Anglo-Eastern Plantations
Plc
("AEP", "Group" or
"Company")
Announcement of interim
results for the six months ended 30 June 2024
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, has today released its results for the six
months ended 30 June 2024.
Financial Highlights
|
Continuing operations
|
2024
6 months
to 30 June
$m
(unaudited)
|
|
2023
6 months
to 30 June
$m
(unaudited)
|
|
2023
12 months
to 31 December
$m
(audited)
|
|
Revenue
|
166.7
|
|
173.4
|
|
371.0
|
|
Profit before tax
|
|
|
|
|
|
|
- before biological assets
("BA") movement
|
33.5
|
|
32.2
|
|
78.7
|
|
- after BA
movement
|
35.2
|
|
32.5
|
|
77.8
|
|
Basic Earnings per ordinary share
("EPS")
|
|
|
|
|
|
|
- before BA
movement
|
67.18cts
|
|
50.27cts
|
|
130.24cts
|
|
- after BA
movement
|
70.58cts
|
|
50.73cts
|
|
128.82cts
|
Enquiries:
|
Anglo-Eastern Plantations
Plc
|
|
|
Dato' John Lim Ewe
Chuan
|
+44 (0)20 7216 4621
|
|
|
|
|
Panmure Liberum
|
|
|
Amrit Mahbubani / Freddie
Wooding
|
+44
(0)20 3100 2000
|
Chairman's Interim Statement
The interim results for the Group
for the six months to 30 June 2024 were as follows:
Revenue for the six months to 30 June 2024 was
$166.7 million,
4% lower than $173.4 million reported for the same period of 2023.
The Group's gross profit after BA movement for the six
months of 2024 was $36.3
million, 9% higher than
$33.2 million for the same period of
2023.
The BA movement for the first half
of 2024 was a credit of $1.8 million representing an increase in
fair value of our Fresh Fruit Bunches ("FFB") as compared to a
credit of $0.3 million for the same period last year.
Profit before tax after BA
movement for the first half of 2024 was 8.6% higher at
$35.3 million against $32.5 million for
the same period last year. The higher profit for the period,
notwithstanding the lower sales revenue, was primarily driven by
reduced manuring costs due to cheaper fertiliser prices and an
increase in the value of biological assets, primarily because of a
greater number of unripe bunches
on the trees and a higher net realisable value in
June 2024 as compared to December 2023.
FFB production for the first half
of 2024 was 5% lower at 494,900 mt as compared to 522,700 mt for
the same period last year. This was primarily due to lower FFB
yield from our old-matured trees in Bengkulu region,
Sumatera, which
have been earmarked for replanting and their fertiliser programs
have been withdrawn 18 months prior to replanting. In addition,
there was a further reduction of 1,814 ha of matured palm trees in
Bengkulu region this year, of which 1,074 ha of the palms were
replanted in 2023, while another 740 ha were cleared for replanting
during the first half of 2024. This is part of the Group's
replanting program to replenish old and Dura palms with Tenera
seedlings which are of better quality to ensure higher FFB yields
and better crude palm oil ("CPO") extraction going
forward.
Bought-in crops for the first half
of 2024 decreased by 8% to 463,300 mt as compared to 501,400 mt of
outside crops purchased for the same period last year. The lower
quantity purchased was due to the loss of supply of fruits from a
competitor's estate who is now processing their own fruits in their
own mill in Central Kalimantan as well as intense competition for
fruits in Bengkulu region.
Operational and Financial Performance
For the six months ended 30 June
2024, gross profit margin increased to 21.8% from 19.2% as compared
to the same period last year. The higher gross margin was mainly
due to lower fertiliser prices together with the
increase in fair value of our biological assets
as at 30 June 2024.
The average ex-Rotterdam CPO price
for the first six month to 30 June 2024 was $1,018/mt, which was 3%
higher as compared to $991/mt for the same period last year. The
Group's average CPO ex-mill price for the first six month was
slightly lower at $749/mt as compared to $751/mt for the same
period last year. The ex-mill price is normally quoted at a
discount to ex-Rotterdam price as buyers factored in freight and insurance
charges and deduct CPO export tax and levy imposed by the
Indonesian Government. Palm kernel prices averaged at $411/mt,
which was 14% higher for the first half year of 2024 against
$361/mt for the same period last year.
