BERTAM HOLDINGS PLC
OIL PALM PLANTATIONS AND PROPERTY DEVELOPMENT IN MALAYSIA
ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED
30 JUNE 2003
Highlights from the chairman's statement and unaudited interim results
for the six months ended 30 June 2003
* pre-tax profit �2,203,000 (2002 �1,438,000)
* improvement chiefly attributable to stronger palm oil prices and higher
crops
* Bertam Properties improved profit following better housing sales and
stronger palm oil market
* firm palm oil prices have continued since the half year
* barring unforeseen circumstances, 2003 expected to be a successful year
CHAIRMAN'S STATEMENT
REVIEW OF OPERATIONS
I am pleased to report that a profit before tax of �2,203,000 was recorded,compared with �1,438,000
for the same period last year. The improvement was chiefly attributable to higher crops of oil palm
fresh fruit bunches ("f.f.b.") and a continuation of firm palm oil prices. The Group continued to
generate positive operating cash flows and the balance sheet remains strong.
Estate and manufacturing activities
Crops, selling prices and exchange rates are set out in the table below:-
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2003 2002 2002
Crop - oil palm fresh fruit bunches - tonnes
Beradin, Bertam, Lendu, Perhentian Tinggi,
Sungei Kruit and Sungei Reyla Estates 33,550 24,916 53,918
======= ======= =======
Average selling prices - RM per tonne
F.f.b. 284 219 245
Malaysian spot palm oil 1,538 1,225 1,362
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Exchange rates
�1 = Malaysian Ringgits
- average 6.12 5.49 5.71
- period-end 6.29 5.82 6.12
======= ======= =======
�1 = Thai Baht
- average 68.45 63.97 66.13
- period-end 69.55 66.00 71.29
======= ======= =======
Malaysian palm oil prices (to which the price received for the Group's f.f.b. is related) traded in a
healthy range of between approximately RM1,450 and RM1,600, although they drifted towards the lower end
of this range as the period progressed. The size of the crop was pleasing, with Perhentian Tinggi
and Lendu Estates enjoying a 40% and 50% increase respectively over last year following a robust upturn
in their yield cycles.
Throughput of the Thai rubber factory, at 1,166 tonnes, was very similar to last year, although well
below the estimate made in late 2002 owing to adverse weather conditions. A profit of �202,000
was recorded compared with �27,000 last year which was attributable to an improvement in the rubber market,
coupled with the sale of stock whose raw material cost was at a significantly lower level.
Associated undertakings
The Group's share of its associated undertakings' profits before tax amounted to �723,000, compared with
�554,000 last year. A breakdown is set out as follows:-
Profit before tax
% 6 months 6 months Year
held ended ended ended
30 June 30 June 31 December
2003 2002 2002
�'000 �'000 �'000
Bertam Properties Sdn. Berhad
("Bertam Properties") 40 292 132 607
Sungkai Holdings Limited ("Sungkai") 49 406 289 739
Asia Green Environmental Sdn.
Berhad ("Asia Green") 30 (32) (20) (3)
Kennedy Burkill & Co. Berhad
("Kennedy Burkill") 19 69 39 141
Gubbagunyah Partnership 10 (4) 120 54
Others (8) (6) 9
------- ------- -------
723 554 1,547
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Despite the continuing lacklustre nature of the property market in Malaysia, Bertam Properties' profit
more than doubled, as a result partly of the sale of more houses than a year ago and partly of the
improved crops and sales prices achieved from its plantation areas. Sungkai also benefited from the
higher revenues arising from the oil palm activities of its main associate, Rowe Evans Investments PLC.
Asia Green turned in a small loss but reported further encouraging progress with orders for its innovative
compost-processing system. Kennedy Burkill reported better results following an improvement in both its
property and plantation operations. Gubbagunyah Partnership experienced a poor cotton season as a
result of the severe drought in Australia.
CURRENT TRADING
Estate and manufacturing operations Palm oil prices have continued to trade at healthy levels and the Malaysian
price currently stands at around RM1,475 per tonne. The f.f.b. crop for the Group's estates for the eight
months ended 31 August 2003 amounted to 45,800 tonnes, representing a 30% improvement over the 35,157 tonnes
recorded for the same period last year.
The performance of the Thai rubber manufacturing operation has been affected over the past couple of months by
the narrowing of the gap between the purchase price of the latex raw material and the sale price achievable
for the constant viscosity ("CV") grades produced by the factory.
