ANNUAL REPORT 2024
SUSTAINABLE
& RESILIENT FUTURE TOGETHER
GROWING A
Inside This Report
Section 1 : OVERVIEW AND HIGHLIGHTS
About AEP
2
Key Information
6
Financial Highlights
7
Financial Record
8
Estate Areas
9
Location of Estates and Mills
10
Shareholder Information
11
Section 2 : LEADERSHIP AND
GOVERNANCE
Chairman’s Statement
13
Directors’ Report
19
Directors’ Responsibility
23
Directors’ Profile
24
Statement on Corporate Governance
27
Audit Committee Report
34
Directors’ Remuneration Report
38
Section 3 : STRATEGIC AND OPERATIONAL
REVIEW
Strategic Report
48
Section 4 : FINANCIAL STATEMENTS
Independent Auditor’s Report
117
Consolidated Income Statement
129
Consolidated Statement of Comprehensive
Income
130
Consolidated Statement of Financial
Position
131
Consolidated Statement of Changes in
Equity
133
Consolidated Statement of Cash Flows
134
Notes to the Consolidated Financial
Statements
136
Section 5 : COMPANY-SPECIFIC FINANCIAL
STATEMENTS
Company Statement of Financial Position
196
Company Statement of Changes in Equity
197
Notes to the Company Financial Statements
198
Section 6 : ADDITIONAL INFORMATION
Notice of Annual General Meeting
210
Our Offices and Advisers
213
Glossary
214
& RESILIENT FUTURE TOGETHER
Growing ASustainable
The cover of AEP’s 2024 Annual Report, featuring a vibrant aerial view
of oil palm plantations bordered by lush forests and an expansive
ocean, visually embodies the tagline ‘Growing a Sustainable &
Resilient Future Together’. The juxtaposition of thriving agriculture
and natural ecosystems highlights our Group’s commitment to
sustainable practices, environmental stewardship, and biodiversity
conservation. The tagline reinforces a collaborative vision,
emphasising partnerships with communities and stakeholders
to ensure long-term resilience in the face of environmental and
economic challenges, while the imagery symbolises the harmonious
balance between productivity and nature.
For more information online,
scan QR Code to visit our
corporate website at
https://www.angloeastern.co.uk/
37% growth in earnings
Our 2024 earnings per share
(“EPS”) from continuing
operations grew by 37% to
171¢ per share. In response to
this performance, the Board
declares a dividend of 51¢ per
share.
Rename to AEP Plantations
Plc
We have refreshed our mission
and vision, reinforcing our
strategic focus, responsible
growth and dedication to
sustainability. In line with this
transformation, we propose
renaming our company to AEP
Plantations Plc, marking a new
chapter in our journey.
Our reporting currency is
the United State Dollar. The
following currencies may
appear in this Annual Report:
• $ and ¢: United States
Dollars and cents
• £ and p: British Pound
Sterling and pence
• RM: Ringgit Malaysia
• Rp: Indonesian Rupiah
About
AEP
2
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
AEP is listed in the Equity Shares (Commercial Companies)
category of the London Stock Exchange. Our Company was
listed in 1985.
Primary activities include growing oil palms, harvesting Fresh
Fruit Bunches (“FFB”), and processing them into Crude Palm Oil
(“CPO”) and palm kernels.
Palm oil is an important commodity and the industry employs
millions of workers directly and indirectly across Indonesia and
Malaysia. It is used extensively in food, cosmetics, consumer
products and biofuel.
AEP group of companies (“Group”) is committed to the
responsible development of its plantations and facilities, with
particular attention to both the environment and society in
which it operates.
The AEP group of companies is a
producer of palm oil, operating
plantations and mills across both
Indonesia and Malaysia.
About AEP (Continued)
3
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Our Group is currently
cultivating over 57 thousand ha
in mature oil palms (excluding
plasma scheme) across 13
plantations in Indonesia,
together with one plantation in
Malaysia. The weighted average
age of the trees in our Group
is approximately 14 years. Our
Group produced 1.0 million mt
of FFB in 2024.
An oil palm tree usually takes
around three years from
planting to harvest of the
first crop and will reach peak
production around year 10.
Our Group has approximately
8.1 thousand ha of immature
plantations as at 31 December
2024 of which 2.4 thousand ha
were planted in 2024.
Our Group operates 7 palm
oil mills processing up to a
combined capacity of 400 mt
of FFB per hour. The combined
OER, being the percentage
of CPO extracted from FFB in
2024, averaged 20.2% while
Kernel Extraction Rate, being
the percentage of palm kernel
extracted from FFB, averaged
4.8%. The total FFB throughput
at the Group’s mills in 2024
was 2.0 million mt producing
0.4 million mt of CPO and 93
thousand mt of kernel.
About AEP (Continued)
Oil Palm
Plantations
Oil Palm
Development
Palm Oil
Mills
4
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
In 2024, our Group purchased approximately
1.0 million mt of FFB from external/third-party
producers, comprising smallholders, local farmers
and plasma, for processing through our 7 mills.
4 mills are equipped with biogas plants to
capture the methane gas emission to generate
electricity for its own consumption, with the
surplus sold to the Indonesian state authorities.
This reduces the mills’ reliance on fossil fuels and
improves the Group’s carbon footprint. In 2024,
our Group sold 14.4 GWh of surplus electricity
to the PLN, the Indonesian State Electricity
Company. Further, the BioCNG (compressed
natural gas derived from palm oil extraction by-
products) plant in our Blankahan estate started
its commercial operations in 2024 with a capacity
to produce up to 760 MMBTU/day.
About AEP (Continued)
Third-party
Crop Purchases
Biogas
Plants
5
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Key Information
AVERAGE AGE OF OUR PALM
14 years
PALM MATURITY PROFILE (DECEMBER 2024)
24%
Old
12%
Immature
25%
Young
39%
Prime
OWN FFB PRODUCED VS. THIRD-PARTY FFB PURCHASED (MT)
mt
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2020
2021
2022
2023
2024
Own FFB Production
Third-party FFB Purchase
CRUDE PALM OIL & PALM KERNEL PRODUCTION (MT)
500,000
400,000
300,000
200,000
100,000
0
2020
2021
2022
2023
2024
CPO
Palm Kernel
mt
6
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Financial Highlights
REVENUE
2024
$372.3m
2023
$370.4m
2022
$447.6m
2021
$433.4m
2020
$263.8m
OPERATING PROFIT
2024
$81.7m
2023
$69.7m
2022
$132.9m
2021
$129.3m
2020
$54.6m
EARNINGS/EARNINGS PER SHARE
2024
$67.5m | 171.0¢
2023
$49.4m | 124.9¢
2022
$86.9m | 219.2¢
2021
$96.1m | 242.3¢
2020
$36.4m | 91.8¢
NET ASSETS (EXCLUDING NCI)/NET ASSETS PER SHARE
2024
$551.0m | 1,395¢
2023
$513.6m | 1,298¢
2022
$466.1m | 1,176¢
2021
$440.0m | 1,110¢
2020
$375.4m | 947¢
7
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Financial Record
Income statement
2024
$000
(Restated)
2023
$000
(Restated)
2022
$000
2021
$000
2020
$000
Continuing operations
Revenue
372,263
370,435
447,619
433,421
263,818
Operating profit
81,734
69,712
132,895
129,332
54,599
Profit attributable to shareholders
67,514
49,418
86,877
96,054
36,393
Dividend proposed for year
(20,139)
(11,868)
(9,909)
(1,982)
(396)
Financial position
$000
$000
$000
$000
$000
Non-current assets & long-term
receivables
295,644
302,034
269,498
282,581
303,067
Cash net of short-term borrowings
181,908
152,984
221,476
218,249
115,211
Other working capital*
81,231
64,284
81,571
38,284
32,423
Deferred tax
(325)
1,313
3,145
2,994
13,607
558,458
520,615
575,690
542,108
464,308
Non-controlling interests
(7,427)
(6,976)
(109,595)
(102,078)
(88,875)
Net assets (excluding NCI)
551,031
513,639
466,095
440,030
375,433
Share capital
15,504
15,504
15,504
15,504
15,504
Treasury shares
(2,487)
(1,847)
(1,171)
(1,171)
(1,171)
Share premium and capital
redemption reserve
25,022
25,022
25,022
25,022
25,022
Exchange reserves
(364,402)
(341,180)
(288,891)
(241,907)
(237,599)
Retained earnings
877,394
816,140
715,631
642,582
573,677
Equity attributable to
shareholders’ funds
551,031
513,639
466,095
440,030
375,433
Ordinary shares in issue (‘000s)
39,976
39,976
39,976
39,976
39,976
Basic EPS (US cents)
170.88cts
124.92cts
219.19cts
242.34cts
91.82cts
Dividend per share for year
(US cents)
51.0cts
30.0cts
25.0cts
5.0cts
1.0cts
Asset value per share (US cents)
1,395cts
1,298cts
1,176cts
1,110cts
947cts
Exchange rates - year end
Rp : $
16,162
15,416
15,731
14,269
14,105
$ : £
1.25
1.27
1.20
1.35
1.36
RM: $
4.47
4.60
4.41
4.17
4.02
Exchange rates - average
Rp : $
15,847
15,255
14,810
14,312
14,572
$ : £
1.28
1.24
1.24
1.38
1.28
RM: $
4.57
4.56
4.40
4.15
4.20
* Other working capital comprises current assets, excluding cash and cash equivalents, less current
liabilities and non-current liabilities, with the exception of deferred tax liabilities.
8
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Estate Areas
GROUP
TOTAL
MALAYSIA
INDONESIA
TOTAL
NORTH
SUMATERA
BENGKULU
RIAU
BANGKA
KALIMANTAN
Mills/Biogas Plants
Number of Mills
7
-
7
3
2
1
-
1
Number of Biogas
Plants
4
-
4
2
1
-
-
1
Combined Mills
Capacities (mt/hr)
400
-
400
160
120
60
-
60
Planted at
31 December 2024
Ha
Ha
Ha
Ha
Ha
Ha
Ha
Ha
Oil Palm
Mature
57,241
3,414
53,827
17,857
12,382
4,775
2,437
16,376
Immature
8,133
-
8,133
1,094
4,267
-
348
2,424
Total Oil Palm
65,374
3,414
61,960
18,951
16,649
4,775
2,785
18,800
Plasma Mature
2,865
-
2,865
230
-
-
307
2,328
Plasma Immature
1,171
-
1,171
-
-
-
202
969
Total Plasma
4,036
-
4,036
230
-
-
509
3,297
Total Planted area
69,410
3,414
65,996
19,181
16,649
4,775
3,294
22,097
Others
Plantable Reserve/
Oil Palm
8,282
1,646
6,636
654
-
-
1,272
4,710
Unplantable Areas
7,891
1,236
6,655
999
1,350
72
2,254
1,980
Oil Palm Nursery/Mill/
Infrastructure
3,065
72
2,993
1,035
526
87
22
1,323
Total Others
19,238
2,954
16,284
2,688
1,876
159
3,548
8,013
Total Area at
31 December 2024
88,648
6,368
82,280
21,869
18,525
4,934
6,842
30,110
9
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Location of Estates and Mills
10
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Shareholder Information
MARKET CAPITALISATION
The market capitalisation of AEP in the United
Kingdom at 31 December 2024 was £258 million
(2023: £265 million) based on the closing price
per share of £6.54.
WEBSITE
https://www.angloeastern.co.uk/ contains
various details and information on AEP
and its operations, together with all the key
historical financial and regulatory information
on our Company. The website is updated
on a continuing basis incorporating all
Company announcements and other relevant
developments, including Environmental, Social
and Governance and share price movements.
The website allows shareholders and investors
to select and receive e-mail alerts from AEP
on selected regulatory news. Shareholders are
encouraged to use e-mail alerts to follow the
development of AEP.
INVESTOR RELATIONS
Investors requiring further information on AEP are
invited to contact:
Stakeholder Relations
Email : stakeholder.relations@angloeastern.co.uk
REGISTRAR
Administrative queries about holdings of AEP
shares can be directed to the Registrar:
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
Tel
: +44 (0) 370 703 0164
Email : web.corres@computershare.co.uk
11
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Shareholder Information (Continued)
Shareholders can view and update their account
details via the Computershare website, details
of which can be found at https://www-uk.
computershare.com/investor/
ANNUAL GENERAL MEETING
The 40th Annual General Meeting (“AGM”) of our
Company will be held at UHY Hacker Young LLP,
6th floor Quadrant House, 4 Thomas More Square,
London E1W 1YW on Monday, 23 June 2025 at
11am (UK time). The Notice of meeting will be
sent to shareholders by end of May 2025.
SUBMISSION OF PROXY VOTING
Shareholders will receive hard copy or soft
copy via email of the proxy form for the
2025 AGM. Shareholders will also be able
to vote electronically by visiting http://www.
investorcentre.co.uk/eproxy. Login details such
as Control Number and Pin can be located
on the Proxy Form included with this Notice.
Shareholders who have elected for electronic
communication will receive their login details via
email. Proxy votes must be received no later than
11am (UK time) on Thursday, 19 June 2025. To be
effective, all proxy appointments must be lodged
with the Company’s Registrars at Computershare
Investor Services PLC, The Pavilions, Bridgwater
Road, Bristol BS99 6ZZ. Holders receiving
electronic communication and those with
deemed consent can request to receive physical
copies by contacting Computershare on
+44 (0)370 703 0164.
AMALGAMATION OF ACCOUNTS
Shareholders receiving multiple copies of our
Company mailings as a result of several accounts
being maintained in their name are invited to
write to the Company’s Registrar at the above
address to request that their accounts be
amalgamated.
PAYMENT OF DIVIDENDS
While the dividend is declared in US Dollars,
shareholders can choose to receive their
dividends in Pounds Sterling. In the absence of
any specific instruction up to the date of closing
of the register, shareholders with addresses in
the UK will be deemed to have elected to receive
their dividends in Pounds Sterling and those with
addresses outside the UK will be deemed to have
elected to receive their dividends in US Dollars.
The Pounds Sterling equivalent dividend will be
paid at the exchange rate prevailing at the date
of closing of the register.
Shareholders are encouraged to switch to digital
dividend payments rather than payment through
their nominated bank accounts or via cheque.
Receiving payments via CREST will reduce the
back-office resources application and meets AEP
sustainability commitments to shareholders,
investors and the market. The switch is easy
and you can change your payment instruction
by logging online through the Computershare
Investor Services website.
ELECTRONIC COMMUNICATIONS
Computershare Investor Services PLC offers AEP
shareholders the opportunity to manage their
shareholding online, through the Investor Centre.
Registration is free and can be used to manage
shareholdings quickly and securely. To register
for this service, please go to https://www-uk.
computershare.com/investor/ and follow the
instructions.
12
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Chairman’s Statement
Our 2024 EPS from
continuing operations
grew by 37% to 171¢
per share, reflecting the
strength of our business
and team. In light of this
performance, the Board
is pleased to declare
a dividend of 51¢ per
share, reinforcing
our commitment to
shareholder value.”
Mr Jonathan
Law Ngee Song
Chairman
Chairman’s Statement
13
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Chairman’s Statement (Continued)
2024 HIGHLIGHTS FOR AEP GROUP
- AEP Group successfully acquired the
remaining minority stakes in two
Indonesian subsidiaries, achieving
full ownership of all its Indonesian
subsidiaries.
- This move reinforces operational
efficiency, maximises shareholder value,
and aligns with AEP’s strategy to seek
quality plantation land for expansion in
Malaysia and Indonesia.
ACHIEVEMENT IN ESG
- Indonesia’s first commercial BioCNG
plant, built on our Blankahan Estate,
officially commenced operations in
January 2024.
- The project, a significant milestone
in sustainable energy, is a result of a
strategic collaboration with PT KIS
BioFuel Indonesia, highlighting our
commitment to sustainable use of
palm oil by-products.
OPERATIONAL PERFORMANCE
Following on, I am pleased to present the production results from continuing operations of our Group
for the year ended 31 December 2024, as illustrated in the table below:
Unit
2024
2023
FFB production
(‘000 mt)
1,019.9
1,102.2
Mature plantation
(‘000 ha)
57.2
56.7
FFB yield
(mt/ha)
17.8
19.4
Mill FFB processed
(‘000 mt)
1,960.8
2,155.0
Internal FFB source
(‘000 mt)
971.9
1,074.8
External FFB source
(‘000 mt)
988.9
1,080.2
CPO production
(‘000 mt)
396.7
449.0
OER
20.2%
20.8%
In 2024, our FFB and CPO production declined by 7% and 12%, respectively, compared to the previous
year. The decline in production was partly due to our ongoing replanting programme and further
influenced by broader regional conditions, particularly in the first half of the year, where excessive
rainfall and flooding disrupted operations in certain regions.
Years
2024
($ million)
2023
($ million)
Revenue
372.3
370.4
Operating Profit
81.7
69.7
EPS
170.88¢
124.92¢
14
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Chairman’s Statement (Continued)
In 2024, revenue from continuing operations rose
to $372.3 million, representing a modest 0.5%
increase from the previous year. This achievement
was underpinned by elevated CPO prices, which
effectively mitigated the challenges posed by
reduced production levels.
