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DJ London Nusantara Plantations PLC Interim Results and Change of Business Address

 
TIDMLNPP 
 
19 September 2016 
 
 
                       LONDON NUSANTARA PLANTATIONS PLC 
                     (London Nusantara" or the "Company") 
 
        UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 
 
                          CHANGE OF BUSINESS ADDRESS 
 
I am pleased to announce our third interim financial results since the 
Company's successful flotation on the ISDX Growth Market on 30 June 2014. The 
company completed its maiden investment on 18 March 2015 by acquiring an 11% 
interest in 404 hectares of land suitable for oil palm cultivation. 
 
We are currently targeting to acquire an equity interest in oil palm estates 
that are revenue generating and yielding. We are currently focused on East 
Malaysia, where a number of opportunities have been identified and with some 
preliminary due diligence being undertaken to determine a suitable target. The 
Company intends to fund these acquisitions by raising capital through a mixture 
of debt and equity, simultaneously, with any acquisition targets that meet the 
Company's acquisition criteria. 
 
FINANCIALS 
 
The interim results for the six months ended 30 June 2016 shows a loss of GBP 
25,372, mainly due to the costs associated with maintaining the listing status, 
which is largely made up of administrative fees and retainers to advisors. 
 
The financial information for the six months ended 30 June 2016 has not been 
audited, but has been reviewed by the Company's auditors, UHY Hacker Young LLP. 
 
INDUSTRY OUTLOOK 2016 
 
In the first half of 2016, palm oil prices moved on an uptrend since January, 
reaching a high of RM2,756 (approximately GBP505.00)/MT in April. This was the 
highest price in 18 months, as concerns over production on account of the 
effects of El Nino phenomenon on palm oil pushed the price upwards. However, 
since mid-June 2016, there has been a heavy downward pressure on palm oil 
prices due to the abundant supply of other competing oils, namely soybean oil. 
It was reported by Sue Goll Commodities Consulting Incorporated that the 2016/ 
17 soybean production increased by a little over 2 million tonnes, with the US 
accounting for almost all of the increase. 
 
It is, however, anticipated that growth in palm oil supplies and exports would 
be severely impacted this year as Malaysian palm oil production in the first 
six months of 2016 was 16% lower than the corresponding period of last year. In 
addition, the Malaysian Palm Oil Board reported that the Malaysian palm oil 
stock fell to 1.78 million tonnes in June 2016 as compared to 2.31 million 
tonnes in January 2016. 
 
On the demand side, exports of Malaysian palm oil declined by 7.2% to 7.29 
million tonnes against 7.86 million tonnes reported on the same period in 2015. 
This was primarily due to the decline in palm oil exports to the major markets, 
such as China (-52.3%), India (-9.6%) and EU (-13.9%), arising from higher 
imports of soybean, rapeseed and Indonesian palm oil. 
 
The Malaysian Biodiesel Mandate had shown the desired results with B7 (a blend 
of 7% palm oil (palm, methyl and ester) and 93% diesel) Program launched in 
November 2014 replacing some 500,000 to 700,000 tonnes of diesel per year.  It 
was reported from the Malaysian Palm Oil Board that the B7 program in 2015 had 
a complaint-free track record of 40 million kilometers in mileage.  In July 
2016, Malaysia launched the B10 (a blend of 10% palm oil) program and is 
expected to further take away the supply of Crude Palm Oil ("CPO") from the 
market. 
 
CIMB Securities indicated that key factors that will be driving CPO price in 
second half of the year are: 
 
(1) Chinese demand; 
(2) Palm oil yields; 
(3) Biodiesel demand in Indonesia and Malaysia; and 
(4) US soybean crops. 
 
Chinese demand is expected to recover in the second half of the year, as the 
high carry-over stock needs replenishment. 
 
Palm oil yield in Malaysia and Indonesia will see a drop of 1.8 million tonnes 
on the back of the El Nino weather effect. 
 
The increase in the biodiesel mandate and palm oil competitive price will see 
it as the most attractive as feedstock. 
 
As for soybean, although production is high, it is not as high as originally 
expected. Based on the above factors, it is forecasted that the palm oil price 
will average the year at RM2,680 (approximately GBP491.00) per metric ton trading 
on a wider range of RM2,200 (approximately GBP403.00) to RM3,100 (approximately GBP 
568.00) per metric ton. 
 