Associated undertakings
Construction and sales operations on the Bertam Properties project continue to be satisfactory. The
profile of the project may be buoyed by the fact that the local MP (and Deputy Prime Minister),
Dato' Seri Abdullah Badawi, is due to be appointed as Prime Minister on 1 November. Other associates, whose
principal earnings derive from oil palm plantations, continue to fare well. Prospects for Asia Green remain
promising with further orders recently secured. The drought in Australia is not yet over and prospects for
Gubbagunyah Partnership will depend on the amount of rainfall received within the next few weeks, which, in turn,
will affect the cotton area to be planted.
NEW PROJECTS
Straits Beach Properties Sdn. Berhad Following some considerable delays in gaining planning permission from
the local authorities, the latest estimate is for construction work to commence in March 2004 and for the
project's opening to take place around the end of 2004.
Spice Garden tourist project
Progress has continued to be good and an unofficial opening is planned for the end of November with a
full-scale launch in early 2004. The tourist market is now recovering reasonably well after the decline
in visitor numbers to Penang following, inparticular, the SARS scare.
Cattle-under-palms
The cattle-under-palms project is continuing to progress well and the prospect is currently being explored of
investing in a joint-venture project with AustAsia Agribusiness Sdn. Bhd, involving the grazing of cattle on
estates owned by both third parties and ourselves.
PROSPECTS
Barring unforeseen circumstances, such as a sharp decline in the price of palm oil, I would anticipate that
2003 will prove a successful year.
PETER HADSLEY-CHAPLIN
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 2003
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2003 2002 2002
�'000 �'000 �'000
Turnover 3,056 1,527 3,530
Cost of sales (2,079) (1,243) (2,603)
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Trading profit 977 284 927
------- ------- -------
Administrative expenses (395) (470) (865)
Exchange differences (29) 139 126
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Total administrative expenses (424) (331) (739)
------- ------- -------
Income from fixed-asset investments 436 399 443
Gain on sale of tangible fixed assets - property - 152 267
------- ------- -------
Group operating profit 989 504 898
Share of operating profits in associates 723 554 1,547
------- ------- -------
Total operating profit 1,712 1,058 2,445
Exceptional items (note 3) 294 85 233
------- ------- -------
Profit on ordinary activities before interest 2,006 1,143 2,678
Interest receivable and other income 197 295 504
------- ------- -------
Profit on ordinary activities before taxation 2,203 1,438 3,182
Tax on profit on ordinary activities (478) (312) (869)
------- ------- -------
Profit on ordinary activities after taxation 1,725 1,126 2,313
Equity dividend proposed - - (1,530)
------- ------- -------
Profit retained for the financial period 1,725 1,126 783
======= ======= =======
Basic earnings per 10p share 6.22p 3.96p 7.99p
======= ======= =======
Diluted earnings per 10p share 6.12p 3.96p 7.97p
======= ======= =======
All operations are classed as continuing.
CONSOLIDATED BALANCE SHEET
At 30 June 2003
30 June 30 June 31 December
2003 2002 2002
�'000 �'000 �'000
Fixed assets
Tangible assets 18,443 19,785 18,899
Investments 20,119 20,172 19,890
------- ------- -------
38,562 39,957 38,789
------- ------- -------
Current assets
Stocks 925 698 880
Debtors 6,557 6,233 6,444
Investments 4,742 6,343 5,804
Cash at bank and in hand 213 1,031 441
------- ------- -------
12,437 14,305 13,569
------- ------- -------
Creditors: Amounts falling due within
one year
Trade creditors 32 8 26
Other creditors including taxation 674 541 502
Equity dividend proposed - - 1,530
------- ------- -------
706 549 2,058
------- ------- -------
Net current assets 11,731 13,756 11,511
------- ------- -------
Total assets less current liabilities 50,293 53,713 50,300
Creditors: Amounts falling due after
more than one year (170) (176) (173)
Provisions for liabilities and charges (19) (43) (41)
------- ------- -------
50,104 53,494 50,086
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Capital and reserves
Called-up share capital 2,742 2,845 2,798
Share premium account 952 952 952
Revaluation reserve 19,921 20,981 20,269
Capital redemption reserve 660 557 604
Merger reserve (520) (520) (520)
Capital reserve 828 828 828
Share of associated undertakings' reserves 9,286 8,597 8,890
Profit and loss account 16,235 19,254 16,265
------- ------- -------
Total equity shareholders' funds 50,104 53,494 50,086
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Reconciliation of movements in equity
