RNS Number:0402B
Plantation & General Investmnts.PLC
11 September 2002
Plantation & General Investments Plc
Chairman's Statement
The Group profit before tax for the half-year to 30th June 2002 was #1,625,000,
a 38% increase on the restated figures for the same period last year.
As permitted by Statement of Standard Accounting Practice 20 and recommended by
Financial Reporting Exposure Draft 24, the oversea companies' figures have been
translated at average rates of exchange rather than end-period rates. In
addition, for Eastern Highlands in Zimbabwe, market rates of exchange have been
used rather than official rates. These changes have also been applied to
comparative figures for prior periods.
Overall profits from the tea plantations were down on the previous year, despite
marginally better crops and prices. The deterioration was most marked in Malawi,
where inflation was high (and interest rates even higher) and there was no
compensating devaluation of the currency.
In Zimbabwe high cost inflation was offset by exchange rate movements, but
economic and social conditions continued to make the management of the estate
difficult. Eastern Highlands has now reached an understanding with the
provincial authorities on the land reform programme, offering 835 hectares of
uncultivated land in exchange for a de-listing of areas previously designated.
Of the Group's other estates, Air Muring, the Indonesian rubber estate, showed
the most improved performance. Rubber prices have risen, and crops were 32 per
cent higher as more trees reached maturity.
The UK businesses had mixed fortunes during the period. Jacobs Young & Westbury,
the supplier of garden furniture, had an excellent season, with sales up by over
50 per cent and profits at a record level. Next year dealings with its major
customer, Homebase, will move to an agency basis. While this will much reduce
profits, it will also require less capital, enabling us to cut group borrowings.
Chillington Manufacturing incurred some extra costs as a result of its move to a
new site, and sales were also weaker than anticipated. Its longer-term prospects
remain good, as it develops new products that should maintain its position as
the leading UK wheelbarrow manufacturer.
We have continued to develop the Internet based tea auction, eteatrade, which
has now run weekly tea auctions for almost a year. Although a number of new
producers and buyers have enrolled and the business has support from the
industry leaders, the volumes of trading have been disappointing.
During the period we disposed of the Group's residual assets in Uganda, and
early in July we announced the sale of the business of Nicholl & Wood, the steel
shelving manufacturer. The proceeds from these sales, amounting to just over
#800,000, have been used to reduce Group borrowings.
Seasonal factors usually result in a loss in the second half, and our objective
is to minimise this. Progress will depend heavily on tea prices, local inflation
and exchange rates. At the moment, none of these factors is changing favourably,
so the second half will be challenging.
Rupert Pennant-Rea
11th September 2002
PLANTATION & GENERAL INVESTMENTS PLC
Consolidated profit & loss account
Six months Six months ended Year ended 31
ended 30 June 30 June 2001 December 2001
2002
(Note 1) (Note 1) (Note 1)
Note #'000 #'000 #'000
Turnover 34,926 27,634 38,912
Operating profit 2,566 1,920 360
Profit/(loss) on disposal or closure of operations 199 (35) 480
Profit on disposal of investments 7 10 7
Profit before interest 2,772 1,895 847
Interest (1,267) (1,157) (2,097)
Monetary working capital hyper-inflation adjustment 120 434 1,025
Profit/(loss) before taxation 1,625 1,172 (225)
Taxation 2 (362) (261) (167)
Profit/(loss) after taxation 1,263 911 (392)
Minority interests 10 (66) 18
Profit/(loss) for the period 1,273 845 (374)
Preference dividends - (non-equity) - (81) (81)
Amount transferred to/(from) reserves 1,273 764 (455)
pence pence pence
Earnings/(loss) per ordinary share 3
Basic 2.5 1.5 (0.9)
Notes to the interim statements
1. Basis of preparation of interim financial statements
The results for the six months ended 30 June 2002 are unaudited. They have been prepared on accounting bases and
policies consistent with those used in the Annual Report and Accounts for the year ended 31 December 2001 except as
described below. The comparative figures for the year which have been filed with the Registrar of Companies and on which
the auditors have made a report under Section 235 of the Companies Act 1985 - such report was qualified on a technical
issue concerning directors' valuations of oversea plantations, factories and ancillary property and did not contain a
statement under Section 237(2) or (3) of the Companies Act. The comparative figures for both the year ended 31 December
2001 and the six months ended 30 June 2001 have been restated for the matters described below, except that it was not
practical to record an adjustment to the taxation charge for the six month period ended 30 June 2001 as a result of the
adoption of FRS 19 'Deferred taxation'.
Changes to accounting policies and estimates
Foreign currencies.
The group translates the accounts of its oversea subsidiaries into sterling at the official rates of exchange, but due
to economic conditions in Zimbabwe, exchange rates approximating rates at which our transactions were effected are now
used for that country. These rates are substantially different from Zimbabwe's official rates of exchange.
The group previously translated accounts of its oversea subsidiaries at the rates ruling at the balance sheet date. As
permitted by SSAP20 'Foreign currency translation' and as recommended by the recently published FRED24 'the effects of
changes in foreign exchange rates', the group has now adopted average exchange rates for the translation of the profit &
loss account of oversea subsidiaries.
Deferred taxation.
The group has adopted FRS19 'Deferred taxation' in these statements.