Profit after tax for the six
months ended 30 June 2024 was 15.8% higher at $27.9 million,
compared to a profit after tax of $24.1 million, excluding the loss
of $2.5 million from the discontinued operations for the same
period last year.
The resulting basic earnings per
share from continuing operations for the period was 70.58cts (H1
2023: 50.73cts).
The Group's Balance Sheet remains
strong with no outstanding bank loans. Net assets as at 30 June
2024 was $519.7 million as compared to $530.7 million as at 31
December 2023 and $617.1 million as at 30 June 2023 respectively.
The Group's net assets decreased by $11.0 million since 31 December
2023, largely driven by a currency translation loss of $32.3
million from Rupiah to our reporting currency in USD. This loss was
partially net off by a profit of $27.9 million for the six months
ending 30 June 2024.
As of 30 June 2024, the Group's
cash and cash equivalents including
short-term investments known as fixed deposits with banks, was
$150.8 million (31 December 2023: $167.1
million, H1 2023: $261.3 million). The
reduction in cash & cash equivalents including short-term
deposits since the beginning of 2024 was due to cash allocated for
investments of $30.0 million, capital expenditure of $12.0 million
and loss in foreign currency exchange of $10.0 million net of cash
generated from operations for the period of $34.8
million.
Working capital increased by $3.1
million for the period as compared to a decrease in working capital
of $24.3 million for the corresponding period last year. The
largest component of the movement in working capital related to a
$9.9 million advance payment to the Group's Share Registrar for the dividend payment in July 2023,
whereas no such advance payment was made during current
period. Other fluctuations in working capital are
due to timing differences related to normal business
operations.
Production costs
Production cost for the Group was
lower during the first half of 2024 as compared to the same period
in 2023. This was mainly due to savings in manuring cost arising
from fertilisers procured at lower prices for first half of 2024. The Group has
recently concluded a tender to procure fertilisers
at rates up to 40% less than the peak prices in 2022 for the second half of
2024.
Production and Sales
|
|
2024
|
2023
|
2023
|
|
|
6 months
|
6
months
|
Year
|
|
|
to 30 June
|
to 30
June
|
to 31
December
|
|
|
mt
|
mt
|
mt
|
|
Oil
palm production
|
|
|
|
|
FFB
|
|
|
|
|
- all estates from continuing
operations
|
494,900
|
522,700
|
1,102,100
|
|
- estates from discontinued
operations
|
-
|
15,700
|
21,600
|
|
- bought-in from third
parties
|
463,300
|
501,400
|
1,080,200
|
|
Saleable CPO
|
191,200
|
210,900
|
449,000
|
|
Saleable palm kernels
|
44,500
|
48,600
|
103,900
|
|
|
|
|
|
|
Oil
palm sales
|
|
|
|
|
CPO
|
189,500
|
201,800
|
450,700
|
|
Palm kernels
|
44,000
|
47,400
|
104,300
|
|
FFB sold outside
|
24,300
|
24,200
|
55,100
|
The Group's seven mills processed
a total of 936,500mt of FFB during the first half year of 2024,
representing a decrease of 8% as compared to 1,015,600mt for the
same period last year. This was mainly due to lower internal crop
produced, coupled with lower third-party crops purchased for the
same period.
Overall, CPO production for the
first half of 2024 was 191,200mt, 9% lower than the corresponding
period of 210,900 mt in 2023. The Oil Extraction Rate ("OER") for
the first half year was 20.4%, which was slightly lower than 20.8%
as compared to the same period last year.
Commodity prices
The ex-Rotterdam CPO price started the
year at $935/mt and trended upwards during Q1 2024 before peaking
at $1,140/mt in early April 2024. It retreated to a low of $980/mt
in early June 2024 before it ended higher at $1,030/mt on 28 June
2024, the last business day of the period. CPO price
ex-Rotterdam for the
first half of 2024 averaged at $1,018/mt, 3% higher than last year
(H1 2023: $991/mt). The increase in CPO
price was seasonal due to a lower palm production and the higher price
trend of competing vegetable oils during first half of 2024.
