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THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

Pertaining to the announcement made by The Narborough Plantations, plc ('Narborough' or 'the Company') on 31 March 2009 regarding the Company's Annual Report and Accounts. 

The Company hereby wish to make a further announcement regarding the Company's Annual Financial Report (previously known as the Annual Report) stating the key information as required under DTR 6.3.5(1) & (2)(b) in full unedited text as shown below:

INCOME STATEMENT

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008

Continuing operations
		31.12.2008				31.12.2007
		RM		£		RM		£
Revenue		8,141,446		1,321,663		7,768,861		1,129,195
Cost of sales		(2,323,354)		(377,168)		(1,897,879)		(275,855)
Gross profit		5,818,092		944,495		5,870,982		853,340
Gain arising on revaluation
of biological assets		247,985		49,597		4,364,128		660,231
Other operating income		147,837		24,000		28,627		4,161
Administrative expenses		(1,637,196)		(265,779)		(847,982)		(123,254)
Operating profit		4,576,718		752,313		9,415,755		1,394,478
Share of profit of associate
after tax		482,041		96,408		725,549		109,765
Finance income		260,384		42,270		212,528		30,891
Finance costs		(20,470)		(3,805)		(18,359)		(2,777)
Profit before tax		5,298,673		887,186		10,335,473		1,532,357
Tax expense		(1,316,945)		(213,790)		(1,479,232)		(215,005)
Profit for the financial
year		3,981,728		673,396		8,856,241		1,317,352
Earnings per share
- basic and diluted
(sen/pence)		29.90 sen		5.06p		66.51 sen		9.89p

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

STATEMENT OF TOTAL RECOGNISED INCOME AND EXPENSE

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008

		31.12.2008				31.12.2007
		RM		£		RM		£
Profit for the financial
year		3,981,728		673,396		8,856,241		1,317,352
Net surplus/(deficit) arising on
translation of balance sheet
items at beginning of period
and results of the year to
year-end exchange rate
-    revaluation reserve		-		1,087,004		-		120,800
-    capital reserve		-		116,204		-		16,231
-    foreign exchange        reserve		-		242,407		-		(107,220)
-    general reserve		-		29,358		-		4,210
-    retained profits		-		751,659		-		204,742
Reversal of deferred tax
liabilities provided on prior
years' revaluation surplus,
due to exemption from real
property gains tax		-		-		905,909		137,051
Total recognised income
and expense for the year		3,981,728		2,900,028		9,762,150		1,693,166

The accompanying notes form an integral part of this statement of total recognised income and expenses.

  THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

BALANCE SHEET

AS AT 31 DECEMBER 2008

						Restated
		31.12.2008				31.12.2007
		RM		£		RM		£
ASSETS
Non-current assets
Property, plant and
equipment		14,685,063		2,937,013		16,177,006		2,447,353
Biological assets		14,473,005		2,894,601		14,225,020		2,152,045
Prepaid lease payments		115,625		23,125		134,375		20,329
Investment in associate		8,220,357		1,644,072		7,219,314		1,092,181
Total non-current assets		37,494,050		7,498,811		37,755,715		5,711,908
Current assets
Inventories		7,144		1,429		8,134		1,231
Trade and other receivables		273,575		54,715		580,961		87,891
Short term deposits		9,262,572		1,852,514		7,575,741		1,146,103
Cash and bank balances		252,866		50,573		516,683		78,167
Tax recoverable		418,987		83,797		-		-
Total current assets		10,215,144		2,043,028		8,681,519		1,313,392
Total assets		47,709,194		9,541,839		46,437,234		7,025,300
LIABILITIES
Current liabilities
Trade and other payables		(502,305)		(100,461)		(1,943,428)		(294,013)
Current tax liabilities		-		-		(318,900)		(48,245)
Total current liabilities		(502,305)		(100,461)		(2,262,328)		(342,258)
Non-current liabilities
Provision for retirement
benefits		(29,023)		(5,805)		(26,444)		(4,001)
Deferred tax liabilities		(58,397)		(11,679)		(148,548)		(22,473)
Cumulative preference shares		(84,163)		(19,024)		(84,163)		(19,024)
Total non-current liabilities		(171,583)		(36,508)		(259,155)		(45,498)
Total liabilities		(673,888)		(136,969)		(2,521,483)		(387,756)
TOTAL NET ASSETS		47,035,306		9,404,870		43,915,751		6,637,544

The accompanying notes form an integral part of this balance sheet.

  THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

BALANCE SHEET

AS AT 31 DECEMBER 2008 (continued)

						Restated
		31.12.2008				31.12.2007
		RM		£		RM		£
Capital and reserves
attributable to equity
holders of the Company
Share capital		4,891,969		1,331,659		4,891,969		1,331,659
Other reserves		24,361,268		4,516,797		25,302,066		3,229,983
Retained profits		17,782,069		3,556,414		13,721,716		2,075,902
TOTAL EQUITY		47,035,306		9,404,870		43,915,751		6,637,544

The accompanying notes form an integral part of this balance sheet.

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

CASH FLOW STATEMENT

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008

	31.12.2008				31.12.2007
	RM		£		RM		£
Operating activities
Profit before tax	5,298,673		887,186		10,335,473		1,532,357
Adjustments for:
Amortisation of prepaid lease payment	18,750		3,044		18,750		2,725
Depreciation of property, plant and
equipment	64,210		10,423		88,789		12,906
Provision for retirement benefits	2,579		516		2,386		361
Gain arising on revaluation of
biological assets	(247,985)		(49,597)		(4,364,128)		(660,231)
Gain on disposal of property, plant
and equipment	(130,647)		(21,209)		-		-
Share of profit of associate
after tax	(482,041)		(96,408)		(725,549)		(109,765)
Finance income	(260,384)		(42,270)		(212,528)		(30,891)
Finance costs	20,470		3,805		18,359		2,777
Operating cash flow before changes
in working capital and provisions	4,283,625		695,490		5,161,552		750,239
Decrease/(Increase) in inventories	990		198		(740)		(112)
Decrease/(Increase) in trade and
other receivables	307,386		61,477		(168,978)		(25,564)
(Decrease)/Increase in trade and
other payables	(27,481)		(5,496)		44,615		6,749
Cash generated from operations	4,564,520		751,669		5,036,449		731,312
Tax paid	(2,144,983)		(348,212)		(1,192,082)		(173,268)
Net cash flow from operating activities	2,419,537		403,457		3,844,367		558,044
Investing activities
Repayment from affiliated company	-		-		42,924		6,494
Purchases of property, plant and
equipment	(27,600)		(5,520)		(5,284)		(799)
Proceeds from disposal of property,
plant and equipment	1,585,980		257,464		-		-
Interest received	260,384		42,270		212,528		30,891
Net cash flow from investing activities	1,818,764		294,214		250,168		36,586

  THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

CASH FLOW STATEMENT

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008 (continued)

	31.12.2008				31.12.2007
	RM		£		RM		£
Financing activities
Dividends paid on equity shares	(2,794,817)		(450,367)		(1,035,296)		(145,817)
Dividends paid on preference shares	(20,470)		(3,805)		(18,359)		(2,777)
Net cash flow used in financing
activities	(2,815,287)		(454,172)		(1,053,655)		(148,594)
Increase in cash and cash equivalents	1,423,014		243,499		3,040,880		446,036
Effects of exchange rate changes	-		435,318		-		49,296
Cash and cash equivalents at
beginning of financial year	8,092,424		1,224,270		5,051,544		728,938
Cash and cash equivalents at end
of financial year	9,515,438		1,903,087		8,092,424		1,224,270

Comprising:
Cash and bank balances	252,866		50,573		516,683		78,167
Short term deposits	9,262,572		1,852,514		7,575,741		1,146,103
	9,515,438		1,903,087		8,092,424		1,224,270

 

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

NOTES TO THE FINANCIAL STATEMENTS:

