Depreciation
(4,031)
(4,120)
(2,530)
(900)
(234)
(4,425)
(16,240)
(512)
-
(16,752)
impairment losses
-
-
(914)
-
-
(3,425)
(4,339)
-
-
(4,339)
Inter-segment transactions
4,887
(2,021)
(700)
(579)
(94)
(1,870)
(377)
103
274
-
Inter-segment revenue
24,409
1,608
3,710
-
-
1,049
30,776
-
-
30,776
Tax expense
(7,872)
(2,994)
1,862
(5,351)
151
1,154
(13,050)
19
(31)
(13,062)
Total assets
188,266
118,098
41,074
36,900
11,815
113,186
509,339
22,347
6,206
537,892
Non-current assets
103,648
70,237
39,672
17,884
11,588
99,738
342,767
16,783
2,984
362,534
Non-current assets - additions
8,578
4,460
3,753
472
1,647
11,355
30,265
110
-
30,375
In the 6 months to 30 June 2019, revenues from 4 customers of the Indonesian segment represent approximately $57.2m (1H 2018: $60.1m) of the Group's total revenues. In year 2018, revenues from 4 customers of the Indonesian segment represent approximately $115.4m of the Group's total revenues. An analysis of this revenue is provided below. Although Customer 1 to 3 each contribute over 10% of the Group's total revenue, there is no over reliance on these Customers as tenders are performed on a monthly basis. Two of the top four customers are the same as in the year to 31 December 2018.
2019
2018
2018
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$m
%
$m
%
$m
%
Major Customers
Customer 1
21.8
22.3
18.6
14.0
37.1
14.8
Customer 2
16.9
17.2
15.3
11.5
29.6
11.8
Customer 3
10.4
10.6
14.7
11.0
24.9
9.9
Customer 4
8.1
8.3
11.5
8.6
23.8
9.5
Total
57.2
58.4
60.1
45.1
115.4
46.0
5. Tax expense
2019
2018
2018
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
6,087
9,043
16,852
Foreign corporation tax - prior year
-
6
70
Deferred tax adjustment - origination and reversal of temporary differences
(4,822)
(3,227)
(3,860)
1,265
5,822
13,062
6. Dividend
The final and only dividend in respect of 2018, amounting to 3.0 cents per share, or $1,189,091 was paid on 12 July 2019 (2017: 4.0 cents per share, or $1,585,455, paid on 13 July 2018). As in previous years, no interim dividend has been declared.
7. Earnings per ordinary share ("EPS")
2019
2018
2018
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
(Loss) / Profit for the period attributable to owners of the Company before BA movement
(2,664)
12,037
12,882
BA movement
1,181
209
(1,469)
Earnings used in basic and diluted EPS
(1,483)
12,246
11,413
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
-
33
-
- used in diluted EPS
39,636
39,669
39,636
Basic EPS before BA movement
(6.72)cts
30.37cts
32.50cts
Basic EPS after BA movement
(3.74)cts
30.90cts
28.79cts
Dilutive EPS before BA movement
(6.72)cts
30.34cts
32.50cts
Dilutive EPS after BA movement
(3.74)cts
30.87cts
28.79cts
8. 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:
2019
2018
2018
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
Carrying amount
Fair value
Carrying amount
Fair value
Carrying amount
Fair value
$000
$000
$000
$000
$000
$000
Non-current receivables
Due from non-controlling interests
3,022
1,850
2,977
1,837
2,965
1,833
Due from cooperatives under Plasma scheme
10,321
7,407
5,769
5,495
8,055
6,240
13,343
9,257
8,746
7,332
11,020
8,073
Borrowings due after one year
Long-term loan
2,734
2,473
13,719
13,403
8,203
7,742
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 receivables and long-term loan are classified as Level 3 in the fair value hierarchy.
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 non-controlling interests
Based on cash flows discounted using current lending rate of 6% (1H 2018 and 2018: 6%).
Discount rate
The higher the discount rate, the lower the fair value.
Due from cooperatives under Plasma scheme
Based on cash flows discounted using an estimated current lending rate of 6.58% (1H 2018: 6.05%, 2018: 6.58%).
Discount rate
The higher the discount rate, the lower the fair value.
Borrowings due after one year
Long-term loan
Based on cash flows discounted using an estimated current lending rate of 6.58% (1H 2018: 6.05%, 2018: 6.58%).
Discount rate
The higher the discount rate, the lower the fair value.
9. Report and financial information
Copies of the interim report for the Group for the period ended 30 June 2019 are available on the AEP website at https://www.angloeastern.co.uk/.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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