Interim Results
September 10 2004 - 2:01AM
UK Regulatory
RNS Number:8138C
Plantation & General Investmnts.PLC
10 September 2004
Plantation & General Investments Plc
Chairman's Statement
The overall Group profit before tax and hyperinflation adjustment for the half
year to 30th June at #1,423,000 was close to the profit recorded in the same
period last year. This was achieved despite a very poor result from the
Zimbabwean business, Eastern Highlands Plantations, #1.4 million worse than the
previous year. This has masked the improved results that have been achieved in
all the other Group businesses.
The charges for taxation and minority interests were higher than normal due to
non-recurring charges in Indonesia for adjustments in respect of prior periods.
Production of made tea increased by 4% and prices for the African teas increased
on average by 10%. These two factors considerably improved the results from the
Malawi estates, which again made the largest contribution to Group profits.
Malawi also benefited from an increasing crop of macadamia nuts.
The profitability of the Zimbabwe estates was adversely affected by the
introduction of a new system for exchanging foreign currency in January 2004.
This has resulted in a strengthening of the local market rates of exchange even
though local cost inflation has continued to run at around 400% per annum. This
combination has made tea exports unprofitable.
Our Indonesian Rubber estate, Air Muring, has benefited from higher rubber
prices and production is 2% ahead of last year, with the estate now close to
full maturity.
Khal Amazi, the Group's rose farm in Zambia, has just completed a 7 hectare
extension, which has brought the total area of roses in greenhouses to 22
hectares. Rose margins have benefited from exchange rate movements. Production
from the new area will begin in the final quarter of the year.
The UK businesses also showed a useful improvement. The management changes at
Chillington, the Group's wheelbarrow manufacturer, have made a positive impact,
but swingeing steel price increases during the period have materially reduced
margins and delayed a return to profits.
A further weakening of the US dollar has reduced the Group's net assets by
#330,000, while borrowings have increased by about #700,000 since December. This
increase is due to the normal seasonal requirement for working capital and
additional medium term borrowings in Khal Amazi to finance the expansion.
Based on the Group's normal seasonal pattern, the second half of the year will
result in a loss. As usual, this will depend heavily on the weather, cost
inflation and exchange rates. The Zimbabwe exchange rate will be the most
crucial; without a significant weakening of the currency, Eastern Highlands will
continue to show significant losses.
Derek Netherton retired from the Board at the AGM in June, and I am pleased to
report that Mr Barry Hill has been appointed as a non-executive director and
Chairman of the Audit Committee. He is a chartered accountant who has recently
retired as a tax partner from PricewaterhouseCoopers. With his background and
experience, he will make a valuable contribution to the Group.
Rupert Pennant-Rea
10 September 2004
Plantation & General Investments Plc
Consolidated profit & loss account
------------------------------------
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2004 2003 2003
Note #'000 #'000 #'000
Turnover 13,107 14,816 22,913
-------- ------- --------
Operating profit before interest 2,266 2,294 2,020
Interest (843) (831) (1,591)
-------- ------- --------
Profit after interest 1,423 1,463 429
Monetary working capital
hyper-inflation 59 (73) (65)
adjustment -------- ------- --------
Profit before taxation 1,482 1,390 364
Taxation 2 (1,038) (563) (680)
-------- ------- --------
Profit/(loss) after taxation 444 827 (316)
Minority interests (258) (40) 44
-------- ------- --------
Profit/(loss) for the period and
amount transferred to/(from) 186 787 (272)
reserves -------- ------- --------
pence pence pence
Earnings/(loss) per ordinary share 3
Basic 0.4 1.5 (0.5)
-------- ------- --------
Summarised consolidated balance sheet
--------------------------------------
As at As at As at
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
-------- -------- --------
Fixed assets 23,206 24,869 23,189
-------- -------- --------
Current assets
Stocks 2,057 2,370 2,200
Debtors 3,657 4,807 1,806
Cash at bank and in hand 413 574 399
-------- -------- --------
6,127 7,751 4,405
-------- -------- --------
Creditors falling due within one year:
Debt finance (3,787) (2,849) (2,874)