SHARE CAPITAL AND RESERVES

		Revaluation
		reserve net of
	Share	attributable	Capital	General	Retained
	capital	deferred tax	reserve	reserve	profits	Total
	RM	RM	RM	RM	RM	RM
At 1 January 2007
As previously reported	4,891,969	17,292,317	-	-	7,314,413	29,498,699
Prior year adjustment	-	-	2,323,361	602,660	-	2,926,021
At 1 January 2007
(as restated)	4,891,969	17,292,317	2,323,361	602,660	7,314,413	32,424,720
Additional interest in an	-	-	62,079	-	-	62,079
associate
Revaluation gains from
revaluation of property,
plant and equipment	-	4,115,740	-	-	-	4,115,740
Total recognised
income and expense
for the year	-	905,909	-	-	8,856,241	9,762,150
Dividends (Note 18)	-	-	-	-	(2,448,938)	(2,448,938)
At 31 December 2007
(as restated)	4,891,969	22,313,966	2,385,440	602,660	13,721,716	43,915,751
Additional interest in an
associate	-	-	246,964	272,038	-	519,002
Realisation of revaluation
surplus on disposal of property,
property, plant and
equipment	-	(1,459,800)	-	-	1,459,800	-
Total recognised
income and expense
for the year	-	-	-	-	3,981,728	3,981,728
Dividends	-	-	-	-	(1,381,175)	(1,381,175)
At 31 December 2008	4,891,969	20,854,166	2,632,404	874,698	17,782,069	47,035,306

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

SHARE CAPITAL AND RESERVES (continued)

		Revaluation
		reserve net of		Foreign
	Share	attributable	Capital	exchange	General	Retained
	capital	deferred tax	reserve	reserve	reserve	profits	Total
	£	£	£	£	£	£	£
At 1 January 2007
As previously reported	1,331,659	2,495,284	-	(490,644)	-	913,489	4,249,788
Prior year adjustment	-	-	335,261	-	86,964	-	422,225
At 1 January 2007
(as restated)	1,331,659	2,495,284	335,261	(490,644)	86,964	913,489	4,672,013
Additional interest in an
associate	-	-	9,392	-	-	-	9,392
Revaluation gains from
revaluation of property,
plant and equipment	-	622,654	-	-	-	-	622,654
Total recognised
income and expense
for the year	-	257,851	16,231	(107,220)	4,210	1,522,094	1,693,166
Dividends (Note 18)	-	-	-	-	-	(359,681)	(359,681)
At 31 December 2007
(as restated)	1,331,659	3,375,789	360,884	(597,864)	91,174	2,075,902	6,637,544
Additional interest in an
associate	-	-	49,393	-	54,408	-	103,801
Realisation of revaluation
surplus on disposal of property,
property, plant and
equipment	-	(291,960)	-	-	-	291,960	-
Total recognised
income and expense
for the year	-	1,087,004	116,204	242,407	29,358	1,425,055	2,900,028
Dividends	-	-	-	-	-	(236,503)	(236,503)
At 31 December 2008	1,331,659	4,170,833	526,481	(355,457)	174,940	3,556,414	9,404,870

  THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

SHARE CAPITAL AND RESERVES (continued)

The following describes the nature and purpose of each reserve above:

 

Reserve	Description and purpose
Revaluation	Gains and losses arising on the revaluation of the estates.
Foreign exchange	Gains and losses arising on translating the Company’s financial statements from Ringgit Malaysia to Pound Sterling.
Retained profits	Cumulative net gains and losses recognised in the income statement less distributions made.
Capital	Share of exchange fluctuation reserve and surplus on revaluation of property in associate.
General	Share of profit on sale of estate land and mining lease in associate

FINANCIAL INSTRUMENTS

In common with all other businesses, the Company is exposed to risks that arise from its use of financial instruments. This note describes the Company's objectives, policies and processes for managing those risks and the methods used to measure them.

There have been no substantive changes in the Company's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

Principal financial instruments

The principal financial instruments used by the Company, from which financial instrument risk arises, are as follows:

- Trade and other receivables

- Cash and cash equivalents

- Trade and other payables

- Cumulative preference shares

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

FINANCIAL INSTRUMENTS (continued)

Fair Value

There is no material difference between the book values and fair values of the Company's financial assets and liabilities as at 31 December 2008 and 2007 due to their short term maturity.