shareholders' funds
Profit on ordinary activities after taxation 1,725 1,126 2,313
Equity dividend - - (1,530)
------- ------- -------
1,725 1,126 783
Buy-back of shares (1,315) (2,760) (3,795)
Other recognised gains and losses relating
to the period (392) (1,964) (3,994)
------- ------- -------
Net addition to/(reduction in) equity shareholders'
funds 18 (3,598) (7,006)
Opening equity shareholders' funds 50,086 57,092 57,092
------- ------- -------
Closing equity shareholders' funds 50,104 53,494 50,086
======= ======= =======
CONSOLIDATED CASH-FLOW STATEMENT
For the six months ended 30 June 2003
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2003 2002 2002
�'000 �'000 �'000
Net cash inflow from operating activities 535 1,709 1,410
Returns on investments and servicing of finance 980 726 1,394
Taxation (149) (91) (623)
Capital expenditure and financial investment 267 196 269
Equity dividend paid (1,530) (1,492) (1,492)
------- ------- -------
Net cash inflow before management of liquid
resourses 103 1,048 958
Management of liquid resources
Decrease in short-term deposits 1,296 2,799 3,148
Financing
Buy back of own shares (1,315) (2,909) (3,795)
------- ------- -------
Increase in cash 84 938 311
======= ======= =======
Reconciliation of total operating profit to
net cash inflow from operating activities
Total operating profit 1,712 1,058 2,445
Exchange differences 95 (182) (587)
Depreciation 59 55 128
Gain on sale of tangible fixed assets property - - (152) (267)
Income from fixed-asset investments (436) (399) (443)
Share of associated undertakings' profits (723) (554) (1,547)
Increase in stocks (45) (85) (267)
(Increase)/decrease in debtors (167) 1,990 2,039
Increase/(decrease) in creditors 40 (22) (91)
------- ------- -------
Net cash inflow from operating activities 535 1,709 1,410
Returns on investments and servicing of finance
Dividends received from associated undertakings 347 49 481
Other dividends received 436 399 433
Interest and other income received 197 278 480
------- ------- -------
Net cash inflow on returns on investments
and servicing of finance 980 726 1,394
------- ------- -------
Taxation
Overseas tax paid (149) (91) (623)
------- ------- -------
Capital expenditure and financial investment
Purchase of tangible fixed assets (117) (12) (220)
Sale of tangible fixed assets 10 75 217
Purchase of fixed-asset investments - - (52)
Sale of fixed-asset investments 374 133 250
Merger credit - - 74
------- ------- -------
Net cash inflow from capital expenditure and
financial investment 267 196 269
======= ======= =======
Reconciliation of net cash flow and
movement in net funds
Increase in cash in the period 84 938 311
Decrease in liquid resources (1,296) (2,799) (3,148)
Exchange differences (78) (139) (292)
------- ------- -------
Movement in net funds (1,290) (2,000) (3,129)
Net funds at 1 January 6,245 9,374 9,374
------- ------- -------
Net funds at 30 June/31 December 4,955 7,374 6,245
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NOTES
1. Statutory information
The financial information for the six-month periods ended 30 June 2003 and 2002 has been neither audited
nor reviewed by the Group's auditors and does not constitute accounts within the meaning of section
240 of the Companies Act 1985. The financial information for the year ended 31 December 2002 is abridged
from the statutory accounts which have been reported on by the Group's auditors, Deloitte & Touche LLP, and
which have been filed with the Registrar of Companies. The report of the auditors thereon was unqualified
and did not contain a statement under section 237(2) or (3) of the Companies Act 1985.
2. Accounting policies
These interim accounts have been prepared on the basis of accounting policies as set out in the annual
financial statements at 31 December 2002.
3. Exceptional items
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2003 2002 2002
�'000 �'000 �'000
Gain on sale of fixed-asset investments 265 77 154
Merger credit - - 74
Loss on sale of tangible fixed assets - - (11)
------- ------- -------
265 77 217
Share of associated undertakings'exceptional items
Gain on sale of fixed-asset investments 22 6 15
Gain on sale of tangible fixed assets 7 2 1
------- ------- -------
Total exceptional items 294 85 233
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4. Distribution
The Company will be circulating its interim report to shareholders on 30 September 2003 and copies
may be obtained thereafter from M.P.Evans (UK) Limited, 3 Clanricarde Gardens. Tunbridge Wells, Kent TN1 1HQ.
By order of the board
M. P. Evans (UK) Limited
Secretaries
26 September 2003
Enquiries: Peter Hadsley-Chaplin
Telephone 01892 516333
Fax 01892 518639
E-mail peterhc@mpevans.co.uk