However, despite the price surge, Indonesian CPO exporters were
still not able to reap maximum profits due to reduced demand from
several countries, particularly China.
Development
The Group's planted areas on 30
June 2024 comprised:
|
|
Total
|
Mature
|
Immature
|
|
Continuing operations
|
Ha
|
ha
|
Ha
|
|
North Sumatera
|
18,610
|
18,162
|
448
|
|
Bengkulu
|
16,423
|
13,016
|
3,407
|
|
Riau
|
4,786
|
4,786
|
-
|
|
Kalimantan
|
18,543
|
16,376
|
2,167
|
|
Bangka
|
2,766
|
2,437
|
329
|
|
Plasma
|
3,888
|
2,865
|
1,023
|
|
Indonesia
|
65,016
|
57,642
|
7,374
|
|
Malaysia
|
3,453
|
3,453
|
-
|
|
Total: 30 June 2024
|
68,469
|
61,095
|
7,374
|
|
Total: 31 December 2023
|
68,948
|
59,627
|
9,321
|
|
|
|
|
|
|
30 June 2023
|
|
|
|
|
Continuing operations
|
68,580
|
60,270
|
8,310
|
|
Discontinued operations
|
7,749
|
7,331
|
418
|
|
Total: 30 June 2023
|
76,329
|
67,601
|
8,728
|
The Group's new planting and
replanting for the first six months of
2024 totalled 598 ha compared to 987 ha for the same period last
year. In addition, Plasma planting for the
period was 42 ha (H1 2023: 89 ha).
The Group remains optimistic that
planting will pick up in the second half of 2024 as rainfall
normalises. The Group's total landholding comprises of 90,500 ha,
of which the planted area stands at 68,469 ha (H1 2023: 68,580 ha)
with an estimated remaining plantable area of 9,400 ha (H1 2023:
9,500 ha).
The seventh mill in North Sumatera
has commenced processing its estate crop since the beginning of
this year. Meanwhile, the Group has initiated the
environmental impact assessment ("EIA") for the eighth mill in Kalimantan
and the EIA has
been submitted to the Ministry of Environment and Forestry for
approval before construction can begin.
Dividend and Share Buyback
The Board has decided to revert to
paying a final
dividend based on profits for the year and it will be declared in
accordance with the dividend policy of at least 25% of the profit
after tax for the year. Accordingly, no interim dividend has been
declared. The final dividend of 15.0 cents per share in respect of
the year ended 31 December 2023 was paid on 12 July
2024.
During the period, the Group
repurchased 71,852 ordinary shares pursuant to the share buyback programme
announced on 24 August 2023. The Group's share buyback programme
expired at the conclusion of the Company's AGM on 24 June
2024.
Outlook
In the second half of 2024, palm
oil production is expected to increase. Weaker demand from major
importers like India and China would exert downward pressure on CPO
prices. Additionally, the recent tropical storm Beryl brought heavy
rain to the soybean production belt in the USA, which could enhance yields and
increase the production of competing vegetable oils for the season.
Similarly, soybean production is anticipated to be higher in Brazil
and Argentina compared to the previous year. The anticipated
increase in supply is likely to push CPO prices
downward.
Despite these challenges,
Indonesia's ongoing Biodiesel B35 program and the planned
implementation of the B40 mandate are expected to boost domestic
consumption, thereby supporting CPO prices by tightening supply.
The B35 program requires biodiesel to contain 35% palm oil, while
the upcoming B40 mandate will increase this requirement to 40%.
These initiatives aim to reduce dependence on fossil fuels, promote
renewable energy, and absorb more palm oil domestically, which in
turn helps to stabilize and support CPO prices by reducing the
volume available for export.
In addition, the possibility of La
Niña and other extreme weather conditions could reduce palm oil
production and disrupt the supply chain, which will also help to
support CPO prices.
Barring any unforeseen
circumstances, the Group expects satisfactory performance for the
remaining half of
this financial year.