General objectives, policies and procedures

The Board has overall responsibility for the determination of the Company's risk management objectives and policies. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Company's competitiveness and flexibility. Further details regarding these policies are set out below:

Interest Rate Risk

The Company's only exposure to interest rate fluctuation is short term placements with financial institutions that attract interest income. However, the fluctuation in interest rates, if any, is not expected to have a material impact on the financial performance of the Company. The effective interest rate of deposits at the balance sheet date was 3.2% (2007: 3.2%).

Credit Risk

Credit risk arises principally from the Company's trade receivable.

The Company has only one customer who is on credit terms. To mitigate the credit risk arising, the Company requires the customer to place advances, representing a certain percentage of the total sales to the customer. This customer has a maximum credit limit and the Company seeks to maintain strict control over its outstanding receivables to minimise credit risk. Overdue balances are reviewed regularly by the management.

As such the maximum exposure to credit risk in the event that the counterparty fails to perform its obligation as at the end of the financial year in relation to trade receivables is the carrying amount of trade receivables as stated in the balance sheet as at the end of the financial year.

In respect of the short term deposits and cash and bank balances placed with major financial institutions in Malaysia, Singapore and United Kingdom, the Directors believe that the possibility of non-performance by these financial institutions is remote on the basis of their financial strength.

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia

FINANCIAL INSTRUMENTS (continued)

Liquidity Risk

Liquidity risk arises from the Company's management of working capital. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due.

The Company's policy in respect of liquidity is to ensure sufficient cash resources are maintained to meet short-term liabilities. The Company's liquidity risk is minimal as it maintains adequate funds to meet its obligations as and when they fall due.

The Company is financed through equity and has no borrowings.

The only significant financial asset the Company has is cash at bank. Cash is held either on current or on short term deposits at both fixed and floating rates of interest determined by the relevant banks' prevailing base rate. Part of the cash at bank is held in Pound Sterling accounts.

Currency Risk

The Company is exposed to currency risk as a result of the foreign currency transactions entered into in currencies other than Ringgit Malaysia. The Company's policy is to limit its exposure to currency risk by settlement of its foreign currency transactions denominated in Pound Sterling by using the funds from its bank accounts maintained in Pound Sterling.

The table below shows the Company's currency exposures that give rise to the net currency gains and losses recognised in the income statement. Such exposures comprise the financial assets and financial liabilities of the Company that are not denominated in the functional currency of the Company. 

As at 31 December 2008, these exposures were as follows:

Net foreign currency financial assets

					RM		£
Pound Sterling					2,760,828		552,166

The above foreign currency exposures arise from the Company's cash maintained in Pound Sterling bank accounts.

  

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

FINANCIAL INSTRUMENTS (continued)

Capital

The Company considers its capital to comprise its ordinary share capital, accumulated retained earnings and its cumulative preference shares which are classified as a financial liability in the balance sheet.

In managing its capital, the Company's primary objective is to ensure its continued ability to provide a consistent return for its equity shareholders through a combination of capital growth and distributions and through the payment of annual preference dividends to its preference shareholders. In order to achieve this objective, the Company seeks to balance risks and returns at an acceptable level and also to maintain a sufficient funding base to enable the Company to meet its working capital and strategic investment needs. In making decisions to adjust its capital structure to achieve these aims, the Company considers not only its short-term position but also its long-term operational and strategic objectives.

There have been no other significant changes to the Company's capital management objectives, policies and processes in the year nor has there been any change in what the Company considers to be its capital.