CHANGE OF BUSINESS ADDRESS 
The Company also announces that its business and correspondence address has 
changed to: 
London Nusantara Plantations plc 
Level 23, Nu Tower 2, 
Jalan Tun Sambanthan 
Kuala Lumpur Sentral 
50470 Kuala Lumpur 
 
 
M Subramaniam 
Chief Executive Officer 
 
19 September 2016 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
For further information please contact: 
 
The Company 
LONDON NUSANTARA PLANTATIONS PLC 
Manichelvam Subramaniam, Chief Executive Officer                +60 3 7865 3987 
Simon Rothschild, Non-executive Director                                 +44 
7703 167 065 
 
ISDX Corporate Adviser 
                    +44 (0)20 7469 0930 
PETERHOUSE CORPORATE FINANCE LIMITED 
Mark Anwyl/Guy Miller 
 
 
 
 
STATEMENT OF COMPREHENSIVE INCOME 
FOR THE PERIOD ENDED 30 JUNE 2016 
 
                                                    6 Months ended   6 Months ended 
 
                                                    30 June          30 June 
 
                                                    2016             2015 
 
                                                    (Unaudited)      (Unaudited) 
 
                                        Notes       GBP                GBP 
 
Revenue                                             -                - 
 
Cost of sales                                       -                - 
 
                                                    _________        _________ 
 
Gross profit                                        -                - 
 
Administration expenses                             (28,318)         (79,254) 
 
                                                    _________        _________ 
 
Operating loss                                      (28,318)         (79,254) 
 
Finance income                          4           2,946            5,104 
 
                                                    _________        _________ 
 
Loss before taxation                                (25,372)         (74,150) 
 
Taxation                                5           -                - 
 
                                                    _________        _________ 
 
Loss for the period                                 (25,372)         (74,150) 
 
Other comprehensive income                          -                - 
 
                                                    _________        _________ 
 
Total comprehensive loss                            (25,372)         (74,150) 
 
                                                    ========         ======== 
 
Loss attributable to: 
 
Equity holders of the company                       (25,372)         (74,150) 
 
                                                    ========         ======== 
 
Loss per share                          6           (0.01)p          (0.04)p 
 
                                                    ========         ======== 
 
 
 
STATEMENT OF FINANCIAL POSITION 
AS AT 30 JUNE 2016 
 
                                                       30 June          31 December 
 
                                                       2016             2015 
 
                                                       (Unaudited)      (Audited) 
 
                                       Notes           GBP                GBP 
 
Non-Current Assets 
 
Office equipment                                       190              230 
 
Investments                            7               111,772          111,772 
 
                                                       _________        _________ 
 
Total non-current assets                               111,962          112,002 
 
                                                       _________        _________ 
 
Current assets 
 
Receivables                            8               693              - 
 
Cash and cash equivalents              9               161,535          191,097 
 
                                                       _________        _________ 
 
Total current assets                                   162,228          191,097 
 
                                                       _________        _________ 
 
Total assets                                           274,190          303,099 
 
                                                       _________        _________ 
 
Current liabilities 
 
Accruals                               10              (7,495)          (11,032) 
 
                                                       _________        _________ 
 
Total liabilities                                      (7,495)          (11,032) 
 
                                                       _________        _________ 
 
Net assets                                             266,695          292,067 
 
                                                       ========         ======== 
 
Capital and reserves 
 
Share capital                          11              669,438          669,438 
 
Retained losses                                        (402,743)        (377,371) 
 
                                                       _________        _________ 
 
Total equity                                           266,695          292,067 
 
                                                       ========         ======== 
 
 
 
STATEMENT OF CASH FLOWS 
FOR THE PERIOD ENDED 30 JUNE 2016 
 
                                                    6 Months ended   6 Months ended 
 
                                                    30 June          30 June 
 
                                                    2016             2015 
 

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DJ London Nusantara Plantations PLC Interim Results -2-

                                                    (Unaudited)      (Unaudited) 
 
                                                    GBP                GBP 
 
Operating loss                                      (28,318)         (79,254) 
 
Adjusted for: 
 
Depreciation                                        40               39 
 
Increase in receivables                             (693)            (525) 
 
Decrease in payables                                (3,537)          (25,488) 
 
                                                    _________        _________ 
 
Net cash outflow from operating activities          (32,508)         (105,228) 
 
                                                    _________        _________ 
 
Cash flow from investing activities 
 
Interest received                                   2,946            5,104 
 
                                                    _________        _________ 
 
Net cash inflow from investing activities           2,946            5,104 
 
                                                    _________        _________ 
 
Net decrease in cash and cash equivalents           (29,562)         (100,124) 
 