Profit after tax from continuing operations is
$67.6 million, which is 20% higher than the
$56.1 million 2023 restated, supported by a
combination of elevated CPO prices and lower
expenses, including fertiliser spend. Earnings
per share increased by 37% to 170.88 cents,
from 124.92 cents in 2023 following the full
acquisition of minority interests in our Indonesian
subsidiaries in 2024.
RENAME TO AEP PLANTATIONS PLC
As we celebrate AEP’s 40th anniversary, I am
delighted to reflect on the remarkable journey
that has brought us here. Having started on the
London Stock Exchange with just four estates, we
have grown and evolved into 14 plantations and
7 mills, supported by a robust capital structure
poised for future expansion. As a testament to
the dedication, resilience, and innovation of our
team, this milestone represents a celebration
of collaboration and a steadfast commitment
to sustainable growth. I extend my deepest
gratitude to our employees, past and present,
for their hard work, to our shareholders for their
trust, and to the communities we work for their
invaluable support. Looking forward, we remain
inspired to evolve, innovate, and lead with
purpose, ensuring continued success and value
creation for all stakeholders.
In remaining steadfast to evolve and innovate in
our future undertakings, we recognise the need
for our brand to reflect our evolving presence and
inclusivity for diverse stakeholders. To enhance
accessibility beyond our English-speaking
market, we are rebranding to AEP Plantations
Plc, a refined name that reflects our forward-
looking vision. Our new name preserves our
legacy, values, and identity while reinforcing
our dedication to excellence, sustainability, and
responsible growth.
15
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Chairman’s Statement (Continued)
To become a key high-yielding player
in sustainable palm oil production
VISION
We responsibly cultivate sustainable
plantations by utilising best practices,
driving continuous improvements,
and embracing ESG principles
MISSION
INTRODUCTION OF NEW VISION, MISSION AND CORE VALUES
In line with our strategic focus and commitment to sustainability, we have introduced our new vision
and mission to highlight our focus on yield improvements. This renewed focus of ours will help us
embark in a journey of continuous improvement in our operations as well as to shareholders. Looking
forward, we hope to see improvements in governance and communications.
CORE VALUES
We
A
R
E
P
WALK THE BLOCK
ACCOUNTABILITY
RESULT-DRIVEN
EXCELLENCE TOGETHER
PEOPLE
We walk the field to
grasp its dynamics and
be in it to win it
We own our actions,
maintaining openness
and integrity in
everything we do
We set clear goals,
evaluate progress and
achieve meaningful
outcomes
We aim to do better every
day, pursuing continuous
improvement and learning
to deliver our best
as a team
We recognise talent and
reward performance,
promoting the growth
and success of our
people
16
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Chairman’s Statement (Continued)
REPLANTING TO IMPROVE LONG TERM YIELD
Actual
Target
2022
2023
2024
2025
Replanting
(ha)
1,100
1,301
1,700
2,575
To ensure the improvement of yields, our
Company has intensified its replanting efforts
in recent years. In 2024 alone, approximately
1.7 thousand hectares (“ha”) of aged, low-
yielding palms were replanted. Looking ahead,
AEP aims to replant around 10 thousand ha
as part of its 2025–2030 programme, with 2.6
thousand ha identified for replanting in 2025.
This initiative, involving the use of higher-yielding
and disease-resistant palm varieties, is expected
to significantly boost productivity and deliver
improved and sustainable returns.
DIVIDEND AND SHARE BUY-BACK
The Board has taken a balanced approach to
the requirement of funds in AEP for expansion
in planted area as well as acquisitions of land
or plantations, and at the same time cognisant
of shareholders’ wishes to have dividends as a
form of income. Considering the results achieved
in the year, the Board has declared a first and
final dividend of 51.0 cents per share (2023:
30.0 cents (interim and final)), in line with our
reporting currency, in respect of the year up to 31
SUSTAINABILITY CERTIFICATIONS AND
TARGETS
AEP remains steadfast in its commitment to
sustainable practices across our plantations in
Indonesia and Malaysia, adhering to national
standards such as Indonesian Sustainable Palm
Oil and Malaysian Sustainable
Palm Oil. Recognising the growing global
emphasis on deforestation regulations,
particularly from the European Union, the Board
has resolved to pursue membership in the
Roundtable on Sustainable Palm Oil (“RSPO”)
during the year under review. This decision
reflects AEP’s dedication to achieving a more
robust and globally recognised certification for
sustainable palm oil, addressing critical concerns
related to the European Union Deforestation
Regulation (“EUDR”) and broader sustainability
challenges. Presently, this does not directly
impact AEP as we sell our CPO to Indonesian
refineries. However, we will closely monitor
developments to assess emerging impacts
and strategic opportunities as such regulations
influence market dynamics for compliant
products. Further details on this initiative can be
found in the Strategic Report.
The EUDR, set for enforcement by 31 December
2025, represents a pivotal shift in global trade
practices. This regulation prohibits imports
into the European Union (“EU”) of agricultural
products derived from deforestation or illegal
sources, ensuring that goods consumed within
the EU contribute neither to deforestation
nor forest degradation worldwide since 2020.
Commodities, including palm oil, must meet
stringent due diligence requirements throughout
the supply chain to gain access to the EU market.
Although AEP’s customers have not yet imposed
mandatory EUDR compliance requirements,
we have proactively undertaken measures
to enhance traceability within our supply
chains, particularly in the sourcing of FFB.
These initiatives underscore AEP’s unwavering
commitment to sustainability, transparency, and
alignment with evolving industry standards.
Looking ahead, AEP aims
to replant around 10
thousand ha as part of its
2025–2030 programme,
with 2.6 thousand ha
identified for replanting in
2025.
17
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Chairman’s Statement (Continued)
December 2024. This represents approximately
30% of the retained profits attributable to our
Group for the year.
In the absence of any specific instructions up
to the date of closing of the register on 20 June
2025, shareholders with addresses in the UK
will be deemed to have elected to receive their
dividends in Pounds Sterling and those with
addresses outside of UK will be deemed to have
elected to receive their dividends in US Dollars.
Subject to the approval by shareholders at the
AGM, the final dividend will be paid on 18 July
2025 to those shareholders on the register on 20
June 2025.
In addition to dividend distributions, AEP
repurchased 71,852 Ordinary Shares at a cost
of £0.5 million (equivalent to $0.6 million) with
an average price of £7.05 per Ordinary Share in
2024. However, AEP intensified its efforts in 2025
and deployed £5 million via a non-discretionary
programme managed by Panmure Liberum to
repurchase Ordinary Shares via the open market
from 20 March 2025 up to the date of AGM.
AEP intends to continue with its share buy-
back programme as the shares are undervalued
relative to AEP strong fundamentals and growth
potential. By repurchasing shares, AEP aims to
enhance EPS and provide greater value to its
remaining shareholders.
On behalf of the Board of Directors, I would like
to convey our sincere thanks to our management
and employees of our Group for their dedication,
loyalty, resourcefulness, commitment, and
contribution to the Group.
I would also like to take this opportunity to thank
shareholders, business associates, government
authorities and all other stakeholders for their
continued confidence, understanding and
support for the Group.
JONATHAN LAW NGEE SONG
Chairman
30 May 2025
18
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Report
Our Directors present the annual report on the
affairs of the Group, together with the financial
statements and auditor’s report, for the year
ended 31 December 2024.
The Directors performance in relation to their
statutory duties, together with the principal
decisions taken during the year are detailed
in the Strategic Report under Statements by
Directors in Performance of Their Statutory
Duties in Accordance with Section 172 (1) Of the
Companies Act 2006.
ACCOUNTABILITY AND AUDIT
AEP is committed to ensure that the quality of
its financial reporting is of a high standard. The
Board continually reviews its internal controls
and risk management systems to ensure the
Group’s affairs and the Group’s financial reporting
comply with the applicable accounting standards
as well as good corporate governance. The main
features of the Group’s internal controls and risk
management systems are further disclosed in the
Statement of Corporate Governance.
The Board considers the Annual Report and
accounts including the Strategic Report
when taken as a whole, is fair, balanced and
understandable as it provides the information
necessary for shareholders to assess the Group’s
position and performance, business model and
strategy.
RESULTS AND DIVIDENDS
For the year ended 31 December 2024, our Group
recorded a profit before tax from continuing
operations of $88.1million (2023: profit before
tax of $77.8 million), with a profit attributable
to ordinary shareholders of $67.5 million (2023:
profit $49.4 million).
Our Board has recommended the first and final
dividend for 2024 of 51.0 cents (2023: 30.0 cents
(interim and final)), subject to shareholder approval
at the upcoming Annual General Meeting. If
approved, the dividend will be paid on 18 July 2025
to shareholders on the register as of 20 June 2025.
While the dividend is declared in US Dollars,
shareholders may elect to receive payment in
Pounds Sterling, as outlined in the Shareholders
Information section of the Annual Report. In the
absence of specific instructions by 20 June 2025,
(the register closing date), shareholders with UK-
registered addresses will receive their dividends
in Pounds Sterling, while those with non-UK
addresses will receive them in US Dollars.
For shareholders opting for Pounds Sterling, the
dividend will be converted at the exchange rate
prevailing on 20 June 2025 (the record date). For
illustration, based on the exchange rate at 30
March 2025 of $1.292/£, the equivalent dividend
per share would be 39.47p. Shareholders wishing
to change their currency election must do so
by 20 June 2025, the last date for revocation of
currency instructions.
From left to right,
Marcus Chan (Executive
Director of Corporate
Affairs), Michael Stainer
(Independent Non-
Executive Director),
Jonathan Law
(Chairman), Farah
Suhanah (Senior
Independent Non-
Executive Director), Kevin
Wong (Group CEO).
19
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Report (Continued)
For several years, AEP has operated a Dividend Reinvestment Plan, allowing shareholders to
reinvest their final dividends. However, after careful evaluation, AEP has decided to discontinue this
programme due to administrative complexities and limited participation.
ADDITIONAL DISCLOSURES
Other information that is relevant to the Directors’ Report, and which is incorporated by reference into
this report, can be located as follows:
REFERENCE
Future developments
Estate Development, Strategic Report
Corporate governance report
Statement on Corporate Governance
Colleague engagement
Directors’ Remuneration Report
GHG emissions
Carbon Report, Strategic Report
Stakeholder engagement
Last Page of Strategic Report
Section 172 statement
Last Page of Strategic Report
Financial assets policy
Note 2(k) to the Consolidated Financial Statements
Disclosures required pursuant to the Listing Rules can be found on the following pages:
REFERENCE
Listing Rule 6.6.4R
Statement of capitalised interest
Receivables: Non-Current, Notes to the Consolidated Financial
Statements
Listing Rule 6.6.6(8)
Climate-related financial disclosures
consistent with TCFD
Climate and Nature-Related Risks and Opportunities, Strategic
Report
Our Company has chosen, in accordance with section 414C(11) of the Companies Act 2006, and as
noted in this Directors’ Report, to include certain matters in its Strategic Report that would otherwise
be required to be disclosed in this Directors’ Report. The Strategic Report includes an indication of
future likely developments in the Company, details of important events and the Company’s business
model and strategy.
RESEARCH AND DEVELOPMENT
Our Group did not undertake any research and development activities. It relies on third-parties to
conduct research and development of new disease resistant and higher yield oil palm seeds.
POLITICAL DONATIONS
Our Group made no political donation during the year.
PRINCIPAL RISKS
The material risks faced by the Group, including any climate change related risks, and actions taken to
mitigate those risks are set out in the Principal Risks and Uncertainties section of the Strategic Report.
Information on financial instruments risks is set out in the Disclosure of Financial Instruments and
Other Risks, Note 28 to the Consolidated Financial Statements.
20
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Report (Continued)
PROPERTY, PLANT AND EQUIPMENT
Information relating to changes in property, plant and equipment and capitalised interest, as required
pursuant to Listing Rule 6.6.4R, are given in Property, Plant and Equipment, Notes to the Consolidated
Financial Statements.
DIRECTORS
Mr Jonathan Law Ngee Song, Mr Marcus Chan Jau Chwen, Ms Farah Suhanah Tun Ahmad Sarji,
Mr Michael Henry Stainer will be submitting themselves for re-appointment at the forthcoming
annual general meeting. Mr Lim Tian Huat, having served for 9 years and no longer deemed
independent after May 2024, did not seek re-appointment at the annual general meeting held on
24 June 2024. Mr Dato’ John Lim Ewe Chuan resigned as Executive Director on 31 December 2024.
Brief profiles of all Directors and our Group Chief Executive Officer (“Group CEO”) are set out in the
Directors’ profile section of this Annual Report.
Our Board committees include:
Audit & Risk Management Committee:
• Michael Henry Stainer (Chair)
• Farah Suhanah Tun Ahmad Sarji (member)
Nomination Committee:
• Farah Suhanah Tun Ahmad Sarji (Chair)
• Michael Henry Stainer (member)
• Marcus Chan Jau Chwen (member)
Remuneration Committee:
• Farah Suhanah Tun Ahmad Sarji (Chair)
• Michael Henry Stainer (member)
ESG and Corporate Governance Committee:
• Marcus Chan Jau Chwen (Chair)
• Farah Suhanah Tun Ahmad Sarji (member)
SUBSTANTIAL SHARE INTERESTS
As at 31 March 2025 and 31 December 2024, the following interests had been notified to our Company
in accordance with Chapter 5 of the Disclosure Rules and Transparency Rules of the Financial Conduct
Authority, being interests in excess of 3% of the issued ordinary share capital of the Company:
Name of Holder
As at 31.3.2025
As at 31.12.2024
Shares
held
% of voting
rights held
Shares
held
% of voting
rights held
Genton International Limited*
20,247,814
51.3%
20,247,814
51.3%
Nokia Bell Pensioenfonds
7,015,000
17.8%
7,015,000
17.8%
* The ultimate beneficial shareholders of Genton International Limited are vested in the estates of
Madam Lim Siew Kim (“Madam Lim”) with the application for probate in progress.
SHARE CAPITAL, RESTRICTIONS ON TRANSFER OF SHARES, ARRANGEMENTS AFFECTED BY
CHANGE OF CONTROL AND OTHER ADDITIONAL INFORMATION
Our Company has one class of share capital, ordinary shares. All the shares rank pari passu. The articles
of association of our Company contain provisions governing the transfer of shares, voting rights, the
appointment and replacement of Directors and amendments to the articles of association. This
accords with usual English company law provisions. There are no special control rights in relation
to the Company’s shares. There are no significant agreements to which our Company is a party
which take effect, alter or terminate in the event of a change of control of the Company. There are no
agreements providing for compensation for Directors or employees on change of control.
21
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Report (Continued)
CHANGE OF AUDITOR
All current Directors have taken steps to make
themselves aware of any information needed by
the Company’s auditor for the purposes of the
audit and to establish that the auditor is aware of
the information. The Directors are not aware of any
relevant audit information of which the auditor is
unaware.
In 2024, Forvis Mazars was appointed as the AEP’s
auditor, succeeding BDO LLP.
AUTHORITY TO ALLOT SHARES AND
DISAPPLICATION OF PRE-EMPTION RIGHTS
At the annual general meeting held on 24 June
2024, a significant proportion of shareholders
did not support AEP’s resolution to allot equity
securities with disapplication of pre-emption
rights. Following the said annual general
meeting, the Executive Directors engaged with
shareholders who voted against the resolution
to gain deeper insights into their concerns. A key
theme arising from these discussions was dilution
risk, with shareholders preferring case-by-case
approvals over a general authority to waive pre-
emptive rights.
In response to shareholder feedback, AEP does
not currently intend to undertake any private
placement, rights issue, or allotment of shares,
nor seek a general disapplication of pre-emption
rights to allot shares in financial year 2025. AEP
remains committed to maintaining open and
transparent engagement with its shareholders
and will continue to align its capital management
strategies with their interests.
ACQUISITION OF THE COMPANY’S OWN SHARES
AND AUTHORITY TO PURCHASE OWN SHARES
Our Company on 20 March 2025, announced that
it has entered into an irrevocable commitment
with Panmure Liberum to manage a programme
to repurchase up to 3,963,637 ordinary shares
of 25 pence each in the capital of our Company
representing approximately 10% of the Ordinary
Shares in issued. This authority expires on 30
June 2025, of if earlier, at the conclusion of the
forthcoming annual general meeting. All such
purchases will be market purchases made
through the London Stock Exchange. Companies
can hold their own shares which have been
purchased in this way in treasury rather than
having to cancel them. The Directors would,
therefore, consider holding the Company’s
own shares which have been purchased by our
Company as treasury shares as this would give our
Company the flexibility of being able to sell such
shares quickly and effectively where it considers it
in the interests of shareholders to do so. Whilst any
such shares are held in treasury, no dividends will
be payable on them and they will not carry any
voting rights.
Our Company intends to seek a renewed authority
to purchase up to a maximum of 3,997, 627
ordinary shares of 25p each on the London Stock
Exchange, representing 10% of the Company’s
issued ordinary share capital, at the forthcoming
annual general meeting. The minimum price
which may be paid for an ordinary share is 25p.
The maximum price which may be paid for an
ordinary share on any exercise of the authority
will be restricted to the higher of (i) an amount
equal to 5% above the average middle market
quotations for such shares as derived from the
London Stock Exchange Daily Official List for
the 5 business days immediately preceding the
day on which such shares are purchase; (ii) an
amount equal to the price of the last independent
trade; and (iii) the highest current independent
purchase bid on the London Stock Exchange. The
maximum number of shares and the price range
are stated for the purpose of compliance with
statutory requirements in seeking this authority
and should not be taken as an indication of the
level of purchases, or the prices thereof, that AEP
would intend to make.