The total amount of capital is as follows:

	2008				2007
	RM		£		RM		£
Ordinary share capital	4,891,969		1,331,659		4,891,969		1,331,659
Retained earnings	17,782,069		3,556,414		13,721,716		2,075,902
Cumulative preference shares	84,163		19,024		84,163		19,024
	22,758,201		4,907,097		18,697,848		3,426,585

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

RELATED PARTY TRANSACTIONS

Details of Directors remuneration are given in the Remuneration Report on pages 20 to 24 and Notes 5 and 19 of the full Annual Report 2008. Other related party transactions are as follows:

	Related party	Type of	Transaction amount								Amount owing (to)/by
Party	relationship	transaction	31.12.2008				31.12.2007				2008				2007
			RM		£		RM		£		RM		£		RM		£
Riverview Rubber	A company
Estates Berhad	with
	significant	Interest-free
	influence over	advances
	the Company	received	73,782		11,978		87,780		12,759		-		-		-		-
Rivaknar
Holdings		Loan
Sdn. Bhd.	Associate	Repayment	-		-		(42,924)		(6,494)		-		-		-		-

SEGMENT INFORMATION

The Company operates in the agricultural segment in Malaysia. All its fresh fruit bunches are sold in Malaysia. Since the company operates in a single business and geographic segment, no segmental analysis has been presented.

PRIOR YEAR ADJUSTMENT

The prior year adjustment relates to accounting for share of reserves of associate amounting to RM2,988,100 (£452,058), comprising capital and general reserves, previously not recognised from an overseas associate. The share of reserves is now adjusted retrospectively in the financial statements of the Company in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

PRIOR YEAR ADJUSTMENT (Continued)

The effects on the comparative figures resulting from prior year adjustments are summarised as follows:

		As
		previously		Prior year		As
		reported		adjustment		restated
Balance sheet
		RM		RM		RM
Non-current assets
Investment in associate		4,231,214		2,988,100		7,219,314
		£		£		£
Investment in associate		640,123		452,058		1,092,181
Capital and reserves attributable
to equity holders of the Company
		RM		RM		RM
Other reserves
-    capital reserve		-		2,385,440		2,385,440
-    general reserve		-		602,660		602,660
		-		2,988,100		2,988,100

  

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

PRIOR YEAR ADJUSTMENT (continued)

		As
		previously		Prior year		As
		reported		adjustment		restated
Capital and reserves attributable
to equity holders of the Company
(continued)
		£		£		£
Other reserves
-    capital reserve		-		344,653		344,653
-    general reserve		-		86,964		86,964
		-		431,617		431,617
Statement of total recognised
income and expense
		£		£		£
Net surplus arising on
translation of balance sheet
items at beginning of period
and results of the year to
year-end exchange rate
-    capital reserve		-		16,231		16,231
-    general reserve		-		4,210		4,210
		-		20,441		20,441
		-		452,058		452,058

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

REVIEW OF FINANCIAL PERFORMANCE

	31.12.2008		31.12.2007		31.12.2008		31.12.2007
	RM		RM		£		£
Revenue	8,141,446		7,768,861		1,321,663		1,129,195
Cost of sales	(2,323,354)		(1,897,879)		(377,168)		(275,855)
Gross profit	5,818,092		5,870,982		944,495		853,340
Gain arising on revaluation of biological asset	247,985		4,364,128		49,597		660,231
Profit before tax	5,298,673		10,335,473		887,186		1,532,357
Earnings per share	29.90 sen		66.51 sen		5.06p		9.89p

Year 2008 has been an eventful year for the Company and the world in general. The commodity industry has seen extreme volatility in commodity prices, adverse unpredictable weather conditions and mass speculation in the commodity exchanges which have driven the price of commodities such as Crude Palm Oil (CPO) to unprecedented highs. However, such high prices could not be sustained and the sharp decline was evident in the final six months of the financial year under review.

The sharp decline in CPO prices was reflected in the related price of Fresh Fruit Bunches (FFB) which in turn has affected the turnover of the Company. However, for the financial year ended 31 December 2008, the Company has still managed to register a turnover of RM8,141,446 (£1,321,663), an increase of 4.80% compared with the financial year ended 31 December 2007.  