Principal risks and uncertainties
For the remaining six months of
the financial year, the principal risks and uncertainties
include:
· CPO
Price Fluctuations: Variability in CPO prices can significantly
impact revenue and profitability. Prices may be influenced by
global supply and demand dynamics, trade policies and tariffs,
shifts in consumer preferences and geopolitical crises.
· US
Dollar to Rupiah Exchange Rates: Fluctuations in the exchange rate
between the US Dollar and the Indonesian Rupiah can affect
financial performance. As the reporting currency is USD, changes in
the Rupiah's value can lead to gains or losses when translating
financial results.
· Weather and Natural Disasters: Adverse weather conditions or
natural disasters could damage palm oil plantations, affecting
yields, and production levels and disrupt supply chains.
· Regulatory Restrictions: Regulatory changes, such as the
European Union Deforestation Regulation ("EUDR"), can impact market
access and operational costs. Compliance with the EUDR will likely
increase operational costs for palm oil companies. These costs stem
from the need for enhanced monitoring, certification, and
potentially shifting to more sustainable practices, which could
impact profitability. The EUDR aims to prevent deforestation by
requiring proof that products, including palm oil, are not linked
to deforestation, potentially increasing compliance costs and
affecting trade. The Group has adopted the No Deforestation, No
Peat and No Exploitation ("NDPE") policy since mid-2019.
A more detailed explanation
of all principal risks and mitigation steps and other considerations are
listed on pages 33 to 38 and from pages 144 to 149 of the 2023
Annual Report which is available at https://www.angloeastern.co.uk/.
Mr Jonathan Law Ngee
Song
Chairman
22 August 2024
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 issued by
the International Accounting Standards Board and as contained in UK
adopted international accounting standards;
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 2024 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
22 August 2024
Condensed Consolidated Statement of Cash
Flows
|
|
2024
|
2023
|
2023
|
|
|
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 from continuing
operations
|
35,237
|
32,502
|
77,808
|
|
Adjustments for:
|
|
|
|
|
Biological assets
movement
|
(1,764)
|
(291)
|
875
|
|
Gain on disposal of property,
plant and equipment
|
(18)
|
(26)
|
(49)
|
|
Depreciation
|
8,164
|
8,116
|
16,400
|
|
Retirement benefit
provisions
|
1,002
|
386
|
2,581
|
|
Net finance income
|
(2,355)
|
(3,975)
|
(7,932)
|
|
Unrealised (gain) / loss in
foreign exchange
|
(721)
|
493
|
(164)
|
|
Gain arising from fair
value
|
(514)
|
-
|
(45)
|
|
Property, plant and equipment
written off
|
242
|
28
|
191
|
|
Impairment of losses
|
-
|
-
|
35
|
|
(Reversal) / Provision for
expected credit loss
|
(1)
|
20
|
331
|
|
Operating cash flows before
changes in working capital
|
39,272
|
37,253
|
90,031
|
|
(Increase) / Decrease in
inventories
|
(578)
|
(2,871)
|
3,405
|
|
Decrease / (Increase) in non-
current, trade and other receivables
|
1,254
|
(15,582)
|
(8,520)
|
|
Increase / (Decrease) in trade and
other payables
|
2,449
|
(5,804)
|
(6,939)
|
|
Cash inflows from
operations
|
42,397
|
12,996
|
77,977
|
|
Retirement benefits
paid
|
(222)
|
(301)
|
(1,206)
|
|
Overseas tax paid
|
(7,404)
|
(22,172)
|
(43,108)
|
|
Operating cash flows generated
from / (used in) continuing operations
|
34,771
|
(9,477)
|
33,663
|
|
Operating cash flows used in