LIABILITY INSURANCE FOR COMPANY OFFICERS
As permitted by the Companies Act 2006 our
Company has maintained insurance cover for
the Directors against liabilities in relation to our
Company which remains in force at the date of
this report.
On behalf of the Board:
MARCUS CHAN JAU CHWEN
Executive Director of Corporate Affairs
30 May 2025
22
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Responsibility
Our Directors are responsible for preparing the
annual report and the financial statements
in accordance with UK adopted International
Accounting Standards (“IAS”) and applicable law
and regulations.
Company law requires our Directors to prepare
financial statements for each financial year.
Under that law the Directors are required to
prepare our Group financial statements in
accordance with UK adopted IAS and have
elected to prepare our Company financial
statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable
law). Under company law, the Directors must not
approve the financial statements unless they are
satisfied that they give a true and fair view of the
state of affairs of our Group and Company and of
the profit or loss for our Group for that period.
In preparing these financial statements, our
Directors are required to:
•
select suitable accounting policies and then
apply them consistently;
•
make judgements and accounting estimates
that are reasonable and prudent;
•
state whether they have been prepared in
accordance with UK adopted international
accounting standards, subject to any material
departures disclosed and explained in the
financial statements;
•
prepare the financial statements on the going
concern basis unless it is inappropriate to
presume that our Group and our Company will
continue in business; and
•
prepare a Directors’ Report, a Strategic
Report and Directors’ Remuneration Report
which comply with the requirements of the
Companies Act 2006.
Our Directors are responsible for keeping
adequate accounting records that are sufficient
to show and explain the Company’s transactions
and disclose with reasonable accuracy at any
time the financial position of our Company
and enable them to ensure that the financial
statements comply with the Companies Act
2006.
They are also responsible for safeguarding the
assets of our Company and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities. Our
Directors are responsible for ensuring that the
annual report and accounts, taken as a whole, are
fair, balanced, and understandable and provides
the information necessary for shareholders to
assess the Group’s performance, business model
and strategy.
WEBSITE PUBLICATION
Our Directors are responsible for ensuring the
annual report and the financial statements
are made available on a website. Financial
statements are published on the Company’s
website in accordance with the legislation in the
UK governing the preparation and dissemination
of financial statements, which may vary from
legislation in other jurisdictions. The maintenance
and integrity of the Company's website is the
responsibility of the Directors. The Directors'
responsibility also extends to the ongoing
integrity of the financial statements contained
therein.
DIRECTORS’ RESPONSIBILITIES PURSUANT TO
DISCLOSURE AND TRANSPARENCY RULES 4
(“DTR4”)
Our Directors confirm to the best of their
knowledge:
•
The financial statements have been prepared
in accordance with the applicable set of
accounting standards, give a true and fair view
of the assets, liabilities, financial position and
profit and loss of the Group.
•
The annual report includes a fair review of the
development and performance of the business
and the financial position of our Group and
Company, together with a description of the
principal risks and uncertainties that they face.
On behalf of the Board:
MARCUS CHAN JAU CHWEN
Executive Director of Corporate Affairs
30 May 2025
23
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Profile
Jonathan Law Ngee Song
Non-Executive Chairman
Marcus Chan Jau Chwen
Executive Director of Corporate Affairs,
member of the Nomination Committee
and Chairman of the ESG & Corporate
Governance Committee
Appointed as an Independent Non-Executive
Director on 4 July 2013. He was appointed as the
Non-Executive Chairman of AEP on 8 July 2022.
Mr Jonathan Law graduated from Australia
National University in 1989 with a Bachelor
of Commerce and Bachelor of Laws. He was
admitted as an Advocate and Solicitor, to the
High Court of Malaya in 1991. He is in legal
practice and currently a Partner in Messrs. Seow &
& Megat handling mergers and acquisitions and
corporate practice. He was previously a Partner in
Azmi & Associates, Nik Saghir & Ismail and Allen &
Gledhill.
Mr Jonathan Law is the Non-Independent Non-
Executive Chairman of Evergreen Fibreboard
Berhad, listed on Bursa Malaysia. He also sits on
the board of Pimpinan Ehsan Berhad as a Non-
Independent and Non-Executive Director.
Appointed as a Non-Independent Non-Executive
Director of our Group on 10 August 2022 and
redesignated as Executive Director of Corporate
Affairs effective 1 October 2024.
Mr Marcus Chan is deemed to be not independent
as he is the son of the late Madam Lim whose
estate owns 51% of the Company’s shares.
Mr Chan holds a Master of Business Administration
from the China Europe International Business
School and is an alumnus of the University of
Melbourne, Australia, where he earned a Bachelor
of Commerce degree. He began his career at Ernst
& Young Malaysia as an associate auditor, before
advancing into roles in financial advisory, business
development, marketing, and overseeing private
businesses. His expertise encompasses finance,
business development, and communications.
59
41
24
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Profile (Continued)
Farah Suhanah Tun Ahmad
Sarji
Senior Independent Non-Executive Director,
member of the Audit & Risk Management
Committee, Chairman of the Remuneration
Committee, member of the Nomination
Committee, and member of the ESG &
Corporate Governance Committee
Michael Henry Stainer
Independent Non-Executive Director,
Chairman of the Audit & Risk Management
Committee, member of the Remuneration
Committee, and member of the Nomination
Committee
Appointed on 20 October 2022 as Independent
Non-Executive Director and redesignated as Senior
Independent Non-Executive Director effective 24
June 2024.
Ms Farah was admitted as an Advocate and Solicitor
of the High Court of Malaya in 1996. She graduated
with a Bachelor of Arts (Hons) in Law from the
University of Kent in 1988 and was admitted as a
Barrister-at-Law of the Middle Temple, London in
1989.
Ms Farah brings over 26 years of legal and commercial
expertise across industries including oil and gas,
telecommunications, satellite, and palm oil plantations.
She retired as Group Legal Counsel of IOI Corporation
Berhad, after previously serving as General Counsel
at MEASAT Global for 10 years while managing her
private legal firm. Earlier in her career, she held roles
as a Magistrate, Deputy Public Prosecutor, and Federal
Counsel in the Malaysian Attorney-General’s Chambers.
Ms Farah is an Independent Non-Executive Director
of Kluang Rubber Company (Malaya) Berhad,
AEON Credit Service (M) Berhad, and Sunway REIT
Management Sdn Bhd (the Manager for Sunway Real
Estate Investment Trust).
Appointed on 1 May 2024 as Independent Non-
Executive Director.
Mr Stainer is a highly qualified accountant and
corporate treasurer, with over three decades of
experience in senior finance roles across private
and listed companies in sectors such as property,
mining, technology, food, and public utilities. From
1992 to 2002, he served as Group Treasurer and
Director of non-regulated subsidiaries at Bristol
Water Holdings Plc.
Mr Stainer’s expertise in financial strategies and
corporate governance positions him as a key
contributor to strengthening AEP’s decision-
making and driving sustainable growth.
60
64
25
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Profile (Continued)
Dato’ John Lim
Ewe Chuan
Executive Director
resigned on 31 December
2024
Appointed on 26 April 2008 as
the Senior Independent Non-
Executive Director. On
1 September 2010 he was
appointed as the Executive
Director and resigned on 31
December 2024.
A Chartered Certified
Accountant; Dato’ John Lim
retired as a Partner with UHY
Hacker Young LLP, London
on 30 April 2019 where he
was a Partner since 1998. He
previously had a professional
accounting career in Singapore
and the UK.
75
Lim Tian Huat
Senior Independent
Non-Executive Director
resigned on 24 June 2024
Appointed on 8 May 2015, Mr.
Lim did not seek re-election at
the annual general meeting
held on 24 June 2024.
Mr Lim is a fellow of the
Association of Chartered
Certified Accountants and
member of the Malaysian
Institute of Accountants
and Malaysian Institute of
Certified Public Accountants.
He is the founding President
and member of Insolvency
Practitioners Association of
Malaysia and degree in Business
Administration in Economics
(Honours). He is a Chartered
Accountant with his own
practices and advisory firm.
Mr Lim is the Senior Independent
Non-Executive Director of
Majuperak Holdings Berhad,
Independent Non-Executive
Director of DUET Acquisition
Corp, and Independent and Non-
Executive Director of Pacific &
Orient Insurance Co. Berhad.
70
DIRECTORS RESIGNED IN 2024:
Kevin Wong Tack
Wee
Group Chief Executive
Officer
63
Joined AEP in January 2024 and
appointed on 1 October 2024 as
Group Chief Executive Officer.
Mr Kevin Wong’s leadership
experience spans multinational
companies based in Malaysia
and Hong Kong, where he held
senior positions with regional
responsibilities. Prior to joining
AEP, he was Managing Director
of Acapalm Plantation Services
and Group Chief Financial
Officer at IOI Corporation,
overseeing multinational
strategic financial operations
and corporate governance
initiatives.
Mr Wong is a fellow member
of the Chartered Institute of
Management Accountants
(FCMA), Chartered Global
Management Accountant
(CGMA) and a member of
Chartered Accountant, Malaysia
(CA, Malaysia). With a strong and
proven foundation in corporate
leadership, financial oversight,
and plantation economics, Mr
Wong continues to guide our
Group toward sustainable and
profitable growth.
Our Group CEO does not serve
as a member of the Board and
does not participate in Board
voting.
GROUP CEO
26
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Statement on Corporate Governance
I am pleased to report on the activities of the
Corporate Governance for the year ended 31
December 2024. This Statement on Corporate
Governance forms part of the Directors’ Report.
COMPLIANCE WITH THE UK CORPORATE
GOVERNANCE CODE
AEP is committed to business integrity,
appropriately high ethical standards and
professionalism in all its activities and operations.
This includes a commitment to high standards
in corporate governance relating in particular
to appropriate systems and controls adopted
at a senior level of management of our Group
and operation of the Board. The benchmark
standards in this regard are set out in the new
UK Corporate Governance Code 2024 (‘the
Code’). The Code is available from the Financial
Reporting Council’s (“FRC”) website at www.frc.
org.uk. Our Company is in compliance with the
Code except for Provisions 19 and 21. Provision
19 says that the chair should not remain in
the post beyond 9 years from the date of his
appointment to our Board. Mr Jonathan Law
was an Independent Non-Executive Director for
9 years before his appointment as Chairman of
AEP on 8 July 2022. This provision does however
allow a Non-Executive Director to step up as
Chairman for a limited time to facilitate effective
succession planning and the development of
a diverse board. The Board is of the opinion
that Mr Jonathan Law should continue his role
as the Chairman whilst the estate of the late
Madam Lim has not been finalised. AEP was
not in compliance with Provision 21 of the
Code which provides for a formal and rigorous
annual evaluation of the performance of the
board, its committees, the chair, and individual
Directors including having externally facilitated
board evaluation at least once every three
years. All evaluations of performances were
performed internally by the Chairman (please
refer to the Operation of the Board section
below). In the previous financial year, AEP was
not in compliance with Provision 32 due to the
Chairman of the Remuneration Committee not
having served on the committee for at least
12 months prior to her appointment. As the
Chairman has now served in this role for over a
year, AEP considers itself fully compliant with
Provision 32 for the financial year ended 31
December 2024. For clarity, Provision 40 provides
that notice or contract period of Directors should
be one year or less. While the Directors’ contracts
at AEP have a two-year term for administrative
reasons, they remain compliant as they can be
terminated with one or two months’ notice,
which is less than one year as required by the
said Provision.
Please refer to the Service Contracts section of the
Remuneration Report.
AEP has not complied with Principle Q of the
2018 UK Corporate Governance Code, as the
Group CEO presented the group-wide 2025
salary increment and 2024 bonus to the board
for consideration in January 2025. However,
he properly excused himself from discussions
regarding his own compensation (although this
was not documented in the board minutes).
Moving forward, the Group CEO will have no
involvement in the preparation, presentation, or
discussions of his compensation package for a
fully independent process.
Monitoring compliance with the Code is the
responsibility of the Nomination Committee.
All Committee terms of reference have been
reviewed to reflect the requirements in the Code.
Board leadership and company
purpose
The core objective of our Board is
to create and deliver the long-term
sustainable success of the Company,
generating value for shareholders and
contributing to the wider society in
a way that is supported by the right
culture and behaviours.
See the Business Model and Our Strategy,
Strategic Report
27
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Statement on Corporate Governance (Continued)
Division of responsibilities
Our Board has agreed to a clear division
of responsibilities between the running
of the Board and running the business
of our Group, which is supported by
the corporate governance framework.
Responsibilities are clearly defined in
role statements to ensure that no one
individual has unrestricted powers of
decision-making and no small group
of Directors can dominate the Board’s
decision-making.
Committee terms of reference determine
the authority given to each of the Board’s
Committees.
For more details on Board composition,
leadership and role statements, see the
Directors’ Profile above and the remainder
of this Statement on Corporate Governance.
Composition, succession, and
evaluation
Our Board, with the support of the
Nomination Committee, keeps under
constant review the composition of the
Board and its Committees, succession
planning, diversity, inclusion, and
governance-related matters.
Our Board undertakes a review of its
effectiveness and that of its Committees
and Directors annually.
See our Board section under the
Statement of Corporate Governance for
more details on the Board effectiveness.
The activities of the Nomination
Committee can be found under
the remainder of this Statement on
Corporate Governance.
Remuneration
Our Board, supported by the
Remuneration Committee, ensures that
the remuneration policies are designed
to support strategy and promote long-
term sustainable success. Executive
remuneration is aligned to the successful
delivery of the Company’s long-term
strategy.
See Directors’ Remuneration Report for
more details on the remuneration policy
and implementation of the policy.
Audit, risk, and internal control
Our Board is accountable to stakeholders
for ensuring that AEP is appropriately
managed. Our Board sets AEP’s risk
appetite and satisfies itself that financial
controls and risk management systems
are robust, while ensuring AEP is
adequately resourced. The Board receives
regular updates on audit, risk and
internal control matters with detailed
oversight undertaken by the Audit & Risk
Management Committee and its findings
are reported to the Board.
See Audit Committee Report for more
details on audit, risk management and
internal control and the work of the Audit &
Risk Management Committee.
Further details demonstrating how the
Principles and Provisions of the Code have been
applied can be found throughout the corporate
governance report, the Directors’ report, each of
the Board Committee reports and the Strategic
Report.
The FRC is responsible for the publication and
periodic review of the UK Corporate Governance
Code and this can be found on the FRC website
at www.frc.org.uk.
28
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Statement on Corporate Governance (Continued)
Disclosure required by Listing Rules on diversity,
with respect of gender, and ethnicity can be
found under Diversity section of the Strategic
Report.
RELATIONSHIP WITH CONTROLLING
SHAREHOLDER
Under the revised UK Listing Rules 2024,
there is no longer a requirement to have
a relationship agreement in place with a
controlling shareholder. Instead, Listing Rules
6.6.1(13) requires AEP to confirm in its annual
report whether it continues to be able to carry
on its main business activity independently
of its controlling shareholder or to provide an
explanation if it is unable to do so. In response,
AEP has identified Genton International Limited
as its controlling shareholder. Our Board confirms
that AEP has continued to operate independently
from Genton at all times and that Genton has not
influenced our Company in a manner that would
be improper or unfair to minority shareholders.
AEP remains committed to high standards of
corporate governance and ensuring that the
interests of all shareholders are safeguarded.
THE BOARD
Our Board is responsible for the proper
leadership of our Company for the long-term
success of our Company and Group. Our Board
is supplied with relevant, timely, and accurate
information for review prior to each meeting to
enable them to discharge their duties. The Audit
& Risk Management Committee is responsible
for the integrity of the financial information
and this is achieved by interacting with the
management and with the internal auditors.
The Board has identified and formally adopted a
schedule of key matters that are reserved for its
decision, including the annual fiscal and capital
budgets, interim, preliminary, and final results
announcements, dividends, the appointment
of directors and Company Secretary, circulars
to shareholders, Group treasury policies,
acquisitions, and disposals. Other matters are
delegated to committees, the details of which are
set out below.
AEP is led by a strong and experienced
Board of Directors. By the end of 2024, the
Board comprised of 5 Directors: the Non-
Executive Chairman, two Executive Directors,
an Independent Non-Executive Director and a
Senior Independent Non-Executive Director. AEP
has compiled with the Provision 11 of the UK
Code, which requires that at least half the Board,
excluding the Chair, should be Non-Executive
Directors whom the Board considers to be
independent.
As part of our Board changes during the year,
Dato’ John Lim, who had served as Executive
Director since 1 September 2010 and was
redesignated as the de facto CEO in August 2022,
resigned on 31 December 2024. Additionally, Lim
Tian Huat, the Senior Independent Non-Executive
Director, opted to retire and did not seek re-
election at the annual general meeting held on
24 June 2024. Our Board extends its appreciation
to both for their contributions to AEP.