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

 

REVIEW OF FINANCIAL PERFORMANCE (Continued)

The Company achieved a profit on ordinary activities before tax of RM5,298,673 (£887,186) for the current financial year ended 31 December 2008 as compared to the amount of RM10,335,473 (£1,532,357) for the previous financial year. The significant reduction in profit on ordinary activities before tax was attributed to the following non-cash items which have a significant effect on the financial performance of the company as at 31 December 2008:-

	31.12.2008		31.12.2007		31.12.2008		31.12.2007
	RM		RM		£		£
Unrealised foreign exchange loss	(883,072)		(174,928)		(143,356)		(25,426)
Share of profit in associate after tax	482,041		725,549		96,408		109,765
Gain arising on revaluation of biological assets	247,985		4,364,128		49,597		660,231

The biological assets are carried at fair value which is calculated as the present value of the estate's operating cash flows over the next ten years, based on Directors' best estimates of future selling prices of fresh fruit bunches as shown in Note 8 of the Notes to Financial Statements.

Due to the significant reduction in profits, earnings per share has declined from 66.51 sen (9.89 pence) for the financial year ended 31 December 2007 to 29.90 sen (5.06 pence) for the year ended 31 December 2008.

FINANCIAL POSITION

The Company's balance sheet at 31 December 2008 showed a strong position, with net assets of RM47,035,306 (£9,404,870) compared with RM43,915,751 (£6,637,544) at 31 December 2007. Cash and short term deposits totalled RM9,515,438 (£1,903,087) compared with RM8,092,424 (£1,224,270) of the previous financial year. The company has no bank borrowings.

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

REVIEW OF OPERATIONS

The year witnessed extreme volatility in the commodity price for palm oil.  

'The average Crude Palm Oil (CPO) price increased by 9.8% or RM247.00 to RM2,777.50 in 2008 against RM2,530.50 the previous year. However, the palm oil industry experienced extreme price fluctuations during the year with the highest monthly average CPO price recorded in March 2008 at RM3,695.00 and the lowest attained in November at RM1,520.50. CPO prices firmed during the first half of the year trading above RM3,500/tonne level supported by higher crude oil prices, demand for biodiesel, tight global vegetable oils situation and higher vegetable oils prices. However, during the second-half of the year bearish sentiments prevailed in the market influenced by the sharp decline in crude oil prices as well as other vegetable oils, high palm oil stocks, global financial crisis and fears of global recession. This resulted in the monthly average CPO price falling below the RM 2,000/tonne level since October 2008.'* 

Overall, foreign exchange has significantly affected the Company's operational profits, excluding gain arising from revaluation of biological assets, decreased by 16.90% in the current financial year as compared to the previous financial year. With the estate now fully matured, there was no replanting expenditure incurred.

(* Source: Malaysian Palm Oil Board)

CURRENT YEAR'S PROSPECTS

The world is now wrought by possibly the worst financial crisis it has ever seen, the subprime meltdown and the fallout on the commodity and foreign exchange markets has significantly raised the prospects of a global recession for Year 2009. 

'The year 2009 is expected to be a challenging one for the industry in view of the high prevailing palm oil stocks, set-back in prices and concerns of a global recession. The Malaysian Government has taken various measures to stabilize palm oil prices at remunerative levels. Among the measures are the Oil Palm Replanting Incentive Scheme to accelerate replanting and reduce CPO production in the near term, the implementation of the 5% biodiesel mandate in the transport and industrial sector starting with government vehicles in February 2009 and increasing exports under the CPO export duty free scheme. In view of the prevailing CPO prices , the average price in 2009 is expected to soften compared to last year.'*

(* Source: Malaysian Palm Oil Board)

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

CURRENT YEAR'S PROSPECTS (Continued)

Crop will be expected to increase in the foreseeable future, as matured plants have entered their prime production years. With no further replanting planned for the next few years, the plantation will enter a period of increasing production and falling costs. The Company should see another profitable year ahead given the stabilization of CPO price, improved cost efficiency through proper planning and favourable weather which will be beneficial to an increase in productivity of FFB.

