Narborough Plantations PLC
25 April 2008
The Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
INCOME STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2008
(the figures have not been audited)
Continuing Operations
3 months period / Cumulative period
ended 31.03.08 ended 31.03.07
RM £ RM £
Revenue 2,564,259 401,921 1,110,156 163,499
Cost of sales (468,833) (73,485) (328,643) (48,401)
Gross Profit 2,095,426 328,436 781,513 115,098
Other operating income 4,235 664 2,000 295
Administrative expenses (161,276) (25,278) (125,257) (18,447)
Exchange profit/(loss) (133,518) (20,928) (67,207) (9,898)
Operating Profit 1,804,867 282,894 591,049 87,048
Share of operating profit in associate 234,704 36,903 141,521 20,843
after tax
Finance income 60,252 9,444 45,152 6,650
Finance cost (6,017) (946) - -
Amount written back on fixed asset - - - -
investment
Profit on ordinary activities before 2,093,806 328,295 777,722 114,541
taxation
Taxation (521,000) (81,661) (205,449) (30,258)
Profit after tax 1,572,806 246,634 572,273 84,283
Earnings per share 11.81 sen 1.85 p 4.30 sen 0.63 p
The income statements should be read in conjunction with the financial
statements for the financial year ended 31 December 2007 and the accompanying
explanatory notes attached to the interim financial statements.
Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
BALANCE SHEET AS AT 31 MARCH 2008
(the figures have not been audited)
As at As at
31.03.08 31.12.07
ASSETS (Audited)
RM £ RM £
NON-CURRENT ASSETS
Property, plant and equipment 16,186,069 2,544,979 16,177,006 2,447,353
Biological assets 14,225,020 2,236,638 14,225,020 2,152,045
Prepaid lease payments 129,687 20,391 134,375 20,329
Investment in associate 4,465,918 702,188 4,231,214 640,123
35,006,694 5,504,196 34,767,615 5,259,850
CURRENT ASSETS
Inventories 27,614 4,342 8,134 1,231
Trade and other receivables 634,633 99,785 580,961 87,891
Short term deposits 4,600,000 723,271 7,575,741 1,146,103
Cash and bank balances 3,542,332 556,970 516,683 78,167
TOTAL CURRENT ASSETS 8,804,579 1,384,368 8,681,519 1,313,392
TOTAL ASSETS 43,811,273 6,888,564 43,449,134 6,573,242
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (508,509) (79,954) (1,943,428) (294,013)
Tax liabilities (543,152) (85,401) (318,900) (48,245)
(1,051,661) (165,355) (2,262,328) (342,258)
NON CURRENT LIABILITES
Provision for retirement benefits (26,444) (4,158) (26,444) (4,001)
Deferred tax liabilities (148,548) (23,356) (148,548) (22,473)
Cumulative preference shares (84,163) (19,024) (84,163) (19,024)
(259,155) (46,538) (259,155) (45,498)
TOTAL LIABILITIES (1,310,816) (211,893) (2,521,483) (387,756)
TOTAL NET ASSETS 42,500,457 6,676,671 40,927,651 6,185,486
CAPITAL & RESERVES ATTRIBUTABLE
TO EQUITY HOLDERS OF THE COMPANY
Share capital 4,891,969 1,331,659 4,891,969 1,331,659
Other reserves 22,313,966 2,940,213 22,313,966 2,777,925
Retained profits 15,294,522 2,404,799 13,721,716 2,075,902
TOTAL EQUITY 42,500,457 6,676,671 40,927,651 6,185,486
Net assets per share (RM / pence) 3.19 50.14 p 3.07 46.45 p
The balance sheet should be read in conjunction with the financial statements
for the financial year ended 31 December 2007 and the accompanying explanatory
notes attached to the interim financial statements.
Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2008
(the figures have not been audited)
(in Ringgit Malaysia)
Revaluation
reserve
net of
attributable
deferred tax Retained
Share (Non- profit
capital distributable) (Distributable) Total
RM RM RM RM
At 1 January 2007 4,891,969 17,292,317 7,314,413 29,498,699
Total recognised income and
expenses for the period - 5,021,649 8,856,241 13,877,890
Dividends (Note 18) - - (2,448,938) (2,448,938)
At 31 December 2007 4,891,969 22,313,966 13,721,716 40,927,651
Total recognised income and
expenses for the period - - 1,572,806 1,572,806
Dividends - - - -
At 31 March 2008 4,891,969 22,313,966 15,294,522 42,500,457
Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2008
(the figures have not been audited)
(in Pound Sterling)
Revaluation
reserve
Foreign net of
exchange attributable
reserve deferred tax Retained
Share (Non- (Non- profits
capital distributable) distributable) (Distributable) Total
£ £ £ £ £
At 1 January 2007 1,331,659 (490,644) 2,495,284 913,489 4,249,788
Net deficit arising on
translation of balance
sheet items at
beginning of period
and result of the
period to period-end
exchange rate - (107,220) 120,800 204,742 218,322
Total recognised
income and expenses
for the period - - 759,705 1,317,352 2,077,057
Dividends - - - (359,681) (359,681)
At 31 December 2007 1,331,659 (597,864) 3,375,789 2,075,902 6,185,486
Net surplus/(deficit)
arising on translation
of balance sheet
items at beginning
of period and result of
the period to period-end
exchange rate - 29,592 132,696 82,376 244,664
Total recognised
income and expenses
for the period - - - 246,521 246,521
Dividends - - - - -
At 31 March 2008 1,331,659 (568,272) 3,508,485 2,404,799 6,676,671
The statement of changes in equity should be read in conjunction with the
financial statements for the financial year ended 31 December 2007 and the
accompanying explanatory notes attached to the interim financial statements.
The Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2008
(the figures have not been audited)
3 months to 3 months to
31.3.2008 31.3.2007
RM £ RM £
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 2,093,806 328,295 777,722 114,541
Adjustments for:
Depreciation 23,225 3,640 26,851 3,954
Provision/(write back) of retirement benefits - - -
Exchange adjustment - 40,502 - -
Share of profit of associate (234,704) (36,903) (141,521) (20,843)
Finance income (60,252) (9,444) (45,152) (6,650)
Finance cost 6,017 946 - -
Operating profit before working capital changes 1,828,092 327,036 617,900 91,002
Changes in working capital
Inventories (19,480) (3,063) (14,852) (2,188)
Receivables (53,672) (8,439) 60,971 8,980
Payables (29,974) (4,713) 268,439 39,534
Cash generated from operating activities 1,724,966 310,821 932,458 137,328
Tax paid (296,748) (46,512) (205,449) (30,258)
Net cash (used in)/generated from operating activities 1,428,218 264,309 727,009 107,070
CASH FLOW FROM INVESTING ACTIVITY
Repayment from / (advances to) affiliated company 2,681 422 42,924 6,322
Interest received 60,252 9,444 45,152 6,650
Purchase of property, plant & equipment (27,600) (4,340) - -
Net cash generated from investing activity 35,333 5,526 88,076 12,972
CASH FLOW FROM FINANCING ACTIVITY
Dividends paid on equity shares (1,413,643) (213,864) - -
Net cash (used in)/generated from financing activities (1,413,643) (213,864) - -
Net (decrease)/increase in cash and cash equivalents 49,908 55,971 815,085 120,042
Cash and cash equivalents at beginning of period 8,092,424 1,224,270 5,051,544 743,968
Cash and cash equivalents at end of period 8,142,332 1,280,241 5,866,629 864,010
Cash and cash equivalents comprise:
Deposits with financial institutions 4,600,000 723,271 5,458,514 803,905
Cash and bank balances 3,542,332 556,970 408,115 60,105
8,142,332 1,280,241 5,866,629 864,010
The cash flow statement should be read in conjunction with the financial
statements for the financial year ended 31 December 2007 and the accompanying
explanatory notes attached to the interim financial statements.
The Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
Notes to the interim financial statements
A1. Basis of preparation
The interim financial statements are unaudited and have been prepared in
accordance with International Financial Reporting Standards (IFRS and IFRIC)
issued by the International Accounting Standards Board (IASB) as adopted by the
EU and with those parts of the Companies Act, 1985 applicable to companies
preparing their accounts under IFRS.
The interim financial statements should be read in conjunction with the audited
financial statements of the Company for the year ended 31 December 2007. There
was no qualification in the audited financial statements for the year ended 31
December 2007.
The accounting policies and methods of computation adopted by the Company in the
interim financial statements are consistent with those adopted in the financial
statements for the year ended 31 December 2007 except for the adoption of the
following new/revised International Financial Reporting Standards ('IFRS')
effective for the financial period beginning 1 January 2008.
IFRS 8 Operating Segments
IAS 23 Borrowing Costs (revised)*
IFRIC 11, IFRS 2 Group and Treasury Share Transactions
IFRIC 12 Service Concession Arrangements*
IFRIC 13 Customer Loyalty Programmes*
IFRIC 14, IAS 1 The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction*
Revised IFRS 3 Business Combination and complementary Amendments to IAS 27 '
Consolidated and separate financial statements*
Amendment to IFRS 2 Share-based payments: vesting conditions and cancellations*
IAS 1 Presentation of Financial Statements (Amendment)*
IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation (Amendment)*
IAS 32 Financial Instruments: Presentation (Amendment)*
*Not endorsed by the EU as at the date of approval of these financial statement.
The adoption of the above IFRS does not have any significant financial impact on
the Company.
A2. Seasonal or cyclical factors
The production of fresh fruits bunches ('FFB') is dependent on weather
conditions; hence is seasonal in nature.
A3. Items affecting assets, liabilities, equity, net income or cash flows
There were no items affecting assets, liabilities, equity, net income or cash
flows that are unusual because of their nature, size or incidence.
A4. Change in estimates
There were no changes in estimates that have a material effect in the
current quarter.
The Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
Notes to the interim financial statements - cont'd
A5. Debt and equity securities
There were no issuance, cancellations, repurchase, resale and
repayments of debt and equity securities in the current quarter.
A6. Dividend paid
An Interim Dividend of RM642,565 (£97,211) and a Special Dividend of RM771,078
(£116,653) for the year ended 31 December 2007 was paid on 15 January 2008.
A7. Segment information
Segmental information is not presented as the principal activity of the Company
is the cultivation of oil palm wholly carried out within Malaysia.
A8. Valuation of property, plant and equipment
The valuations of property, plant and equipment have been brought forward
without amendment from the previous annual financial statements.
A9. Capital commitments
There are no capital commitments as at 31 March 2008.
A10. Events subsequent to the balance sheet date
There were no material events subsequent to the end of the current quarter that
have not been reflected in the interim financial statements under review.
A11. Changes in composition
There were no changes in the composition of the Company for the current quarter.
A12. Changes in contingent liabilities and contingent assets
There were no contingent liabilities or contingent assets as at the last annual
balance sheet date and the latest practicable date.
A13. Related party transactions
There were no significant related party transactions of the Company for the
current quarter.
The Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
Additional information
B1. Review of performance
The Company registered revenue of RM2,564,259 (£401,921) for the current
financial period, an increase of 130.98% as compared to the preceding year
corresponding quarter. The Company also recorded a pre-tax profit in the
financial year of RM2,093,806 (£328,295) against pre-tax profit of RM777,722
(£114,541) in the preceding year corresponding quarter. Percentage yield of
fresh fruit bunches (FFB) for the current quarter has also increased by 23.32%
from 2,819 MT to 3,476 MT as compared to the preceding year corresponding
quarter. Percentage of increase in average price of FFB for the current quarter
has increased by 87.32% from RM393.78/MT to RM737.65/MT as compared to the
preceding year corresponding quarter. The higher revenue was mainly due to an
increase in the selling price of fresh fruit bunches due to buoyant CPO prices
and increased in yield.