discontinued operations
|
-
|
(850)
|
(1,808)
|
|
Net cash flows generated from /
(used in) operating activities
|
34,771
|
(10,327)
|
31,855
|
|
Investing activities
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
- purchases
|
(12,034)
|
(17,110)
|
(33,421)
|
|
- sales
|
23
|
155
|
315
|
|
Interest received
|
2,390
|
3,990
|
7,977
|
|
Increase in receivables from
cooperatives under plasma scheme
|
(1,550)
|
(1,473)
|
(4,894)
|
|
Repayment from cooperatives under
plasma scheme
|
1,042
|
-
|
1,921
|
|
Investment in investment
portfolio
|
(30,028)
|
-
|
(9,948)
|
|
Disposal of
subsidiaries
|
-
|
-
|
8,500
|
|
Placement of fixed deposits with
original maturity of more than three
months
|
(881)
|
(39,040)
|
(14,076)
|
|
Withdrawal of fixed deposits with
original maturity of more than three months
|
14,076
|
55,566
|
55,566
|
|
Cash (used in) / generated from
investing activities from continuing operations
|
(26,962)
|
2,088
|
11,940
|
|
Cash used in investing activities
from discontinued operations
|
-
|
(935)
|
(1,786)
|
|
Net cash (used in) / generated
from investing activities
|
(26,962)
|
1,153
|
10,154
|
|
Financing activities
|
|
|
|
|
Dividends paid to the holders of
the parent
|
(2)
|
-
|
(15,845)
|
|
Dividends paid to non-controlling
interests
|
-
|
(2,505)
|
(12,505)
|
|
Repayment of lease liabilities -
principal
|
(160)
|
(102)
|
(243)
|
|
Repayment of lease liabilities -
interest
|
(35)
|
(15)
|
(45)
|
|
Acquisition of non-controlling
interests
|
-
|
-
|
(86,620)
|
|
Share buy back
|
(640)
|
-
|
(676)
|
|
Cash used in financing activities
from continuing operations
|
(837)
|
(2,622)
|
(115,934)
|
|
Net cash used in financing
activities
|
(837)
|
(2,622)
|
(115,934)
|
|
Net increase / (decrease) in cash
and cash equivalents
|
6,972
|
(11,796)
|
(73,925)
|
|
Cash and cash equivalents
|
|
|
|
|
At beginning of period
|
152,984
|
221,476
|
221,476
|
|
Exchange (loss) / gain
|
(10,045)
|
12,606
|
5,433
|
|
At end of period
|
149,911
|
222,286
|
152,984
|
|
Comprising:
|
|
|
|
|
Cash at end of period
|
149,911
|
222,286
|
152,984
|
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 issued by
the International Accounting Standards Board ('IASB') and as
adopted by the United Kingdom. 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 2023 Annual Report. The financial information
for the half years ended 30 June 2024 and 30 June 2023 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 UK
adopted International Accounting Standards. The comparative
financial information for the year ended 31 December 2023 included
within this report does not constitute the full statutory accounts
for that period. The statutory Annual Report and Financial
Statements for 2023 have been filed with the Registrar of
Companies. The Independent Auditors' Report on the Annual Report
and Financial Statements for 2023 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under Sections 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. 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.
2. Foreign
exchange
|
|
|
2024
|
2023
|
2023
|
|
|
|
6 months
|
6
months
|
Year
|
|
|
|
to 30 June
|
to 30
June
|
to
31 December
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
|
|
|
|
|
Closing exchange rates
|
|
|
|
|
|
Rp : $
|
|
16,421
|
15,026
|
15,416
|
|
$ : £
|
|
1.26
|
1.27
|
1.27
|
|
RM : $
|
|
4.72
|
4.67
|
4.60
|
|
|
|
|
|
|
|
Average exchange rates
|
|
|
|
|
|
Rp : $
|
|
15,901
|
15,071
|
15,255
|
|
$ : £
|
|
1.26
|
1.23
|
1.24
|
|
RM : $
|
|
4.73
|
4.46
|
4.56
|
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.