The effect of the above changes to accounting policies and estimates on the previously reported profits after taxation,
for the six months ended 30 June 2001 and year ended 31 December 2001 are as follows:
Six months ended Year ended 31
30 June 2001 December 2001
#'000 #'000
As previously reported: 1,471 933
Change due to revised policy on
translation of oversea subsidiaries results (560) (1,275)
Change due to adoption of FRS 19 Deferred taxation - (50)
As restated above 911 (392)
2. Taxation
Six months Six months ended Year ended 31
ended 30 June 30 June 2001 December 2001
2002
#'000 #'000 #'000
UK Corporation tax (after double taxation relief) - - -
Foreign tax - Current taxation 205 261 117
- Deferred taxation 157 - 50
362 261 167
3. Earnings/(loss) per ordinary share
Basic earnings per ordinary share for the six months ended 30 June 2002 is calculated on a weighted average of
51,783,719 ordinary shares (six months ended 30 June 2001and year ended 31 December 2001 51,783,719 ordinary shares).
The conversion of convertible loan stock would be antidilutive.
4. Copies of the Interim Statement will be sent to all shareholders and holders of the loan stock and are available at
the Company's office at 81 Carter Lane, London EC4V 5EP.
PLANTATION & GENERAL INVESTMENTS PLC
Summarised consolidated balance sheet
As at 30 June 2002 As at 30 June 2001 As at 31
December 2001
(Note 1) (Note 1) (Note 1)
#'000 #'000 #'000
Fixed assets
27,632 31,228 30,264
Current assets
Stocks 4,670 4,678 8,050
Debtors 9,150 8,310 5,012
Cash at bank and in hand 596 6,109 507
14,416 19,097 13,569
Creditors falling due within
one year:
Debt finance (5,804) (11,399) (7,503)
Other (8,583) (7,836) (8,543)
Net current assets/ 29 (138) (2,477)
(liabilities)
Total assets less current 27,661 31,090 27,787
liabilities
Creditors falling due after more than one year:
Debt finance (9,515) (8,762) (9,116)
Other (292) (810) (289)
Provision for liabilities (175) (16) (65)
and charges
17,679 21,502 18,317
Capital and reserves
Called up share capital 12,946 12,946 12,946
Reserves 3,200 6,652 3,678
16,146 19,598 16,624
Minority interests 1,533 1,904 1,693
17,679 21,502 18,317
Statement of total recognised gains and losses
Six months ended 30 June 2002 Six months ended Year ended 31
30 June 2001 December 2001
(Note 1) (Note 1) (Note 1)
#'000 #'000 #'000
Profit/(loss) for the 1,273 845 (374)
period
Monetary working capital hyper-inflation (120) (434) (1,025)
adjustments
Revaluation surplus/(deficit) net of minority 2,995 821 (526)
interests
Exchange differences (4,375) 941 1,124
Total recognised (losses)/gains for the period (227) 2,173 (801)
Statement of movement in shareholders' funds
Six months ended 30 June 2002 Six months ended Year ended 31
30 June 2001 December 2001
(Note 1) (Note 1) (Note 1)
#'000 #'000 #'000
At beginning of period as previously reported 16,674 19,311 19,311
Prior year adjustment - deferred tax (Note 1) (50) - -
At beginning of period as 16,624 19,311 19,311
restated
Total recognised (losses)/gains for the period (227) 2,173 (801)
Reversal of capital reserve less goodwill on (251) - -
disposal
Dividends (81) (81)
Redemption of preference (1,805) (1,805)
shares
At end of period 16,146 19,598 16,624
PLANTATION & GENERAL INVESTMENTS PLC
Consolidated cash flow statement
Six months Six months ended 30 June Year ended 31
ended 30 June 2001 December 2001
2002
(Note 1) (Note 1) (Note 1)
#'000 #'000 #'000
Cash flow from operating activities 987 3,338 2,962
Returns on investments and servicing of finance (1,329) (1,320) (2,327)
Taxation - Oversea tax paid (75) (181) (375)
Net fixed asset and investment additions (391) (1,612) (2,679)
Acquisitions and disposals 821 219 750
13 444 (1,669)
Financing
Issue of new convertible loan stock (net of expenses) - 7,700 7,755
Redemption of preference shares - (1,805) (1,805)
Redemption of convertible loan stock - - (4,677)
Loans (net of repayments) 551 (289) 568
Capital elements of finance lease rentals payable (113) (179) (309)
Total financing 438 5,427 1,532
Increase in cash in the period 451 5,871 (137)
Reconciliation of net cash flow to movement in net debt
Increase in cash in the period 451 5,871 (137)
Cash (inflow)/outflow from change in debt (551) (7,411) (3,646)
Cash outflow from reduction in finance liabilities 113 179 309
Change in net debt resulting from cash flows 13 (1,361) (3,474)
New finance leases (162) (219) (313)
Exchange translation differences 1,516 (201) (54)
Net borrowings disposed with subsidiaries 22 - -
Movement in net debt in the period 1,389 (1,781) (3,841)
Net debt at beginning of period (16,112) (12,271) (12,271)
Net debt at end of period (14,723) (14,052) (16,112)
1,389 (1,781) (3,841)
Reconciliation of operating profit to operating cash flow
Operating profit 2,566 1,920 360
Depreciation 833 819 1,515
Amortisation of goodwill 27 27 55
Impairment of fixed assets - - 200
Working capital (increase)/decrease
Stocks 3,380 2,848 (524)
Debtors (4,138) (1,687) 1,611
Creditors 23 (900) (322)
Exchange translation difference on working capital (717) 325 2
Working capital derived from disposal of subsidiary (1,004) 1 282
undertakings
Disposal of tangible fixed assets 17 (15) (217)
987 3,338 2,962
This information is provided by RNS
The company news service from the London Stock Exchange
END
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