The Nomination Committee will monitor
continuously the future leaders and talents within
our Group as well as outside the Group. This is
essential to ensuring a continuous level of quality
in management, in avoiding instability by helping
to mitigate the risks which may be associated
with unforeseen events, such as the departure
of a key individual, and in promoting diversity
and inclusion. Our Company continues to have a
systematic approach to succession planning for
Non-Executive Directors. The Chairman would
normally have personal dialogue with individual
Directors at least once a year to discuss the
business of our Group in general and their plans,
if any, to facilitate succession planning especially
for directors nearing 9 years of service and for
evaluation of their performance. Kevin Wong was
appointed as Group CEO on 1 October 2024 to
drive operational excellence in alignment with
our Company’s long-term strategy. Our Group
CEO does not serve as a member of the Board
and does not participate in Board voting.
INDEPENDENCE OF THE NON-EXECUTIVE
DIRECTORS
Our Board has evaluated the independence of
each of its Non-Executive Directors. Following
this assessment, our Board has determined
that, throughout the reporting period, three of
its Non-Executive Directors (including Lim Tian
Huat (until his retirement on 24 June 2024), who
were appointed for specified terms of office, were
29
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Statement on Corporate Governance (Continued)
independent, based above all on their objectivity
and integrity. The terms and conditions relating
to the appointment of the Non-Executive
Directors are available from our Company
Secretary.
In arriving at its conclusion, our Board considered
the factors set out in Provision 10 of the UK Code
including, inter alia, whether any of the Non-
Executive directors:
•
has been an employee of our Group within the
last 5 years;
•
has, or had within the last three years, a
material business relationship with the Group;
•
receives additional remuneration from our
Group apart from a director’s fee;
•
has close family ties with any of the Group’s
advisors, Directors or senior employees;
•
holds cross-directorships or has significant
links with other Directors through involvement
in other companies or bodies;
•
has served more than 9 years on the Board; or
•
represents a significant shareholder.
The UK Code acknowledges that a director may
be regarded as independent notwithstanding the
existence of any of the above factors, provided a
clear explanation is given.
The Independent Non-Executive Directors of our
Company have a wide range of business interests
beyond their position with our Company and the
rest of the Board agree unanimously that they
have shown themselves to be fully independent.
SENIOR INDEPENDENT NON-EXECUTIVE
DIRECTOR
As required under Code 12, Mr Lim Tian Huat,
an experienced Chartered Accountant acted
in the capacity of the Senior Independent
Non-Executive Director from 8 May 2015 until
his retirement on 24 June 2024. Thereafter,
we have redesignated Ms Farah as the Senior
Independent Non-Executive Director from
24 June 2024.
OPERATION OF THE BOARD
A schedule of duties and decisions reserved for
the Board and management respectively has
been adopted. The Audit & Risk Management,
Nomination, Remuneration, and ESG & Corporate
Governance Committees have written terms of
reference which are available for inspection upon
request from our Company Secretary. The terms
of reference are also available for download from
the Company’s website under Sustainability -
Corporate Governance section.
Unless warranted by unusual matters, our Board
normally meets two to three times each year.
Otherwise, all other matters are dealt with by
written resolution and telephone conference.
In 2024 however, there were 5 formal Board
meetings attended as follows:
Name of Directors
Attendance
Jonathan Law Ngee Song
(Non-Executive Chairman)
5/5
Dato’ John Lim Ewe Chuan
(resigned on 31 December 2024)
5/5
Lim Tian Huat
(resigned at AGM on 24 June 2024)
2/2
Marcus Chan Jau Chwen
5/5
Farah Suhanah Tun Ahmad Sarji
5/5
Michael Henry Stainer
(appointed on 1 May 2024)
3/3
Agenda and minutes of previous meetings were
circulated prior to meetings.
The Independent Non-Executive Directors met
on their own during 2024. Telephone discussions
between the Chairman and the Non-Executive
Directors also took place outside these meetings.
In 2024, our Board followed our Group results
and activities of the various subsidiaries by
means of monthly reports prepared by the senior
management teams in Malaysia and Indonesia.
The Board deliberated on the periodic results and
measured its performance against the approved
budgets and previous year achievements. It
also benchmarks its performance against listed
plantation companies in the UK, Indonesia,
Malaysia, and Belgium, with operations primarily
in Indonesia.
The Executive Committee which is made up
of the Chairman, the Executive Director, and
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ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Statement on Corporate Governance (Continued)
the Group CEO receive detailed briefings from
the management on a quarterly basis on the
Group’s performance and significant corporate
issues that need addressing. In addition, they
followed the development in Indonesia through
operational meetings with senior management.
The Board believes that given a large part of the
Group’s revenue is derived from Indonesia, a
closer supervision at a higher level will enhance
governance to achieve the strategic objectives of
the Group. The senior management operational
meetings are attended by our Group CEO, Chief
Corporate Planning & ESG Officer and Group
Accountant from Malaysia and the management
team based in Indonesia which includes the
President Director, the Plantation Director, the
Finance Director, Head of Mill & Engineering,
and General Manager of Operations & Human
Resource. Other senior managers are regularly
invited to brief the Executive Committee or
the Audit & Risk Management Committee on
significant issues relating to operations, Internal
Audit, ongoing legal cases, sustainability and risk
management matters with follow up actions. The
annual budget for 2025 was tabled and following
deliberations were approved by the Board.
The Presidential Regulation No.10 of 2021 allows
foreign companies operating in Indonesia to have
100% ownership in palm oil companies. AEP
successfully acquired the remaining minority
stakes in two of its Indonesian subsidiaries. This
strategic consolidation has not only strengthened
AEP's ownership in the region but also reinforces
its commitment to enhancing operational
efficiency and maximising shareholder value.
With these acquisitions, AEP now wholly-owns
all its subsidiaries in Indonesia. As part of its
strategy, our Group will continue to maintain
a focus on seeking quality plantation land for
expansion, especially in areas such as Malaysia
and Indonesia.
On 20 March 2025, our Company announced that
it has entered into an irrevocable commitment
with Panmure Liberum Limited to manage a
non-discretionary programme to repurchase up
to £5.0 million ordinary shares of AEP. Details are
included in the Strategic Report.
In determining the level of dividends to be
paid to our shareholders, our Board has taken a
balanced approach to the requirement of funds
in our Company for expansion in planted areas as
well as acquisitions of land or plantations, but at
the same time cognisant of shareholders’ wishes
to have dividends as a form of income. In the
light of the results achieved in the year, together
with the unutilised portion of the allocated funds
for the share buyback programme, the Board has
declared a final dividend of 51.0 cents per share,
in line with our reporting currency, in respect
of the year ended 31 December 2024 (2023:
30.0 cents (interim and final)), representing an
increase of 70% from last year.
Each Board member has access to the impartial
advice and services of our Company Secretary,
who is responsible to the Board for ensuring
that appropriate procedures are followed.
Where necessary, the Board members may
seek independent advice from the Company’s
brokers, including legal counsel at the Company’s
expense. Our Company maintained Directors’ and
officers’ liability insurance throughout 2024.
Non-Executive Directors are normally
appointed for two-year terms renewable on
the recommendation of the Board. To maintain
the vitality of the Board, our Company specify
fixed terms of office for Non-Executive directors.
However, the Board will review the position of
each Director for the yearly re-election under
the Code. The re-election of the Independent
Non-Executive Directors have always been on the
basis of gaining a majority of the independent
shareholders vote in addition to the total
shareholders vote since this requirement was first
introduced.
In 2024, our Board conducted a review of its
performance by discussion. It concluded that the
Board was performing effectively and that the
Board members have the complementary skills
appropriate to propel our Group in its strategic
direction and for challenges ahead. No other
major issues arose from this review. Our Company
does not appoint an external consultant to
conduct a formal and rigorous evaluation of the
Board’s performance as our Board believes that
it had performed commendably going by the
financial results achieved over the years when
compared to its peers.
31
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Statement on Corporate Governance (Continued)
Following a review of the internal control and
risks management in April 2024 and in the
absence of any reported failure and weaknesses
which the Board considered significant, it
concluded that these remain effective and
sufficient for their purpose.
In the following years, the Board intends to
implement a structured survey-based checklist
as part of its performance evaluation process, to
further enhance governance oversight.
In connection with the statutory provisions
regarding directors’ conflict of interest, the
Directors must avoid a situation in which the
Directors have, or can have a direct or indirect
interest that conflicts, or possibly may conflict
with the interests of the Company. The duty is
not infringed if the matter has been authorised
by the Directors. Under the Articles, the Board
has the power to authorise potential or actual
conflict situations. The Board maintains effective
procedures to enable the Directors to notify
our Company of any actual or potential conflict
situations and of those situations to be reviewed
and, if appropriate, to be authorised by the Board.
Directors’ conflict situation if it arises is reviewed
annually and authorisation is recorded in the
Board minutes.
NOMINATION COMMITTEE
The Nomination Committee had one meeting in
2024 which were attended as follows:
Name of Directors
Attendance
Farah Suhanah Tun Ahmad Sarji
(Chair)
2/2
Lim Tian Huat
(resigned at AGM on 24 June
2024)
2/2
Marcus Chan Jau Chwen
2/2
The policy on diversity is described in the
Strategic Report.
ACTIVITIES
During the year, the Nomination Committee
reviewed and deliberated on the Statement
of Corporate Governance for inclusion in the
annual report. As part of its commitment to
Board renewal and strengthening leadership,
the Committee has been actively identifying
candidates with the appropriate skills,
experience, and availability to enhance AEP’s
Board. This process led to the identification and
appointment of Michael Henry Stainer as an
Independent Non-Executive Director on
1 May 2024. His extensive expertise in finance,
treasury, and corporate governance across
various industries enhances the Board’s overall
capabilities and independence.
The Committee also arranged for a formal
training programme conducted by external
consultants in November 2024 to update all the
directors on their responsibilities and corporate
governance on ESG matters. As in the past,
the Board will not hesitate to arrange training
on specific matters where it is thought to be
required.
RELATIONS WITH SHAREHOLDERS
All shareholders may attend the Company’s
AGM and put questions to the Board and such
questions must be with at least 20 working days’
notice. At the conclusion of the AGM, a summary
of votes for each resolution is reported and made
available at the Company’s website as soon as
practicable after the meeting. Shareholders will
not receive a hard copy of the proxy form for the
2025 AGM. Instead, shareholders will be able
to vote electronically using the link at https://
www-uk.computershare.com/investor/. For more
details, please refer to online submission of proxy
voting on Notice of 2025 AGM.
The Executive Director regularly meets with
principal shareholders during the year to
understand their concerns and views on
governance and performance. The views of the
shareholders are communicated to the Board
to ensure that it is mindful of the shareholders’
sentiment and issues arising at all times.
The annual report, interim report, and
trading statements are intended to keep the
shareholders informed as to the progress in the
operational and financial performance of the
Group. Our Company maintains a corporate
website at https://www.angloeastern.co.uk/.
This website has detailed information on various
32
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Statement on Corporate Governance (Continued)
aspects of the Group’s operations. The website is
updated regularly and includes latest Company
announcements, information on the Company’s
share price, the price of crude palm oil, foreign
currency movement of Indonesian Rupiah
against US dollar and environmental, social and
governance matters.
Our Company’s results and other news releases
issued via the London Stock Exchange’s
Regulatory News Service are published on the
“Investors Information” and “News” sections of
the website and together with other relevant
information concerning our Company and
the Industry, are available for downloading.
The website was upgraded recently to enable
shareholders and investors to select and receive
e-mail alerts from our Company on the selected
regulatory news to follow the development of the
Company.
ENVIRONMENTAL AND CORPORATE
RESPONSIBILITY
AEP remains fully committed to responsible
and sustainable plantation management
across its operations in Indonesia and Malaysia.
Compliance with the ISPO and MSPO standards
remains a core priority, ensuring that our Group
adheres to nationally mandated sustainability
frameworks.
Recognising the increasing global focus on
deforestation-free supply chains, particularly
following the introduction of the EUDR, the
Board has resolved to pursue membership in the
RSPO. This initiative underscores AEP’s dedication
to internationally recognised sustainability
certification and reinforces its commitment
to best environmental and social governance
practices.
While AEP’s customers have not yet made
EUDR compliance mandatory, our Group has
proactively implemented enhanced traceability
measures in its FFB sourcing to ensure alignment
with evolving regulatory expectations. AEP’s
sustainability initiatives and updates are
periodically disclosed on the Company’s website.
Further details on the Group’s approach to
RSPO certification, EUDR compliance, and
environmental initiatives can be found in the
Strategic Report.
MARCUS CHAN JAU CHWEN
Chairman, ESG & Corporate Governance
Committee
30 May 2025
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ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Audit Committee Report
COMPOSITION
The Audit & Risk Management Committee had 5
meetings in 2024, which were attended as follows:
Names of Directors
Attendance
Michael Henry Stainer (Chair)
(appointed 1 May 2024)
4/4
Lim Tian Huat
(resigned at AGM on 24 June 2024)
1/1
Farah Suhanah Tun Ahmad Sarji
5/5
The current members possess relevant financial
and professional experiences to discharge their
specific duties with respect to the Audit & Risk
Management Committee. Mr Michael Henry Stainer,
in particular, has adequate financial experience to
discharge his duties as the Chairman of the Audit
& Risk Management Committee. Please see their
qualifications in the Directors’ Profile.
In 2024, Ms Farah and Mr Michael attended
11 and two external trainings programmes
respectively organised by a range of professional
bodies including the MBL Seminars (UK) and Aon.
Several of these programmes focused on corporate
sustainability and ESG practices. Both directors
participated in Directors’ Duties & ESG – The Latest
Case Law & Developments (MBL Seminars, UK)
and Aon’s Climate and Nature Session. In addition,
Ms Farah attended a wide range of technical
and strategic briefings covering topics such as
audit committee responsibilities, cybersecurity
oversight, conflict of interest provisions under
Bursa Malaysia’s amended Listing Requirements,
and anti-money laundering developments. These
programmes reflect their respective commitments
to continuous professional development and
support the Board’s ongoing efforts to uphold
effective governance in an increasingly complex
regulatory and ESG-driven environment.
ROLES OF THE AUDIT & RISK MANAGEMENT
COMMITTEE
Audit & Risk Management Committee is
responsible for:
• monitoring the integrity of the financial
statements and reviewing formal
announcements of financial performance and
significant reporting issues and judgements that
such statements and announcements are fair,
balanced and understandable for shareholders
to assess the Company’s financial position and
performance, business model and strategy;
• monitoring and reviewing the effectiveness of
internal financial controls, internal controls, and
risk management systems;
• making recommendations to the Board in
relation to the appointment, reappointment
and removal of the external auditor, their
remuneration, and terms of engagement;
• reviewing and monitoring the independence
and objectivity of the external auditor and the
effectiveness of the audit process;
• developing and implementing policy on the
engagement of the external auditor to supply
non-audit services, ensuring there is prior
approval of non-audit services, considering the
impact this may have on independence, taking
into account the relevant regulations and ethical
guidance in this regard, and reporting to the
Board on any improvement or action required;
• reporting to the Board on how it has discharged
its responsibilities;
• providing advice to the Board on the assessment
of the principal risks facing the Group; and
• providing advice to the Board on the form
and basis underlying the longer-term viability
statement and going concern statement in the
annual reports.
The Committee monitors the engagement of the
auditor to perform non-audit work. The ethical
standard of International Standards on Auditing
requires the external auditor to evaluate threats to
their independence and discuss this with the Audit
& Risk Management Committee. While it is the
Group's ultimate responsibility to ensure that it does
not engage the external auditor in any prohibited
services, the external auditor will also be responsible
for maintaining a record of all non-audit services
undertaken and for ensuring that they do not
undertake any of the prohibited services. To ensure
that the external auditor satisfies these ethical
standards on auditing, our Group had decided not
to engage the external auditor for non-audit services
for our Company and its affiliates except for the
review of the interim report for compliance before
announcement. The Committee considered that
the nature and limited scope of, and remuneration
payable in respect of, this engagement was such
34
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Audit Committee Report (Continued)
that the independence and objectivity of the
auditor were not impaired.
The members of the Committee discharge their
responsibilities by formal meetings and informal
discussions between themselves, by meeting with
the external auditor, the internal auditors and
management and by consideration of reports by
management and by holding at least two formal
meetings in each year.
It receives reports from executive management in
Indonesia and Malaysia and focuses principally on
reviewing reports from management and considers
whether significant risks in our Group are identified,
evaluated, managed, and whether significant
weaknesses are promptly remedied including,
but not limited to, commodity price movements,
exchange rate movements, political and social,
government legislation, and climate change. Where
necessary the Committee also seek independent
advice from professionals and experts.
OVERVIEW
During the year, the Committee reviewed
and discussed the 2024 Annual Report, 2024
Interim Results, First Quarter and Third Quarter
Trading Statement for 2024. The Committee also
deliberated and recommended to the Board the
dividend rate for the Company.
The Committee updated the risks register chart
annually and deliberated on the probability
of various material risks from occurring and
the resulting financial impact should the risks
materialise. The Committee concluded that
produce prices continued to be the biggest risks
with high probability of occurring and with high
financial impact. With our Group substantial
holding in Indonesian Rupiah, the risks of
currency exchange rates movement are high with
medium financial impact. The country, regulatory
and governance practices, environmental and
conservation practice, weather and natural
disasters, and other climate and nature risks have
medium likelihood of happening with medium
financial impacts. Information technology
security risks have medium likelihood of
happening with low financial impacts. All other
risks are generally low in financial impact.
The Audit & Risk Management Committee
deliberated and set the budget targets for 2025 for
the Board’s approval. The Audit & Risk Management
Committee has regular dialogues, both formal and
informal, with the senior management in Indonesia
and Malaysia. The discussions are open and
constructive.