Cash and cash equivalents at the beginning of the   191,097          372,476 
period 
 
                                                    _________        _________ 
 
Cash and cash equivalents at the end of the period  161,535          272,352 
 
                                                    ========         ======== 
 
 
 
STATEMENT OF CHANGES IN EQUITY 
FOR THE PERIOD ENDED 30 JUNE 2016 
 
                                       Share             Retained       Total 
 
                                       capital           losses         equity 
 
                                       GBP                 GBP              GBP 
 
As at 1 January 2015                   659,438           (211,665)      447,773 
 
Loss for the year                      -                 (165,706)      (165,706) 
 
Shares issued in the year              10,000            -              10,000 
 
                                       _________         _________      _________ 
 
At 31 December 2015                    669,438           (377,371)      292,067 
 
                                       ========          ========       ======== 
 
Loss for the period                    -                 (25,372)       (25,372) 
 
                                       _________         _________      _________ 
 
At 30 June 2016                        669,438           (402,743)      266,695 
 
                                       ========          ========       ======== 
 
 
 
 
 
 
NOTES TO THE FINANCIAL INFORMATION 
FOR THE PERIOD ENDED 30 JUNE 2016 
 
1.         Significant accounting policies 
 
1.1       Basis of preparation 
 
            This interim financial information for the six months ended 30 June 
2016 is unaudited and does not constitute statutory accounts within the meaning 
of the Companies Act 2006 (Isle of Man).  It was approved by the board of 
directors on 8 September 2016. 
 
            The figures for the year ended 31 December 2015 have been extracted 
from the statutory accounts which have been prepared in accordance with 
International Financial Reporting Standards, as adopted by the European Union, 
("IFRS") and which have been reported on by the company's auditor.  The 
auditor's report on those financial statements was unqualified. 
 
            The half-year report is a general purpose financial statement, 
which has been prepared in accordance with the requirements of IAS 34 "Interim 
financial reporting". 
 
            The half-year financial report does not include all notes of the 
type normally included in the annual financial report and therefore cannot be 
expected to provide as full an understanding of the financial performance, 
financial position and financing and investing activities of the group as the 
full financial report. 
 
            The financial information has been prepared on the historical cost 
basis. The accounting policies and methods of computation adopted in the 
company's preparation of the half-year financial report are consistent with 
those adopted and disclosed in the financial statements for the year ended 31 
December 2015 and those expected to be used for the year ending 31 December 
2016.  The principal accounting policies adopted are set out below. 
 
1.2       Going concern 
 
            On admission to ISDX on 30 June 2014, the company raised GBP532,428 
in gross proceeds from a share placing, of which net proceeds after costs of 
the IPO of GBP452,160 were received. As part of the admission process, the 
directors prepared detailed working capital forecasts to ensure that the 
company would have sufficient funds available for the foreseeable future. 
 
            Having reviewed the company's forecasts, the directors believe that 
the company is well placed to manage its business risks successfully. Thus, 
they have adopted the going concern basis in preparing this interim financial 
information. 
 
1.3       Foreign currencies 
 
            The results and financial position of the company are expressed in 
Pounds Sterling (GBP) which is the presentation currency for the company 
financial statements. The functional currency of the company is the Malaysian 
Ringgit (RM) which is the currency of the environment in which the company 
principally operates. At the end of the period, the exchange rate applying to 
these financial statements was GBP1 = RM5.4353 
 
            The assets and liabilities of the company's foreign operations are 
translated at exchange rates prevailing on the date of the accounts. Income and 
expense items are translated at exchange rates ruling at the date of the 
transactions. Exchange differences arising, if any, are classified as income or 
as expenses in the period in which they arise. 
 
LONDON NUSANTARA PLANTATIONS PLC 
 
NOTES TO THE FINANCIAL INFORMATION 
 
FOR THE PERIOD ENDED 30 JUNE 2016 
 
1.4       Investments 
 
            Investments are stated at cost less any provision for impairment. 
 
1.5       Trade and other receivables 
 
            Trade and other receivables are carried at original invoice amount 
less provision made for impairment of these receivables. A provision for 
impairment of trade and other receivables is established when there is 
objective evidence that the company will not be able to collect all amounts due 
according to the original terms of the receivables. The amount of the provision 
is the difference between the assets' carrying amount and the recoverable 
amount. Provisions for impairment of receivables are included in the income 
statement. 
 