|
6
months to 30 June 2024
|
CPO,
palm kernel and FFB
|
Rubber
|
Shell
nut
|
Biogas
products
|
Others
|
Total
|
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
|
|
|
|
|
|
|
|
|
Contract
counterparties
|
|
|
|
|
|
|
|
Government
|
-
|
-
|
-
|
389
|
-
|
389
|
|
Non-government
- Wholesalers
|
163,872
|
106
|
1,730
|
-
|
618
|
166,326
|
|
|
163,872
|
106
|
1,730
|
389
|
618
|
166,715
|
|
|
|
|
|
|
|
|
|
Timing of transfer of
goods
|
|
|
|
|
|
|
|
Delivery to customer premises
|
3,780
|
106
|
-
|
-
|
-
|
3,885
|
|
Customer collect from our mills / estates
|
160,092
|
-
|
1,730
|
-
|
-
|
161,822
|
|
Upon generation / others
|
-
|
-
|
-
|
389
|
618
|
1,007
|
|
|
163,872
|
106
|
1,730
|
389
|
618
|
166,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months to 30 June
2023
|
CPO,
palm kernel and FFB
|
Rubber
|
Shell
nut
|
Biogas
products
|
Others
|
Total
|
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
|
|
|
|
|
|
|
|
|
Contract counterparties
|
|
|
|
|
|
|
|
Government
|
-
|
-
|
-
|
550
|
-
|
550
|
|
Non-government
- Wholesalers
|
169,920
|
327
|
2,337
|
-
|
315
|
172,899
|
|
|
169,920
|
327
|
2,337
|
550
|
315
|
173,449
|
|
|
|
|
|
|
|
|
|
Timing of transfer of goods
|
|
|
|
|
|
|
|
Delivery to customer
premises
|
3,339
|
327
|
-
|
-
|
-
|
3,666
|
|
Customer collect from our mills /
estates
|
166,581
|
-
|
2,337
|
-
|
-
|
168,918
|
|
Upon generation /
others
|
-
|
-
|
-
|
550
|
315
|
865
|
|
|
169,920
|
327
|
2,337
|
550
|
315
|
173,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to 31 December
2023
|
CPO,
palm kernel and FFB
|
Rubber
|
Shell
nut
|
Biogas
products
|
Others
|
Total
|
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
$000
|
|
|
|
|
|
|
|
|
|
Contract counterparties
|
|
|
|
|
|
|
|
Government
|
-
|
-
|
-
|
1,081
|
-
|
1,081
|
|
Non-government
- Wholesalers
|
363,967
|
529
|
4,844
|
-
|
541
|
369,881
|
|
|
363,967
|
529
|
4,844
|
1,081
|
541
|
370,962
|
|
|
|
|
|
|
|
|
|
Timing of transfer of goods
|
|
|
|
|
|
|
|
Delivery to customer
premises
|
6,784
|
529
|
-
|
-
|
-
|
7,313
|
|
Customer collect from our mills /
estates
|
357,183
|
-
|
4,844
|
-
|
-
|
362,027
|
|
Upon generation /
others
|
-
|
-
|
-
|
1,081
|
541
|
1,622
|
|
|
363,967
|
529
|
4,844
|
1,081
|
541
|
370,962
|
4. Finance income
and expense
|
|
|
2024
|
2023
|
2023
|
|
|
|
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:
|
|
|
|
|
|
Bank balances and time
deposits
|
|
2,390
|
3,990
|
7,977
|
|
|
|
|
|
|
|
Finance expense
|
|
|
|
|
|
Interest payable on:
|
|
|
|
|
|
Interest expense on lease liabilities
|
|
(35)
|
(15)
|
(45)
|
|
Net finance income recognised in
income statement
|
|
2,355
|
3,975
|
7,932
|
6. Tax
expense
|
|
2024
|
(Restated)
2023
|
2023
|
|
|
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
|
6,296
|
7,490
|
17,760
|
|
Foreign corporation tax - prior
year
|
39
|
-
|
308
|
|
Deferred tax adjustment -
origination and reversal of temporary differences
|
995
|
924
|
2,049
|
|
Deferred tax - prior year
|
-
|
-
|
53
|
|
|
7,330
|
8,414
|
20,170
|
Corporation tax rate in Indonesia
is at 22% (H1 2023: 22%, 2023: 22%) whereas Malaysia is at 24% (H1
2023: 24%, 2023: 24%). The standard rate of corporation tax in the
UK for the current year is 25% (H1 2023: 19%, 2023:
23.5%).
7.
Dividend
The interim dividend in respect of
2023, amounting to 15.0 cents per share, or $5,944,516 was paid on
6 October 2023 (2022: No interim dividend).
The final dividend in respect of
2023, amounting to 15.0 cents per share, or $5,923,289 was paid on
12 July 2024 (2022: 25.0 cents per share, or $9,909,093 paid on 7
July 2023).