DIVIDEND 

Dividends paid, declared or proposed since the end of the previous financial year were as follows:

	RM		£
In respect of financial year ended 31 December 2007:
Interim dividend of 10% and Special dividend of 12% per ordinary share of 10 pence each, less tax of 27%, paid on 18 January 2008
	1,413,642		213,864
In respect of financial year ended 31 December 2008:
Interim dividend of 6% and Special dividend of 6% per ordinary share of 10 pence each, less tax of 26%, paid on 19 June 2008
	744,983		118,251
2nd Interim dividend of 6% and 2nd Special dividend of 6% per ordinary share of 10 pence each, less tax of 26%, paid on 19 December 2008
	636,192		118,252
	2,794,817		450,367

The Board do not recommend a payment of final dividend for the current financial year. 

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia)

CHANGE IN DIRECTORSHIP DURING THE YEAR ENDED 31 DECEMBER 2008

On 25 July 2008, Mr William John Huntman retired from the board. He first joined the Narborough board in 1973 and was largely responsible for the prosperity and growth of the Company. His immense experience and contribution is duly acknowledged. It is pleasing to know that this will still be available to the other directors as he remains as our Senior Advisor.

On the same day, we were pleased to welcome Mr Adrian Tsen Keng Yam to the board. Mr Adrian Tsen brings a wealth of experience in accountancy and corporate strategy.

The announcement for the above change in Directorship has been made on 29 July 2008 on the London Stock Exchange website.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company, for safeguarding the assets of the company, for taking reasonable steps for the prevention and detection of fraud and other irregularities and for the preparation of a directors' report and directors' remuneration report which comply with the requirements of the Companies Act 1985.

The directors are responsible for preparing the annual report and the financial statements in accordance with the Companies Act 1985. The directors have chosen to prepare financial statements for the company in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS).

International Accounting Standard 1 requires that financial statements present fairly for each financial year the company's financial position, financial performance and cash flows. This requires the faithful presentation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards Board's 'Framework for the preparation and presentation of financial statements'. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable IFRSs. A fair presentation also requires the Directors to:

•    consistently select and apply appropriate accounting policies;

•    present information, including accounting policies, in a manner that provides relevant, reliable, 
     comparable and understandable information; and

•    provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient 
     to enable users to understand the impact of particular transactions, other events and conditions on the 
     entity's financial position and financial performance.

THE NARBOROUGH PLANTATIONS, PUBLIC LIMITED COMPANY

Incorporated in England and Wales 1910 - Registration No. 109273

(UK Registered Office: Prospect House, 2 Athenaeum Road, London N20 9YU, United Kingdom)

Registered as a Foreign Company in Malaysia - No. 991416-W

(Malaysian Registered Office: 33A Jalan Tun Sambanthan, 30000 Ipoh, Perak Darul Ridzuan, Malaysia

STATEMENT OF DIRECTORS' RESPONSIBILITIES (Continued)

The directors confirm to the best of their knowledge:

-    the Company financial statements have been prepared in accordance with International Financial 
     Reporting Standards as adopted by the European Union (IFRSs) and Article 4 of the IAS Regulation 
     and give a true and fair view of the assets, liabilities, financial position and profit and loss of the 
     Company.

-    the directors' report on pages 12 to 15 of the full Annual Report 2008 includes a fair review of the 
     development and performance of the business and the financial position of the Company, together 
     with a description or the principal risks and uncertainties that they face.

The report of the auditors which is unqualified can be found on pages 26 and 27 of the full Annual Report 2008.

This statement is made in accordance with the resolution of the Board of Directors dated 23 February 2009 and authorised for issue on 2 March 2009.

As stated in the Company's announcement on 31 March 2009, two copies of the Annual Report have been submitted to the UK Listing Authority and should now be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at the UK Listing Authority, Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS.

The Company's full annual financial statements for financial year ended 31 December 2008 is also available at the Company's website at www.narboroughplantations.com

The Notice of 99th Annual General Meeting of the Company has been announced on 24 April 2009 on the London Stock Exchange website.

By order of the Board

Adrian Tsen Keng Yam

Executive Directors
33A Jalan Tun Sambanthan

30000 Ipoh

Perak Darul Ridzuan
Malaysia

This announcement is dated 27 April 2009.

ENDFR SEMFSWSUSEEL