1.6       Trade and other payables 
 
            Trade and other payables represent liabilities for goods and 
services provided to the company prior to the financial year, which are unpaid. 
Current liabilities represent those amounts falling due within one year. 
 
1.7       Taxation 
 
Deferred tax is provided in full using the liability method, on temporary 
differences arising between the tax bases of assets and liabilities and their 
carrying amounts in the financial statements. Deferred tax is not accounted for 
if it arises from initial recognition of an asset or liability in a transaction 
other than a business combination, which at the time of the transaction affects 
neither accounting nor taxable profit or loss. Deferred tax is determined using 
tax rates that are expected to apply when the related deferred tax asset is 
realised or when the deferred tax liability is settled. Deferred tax assets are 
recognised to the extent that it is probable that future taxable profits will 
be available against which the temporary differences can be utilised. 
 
2.         Critical accounting judgements and estimates 
 
The preparation of financial statements in conformity with International 
Financial Reporting Standards requires the use of accounting estimates and 
assumptions that affect the reported amounts of assets and liabilities at the 
date of the financial statements and the reported amounts of income and 
expenses during the reporting period. Although these estimates are based on 
management's best knowledge of current events and actions, actual results 
ultimately may differ from those estimates. 
 
Management believes that there are no areas that involve a high degree of 
judgement or complexity, or areas where assumptions and estimates are 
significant to these financial statements. 
 
3.         Segmental information 
 
The company's assets and activities are based in Malaysia within the palm oil 
investment sector. This is the only business segment in which the company 
operates as identified by management. 
 
LONDON NUSANTARA PLANTATIONS PLC 
 
NOTES TO THE FINANCIAL INFORMATION 
 
FOR THE PERIOD ENDED 30 JUNE 2016 
 
4.               Finance income                    6 Months ended   6 Months ended 
 
                                                   30 June          30 June 
 
                                                   2016             2015 
 
                                                   GBP                GBP 
 
                 Bank interest                     2,946            5,104 
                 received 
 
                                                   ========         ======== 
 
 
 
5.               Taxation                          6 Months ended   6 Months ended 
 
                                                   30 June          30 June 
 
                                                   2016             2015 
 
                                                   GBP                GBP 
 
                 Current tax                       -                - 
 
                 Deferred tax                      -                - 
 
                                                   ========         ======== 
 
No reconciliation of the factors affecting the tax charge has been presented as 
the company is incorporated in the Isle of Man which has a corporation tax rate 
of 0%. 
 
6.         Loss per share 
 

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DJ London Nusantara Plantations PLC Interim Results -3-

            The basic loss per share of (0.01)p for the company is calculated 
by dividing the loss for the  period by the weighted average number of ordinary 
shares in issue of 180,458,336 
 
7.         Investments 
 
                                                    30 June           31 December 
 
                                                    2016              2015 
 
                                                    GBP                 GBP 
 
Net book value                                      111,772           111,772 
 
                                                    ========          ======== 
 
Next Oasis was incorporated on 25 November 2014 for the purpose of acquiring 
two companies that together held 404.6 hectares of vacant land in Malaysia, 
which are suitable for oil palm cultivation. On 18 March 2015, the company 
completed the acquisition of the 11% interest in the 404.6 hectare of oil palm 
from MWE Holdings Berhad, through Next Oasis. 
 
LONDON NUSANTARA PLANTATIONS PLC 
 
NOTES TO THE FINANCIAL INFORMATION 
 
FOR THE PERIOD ENDED 30 JUNE 2016 
 
8.         Receivables                           30 June              31 December 
 
                                                 2016                 2015 
 
                                                 GBP                    GBP 
 
Other receivables                                693                  - 
 
                                                 ========             ======== 
 
9.         Cash and cash 
equivalents 
 
Cash and cash equivalents comprise cash held at bank.  The carrying amount of 
these assets is approximately equal to their fair value. 
 
10.       Payables                                  30 June            31 December 
 
                                                    2016               2015 
 
            Accruals                                7,495              11,032 
 
                                                    ========           ======== 
 
11.       Share capital 
 
                                           Number of 
 
                                           shares                       GBP 
 
As at 31 December 2015 and 30 June 2016    180,458,336                  669,438 
 
                                           ========                     ======== 
 
12.       Related party transactions 
 
No related party transactions have taken place during the period. 
 
13.       Subsequent events 
 
No significant event has taken place since 30 June 2016 up to the date of the 
release of this interim report. 
 
 
 
END 
 

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