8. Earnings per
ordinary share ("EPS")
|
|
2024
|
2023
|
2023
|
|
|
6 months
|
6
months
|
Year
|
|
|
to 30 June
|
to 30
June
|
to 31
December
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
$000
|
$000
|
$000
|
|
Total operations
|
|
|
|
|
Profit for the period attributable
to owners of the Company before BA movement
|
26,527
|
17,795
|
55,414
|
|
BA movement
|
1,343
|
248
|
(644)
|
|
Earnings used in basic and diluted
EPS
|
27,870
|
18,043
|
54,770
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
Profit for the period attributable
to owners of the Company before BA movement
|
26,527
|
19,924
|
51,524
|
|
BA movement
|
1,343
|
184
|
(561)
|
|
Earnings used in basic and diluted
EPS
|
27,870
|
20,108
|
50,963
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
Loss for
the period attributable to owners of the Company before BA
movement
|
-
|
(2,129)
|
3,890
|
|
BA movement
|
-
|
64
|
(83)
|
|
Earnings used in basic and diluted
EPS
|
-
|
(2,065)
|
3,807
|
|
|
|
|
|
|
|
Number
|
Number
|
Number
|
|
|
'000
|
'000
|
'000
|
|
Weighted average number of shares
in issue in the period
|
|
|
|
|
- used in basic
EPS
|
39,489
|
39,636
|
39,560
|
|
- dilutive effect of
outstanding share options
|
-
|
-
|
-
|
|
- used in diluted
EPS
|
39,489
|
39,636
|
39,560
|
|
|
|
|
|
|
Total operations
|
|
|
|
|
- Basic and
diluted EPS before BA movement
|
67.18cts
|
44.90cts
|
140.07cts
|
|
- Basic and diluted EPS
after BA movement
|
70.58cts
|
45.52cts
|
138.44cts
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
- Basic and
diluted EPS before BA movement
|
67.18cts
|
50.27cts
|
130.24cts
|
|
- Basic and diluted EPS
after BA movement
|
70.58cts
|
50.73cts
|
128.82cts
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
- Basic and
diluted EPS before BA movement
|
-
|
(5.37)cts
|
9.83cts
|
|
- Basic and diluted EPS
after BA movement
|
-
|
(5.21)cts
|
9.62cts
|
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:
|
|
2024
|
2023
|
2023
|
|
|
|
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
|
-
|
-
|
434
|
434
|
-
|
-
|
|
|
Due from cooperatives under Plasma
scheme
|
19,556
|
12,766
|
19,708
|
13,390
|
20,306
|
14,757
|
|
|
|
19,556
|
12,766
|
20,142
|
13,824
|
20,306
|
14,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Financial instruments not measured
at fair value include non-current receivables, cash and cash
equivalents, trade and other receivables, trade and other payables
due within one year and lease liabilities for both current and
non-current.
Due to their short-term nature,
the carrying value of cash and cash equivalents, trade and other
receivables, trade and other payables and due from non-controlling
interests due within one year approximates their fair
value.
All non-financial current assets and
non-current receivables 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% (H1 2023 and 2023: 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 10.25% (H1 2023 and
2023: 10.25%).
|
Discount rate
|
The higher the discount rate, the
lower the fair value.
|
10.