B2. Variation of results against preceding quarter
The current quarter recorded a pre-tax profit of RM2,093,806 (£328,295) on
revenue of RM2,564,259 (£401,921) compared to operating pre-tax profit (before
adjustment of gain arising from revaluation of biological asset of RM4,364,128
(£660,231) based on the valuation carried out by independent valuers, Messrs
Colliers, Jordan Lee & Jaafar Sdn. Bhd., Chartered Surveyors for the financial
year ended 31.12.2007) of RM1,804,357 (£260,745) on revenue of RM2,507,123
(£362,301) posted in the immediate preceding quarter. The higher revenue was
mainly due to an increase in the selling price of fresh fruit bunches due to
buoyant CPO prices.
B3. Current year prospects
Barring any unforeseen circumstances, the directors expect the performance of
the Company for the current financial year to be satisfactory.
B4. Profit forecast
Not applicable as no profit forecast was published.
B5. Tax expense
3 months ended 3 months ended
31.03.2008 31.03.2007 31.03.2008 31.03.2007
RM'000 RM'000 £'000 £'000
Current tax expense of the company 521 205 82 30
The effective rate of taxation of the Company is lower than the statutory rate
of taxation for the current financial period to date due to certain income/
expenses which are not tax allowable.
B6. Unquoted investments and properties
There were no purchase or sales of unquoted investments or properties for the
current financial year todate.
B7. Quoted investments
There were no purchases of quoted securities for the current financial period.
B8. Status of corporate proposal announced
There were no corporate proposals announced and not completed as at the latest
practicable date.
B9. Borrowing and debt securities
There were no borrowings and debt securities as at the end of the current
quarter.
The Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
Additional information - cont'd
B10. Off balance sheet financial instruments
There were no financial instruments with off balance sheet risk as at the latest
practicable date.
B11. Changes in material litigation
There was no pending material litigation as at the latest practicable date.
B12. Dividends
The directors do not recommend any payment of dividend for the current financial
period to date.
B13. Earnings per share
Basic earnings per share
The earnings per share is calculated by dividing the net profit for the period
attributable to equity holders of the Company by the weighted average number of
shares of the Company in issue during the period.
Individual period Cumulative period
Current year Preceding year Current year to Preceding year
quarter corresponding quarter date corresponding period
31.03.2008 31.03.2007 31.03.2008 31.03.2007
Net profit attributable to
ordinary shareholders
(RM) 1,572,806 572,273 1,572,806 572,273
Basic earnings per share
Weighted average number of 13,316,590 13,316,590 13,316,590 13,316,590
ordinary shares of 10 p each
Basic earnings per ordinary 11.81 4.30 11.81 4.30
share of 10 p each (sen)
The Narborough Plantations, plc
(Incorporated in England 1910 - Registration No. 109273)
(Registered as a Foreign Company in Malaysia - No. 991416-W)
Additional information - cont'd
B13. Earnings per share (cont'd)
Individual period Cumulative period
Current year Preceding year Current year to Preceding year
quarter corresponding quarter date corresponding period
31.03.2008 31.03.2007 31.03.2008 31.03.2007
Net profit attributable to
ordinary shareholders
(£) 246,634 84,283 246,634 84,283
Basic earnings per share
Weighted average number of 13,316,590 13,316,590 13,316,590 13,316,590
ordinary shares of 10 p each
Basic earnings per ordinary 1.85 p 0.63 p 1.85 p 0.63 p
share of 10 p each (pence)
Diluted earnings per shares
Not applicable.
The financial statements are measured in Ringgit Malaysia (RM), which is the
functional currency, being the currency of the primary economic environment in
which the Company operates. The financial statements are presented in both RM
and Pound Sterling. The balance sheet is translated to Pound Sterling for
presentation purpose at an exchange rate of RM1 = 15.72p (2007: RM1 = 14.73p)
whereas the income statement is translated at an average exchange rate of RM1 =
15.67p (2007: RM1 = 14.73p).
By Order of the Board
Adrian Tsen
Company Secretary
Dated : 24 April 2008
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