R.E.A. HOLDINGS PLC FOR THE YEAR ENDED 31 DECEMBER 2020
2020 2019
USD'000 USD'000
Net cash from operating activities 33,479 2,185
Investing activities
Interest received 525 595
Proceeds on disposal of property, plant and equipment 1,066 7,639
Purchases of property, plant and equipment (10,768) (18,133)
Purchases of intangible assets - (20)
Expenditure on land (3,897) (4,552)
Investment in stone and coal interests (7,218) (4,319)
Net cash used in investing activities (20,292) (18,790)
Financing activities
Repayment of bank borrowings (18,734) (14,512)
New bank borrowings drawn 5,250 4,999
New borrowings from related party 4,031 5,437
Repayment of borrowings from related party - (5,437)
Repayment of borrowings from non-controlling shareholder (7,514) -
New borrowings from non-controlling shareholder - 1,758
New equity from non-controlling interests 9,944 1,500
Proceeds of issue of ordinary shares, less costs of issue - 6,015
Proceeds of issue of 2022 dollar notes - 3,000
Costs of extending repayment date of sterling notes (459) -
Payment of warranty obligations relating to divested subsidiary (663) -
Repayment of lease liabilities (2,434) (2,303)
Net cash (used in) / from financing activities (10,579) 457
Cash and cash equivalents
Net increase / (decrease) in cash and cash equivalents 2,608 (16,148)
Cash and cash equivalents at beginning of year 9,528 26,279
Effect of exchange rate changes (331) (603)
Cash and cash equivalents at end of year 11,805 9,528 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The accompanying financial statements and notes 1 to 16 below (together the "accompanying financial information") have been extracted without material adjustment from the financial statements of the group for the year ended 31 December 2020 (the "2020 financial statements"). The auditor has reported on those accounts; the reports were unqualified and did not contain statements under sections 498(2) or (3) of the Companies Act 2006. Copies of the 2020 financial statements will be filed in the near future with the Registrar of Companies. The accompanying financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 of the company.
Whilst the 2020 financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and with the Companies Act 2006, as at the date of authorisation of those accounts the accompanying financial information does not itself contain sufficient information to comply with IFRS.
The 2020 financial statements and the accompanying financial information were approved by the board of directors on 26 April 2020.
2. Revenue
2020 2019
USD'000 USD'000
Sales of goods 137,993 124,000
Revenue from services 1,095 986
139,088 124,986
Investment revenue 525 595 3. Segment information
In the table below, the group's sales of goods are analysed by geographical destination and the carrying amount of net assets is analysed by geographical area of asset location. The group operates in two segments: the cultivation of oil palms and stone and coal interests. In 2020 and 2019, the latter did not meet the quantitative thresholds set out in IFRS 8 "Operating segments" and, accordingly, no analyses are provided by business segment.
2020 2019
USD'm USD'm
Sales by geographical destination:
Indonesia 117.3 118.1
Rest of World 21.8 6.9
139.1 125.0
Carrying amount of net (liabilities) / assets by geographical area of asset location:
UK and Continental Europe (73.3) (68.0)
Indonesia 319.1 320.7
245.8 252.7 4. Agricultural produce inventory movement
The net (loss) / gain arising from changes in fair value of agricultural produce inventory represents the movement in the carrying value of such inventory after re?ecting the movement in the fair value of the FFB input into that inventory (measured at fair value at point of harvest) less the amount of the movement in such inventory at historic cost (which is included in cost of sales).
5. Administrative expenses
2020 2019
USD'000 USD'000
Loss / (profit) on disposal of property, plant and equipment 537 (707)
Indonesian operations 12,785 13,480
Head office and other corporate functions 4,781 5,928
18,103 18,701
Amount included as additions to property, plant and equipment (1,617) (2,604)
16,486 16,097 6. Impairments and similar charges
2020 2019
USD'000 USD'000
Provision against costs incurred in respect of land to be transferred to plasma cooperatives 6,203 -
Land compensation payments in connection with divested subsidiary 663 -
Write off of expenditure on land 2,617 5,022
Correction to non-current receivables - (1,755)
9,483 3,267 The group intends to transfer some further areas of land developed by the group to plasma cooperatives. It is hoped that all costs incurred in respect of such areas can be recovered in full, but this may not be possible. Accordingly, an impairment provision has been made against the costs in question.
The land compensation payments are in respect of certain outstanding warranty obligations relating to the subsidiary divested in 2018, PT Putra Bongan Jaya.
In both the current and prior year, the write off of expenditure on land represents costs incurred by the group on a land allocation (izin lokasi) that has been relinquished. Having regard to evolving environmental considerations and prospective titling problems arising from conflicting land claims, the group concluded that renewal should not be sought following expiry of the land allocations concerned.
In 2019, an amount of USD1.7 million relating to the correction of an understatement of non-current receivables comprising loans to third parties by the company was set off against the write off of expenditure on land.
7. Finance costs
2020 2019
USD'000 USD'000
Interest on bank loans and overdrafts 12,591 14,664
Interest on dollar notes 2,028 1,859
Interest on sterling notes 3,498 3,462
Interest on other loans 1,095 1,539
Interest on lease liabilities 301 311
Change in value of sterling notes arising from exchange fluctuations 1,869 1,357
Change in value of loans arising from exchange fluctuations (1,538) 7,246
Finance charge related to warrant issue 1,133 -
Other finance charges 2,380 1,488
23,357 31,926
Amount included as additions to property, plant and equipment (259) (36)
23,098 31,890 Other finance charges in 2020 include USD1.1 million being the present value of the premium payable on redemption discounted at the coupon rate.
Amounts included as additions to property, plant and equipment arose on borrowings applicable to the Indonesian operations and re?ected a capitalisation rate of 1.2 per cent (2019: nil per cent); there is no directly related tax relief.
(MORE TO FOLLOW) Dow Jones Newswires
April 27, 2021 02:01 ET (06:01 GMT)