The Internal Audit Manager presented his Internal
Audit plan for the year which was approved by
the Audit & Risk Management Committee. He
also presented his audit findings and interacted
with members of the Audit & Risk Management
Committee in one of the meetings. Internal audit
reports were tabled and discussed in detail in the
Audit & Risk Management Committee meetings in
2024.
Before finalising the 2024 accounts, our Directors
conducted a thorough stress test. The Directors
have made this assessment after consideration
of the Group’s budgeted cash flows and related
assumptions including stress testing of identified
uncertainties, as well as the impact of a 50%
decrease in the demand for palm oil. Stress testing
of other identified uncertainties and risks such as
commodity prices was also undertaken. Under
these scenarios, the cash flow projections indicate
that our Group has adequate resources to continue
operating as a going concern for the next five years.
No complaints were received via the whistleblower
mechanism in 2024.
EXTERNAL AUDIT
Forvis Mazars is our external auditor for the 2024
audit. The engagement Partner who has overall
responsibility for the audit is Natalia Moolman,
supported by three Audit Directors and a Partner
from their firm in Indonesia who is responsible
for the audit of the Indonesian components.
Forvis Mazars has a policy of rotation of the senior
members of the engagement team on a gradual
basis in order to safeguard its ethical standard on
independence and at the same time also ensuring
a certain level of continuity from year to year.
The Committee formally met with the external
auditor twice in 2024/2025 to discuss the audit
findings of 2024 and to plan the audit for 2024
financial year. The external auditor, during the
audit planning meeting, highlighted to the Audit &
35
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Audit Committee Report (Continued)
Risk Management Committee their scope of audit
and their assessment of areas of audit risks. The
significant risks include:
a) risk of fraud in revenue recognition;
b) management override of controls;
c) impairment of property, plant and equipment;
d) existence and Valuation of plasma receivables;
and
e) recoverability of taxes receivables
Revenue recognition remains a key area of audit
focus due to the presumed risk of fraud under
International Auditing Standards. As a listed
company with profitability and revenue as key
performance indicators, AEP is exposed to the
risk of overstating sales of CPO, FFB, or PK, either
through fictitious transactions or premature revenue
recognition. Forvis Mazars has identified the primary
risk as relating to the occurrence and timing of
revenue recognition, particularly the potential for
recording sales before products are legally sold,
leading to misstatements in the financial period.
The risk of fraud due to management override
of controls potentially driven by performance
obligations linked to compensation or shareholders’
expectations could be achieved by manipulating
judgements and estimates or through the posting
of inappropriate journals in accounting records.
Under IAS 16, bearer plants are treated as property,
plant, and equipment at historic costs, requiring
depreciation and annual assessment for indictors
of impairment. The palm oil industry has the
potential to be heavily impacted by climate change
and sustainability regulation therefore these
considerations should also be factored into any
impairment considerations. This includes, but is not
limited to, the physical risks such as flooding and
the impact on plantation growth of rapid changes
in weather patterns, as well as the transitional risks
such as changes in government policy on the use
of palm oil. This is a significant risk because the
determination of a recoverable amount requires
the use of management judgement and complex
assumptions therefore there is a risk that its value
may be determined incorrectly.
AEP holds non-current receivables from
cooperatives under the plasma programme,
representing advances for plantation development
and upkeep. In some cases, AEP guarantees loans
granted to these cooperatives and assesses their
repayment ability to determine the appropriate
accounting treatment. These receivables are initially
recognised at transaction price based on their legal
status as repayable on demand and management’s
judgment that our Group could enforce settlement
from the outset. They are subsequently measured at
amortised cost, less impairment. There is a risk that
some receivables may be unrecoverable, particularly
where AEP has issued guarantees—potentially
requiring expected credit losses under IFRS 9.
The Group continues to hold significant tax
receivables in its Indonesian subsidiaries, primarily
from historical income tax prepayments. Under
Indonesian regulations, companies must prepay
taxes based on prior-year results. If actual
results show an overpayment, a refund must
be claimed, triggering a mandatory tax audit.
While both income tax and VAT refunds require
audits, VAT refunds are generally faster and more
straightforward. In contrast, income tax refunds
often involve a lengthy and complex arbitration
process that can take several years with uncertain
outcomes.
In 2024, we received a request from the FRC for
information regarding our accounting treatment
of receivables from plasma cooperatives and our
share buyback programme as part of their review of
our 2023 Annual Report and Accounts. For plasma
receivables, the FRC requested an explanation
of the accounting treatment applied by AEP to
advances that our Group had made to plasma
cooperatives and how that accounting treatment
complied with the requirements of IFRS. AEP
concluded that these advances are repayable on
demand and accordingly the receivables are not
discounted. We agreed to disclose this conclusion
in future Annual Reports and Accounts, see ‘Note
14 Receivables: non-current’ in the 2024 Annual
Report and Accounts. For the share buyback, we
explained to the FRC that we had a contractual
right to terminate the arrangements in certain
circumstances and that the obligation at 31
December 2023 was not material. Satisfied with
our comprehensive explanations, the FRC closed
their enquiries in March 2025.
The FRC’s Audit Quality Review (“AQR”) team
conducted an inspection of the previous external
auditor’s 2023 audit process as part of their routine
review process. A confidential report detailing
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ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Audit Committee Report (Continued)
their findings was provided to the Chairman
of the Audit & Risk Management Committee.
The review identified areas for improvement,
specifically in the impairment assessment land and
plantation assets. Additionally, improvements for
future reporting were recommended concerning
amounts due from plasma cooperatives, revenue
recognition, deferred tax on tax loss carried forward
and group audit oversight. These findings have
been thoroughly reviewed and deliberated by
the committee. The committee considers that
matters raised do not present concerns regarding
the quality, objectivity or independence of the
2023 audit process. Our assessment on the FRC’s
recommendations have also been appropriately
discussed with Forvis Mazars, our current external
auditor, and amply addressed in the 2024 audit.
The Committee carries out an assessment of the
effectiveness of the external audit process annually.
The assessment this year was led by the Chairman of
the Audit & Risk Management Committee, assisted
by the Chairman, Executive Director, our Group
Chief Executive Officer, Chief Corporate Planning &
ESG Officer, and our Group Accountant, focused on
certain criteria which the Committee considered to
be important factors in demonstrating an effective
audit process. These factors included the quality of
audit staff, the planning and execution of the audit
according to agreed plans and timeline, provision
of sound challenge on technical issues, and degree
of independence and professionalism displayed
during the audit for 2024. The tenure of audit
and extent of non-audit work that will affect the
independence of the auditor were also reviewed.
During 2024, the non-audit work undertaken by
Forvis Mazars was to the review of the interim
report for compliance before the announcement.
The Committee considered the nature, limited
scope of engagement and remuneration paid were
such that the independence and objectivity of
the auditor were not impaired. Fees paid for audit
and non-audit services are provided in note 5. The
Committee considered the key members of the
audit engagement team and component auditors
involved in our Group Audit. This includes the Audit
Partner and the Audit Directors from Forvis Mazars
and the Partner from Forvis Mazars in Indonesia.
Following this assessment, the Committee
concluded that the external audit process remained
effective, and that the objectivity of the external
auditor was not impaired and that it provides an
appropriate independent challenge of the senior
management of the Group.
INTERNAL CONTROL
Our Company has followed the Code provisions
on internal control since 1999 and the Guidance
on Risk Management, Internal Control and
Related Financial and Business Reporting issued
by the Financial Reporting Council in 2014. The
Board has overall responsibility for the Group’s
systems of internal control and risk management
and for reviewing its effectiveness. Such a system
is designed to manage, rather than eliminate, the
risk of failure to achieve business objectives and
can only provide reasonable and not absolute
assurance against material misstatement or
loss. The Audit & Risk Management Committee
reviews and monitors specific risks and internal
control procedures and reports to the Board
where appropriate. Executive staff and Directors
are responsible for implementation of control
procedures and for identifying and managing
business risks.
Our Group accounts and the consolidation process
are reviewed by our Group CEO and the Executive
Director.
Our Group has in-house internal auditors who
visit operating sites in Indonesia regularly based
on an approved Internal Audit Plan and provide
summarised internal audit reports to the Audit &
Risk Management Committee on a regular basis.
The Internal Audit also conducts special audits
throughout the year as and when required by
management. The internal audit team provides
objective assurance as to the effectiveness of
the Group’s systems of internal control and
risk management of the Group’s operating
management to the Committee. Follow-up audits
and discussions are also held to ensure remedial
actions are taken promptly. The internal audit
review is a continuous and sequential process
and in any one year does not necessarily cover
all risks which are significant to the Group. The
process aims to provide reasonable assurance
against material misstatement or loss but cannot
eliminate the risk of loss.
MICHAEL HENRY STAINER
Chairman, Audit & Risk Management Committee
30 May 2025
37
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Remuneration Report
OVERVIEW
I am pleased to report on the activities of the
Remuneration Committee for the year ended
31 December 2024. This report sets out the
remuneration policy and remuneration details
for the Executive and Non-Executive Directors of
the Group. It has been prepared in accordance
with Schedule 8 of Large and Medium-sized
Companies and Groups (Accounts and reports)
Regulations 2008.
The Companies Act 2006 requires the auditor
to report to the shareholders on certain parts
of the Directors’ Remuneration Report and
to state whether, in their opinion, those parts
of the report have been properly prepared in
accordance with the Regulations. The parts of the
annual report on remuneration that are subject
to audit are indicated in that report. The report by
the Chairman of the Remuneration Committee
and the policy statement are not subject to audit.
ACTIVITIES
During the year the Remuneration Committee
reviewed the annual increment and bonus
entitlement of senior management in Indonesia.
In considering the bonus for 2024, the
Committee took into account the achievement
of the key performance criteria related to crop
productions, purchases of third-party/external
crops, rate of new planting, oil extraction rates,
and implementation of cost reduction measures.
To remain competitive, we also undertook
benchmark comparisons with other plantation
companies in respect of bonus payment for
the year. A $20,000 benefit was provided to Mr.
Marcus Chan, our Executive Director of Corporate
Affairs to support his MBA pursuit, reflecting
AEP’s commitment to leadership development.
Kevin Wong was appointed as Group CEO on 1
October 2024 due to his extensive experience in
the palm oil industry, strategic vision, and ability
to drive operational excellence in alignment with
the Company’s long-term strategy. In accordance
with Principle 41 of the 2018 UK Corporate
Governance Code, Kevin Wong’s remuneration
package was approved upon his appointment,
unchanged from his existing remuneration prior
to this appointment. He was awarded a 2024
bonus based on his general performance in the
year. Looking ahead to 2025, a remuneration
package that aligns with long-term shareholder
value will be recommended, incorporating
performance-based incentives to reinforce
sustainable growth. AEP makes mandatory
contributions to the Employees Provident Fund
for Kevin Wong, our Group CEO, in compliance
with Malaysia’s retirement savings requirements.
Mr Lim resigned from the Board at the Annual
General Meeting on 24 June 2024. As part of the
Board’s succession planning, the Committee
actively sought appropriately qualified candidates
through its network, ensuring that potential
appointees not only possess the requisite skills
and experience but also have the capacity and
commitment to contribute meaningfully to the
Board and management. Following this process,
Michael Henry Stainer was appointed to the
Board with effect from 1 May 2024.
The Board and the Committee are also aware
of the need to comply with Code 11, where at
least half the Board, excluding the Chair, should
be Non-Executive Directors whom the Board
considers to be independent. In respect of
related party transactions, all directors, and senior
managers were required to declare their interests
as measures to avoid or manage conflicts of
interest.
The Committee also deliberated on the 2024
Remuneration Report and recommended its
acceptance to the Board.
AEP considers its employees as important
stakeholders for the Group’s long-term
sustainable success. As part of the engagement of
its workforce, the Chairman of the Remuneration
Committee, a Non-Executive Director,
conducted an online meeting with employees’
representatives and heads of employees’
cooperatives in Indonesia to discuss and obtain
feedback on issues relating to their safety and
welfare, working conditions, remuneration
and suggestions to improve productivity. The
meeting concluded that workers were generally
happy and satisfied. Employees also expressed
their gratitude for the continued upgrade and
renovation of old housing quarters, including
construction of proper drainage and sanitation
facilities to improve employees’ living conditions
and safety. The Chairman of the Remuneration
Committee, after having discussed with
38
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Remuneration Report (Continued)
management, assured the workforce that additional equipment and budget will be allocated in the
coming year to progressively improve the supply of clean water. However, villages on higher elevation,
clean water will continue to be delivered by tankers during the dry weather. With cost of living rising,
many of the representatives requested our Company to pay higher bonuses and increment including
benefits and to grant additional scholarships for higher education of which the management will
look into. The employees’ representative also acknowledged major progress made by our Company
to connect their houses to State Electricity Company and look forward to the day when all houses
in the remote estates will be supplied with electricity replacing in-house generators. Employees also
raised the suggestion to organise sports tournaments among estates and mills within our Group to
foster camaraderie, teamwork, and overall wellbeing. The Chairman of the Remuneration Committee
suggested that AEP could begin by organising events between estates that are geographically close
to each other. There was also a request to upgrade a clinic to provide expanded range of services. The
management is committed to ensuring that appropriate technical training is provided to staff for the
operation and maintenance of new equipment and technology being introduced, to support safe and
efficient use as well as long-term sustainability of such assets.
COMPOSITION
The Remuneration Committee had three meetings in 2024, which were attended as follows:
Name of Directors
Attendance
Farah Suhanah Tun Ahmad Sarji (Chair)
3/3
Lim Tian Huat
(resigned at AGM on 24 June 2024)
2/2
Michael Henry Stainer
(appointed 1 May 2024)
1/1
REMUNERATION POLICY
The Remuneration policy was last voted on and approved by shareholders at the 2023 AGM on
16 June 2023 for 2023 onwards. The Policy remains unchanged and was consistently applied to the
remuneration of all directors for 2024. The Remuneration Policy will be updated in 2025 to incorporate
provisions tailored to the Group CEO role.
For reference, at the 2023 AGM, shareholders voted as follows:
Shares For
Shares Against
% Shares
For
% Shares
Against
To approve Remuneration policy
30,820,328
649,054
97.9%
2.1%
In line with the Company’s approach, the Remuneration Policy is subject to a shareholder vote every
three years or sooner if changes are proposed.
The Directors’ Remuneration report was approved at the 2024 AGM:
Shares For
Shares Against
% Shares
For
% Shares
Against
To approve Directors’ Remuneration
Report
30,869,958
15,149
99.9%
0.1%
39
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Remuneration Report (Continued)
Our Company pays due attention to the results of voting. When there are substantial votes against any
resolution in relation to directors’ remuneration, the reason for any such vote is sought and any action
in response will be reported in the following year.
The Committee sets the remuneration and benefits of the Executive Director and Non-Executive
Directors. The Committee believes that the revision to directors’ remuneration made in 2024, reflects
fair and market conditions, which will continue to motivate the performance of directors for the long-
term interest of our Group and stakeholders.
When determining Executive Director’s remuneration, the Committee reviews the pay policy and
levels for executives below the Board, as well as pay and conditions of employees throughout the
Group. Other factors considered are individual performance, market conditions, the Company’s
performance, and pay and employment conditions of its other employee in the organisation and the
need to maintain an economic operation.
AEP’s policy on recruitment remuneration aims to attract and retain high-calibre directors with the
necessary skills and experience while ensuring remuneration is aligned with the long-term interests
of shareholders. Any new appointment to our Board will be remunerated in line with the Company’s
existing policy, ensuring that fixed pay elements (such as salary and fees) are competitive within the
industry. AEP does not currently provide variable remuneration (e.g., bonuses, share options) to its
directors. As such, the disclosures relating to the approach to illustrations of the application of policy
(including minimum, target and maximum remuneration scenarios), and the potential impact of
a 50% increase in share price on maximum remuneration are not applicable as directors do not
receive share-based compensation. Should the policy change in the future, any such elements will be
disclosed accordingly.
The basic salary of the Executive Director is capped at £150,000 per annum following a review in
January 2023.
Type
Purpose
Maximum payment
Base salary
To contain fixed
costs.
Capped at £150,000. The cap is reviewed periodically. The
policy permits the cap to be changed if this is deemed
necessary to meet business, legislative or regulatory
requirements.
The table below summarises the key aspects of the Group’s Remuneration Policy for the Non-
Executive Directors.
Type
Purpose
Maximum payment
Fees
To attract and
retain individuals
with suitable
knowledge and
experience.
Determined by the Board within the limits set by the articles
of association and by reference to comparable organisations
and to the time commitment expected.
The Committee periodically assesses the remuneration of the Directors and submits a proposal to the
Board. Directors receive only fixed payments and are not eligible for share options or performance-
related incentives.
40
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
The Committee makes recommendations on senior management pay and conditions, after
consultation with the Chairman. In determining the remuneration policy of senior management, the
Committee takes into account the need to attract, retain and motivate employees. To promote long-
term sustainable success, the Committee makes external comparison with the current market trends
and practices of equivalent roles considering the size, business complexity and relative performance.
The following is a summary of the key components of remuneration packages of senior management:
Base salary
Base salaries of senior management are reviewed on an annual basis by the Remuneration Committee
or when there is a change in the individual’s responsibilities. Our Group does not seek the advice of an
external consultant in determining the salaries of senior management and Directors.