Other (4,594) (4,879) (3,866)
-------- -------- --------
(8,381) (7,728) (6,740)
-------- -------- --------
Net current (liabilities)/assets (2,254) 23 (2,335)
-------- -------- --------
Total assets less current liabilities 20,952 24,892 20,854
Creditors falling due after more than one
year:
Debt finance (9,311) (10,046) (9,494)
Other (619) (344) (346)
Provision for liabilities and charges (248) (244) (147)
-------- -------- --------
10,774 14,258 10,867
======== ======== ========
Capital and reserves
Called up share capital 12,948 12,948 12,948
Reserves (3,230) 125 (2,974)
-------- -------- --------
Shareholders' funds - equity 9,718 13,073 9,974
Minority interests 1,056 1,185 893
-------- -------- --------
10,774 14,258 10,867
======== ======== ========
Statement of total recognised gains and losses
------------------------------------------------
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
Profit/(loss) for the period 186 787 (272)
Monetary working capital hyper-inflation
adjustments (59) 73 65
Revaluation deficit net of minority interests (44) (76) (558)
Exchange differences (339) (680) (2,230)
-------- -------- --------
Total recognised (losses)/gains for the
period (256) 104 (2,995)
======== ======== ========
Statement of movement in shareholders' funds
----------------------------------------------
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
At beginning of period 9,974 12,969 12,969
Total recognised (losses)/gains for the
period (256) 104 (2,995)
-------- -------- --------
At end of period 9,718 13,073 9,974
======== ======== ========
Consolidated cash flow statement
----------------------------------
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
-------- ------- --------
--------
Cash flow from operating activities 1,340 1,313 3,114
Returns on investments and servicing
of finance (956) (911) (1,695)
Taxation - Oversea tax paid (164) (28) (39)
Net fixed asset and investment
additions (956) (302) (1,219)
-------- ------- --------
(736) 72 161
Financing
Loans (net of repayments) 117 (158) (634)
Capital elements of finance lease
rentals payable (55) (99) (138)
-------- ------- --------
Total financing 62 (257) (772)
Decrease in cash in the period (674) (185) (611)
-------- ------- --------
Reconciliation of net cash flow to movement
in net debt
Decrease in cash in the period (674) (185) (611)
Cash (inflow)/outflow from change in debt (117) 158 634
Cash outflow from reduction in
finance liabilities 55 99 138
-------- ------- --------
Change in net debt resulting from
cash flows (736) 72 161
New finance leases - (28) (13)
Exchange translation differences 20 62 310
-------- ------- --------
Movement in net debt in the period (716) 106 458
-------- ------- --------
Net debt at beginning of period (11,969) (12,427) (12,427)
Net debt at end of period (12,685) (12,321) (11,969)
-------- ------- --------
(716) 106 458
-------- ------- --------
Reconciliation of operating profit to
operating cash flow
Operating profit 2,266 2,294 2,020
Depreciation 456 480 881
Amortisation of goodwill 28 27 55
Working capital decrease/(increase)
Stocks 143 548 718
Debtors (1,851) (2,106) 895
Creditors 254 468 (452)
Exchange translation difference on
working capital 3 (390) (980)
Disposal of tangible fixed assets 41 (8) (23)
-------- ------- --------
1,340 1,313 3,114
-------- ------- --------
Notes to the interim statements
1. Basis of preparation of interim financial statements
The results for the six months ended 30 June 2004 and 30 June 2003 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
2003. The comparative figures for the year ended 31 December 2003 are an extract
from the full accounts 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.
2. Taxation Six months Six months
ended ended Year ended
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
UK Corporation tax (after double - - -
taxation relief)
Foreign tax - Current taxation 616 493 547
Deferred taxation 118 70 133
Prior year adjustment 304 - -
-------- ------- --------
1,038 563 680
======== ======= ========
3. Earnings/(loss) per ordinary share
Basic earnings per ordinary share for the six months ended 30 June 2004 is
calculated on a weighted average of 51,791,887 ordinary shares (six months ended
30 June 2003 51,791,603 ordinary shares and year ended 31 December 2003
51,791,722 ordinary shares). The conversion of convertible loan stock would be
antidilutive.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR VKLFBZKBLBBL
Pgi Group (LSE:PGI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pgi Group (LSE:PGI)
Historical Stock Chart
From Jul 2023 to Jul 2024