Investments
The breakdown for the investments
is split between current and non-current based on the maturity of
the investments as follows:
|
|
|
2024
|
2023
|
2023
|
|
|
|
as at 30
June
|
as at 30
June
|
As at 31
December
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
|
$000
|
$000
|
$000
|
|
|
|
|
|
|
|
Non-current
|
|
37,666
|
27
|
10,035
|
|
Current
|
|
2,911
|
-
|
-
|
|
|
|
40,577
|
27
|
10,035
|
The movement of the fair value
through profit and loss investment is as follows:
|
|
|
2024
|
2023
|
2023
|
|
|
|
as at 30
June
|
as at 30
June
|
As at 31
December
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
|
$000
|
$000
|
$000
|
|
1 January
|
|
10,035
|
42
|
42
|
|
Exchange differences
|
|
-
|
-
|
-
|
|
Additions
|
|
30,028
|
-
|
9,948
|
|
Change in fair value recognised in
profit and loss
|
|
514
|
(15)
|
45
|
|
|
|
40,577
|
27
|
10,035
|
Fair value through profit and loss financial assets includes the
following:
|
|
|
2024
|
2023
|
2023
|
|
|
|
as at 30
June
|
as at 30
June
|
As at 31
December
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
|
$000
|
$000
|
$000
|
|
Quoted:
|
|
|
|
|
|
Equity securities -
United Kingdom
|
|
33
|
27
|
27
|
|
Bonds -
Indonesia
|
|
30,189
|
-
|
-
|
|
|
|
|
|
|
|
Unquoted:
|
|
|
|
|
|
Investment portfolio
- Luxembourg
|
|
10,355
|
-
|
10,008
|
|
|
|
40,577
|
27
|
10,035
|
The maturity of the Bond is
between 1 to 10 years (2023: nil). The coupon rates are between
4.9% to 7.0% (2023: nil).
Financial assets measured at fair
value through profit and loss include the Group's strategic to aim
for higher return. In January 2024, the Group allocated $30,028,000
to our bank's fund manager to invest in Indonesian Government
Bonds.
In FY2023, the Board allocated
$10,000,000 to a fund manager to invest in structured products.
These structured products are nevertheless capital protected as the
Board exercised prudence, amidst generally low risk appetite. Out
of the $10,000,000 allocated, the fund manager had invested of
$9,948,000 in FY2023.
Fair value through profit and loss
financial assets are denominated in the following
currencies:
|
|
|
2024
|
2023
|
2023
|
|
|
|
as at 30
June
|
as at 30
June
|
As at 31
December
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
|
$000
|
$000
|
$000
|
|
Currency
|
|
|
|
|
|
Sterling
|
|
33
|
27
|
27
|
|
US Dollar
|
|
10,355
|
-
|
10,008
|
|
Indonesian
Rupiah
|
|
30,189
|
-
|
-
|
|
|
|
40,577
|
27
|
10,035
|
The fair value of investment for
quoted equity securities and bonds are classified as Level 1 in the
fair value hierarchy and fair value of investment for unquoted
investment portfolio is classified as Level 2.
The valuation inputs for quoted
equity securities and bonds are obtained from the active market
while for unquoted investment portfolio is obtained from the
custodian bank. Where this value of unquoted investment is below
the amount initially invested, the fair value has been determined
to be the cost of the investment due to protected capital
arrangements in place.
11. Prior year
restatement
The deferred tax assets were not
recognised in FY2022 because of the understanding that generally
capital losses cannot be utilised to offset against future trading
profit. Following the finalisation of the 2022 accounts and through
further research, the Group identified a provision in the
Indonesian tax law which allows capital losses from trading assets
to be offset against future trading profit.
|
|
6 months
to
30 June
2023
$000
|
|
Impact on consolidated statement of comprehensive
income
|
|
|
Other comprehensive income for the
year before restatement
|
25,971
|
|
|
|
Effect of change in
restatement:
|
|
|
|
|
Gain on exchange translation of
foreign operations
|
517
|
|
|
|
|
517
|
|
|
|
Other comprehensive expenses for
the year after restatement
|
26,488
|
|
|
|
|
|
| |
The following table summarises the
impact of this prior year restatement on the Consolidated Statement
of Financial Position:
|
|
Balance
as reported
30 June
2023
$000
|
Effect
of restatement
$000
|
Restated
balance at
30 June
2023
$000
|
|
Impact on consolidated statement of financial
position
|
|
|
|
|
Deferred tax assets
|
2,310
|
10,106
|
12,416
|
|
Income tax receivables
|
8,198
|
1,358
|
9,556
|
|
Deferred tax
liabilities
|
(783)
|
52
|
(731)
|
|
Exchange reserves
|
(267,990)
|
(132)
|
(268,122)
|
|
Retained earnings
|
718,721
|
9,272
|
727,933
|
|
Non-controlling
interests
|
115,454
|
2,376
|
117,830
|
12. Report and financial
information
Copies of the interim report for
the Group for the period ended 30 June 2024 are available on the
AEP website at https://www.angloeastern.co.uk/.