Bonus
Our Group operates a bonus scheme for the senior executives and managers of operating units, which
is determined by weighted performance criteria including crop production, external crop purchase,
increases in planted area, efficiency of mill performance, and overall profitability. There is however no
bonus scheme for any of the Directors for good governance.
The operating units in Indonesia and Malaysia have in place a variable compensation policy which
over the recent years rewarded senior executives and employees with bonuses ranging from one to
eight months’ pay based on the individual’s and operating units’ performance. The key criteria used in
the determination of the variable compensation policy for the bonus were revised in 2014 following
discussion and consultation with AEP’s previous Chairman.
Share options
The Company’s share option schemes have expired, and no outstanding options remain vested or
unvested.
Pensions
The operating units in Indonesia participate in mandatory pension schemes for their local executives
and management. There is no company-sponsored scheme for senior executives outside of Indonesia.
The Remuneration Committee is still evaluating an appropriate gratuity scheme, based on length of
service, for senior management and executives who are not covered by the group-sponsored scheme.
No employees or shareholders are specifically consulted on the remuneration policy of the Company.
If a significant shareholder expresses a particular concern regarding any aspect of the policy, the
views expressed would be carefully weighed and addressed accordingly. In 2024, no formal concerns
or objections were raised regarding the Directors’ Remuneration Policy. However, AEP remains
open to ongoing dialogue with shareholders to ensure alignment with best practices and corporate
governance standards.
Directors’ Remuneration Report (Continued)
41
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
ANNUAL REPORT ON REMUNERATION
Directors’ remuneration
The following part provides details of the remuneration of all the Directors for the year ended 31
December 2024.
The remuneration of all Directors who served during the year was as follows:
Single total figure of directors’ remuneration (audited) $ ’000
Name
2024
2023
Fees/
Salary
Other
benefits
Pension
Total Fixed
Remuneration
Total Variable
Remuneration
Total
Total/
Total Fixed
Remuneration
Executive Directors:
Marcus Chan
Jau Chwen(1)
74
20
-
94
-
94
47
Dato’ John Lim
Ewe Chuan(2)
153
-
-
153
-
153
148
Group CEO:
Kevin Wong
Tack Wee(3)
43
-
2
45
17
62
-
Non-Executive Directors:
Lim Tian Huat(4)
20
-
-
20
-
20
40
Jonathan Law
Ngee Song
55
-
-
55
-
55
53
Farah Suhanah
Tun Ahmad
Sarji
35
-
-
35
-
35
33
Michael Henry
Stainer(5)
25
-
-
25
-
25
-
Total
405
20
2
427
17
444
321
Other than as disclosed, Directors’ remuneration consists solely of directors’ fees/salary with no
additional benefits, pensions, bonuses or share option expenses. AEP did not provide any variable
remuneration or benefits to Directors in 2023. There were no (i) payments made to past directors and
(ii) payments made to directors as compensation for loss of office in 2024 (2023: $nil).
Notes:
(1) Appointed as a Non-Independent Non-Executive Director of our Group on 10 August 2022, and was
appointed as Executive Director of Corporate Affairs effective from 1 October 2024. Other benefits
includes $20,000 in 2024 to support his MBA pursuit, reflecting the company’s commitment to leadership
development.
(2) Appointed as Senior Independent Non-Executive Director on 26 April 2008, redesignated as Executive
Director on 1 September 2010, and resigned on 31 December 2024.
(3) Kevin Wong continued to be paid on the same basis per his contract prior to his appointment as
CEO during 2024. Amounts reported are prorated to reflect his compensation for the period from his
appointment as Group CEO on 1 October 2024 to 31 December 2024.
(4) Appointed on 8 May 2015 and resigned at AGM on 24 June 2024.
(5) Appointed on 1 May 2024.
Directors’ Remuneration Report (Continued)
42
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Remuneration Report (Continued)
CHIEF EXECUTIVE’S REMUNERATION OVER 10 YEARS
Kevin Wong Tack Wee (Group CEO)(1)
Year ended
31 December
Salary
($’000)
Benefit
($’000)
Pension
($’000)
Bonus
($’000)
Total
($’000)
% of maximum
bonus
2024
43
-
2
17
62
59%
Dato’ John Lim Ewe Chuan(2)
Year ended 31 December
Total
($’000)
2024
153
2023
148
2022
93
2021
87
2020
103
2019
116
2018
123
2017
113
2016
127
2015
137
Notes:
For 2024, the maximum potential bonus of the Group CEO is 8 months of salary.
(1) Mr Kevin Wong is not registered as a director at Companies House, but is appointed as a Group CEO. As
required by the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations)
2008 para 2(*), this table shows his remuneration after this appointment as Group CEO.
(2) Dato’ John Lim’s basic salary was revised to £120,000 per annum with effect from 1 January 2023. From
September 2022 to 31 December 2022, his salary was £90,000 per annum. Between September 2020
to August 2022, it was £63,000 per annum. Prior to this, his salary from 2015 to 2019 was £90,000 per
annum. The fluctuations during this period were the result of exchange translations. Dato’ John does not
receive any bonus.
43
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
DIRECTORS’ INTERESTS (AUDITED)
The interests of our Directors together with those of their immediate families in the securities of our
Company were as shown below:
Directors' beneficial interests at 31 December:
2024
2023
Ordinary shares
Ordinary shares
Marcus Chan Jau Chwen
-
-
Jonathan Law Ngee Song
-
-
Farah Suhanah Tun Ahmad Sarji
-
-
Michael Henry Stainer
-
-
Kevin Wong Tack Wee (Group CEO)
-
-
Dato’ John Lim Ewe Chuan (resigned on 31 December 2024)
15,894
15,894
Lim Tian Huat (resigned before 31 December 2024)
n/a
-
The ultimate beneficial shareholders of Genton International Limited are vested in the estates of
Madam Lim with the application for probate in progress.
There has been no change in the interests of our directors in the securities of our Company between
31 December 2024 and the date of this report. Other than Dato’ John Lim, none of our Directors had
any interest in the securities of our Company between the date of their appointments and the date of
this report. There is no requirement for Directors to hold shares in the Company. Other than as set out
in notes to the consolidated financial statements, no Director had a material interest in any contract of
our Company subsisting during, or at the end of the financial year. No Directors had any share options
in the current or prior year.
Directors’ Remuneration Report (Continued)
RELATIVE IMPORTANCE OF SPEND ON PAY
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
$’000
64,823
59,266
Total Group Employee Remuneration
2023
Total Dividend Paid
2024
15,854
5,923
2024
2023
44
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
PERCENTAGE ANNUAL CHANGE IN DIRECTORS’ REMUNERATION AND FOR EMPLOYEES (NOT
SUBJECT TO AUDIT)
Our Directors have service agreements with AEP. Our Company has no employees other than our
Directors therefore voluntary disclosure has been given based on our Group’s employee information.
The table below shows the annual change in our Directors’ pay compared with the Group’s average pay
for an employee for 2020 to 2024. Our Directors’ total remuneration for 2023 and 2024 are disclosed in
page 42 of the Annual Report.
2023/2024
Annual change in pay for directors compared with average employees
Executive Director
Non-Executive Directors
AEP
Average
Employees
Marcus
Chan Jau
Chwen
Kevin Wong
Tack Wee
Jonathan
Law Ngee
Song
Farah
Suhanah
Tun Ahmad
Sarji
Michael
Henry
Stainer
Base Salary/
Fees
+57%
2024 is
first year of
appointment.
-
+6%
-
-5%
Benefits
*
-
-
-
-26%
Bonus
-
-
-
-
-15%
2022/2023
Annual change in pay for directors compared with
the Group’s average employees
Executive
Director
Non-Executive Directors
Group’s
Average
Employees
Dato’ John
Lim Ewe
Chuan
Jonathan
Law Ngee
Song
Lim Tian
Huat
Marcus
Chan Jau
Chwen
Farah
Suhanah Tun
Ahmad Sarji
Base Salary/Fees
+59%
+71%
+74%
+327%
+450%
+1%
Benefits
-
-
-
-
-
+16%
Bonus
-
-
-
-
-
+15%
2021/2022
Annual change in pay for directors compared with
the Group’s average employees
Executive
Director
Non-Executive Directors
Group’s
Average
Employees
Dato’ John
Lim Ewe
Chuan
Jonathan
Law Ngee
Song
Lim Tian
Huat
Marcus
Chan Jau
Chwen
Farah
Suhanah Tun
Ahmad Sarji
Base Salary/Fees
+7%*
+48%*
+10%*
-
-
+6%
Benefits
-
-
-
-
-
+55%
Bonus
-
-
-
-
-
+36%
Directors’ Remuneration Report (Continued)
45
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
2020/2021
Executive
Director
Non-Executive Directors
Group’s
Average
Employees
Dato’ John
Lim Ewe
Chuan
Jonathan
Law Ngee
Song
Lim Tian
Huat
Marcus
Chan Jau
Chwen
Farah
Suhanah Tun
Ahmad Sarji
Base Salary/Fees
-16%
-
-
-
-
+12%
Benefits
-
-
-
-
-
-5%
Bonus
-
-
-
-
-
+32%
2019/2020
Group’s Average Employees
Executive
Director
Non-Executive Directors
Group’s
Average
Employees
Dato’ John Lim
Ewe Chuan
Madam Lim
Siew Kim
Lim Tian
Huat
Jonathan Law
Ngee Song
Base Salary/Fees
-11%
-4%
-
-
-6%
Benefits
-
-
-
-
+13%
Bonus
-
-
-
-
-13%
1. Directors’ fees may be paid in $ and other currencies.
2. Mr Marcus Chan Jau Chwen’s compensation was adjusted to commensurate his transition from a Non-
Executive role to Executive Director (Corporate Affairs) effective 1 October 2024. * He received no benefits
in 2023 and $20,000 benefit in 2024.
3. Mr Lim Tian Huat and Dato’ John Lim resigned in 2024 and are therefore removed from the 2024/2023
comparison.
SERVICE CONTRACTS
All Directors, Executive and Non-Executive, have formal appointment letters. The Executive and Non-
Executives are appointed normally on a one to two-year term with notice periods of one month
to three months. The service contracts are kept at the registered office and may be inspected by
shareholders on request. Notice periods for all other senior management are generally three months.
Therefore, any remuneration payment for loss of office will be capped at a maximum of three months.
It is not our Company policy to include provisions in Directors’ service contracts, compensation for
early termination beyond providing for an entitlement to payment in lieu of notice if due notice is not
given.
The unexpired terms of the retiring Directors are:
Jonathan Law Ngee Song
Expiry on next AGM
Marcus Chan Jau Chwen
Expiry 30 September 2025
Farah Suhanah Tun Ahmad Sarji
Expiry on next AGM
Michael Henry Stainer
Expiry on next AGM
The unexpired terms of Group CEO is:
Kevin Wong Tack Wee
Expiry 8 January 2026 (three-month notice)
Directors’ Remuneration Report (Continued)
46
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Directors’ Remuneration Report (Continued)
The performance graph illustrates our Company’s share price trajectory relative to the FTSE 100 index
from January 2015 to March 2025, providing insight into market volatility and trends over the past
decade. Using January 2015 as the base, AEP’s share price has consistently matched or exceeded
the FTSE 100 index. The FTSE 100 index was chosen for comparison due to the absence of an index
specific to our business.
As of March 2025, AEP’s share price closed at £7.40, reflecting a price-to-earnings ratio of merely 4.4x.
This valuation appears modest given AEP’s solid business fundamentals, highlighting a disconnect
between our Company’s intrinsic value, earnings, and prospects. Factors contributing to this situation
may include limited trading liquidity, concerns about the environmental implications of palm
plantation activities, and our Company’s operational presence outside the European Union (“EU”),
whereas a significant portion of its investor base (aside from AEP’s controlling shareholder) resides
within the EU.
It is important to note that the Remuneration Committee bases senior management compensation
on operational performance rather than share price movements.
FARAH SUHANAH TUN AHMAD SARJI
Chairman, Remuneration Committee
30 May 2025
SHARE PRICE PERFORMANCE GRAPH
% Change
Trading volume
Year
FTSE 100 Index
AEP Share Price
Trading Volume
Source: Financial Times
47
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report
OPERATIONAL KPIs
YIELD PER HA:
Measures the amount of palm
oil produced per hectare of
plantation land.
2024:
17.8mt/ha
2023:
19.4mt/ha
MILL UTILISATION RATE:
Measures the percentage of
the mill's total processing
capacity being used.
2024:
102%
2023:
132%
OER:
Evaluates the efficiency of oil
extraction from FFB.
.
2024:
20.2%
2023:
20.8%
SUSTAINABILITY KPIs
SCOPE 1 & 2 EMISSIONS:
Measures direct and indirect
GHG Emissions of our Group.
2024:
1.2 million
tCO2e
2023:
1.1 million tCO2e
COMPLIANCE WITH
SUSTAINABILITY POLICIES:
Ensures adherence to relevant
sustainability standards and
policies.
2023 & 2024:
We are compliant certified
with MSPO, ISPO, TCFD,
ISO 14001, and ISCC. RSPO
certification is in progress.
SPOTT SCORE:
Assesses our public disclosure
and transparency regarding
ESG practices.
2024:
60.2%
2023:
51.6%
FINANCIAL KPIs
GROSS PROFIT MARGIN:
Measures the percentage of revenue
remaining after deducting production costs.
2024:
23.8%
2023:
21.1%
NET PROFIT MARGIN:
Tracks the percentage of revenue left after all
expenses, including taxes and interest.
2024:
18.2%
2023:
15.1%
48
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
INTRODUCTION
This Strategic Report
has been prepared to
provide shareholders with
information to complement
the financial statements.
This report may contain
forward-looking statements,
which have been included
by our Board in good faith
based on information
available up to the time
of approval of this report.
Such statements should
be treated with caution
going forward given the
uncertainties inherent with
the economic and business
risks faced by our Group.
BUSINESS MODEL
Our Group will continue to focus on its strength and
expertise, which is sustainably cultivating oil palm
for Fresh Fruit Bunches (“FFB”) and to turn them into
Crude Palm Oil (“CPO”). To increase production and
reduce cost, our business activities revolve mainly
around the following:
Plantations
Palm Oil Mill
Optimisation
of existing
assets
Implement best
management
practices to
ensure the
effective
management of
established oil
palm plantations
Enhance the
efficiency of
operations at
existing palm
oil mills and
increase the
sourcing of FFB
from surrounding
plantations to
boost productivity
and overall
performance
Expansion
into strategic
locations
Acquire new oil
palm plantations
in Indonesia
and Malaysia
to strengthen
the AEP’s
sustainable
growth
Setup or acquire
new mills to serve
the company’s
plantations and
surrounding
smallholders
49
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
AEP recognises the importance of its workforce which needs to be rewarded with a fair compensation
scheme based on performance, and a safe and a comfortable workplace, together with good
accommodation facilities, and other social benefits where necessary. AEP’s work culture revolved
around the WE r AEP core values.
The culture is instilled throughout the workforce, via these three main channels:
Lead by Example:
Our managers
and leaders shall
demonstrate the
core values in
their behaviour to
inspire others to
emulate the same
values, fostering
trust, respect, and
alignment within
the organisation.
Simplify and
Engage:
The core values
are displayed
prominently with
simple language,
relatable concepts
and infographics
to ensure the
message resonates
and stays
memorable.
Recognise and
Reinforce:
We celebrate and
reward employees
who demonstrate the
core values through
their behaviour
and work. This
positively reinforces
the concept and
encourages others to
follow suit.
We
A
R
E
P
WALK THE BLOCK
ACCOUNTABILITY
RESULT-DRIVEN
EXCELLENCE TOGETHER
PEOPLE
We walk the field to
grasp its dynamics and
be in it to win it
We own our actions,
maintaining openness
and integrity in
everything we do
We set clear goals,
evaluate progress and
achieve meaningful
outcomes
We aim to do better every
day, pursuing continuous
improvement and learning
to deliver our best
as a team
We recognise talent and
reward performance,
promoting the growth
and success of our
people
50
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
INTRODUCTION OF OUR NEW VISION AND
MISSION
As we continue to chart a path forward, we are
proud to introduce our new vision and mission
statements, which reflect our unwavering
commitment to sustainability and excellence.
Our vision is clear: To be a high-yielding leader in
sustainable palm oil production. This aspiration
serves as the foundation for our growth, driving
us to lead with excellence and responsibility in all
aspects of our operations.
Aligned with this vision, our mission to
“responsibly cultivate sustainable plantations
by utilising best practices, driving continuous
improvements, and embracing ESG principles”
emphasises our dedication to maintaining
high standards of environmental stewardship,
fostering positive social impact, and ensuring
economic viability for long-term success. This
mission guides our efforts to achieve excellence
in sustainable palm oil production while
contributing to a better future for communities,
stakeholders, and the planet.
These statements reflect our commitment to
creating value for stakeholders and protecting
the environment for future generations.
Sustainable success is achieved by prioritising the
long-term interests of shareholders, employees,
and local communities.
OUR STRATEGY
Our strategic focus is to enhance the yield of
our Indonesian plantations to 23 mt/ha by 2027,
bringing us to towards the upper quartile of our
Indonesian oil palm peers. A yield enhancement
programme focusing on the following is being
implemented:
•
Replanting of old palm (>25 years).
•
Problem identification, rectification and
rehabilitation of low yielding plantations.
Our revenue is largely correlated to:
•
The CPO price - which is volatile and
determined by supply and demand.
•
Crop yield, which we aim to optimise with
best management practices but is also
affected by factors beyond our control such
as well as the weather.
The Indonesian government has imposed
restrictions impacting companies not listed
in Indonesia or those with less than majority
local ownership, such as AEP. These regulations
limit the development of oil palm plantations
to a maximum of 20 thousand ha per province,
with an overall national cap of 100 thousand
ha. Beyond these regulatory constraints, the
availability of suitable land for palm plantation
development is increasingly scarce, further
curbing AEP’s expansion efforts.
Despite these challenges, our Group remains
steadfast in its commitment to the responsible
and sustainable development of its land bank in
both Indonesia and Malaysia. Building on a long-
standing history of ethical practices and growth,
AEP continues to prioritise sustainability and
compliance in its operations, focusing on yield
improvements.
Our Group maintains a strong belief in the long-
term potential of palm oil. With its economic
production advantages compared to alternative
oils and its status as the most productive source
of vegetable oil, palm oil continues to play a vital
role in meeting the demands of a growing global
population. AEP remains focused on leveraging
these strengths to deliver value while upholding
its commitment to sustainable practices and
responsible growth. For comparison, the land
needed to process one litre (per annum) of refined
palm oil vs other refined crop oils is as follows:
Crop
Area required to produce 1L
Palm
1.7 m2
Soybean
22.4 m2
12x more land
needed than palm
Rapeseed
8.4 m2
4x more land
needed than palm
Sunflower
10.5 m2
5x more land
needed than palm
Corn
58.1 m2
34x more land
needed than palm
Peanut
9.4 m2
5x more land
needed than palm
51
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
Other crops would require 4 to 34 times more
land to produce an equivalent weight of palm
oil. In this regard, palm oil is far more sustainable
than other edible vegetable oils. In addition, oil
palm has a long and productive biological life of
25 years compared to yearly planting for other
soft oils.
Where feasible, we establish our own mills in
or near our plantations for several strategic and
operational reasons:
•
Cost efficiency and increased profit
margins: By processing FFB on-site, we
reduce transportation costs and minimise
delays, ensuring the freshness of the fruit
and higher OERs, along with being able to
capture more value from the supply chain.
•
Quality Control: By owning our own mills, we
are able to maintain strict quality standards
throughout the production process, ensuring
premium-grade CPO.
•
Sustainability: Integrated mills enable us
to adopt eco-friendly practices by utilising
by-products like Empty Fruit Bunches (“EFB”)
and Palm Oil Mill Effluent (“POME”) for energy
generation via Biogas and BioCNG plants
or repurposing them as organic fertilisers,
and ensuring efficient waste management
systems.
•
Operational Independence: Plantations
with own mills are not reliant on external
processing facilities, reducing logistical
challenges and potential bottlenecks in
production.
In addition to our own FFB, our mills accept FFB
from external sources including crops from our
Plasma scheme, and surrounding plantations
including small holders and communities.
Despite stiff competition for external crops
from surrounding millers, AEP is committed
to purchasing more external crops from these
external sources at competitive, yet fair prices, to
maximise the production efficiency of our mills.
With higher throughput, the mills would achieve
economies of scale in production. AEP achieved
a mill utilisation rate of 102% in 2024 vs 135%
in 2023. A mill is deemed to achieve 100% mill
efficiency when it operates 16 hours a day for 300
days per annum.
AEP is taking active steps to reduce its carbon
footprint by constructing biogas and/or BioCNG
plants at its mills in stages. The surplus electricity
generated through Biogas plants is sold to the
national grid. Additionally, the methane from
Biogas may be purified and compressed into
BioCNG cylinders in a BioCNG plant for industrial
use. This increased industrial adoption of BioCNG
is expected to reduce fossil fuel consumption,
further lowering Green House Gases (“GHG”)
emissions per metric ton of CPO produced over
the coming years.
Additionally, AEP plans to utilise EFB, the
byproduct left after stripping palm fruitlets from
FFB during CPO production, as a feedstock to
enhance BioCNG output in response to market
demand. This initiative aligns with our goal to
reduce waste and reduce GHG emissions. Our
Group has also set metrics and targets to lower
GHG emissions over time as detailed in the
Decarbonisation modelling and high-level target
setting.
52
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
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NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT
Our Group has complied with the requirements of Section 414CB of the Companies Act 2006 by
providing a wide range of non-financial information about employees, environmental, and social
matters in the table below and in our website. Additionally, AEP has identified key non-financial
performance indicators to measure progress, particularly in relation to carbon emissions and
alignment with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations set
out in this Strategic Report.
Non-financial
matter
Policies and standards which govern our approach
Page
Business model
Business model and strategy
Principal risks and uncertainties
48
73
Environmental
matters
Principal risks and uncertainties: Country, regulatory and governance
practices
Principal risks and uncertainties: Weather and Environmental and
conservation practices
Sustainable Palm Oil Certification
ESG practices
Climate-related financial disclosures:
-
Management of Climate Risks
-
Metrics and targets
-
Carbon Reporting
Corporate Governance: Environmental and corporate responsibility
Other responsible agricultural practices and sustainable policies can
be found on our website
Board diversity
73
77
69
70
79
106
105
27
111
Employees and
Health & Safety
Employees: Employment policies
Directors’ Remuneration Report: Employees engagement
Workers are protected from exposure to occupational health and safety
hazards that are likely to pose immediate risk of permanent injury,
illness or fatality. Proper signages are in place at relevant spots to alert
employees of safety. Workshops and training sessions on occupational
safety and health care are regularly conducted.
112
38
Social matters
Principal risks and uncertainties: Highly Contagious & Severe Diseases,
AEP has implemented stringent policies and protocols to control and
prevent the spread of highly contagious and severe diseases, drawing
on lessons learned from the Covid-19 pandemic. These measures aim to
safeguard the workplace environment and include strict procedures for
workplace testing, employee self-isolation when necessary, and home
support for affected individuals. This support ensures employees achieve
full recovery before returning to work.
77
Respect for
human rights
AEP has clear policies of no exploitation of its employees, including
complying with paying minimum wage. It does not practise child or
forced labour in line with the Modern Slavery Statement referred to
on its website. In addition, a whistle blowing policy is in place to allow
any employee to raise concerns about unethical, illegal or questionable
practices, in full confidence, without the risk of reprisal.
64
53
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ANNUAL REPORT 2024
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Non-financial
matter
Policies and standards which govern our approach
Page
Anti-corruption
and anti-bribery
matters
AEP has in place policies and procedures in respect of bribery and
corruption, with detailed guidelines and reporting requirements for its
UK, Indonesian and Malaysian operations.
113
FINANCIAL REVIEW
For the year under review, our Group’s continuing operations had achieved the following:
2024
2023
FFB production (’000 mt)
1,019.9
1,102.2
Mature plantation (’000 ha)
57.2
56.7
FFB Yield (mt/ ha)
17.8
19.4
FFB processed (’000 mt)
1,960.8
2,155.0
FFB source
49.6% internal
50.4% external
49.9% internal
50.1% external
CPO production (’000 mt)
396.7
449.0
OER
20.2%
20.8%
Average gate price (USD per mt)
794
721
Performance of the business during the year
•
The average CPO price ex-Rotterdam for 2024 was $1,096/mt, 12.9% higher than 2023’s $971/mt. The
ex-mill price for 2024 averaged $794/mt, 10.1% higher than last year’s $721/mt.
•
FFB production from continuing operations totalled 1.0 million mt, a 7% decline from the 1.1 million
mt recorded in 2023. Additionally, the yield from plantations decreased to 17.8 mt/ha (2023: 19.4 mt/
ha), primarily due to lower crop production in the Bengkulu and Bangka plantations.
•
FFB purchased from third-parties including local smallholders and plasma in 2024 amounted to 1.0
million mt, reflecting a 8% decrease from 1.1 million mt in 2023. Our mills processed a total of 2.0
million mt of FFB, 9.1% lower than the 2.2 million mt processed last year.
•
CPO production was 11.6% lower at 396.7 thousand mt, compared to 449.0 thousand mt in 2023,
partially offset by a lower OER of 20.2% against 20.8% in 2023. Kernel production for 2024 stood at
93.4 thousand mt, 10.1% lower than last year’s 103.9 thousand mt.
•
Revenue from continuing operations rose to $372.3 million, reflecting a 0.5% increase compared
to $370.4 million in 2023. The increase was primarily due to higher average CPO ex-mill price. The
positive pricing impact helped offset declines in both own crop production, which fell by 7%, and
third-party crop volumes, which were down 8%.
•
Administrative expenses increased by 2%, rising from $8.8 million to $9.0 million. This growth is primarily
attributed to an increase in headcount and inflation-driven salary adjustments at headquarters.
•
Operating profit from continuing operations was $81.7 million, reflecting a 17.2% increase from
$69.7 million in the previous year. This improvement was supported by higher CPO prices and savings
in operational costs, despite a decrease in production volume.
•
Finance income decreased by 33%, declining from $8.0 million to $5.4 million. This reduction was
primarily due to lower cash holdings, following the allocation of $86.6 million near the end of 2023 to
acquire non-controlling interests and an additional $24 million for investments during FY2024.
54
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
•
Profit before tax from continuing operations for our Group was $88.1 million, 13.2% higher compared
to $77.8 million in 2023. The changes in fair value of biological assets was a credit of $2.9 million,
contrasting with a debit of $0.9 million in 2023. This credit was mainly due to higher FFB prices as of 31
December 2024. Tax expenses for 2024 reduced from $21.7 million to $20.5 million.
•
EPS from continuing operations rose from 124.92cts to 170.88 cts, primarily due to higher profit after
tax.
•
Loss on exchange translation of foreign operations of $23.2 million was recognised in other
comprehensive income, compared to an exchange gain of $10.0 million in the previous year. This loss
was driven by the weakening of the Indonesian rupiah at the end of 2024.
•
Retirement benefits as of 31 December 2024, calculated by a third-party actuary, decreased to $11.1
million from $11.3 million in the previous year due to lower accrual during the year.
Position of the business at the end of the year
Our Group’s statement of financial position remains strong, with a cash and cash equivalents balance
including short-term investments (see Note b) of $183.1 million and no external borrowing at the
end of 2024. All material changes in statement of financial position and cash flows are listed in the
following table:
Note
31.12.2024
$000
31.12.2023
$000
Property, plant, and equipment
a
271,170
274,382
Income tax liabilities
b
(5,466)
(2,951)
Cash and cash equivalents
b, c
181,908
152,984
Short-term investments
b, c
1,253
14,076
Current assets - Investment
b, c
23,976
-
Trade and other receivables
d
7,062
13,378
Trade and other payables
e
(21,403)
(26,862)
Non-controlling interest
f
7,427
6,976
Net cash generated from operating activities
d
73,947
31,855
Purchase of property, plant and equipment
(29,013)
(33,421)
Net cash used in financing activities
g
(7,363)
(115,934)
a.
The decrease in property, plant, and equipment from $274.4 million in 2023 to $271.2 million in
2024 was mainly due to depreciation and exchange translation losses, partially offset by replanting
activities.
b.
As of 31 December 2024, our Group held cash and cash equivalents of $181.9 million (2023: $153.0
million) and short-term investments in fixed deposits of $1.2 million (2023: $14.1 million). The higher
cash position, including fixed deposits, was primarily from profits generated during the year. Net
cash inflow from operating activities increased by 132%, reaching $73.9 million in 2024 compared
to $31.9 million in 2023, largely due to higher profit and lower tax payment in 2024. Tax payments
are settled in the following year, so the lower tax payment in 2024 reflects taxes for 2023’s lower
profits, while the higher tax payment in 2023 corresponds to 2022’s higher profits.
c.
During the year, our Group had invested $24.0 million in Indonesia government bonds in US Dollar
and US treasury bills.
d.
Trade and other receivables declined by $6.3 million, primarily due to timing differences in trade
receivables and a reduction in other receivables. The decrease in other receivables was largely
attributed by the share buyback completed in June 2024, which utilised $0.6 million from the 2023
year-end advance and $2.9 million received from our share buy-back broker in FY2024.
55
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
e.
Trade and other payables decreased by $5.5
million, primarily due to the recognition of
$2.0 million in previously received customer
advances as revenue, reflecting the fulfilment
of related obligations, and supplier payments
totalling $3.5 million.
f.
Non-controlling interest increased due to the
share of profit in Anglo-Eastern Plantations (M)
Sdn Bhd.
g.
Net cash used in financing activities
significantly dropped to $7.4 million in 2024,
compared to $115.9 million in 2023. This sharp
decrease was primarily due to the reduced
expenditure on acquiring non-controlling
interests, which amounted to $86.6 million in
2023 versus $0.4 million in 2024, coupled with
the absence of dividend payments to non-
controlling interests and interim dividends to
AEP shareholders in 2024.
VIABILITY STATEMENT
The viability assessment considers solvency and
liquidity over a 5-year period. Inevitably, the
degree of certainty reduces over a longer period.
Our Group’s business activities, financial
performance, corporate development and
principal risks associated with the local operating
environment are covered under the various
sections of this Strategic Report.
In undertaking the review of our performance in
2024, our Board considered the prospects of our
Group, as focusing on the strategy for growth via
the expansion of its planted area in tandem with
forecasting demand for CPO, over one to 5-year
periods. The process involved a detailed review
of the annual detailed budget and the 5-year
income and cash flow projection. The one-year
budget is used to set detailed budgetary targets
at all levels across the Group. The 5-year income
and cash flow projection contain less certainty of
the outcome but provides a robust planning tool
against which strategic decisions can be made.
The Board believes that to project beyond 5 years
has more elements of uncertainties and therefore
less reliable for making informed decisions.
Our Board considered the 5-year cash flow
projection under various severe but plausible
scenarios. Additionally, our Board assessed the
need to support any financially loss-making
newly matured estates, namely PT Kahayan Agro
Plantation and PT Bangka Malindo Lestari. They
also considered the projected capital expenditure
required for these estates.
In arriving at the conclusion that our Group has
adequate resources to continue operations and
meet its liabilities over the next five years, the
Board has assumed a worst-case scenario in which
the CPO price averages its lowest at $500/mt and
demand for CPO drops by 50%.
Assumptions applied are linked to risk of CPO
price fluctuation, risk of a substitute for oil palm.
On this basis and other matters considered and
reviewed by the Board during the year, the Board
has a reasonable expectation that our Group has
adequate resources to continue in operation and
meet its liabilities over the 5 years from 2025 to
2029.
GOING CONCERN
Our Directors have carried out stress tests,
factoring in the identified uncertainties and risks
such as commodity prices. This is to ensure that
our Group has adequate resources in a worst-case
scenario to remain as a going concern for at least
12 months from the date of this report.
Our Directors have a reasonable expectation,
having made the appropriate enquiries, that
our Group has sufficient cash resources to cover
the Group’s operating expenses for a period of
at least 12 months from the date of approval of
these financial statements. For these reasons,
our Directors adopted a going concern basis
in the preparation of the financial statements.
Our Directors have made this assessment after
consideration of the Group’s budgeted cash flows
and related assumptions including appropriate
stress testing of identified uncertainties, as well
as impact when demand on palm oil decreased
by 50%. Stress testing of other identified
uncertainties and risks such as CPO prices and
CPO demand were also undertaken.
56
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
BUSINESS REVIEW
Plantations
Plantation
FFB production
Mature planted
FFB yield
2024
2023
2024
2023
2024
2023
’000 mt
’000 mt
’000 ha
’000 ha
mt/ha
mt/ha
North Sumatera
397.5
409.0
17.8
18.2
22.3
22.5
Riau
111.7
123.0
4.8
4.8
23.4
25.7
Bangka
18.6
21.1
2.4
1.7
7.6
12.3
Bengkulu
179.3
223.8
12.4
13.2
14.5
17.0
Central Kalimantan
297.2
312.8
16.4
15.4
18.1
20.4
AEP Indonesia
1,004.3
1,089.7
53.8
53.3
18.7
20.4
Terengganu, Malaysia
15.6
12.5
3.4
3.4
4.6
3.6
AEP Group
1,019.9
1,102.2
57.2
56.7
17.8
19.4
For 2024, in general, there was 7% and 9%
reduction in the Group’s FFB production and
FFB yield respectively. This was primarily due to
reduced production in Indonesia, stemming from
our replanting programme, coupled with the
prolonged effects of the dry weather experienced
in 2023 in some estates, which stressed the oil
palms and lowered their productivity. At the
same time, excessive rainfall in many estates
during 2024 further compounded the challenges
by diminishing fertiliser effectiveness, disrupting
harvesting activities, and damaging plantation
roads.
Our replanting efforts, though vital for ensuring
long-term yield sustainability, have a temporary
adverse impact on short-term yields. Palms
designated for replanting undergo a process
where fertiliser application is withdrawn two
years prior to replanting, leading to lower
productivity during this period. Following
replanting, the area remains non-productive
for an additional three to 4 years while the new
palms mature and become productive. In 2024,
1.7 thousand ha of old palm were replanted with
an additional 5.5 thousand ha designated for
replanting in 2025 and 2026.
INDONESIA
The performance of the Indonesian operations
was divided into 6 geographical regions.
North Sumatera
FFB production in North Sumatera, which
aggregates the estates of Musam Utjing, United
Kingdom Indonesia Plantation, Simpang
Ampat, Tasik Raja, Anak Tasik, Cahaya Pelita
Andhika (“CPA”), and Hijau Pryan Perdana (“HPP”)
produced 397.5 thousand mt in 2024, about 3%
lower than last year.
•
279 ha was replanted and CPA in 2024 with
more areas earmarked for replanting in 2025.
•
The withdrawal of fertilisers for areas meant
for replanting means that these areas will
most likely have lower/higher yields.
•
Due to the outbreak of Ganoderma affecting
our trees, continued palm losses at HPP limits
our potential yield upside. Quick supplying
of dead palms ensures a steady palm density
in HPP which helped to maintain yield.
Poor root anchorage, as well as sub-optimal
nutrient retention and absorption caused
by peat soil is another factor for low bunch
weight at HPP. The average annual yield for
2024 in North Sumatera remained similar at
57
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
22.3 mt/ha to the previous year’s yield of 22.5
mt/ha. Although yield in Blankahan was still
over 25 mt/ha, replanting has commenced
in 2025 due to advanced palm age and their
reducing oil content.
Bengkulu
•
FFB production which aggregated the estates
of Mitra Puding Mas and Alno Agro Utama
produced 179.3 thousand mt (2023: 223.8
thousand mt), 20% lower than 2023 due to
the reduction of matured palms because of
replanting.
•
As such, mature areas were smaller by 6% in
2024 at 12.4 thousand ha from 13.2 thousand
ha.
•
Tractors with attached water tank trailers were
used to water newly planted palms to ensure
sufficient irrgation. With more replanting,
the average stands per ha have improved to
111 stands per ha from slightly below 106.
The yield, however, was lower at 14.5mt/ha
from 17.0 mt/ha last year due to aging palms,
replanting activities and lingering impact of
dry weather from 2023.
Riau
•
FFB production comprised of Bina Pitri
estates which produced 111.7 thousand mt in
2024 (2023: 123.0 thousand mt), or 9% lower
than previous year.
•
Monthly rainfalls were close to normal at
2,672 mm.
•
Yield for the year was 23.4 mt/ha, a 9%
reduction from last year. As 80% of the palms
are between the ages of 26 and 29 years, and
replanting is planned to be started in 2025.
Bangka
•
FFB production in the Bangka region,
comprising the Bangka Malindo Lestari estate,
produced 18.6 thousand mt in 2024 (2023:
21.1 thousand mt), 12% lower than 2023.
•
Extreme dry weather which was experienced
in 2023 and 2024 has contributed for the
lower yield in 2024. Rainfall in 2023 was
1,642mm with 4 months of just 26 mm to 95
mm per month.
Kalimantan
•
FFB production in Kalimantan which
comprises the Sawit Graha Manunggal
(“SGM”) and Kahayan Agro Plantation (“KAP”)
estates was 297.2 thousand in 2024 (2023:
312.8 thousand mt), 5% lower than 2023.
During the year, 757 ha of palms came into
maturity in SGM and KAP leading to its first
harvest.
•
Breeding and releasing of weevils to help
with pollination has reduced the extent
of abnormal fruit bunches reported in the
previous year.
•
The average bunch weight was nevertheless
below industrial standard due to the sandy
podzolic soil at SGM, but the higher stands
per ha made up for the yield.
•
The stand per ha in SGM and KAP plantations
averaged 133 stands and 118 stands per
ha respectively. The yield in Kalimantan
decreased by 11% to 18.1 mt/ha in 2024.
Rainfall in KAP was 4,151 mm (2023: 4,009
mm) while at SGM, at 2,764 mm (2023: 2,043
mm).
MALAYSIA
The retention of our foreign workers remains a
challenge as competition offers more lucrative
offers from other industries. As such, our
plantation experienced a shortage of workers
which hampered not only field maintenance
work and application of fertilisers but harvesting,
resulting in crop losses. The palms, with an
average age of over 25 years, faced declining
yield. The stand per ha further reduced due to
the damages caused by wild elephants. However,
production and yields of the plantation has
increased in 2024 compared to 2023 due to
efforts by management to improve operational
efficiency including harvesting round and
improvements in access. Our Group will continue
to try to maximise production from the existing
palms while assessing the feasibility of replanting
and exploring alternative initiatives to utilise the
land more productively and sustainably.
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ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
Mills
Mill
FFB processed
CPO production
OER
2024
2023
2024
2023
2024
2023
’000 mt
’000 mt
’000 mt
’000 mt
North Sumatera
725.9
724.8
146.7
150.1
20.2%
20.7%
Riau
341.0
345.6
62.8
65.3
18.4%
18.9%
Bengkulu
548.6
633.9
109.1
129.9
19.9%
20.5%
Central Kalimantan
345.3
450.7
78.1
103.7
22.6%
23.0%
AEP Indonesia/
Group
1,960.8
2,155.0
396.7
449.0
20.2%
20.8%
Throughput (i.e. FFB processed) in 2024 was
generally lower in 2024 than in 2023 due to the
reduced production in Indonesia. OER was also
marginally lower possibly caused by additional
moisture from the wet weather of 2024. 2024
CPO production was 11.6% lower than in 2023.
The mix of our own crops vs total FFB processed
remains similar to previous year at around 50%.
OER are typically lower in our Sumatera mills
compared to Central Kalimantan due to the
higher volume of external FFB processed in
Sumatera. These external FFB often contain the
dura palm strain, which has a thinner mesocarp
(less pulp) and lower oil content compared to the
tenera variety predominantly cultivated in our
plantations.
North Sumatera
•
Our three mills in North Sumatera, under
United Kingdom Indonesia Plantations
(Blankahan), Tasik Raja (Tasik), and HPP
produced marginally lower CPO compared to
2023 due to the slightly lower OER.
•
The HPP mill has yet to officially begin
operations in 2024 and has only been
processing small batches of our own fruits as
test run. Commercial CPO production of the
mill has been ramping up from January 2025.
Bengkulu
•
Our two Bengkulu mills, under Mitra Puding
Mas (“MPM”) and Alno Agro Utama processed
13.5% less FFB than 2023 and, hence,
produced less CPO.
Riau
•
Our BPJ mill located in Riau produced 3.8%
less CPO in 2024 due both to the slightly
lower FFB processed and OER.
•
Our competition for external crops in Riau
has intensified due to the rise of mini mills
since early 2022, spurred by high CPO prices.
That said, we managed to increase our 2024
external FFB purchased (including Plasma) in
Riau by 3.0%.
Kalimantan
•
Our SGM mill located in Central Kalimantan
produced 24.7% less CPO in 2024 than in
2023.
•
External FFB (including Plasma) purchased
was 57.9% less than in the previous year
while internal FFB decreased by 6.6%.
•
We also experienced a decrease in both
quality and quantity of FFB sent from our
KAP estate to be processed at SGM mill due
to delays in delivery caused by damaged
roads and labour shortage.
•
Lastly, upgrading works were performed on
SGM mill in 2024, where our engineers have
taken measures to minimise disruptions to
the operation.
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BIOGAS & BioCNG
AEP achieved a significant milestone in
renewable energy as the first commercial BioCNG
(Compressed Natural Gas) plant to commence
operations in Indonesia on 22 January 2024.
Located adjacent to our mill in Blankahan,
North Sumatra, the plant was constructed and
managed by PT KIS Biofuel Indonesia with the
strategic collaboration of AEP. In accordance
with the Build-Own-Operate-Transfer agreement,
ownership of the BioCNG plant will be transferred
to AEP by 2039. AEP receives a share of the
BioCNG sales (subject to minimum annual
amount) and potential carbon credit sales (if any
in the future). However, we do not foresee this as
a significant contributor to AEP’s future income
stream.
•
In North Sumatera, biogas from our
Blankahan biogas plant was mainly allocated
to production of BioCNG. In year 2024,
Blankahan plant sold about 1,769 MWh
to PLN versus 6,455 MWh in 2023 surplus
electricity and generated 54,373 mmBTU of
BioCNG.
•
Our Tasik biogas plant did not sell any surplus
electricity in 2024 due to there being no
demand from PLN.
•
Over 5,116 MWh of surplus electricity was sold
in Bengkulu in 2024, which was 38.2% lower
and generated $216.3 thousand in revenue
(2023: $350.0 thousand). Lower power
supply to National Grid in year 2024 due to
less demand from PLN effective from June
2024 as they are getting power from other
IPP using diesel gen-sets installed in their
National Grid station.
•
SGM mill for 2024 was lower by 11.6% (7,478
MWh) compared to year 2023 (8,455 MWh).
The revenue generated was $333.6 thousand
in 2024, 11% lower than 2023. The drop
in power supply was due to several factors
such as fallen trees along the transmission
lines, downtime of gas engine and failure of
electrical components. There is an additional
of power demand from PLN of 1 MW. We have
transferred the second engine from Bengkulu
to SGM Mill to cater the requirement. All the
installations have been done and the second
gas engine have been commissioned effective
first quarter of 2025.
ESTATE DEVELOPMENT
In 2024, our Group cleared 0.6 thousand ha of
land, including the smallholder cooperative
scheme (“Plasma”), for new planting and
replanted 1.7 thousand ha of oil palm, primarily
in Bengkulu and North Sumatra. The 2024
plantings utilised new-generation planting
materials. For many years, dura palms formed a
significant portion of the planted areas in North
Sumatera and Bengkulu. Fruits from dura palms
have thin mesocarp which ultimately produce
less oil. Around 10.0 thousand ha of palm has
been designated for replanting in the next 5 years
due to poor yield, as well as their advanced age.
Seedlings are sourced from reputable suppliers to
ensure only quality Tenera palms are cultivated, in
order to significantly increasing productivity and
land use efficiency. This is especially important
considering that the oil palm is a perennial crop
with a 25-year economic lifespan.
Our total planted area including Plasma is 69.4
thousand ha by the end of 2024. In 2025, our
Group plans to replant 2.6 thousand ha of oil
palm in North Sumatra and Bengkulu, along
with the new planting of 0.3 thousand ha in
Kalimantan and Bangka to support sustainable
growth and productivity improvements.
Clearing land for new planting is a complex
process requiring written approval from local
authorities, submission of Environmental Impact
Assessments (“EIA”), and engagement with local
communities. All new plantings strictly follow the
High Carbon Stock Approach guidelines and are
verified by accredited consultants.
Last year, our Group invested $0.9 million to
modernise old workers’ quarters in North
Sumatra and Bengkulu. For 2025, an additional
$0.9 million has been budgeted for further
renovations and refurbishments to enhance
worker accommodation. To accelerate
electrification in remote plantation locations,
our Group spent $0.8 million in 2024 to connect
953 houses with electricity. In 2025, $0.8 million
is allocated to provide electricity to over 2,196
homes.
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ANGLO-EASTERN PLANTATIONS PLC
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To improve transportation and the delivery of
FFB in our plantations, our Group purchased 10
units of dump trucks at a cost of $0.3 million in
2024, with an additional $0.3 million allocated
for similar purchases in 2025. This initiative
addresses rising logistics costs, as independent
transport companies (especially in Kalimantan
and Bengkulu) often prioritise coal transport due
to better rates, leading to insufficient trucking
availability for our harvest. Furthermore, our
Group invested $3.9 million in 2024 to improve
field roads and connectivity between estates and
mills by constructing new bridges. An additional
$4.9 million is budgeted for 2025 to continue
enhancing and maintaining our road network for
improved connectivity.
MILL AND BIOGAS DEVELOPMENT
We have completed the EIA for our eighth mill,
namely the KAP mill, located in Kalimantan
Tengah. This mill will enable the KAP estate
to process its own FFB as well as FFB from
surrounding smallholders, reducing transport
costs, ensuring timely processing, and offering
better control and higher profitability. Significant
earthwork will be required to level the hilly
terrain with deep ravines at the KAP estate, as
site options for the mill are limited. The planned
mill, with an estimated cost of $15.1 million, is
designed to have a capacity of 45 mt/hr.
Two of our mills, the SGM mill and the HPP
mill, which currently rely on river barges to
transport their CPO, have been directed by
government authorities to construct their own
jetties. At present, both mills use government-
owned jetties, which are designated for public
use and only available on a temporary basis.
Jetties are essential for connecting the shore to
deep water, allowing river barges to dock and
facilitate the loading of CPO. To comply with
these requirements, our Group has acquired land
adjacent to the rivers for the construction of two
jetties in 2024, with an estimated investment of
$1.5 million.
In 2024, our SGM mill underwent significant
enhancements to ensure smooth milling
operations with minimal disruptions. The
steriliser station was upgraded with two new
vertical sterilisers, equipped with FFB feeding
and discharge conveyors, at a cost of $0.6 million,
complementing the existing 4 units. Furthermore,
an additional oil storage tank with a capacity of
4.0 thousand mt was installed at a cost of $0.25
million, raising the total storage capacity to 19.0
thousand mt. These upgrades ensure sufficient
storage in case of delays in tanker ship collections
caused by adverse weather conditions.
At the BPJ Mill, two outdated vertical sterilisers/
pressure vessels were replaced with improved
designs, alongside steam nozzle modifications
on two existing units to enhance steam
penetration. The total cost for these upgrades was
approximately $0.3 million.
Additionally, at the Alno Agro Utama Mill, two old
sterilisers were replaced at a cost of $0.2 million.
In 2024, our MPM mill underwent extensive
repairs and upgrades. Corroded roofings were
replaced at a cost of $0.25 million, and $0.2
million was spent on reconstructing a hill slope
next to the mill, which had been damaged
by a landslide during heavy rainfall. Further
improvements included replacing two horizontal
sterilisers at a cost of $0.3 million. Another boiler
was refurbished and upgraded with the addition
of superheaters to enhance performance, at a
cost of $0.1 million, with work completed in the
second quarter of 2024.
Our Group invested
$3.9 million in 2024 to
improve field roads and
connectivity between
estates and mills by
constructing new
bridges.”
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Despite operational challenges in its oil recovery system since 2023, the MPM mill has taken steps to
address the issue. Frequent choking in the membrane system, despite effective solids removal by the
decanter, hindered its full functionality. To resolve this, two high-speed separators were commissioned
in July 2024, and are expected to significantly improving the system’s performance.
Finally, at our Tasik Raja Mill, the railway tracks and marshalling system for cages were upgraded
at a cost of $0.1 million in 2024. Additionally, a new boiler with superheaters and a capacity of 45.0
thousand kg/hr was installed at an estimated cost of $1.2 million, with completion expected in the
second quarter of 2025. We plan to upgrade the Tasik biogas plant with BioCNG production. The work
is ongoing and we have received approvals from the relevant authorities.
COMMODITY PRICES
CPO Price 2024 vs 2023
$/MT
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
CPO prices in 2024 experienced an upward trend, reversing the downward trajectory observed in
2023. Starting at $969/mt in January, it gradually increased month by month, hitting $1,301/mt in
December. Ex-Rotterdam price averaged at $1,096/mt for the year, 13% higher than last year. Our
average ex-mill price for 2024 was at $794/mt, 10% higher than last year of $721/mt. Ex-mill prices are
lower than ex-Rotterdam prices due to logistic, insurance costs, Indonesian levies, and taxes.
The ongoing conflicts particularly in Ukraine and the Middle East and escalating trade wars, together
with rising inflation have created economic uncertainties which have impacted heavily on the global
economy.
The growing weakness in the global economy, along with an oversupply of competing vegetable oils
and strong demand for soybeans from China, presents significant challenges for the palm oil industry.
The recent shift in the American presidency has raised concerns about escalating trade tensions with
the United States, complicating market dynamics further. This oversupply of alternatives drives prices
down, making it difficult for palm oil to maintain its market share.
2024
2023
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In 2024, Ukrainian producers continued to expand their sales and exports of sunflower oil, with
the EU remaining the primary market despite persistent conflicts, geopolitical uncertainties, and
logistical challenges. In Europe, sunflower oil demand was driven by increasing consumer demand
for competitive options, sustainable agriculture practices, and advancements in oil extraction
technologies. Meanwhile, shifts in Brazil’s agricultural sector were evident as soybean oil prices
remained lower than palm oil, influenced by substantial stockpiles in China and an increase in imports
of inexpensive soybeans. These factors affected the price growth for palm oil.
Like other commodities, the prices of competing soft oil relative to CPO price is a key to demand.
With the abundance and affordability of soft oils, the CPO discount to sunflower and soyabean have
narrowed significantly and therefore CPO has lost its attractiveness particularly for markets that are
sensitive to prices.
Over a period of 10 years, CPO price has touched a monthly average low of 472/mt in November 2018
and a monthly average high of $1,857/mt in March 2022. The monthly average price of CPO from 2015
to 2024 was about $856/mt.
CPO CIF Rotterdam – 10-Years Price Trend
$/MT
2,500
2,000
1,500
1,000
500
0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Source: S&P Global
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CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (“CSR”) is
an integral part of corporate self-regulation
incorporated into our business model. Law
40/2007 of the Indonesian Limited Liability
Companies Article 1 Paragraph 3 defines
corporate social and environmental responsibility
as the company’s commitment to participate in
sustainable economic development to enhance
the quality of life and environment to benefit the
company, local communities, and the general
public. AEP embraces this responsibility for
the impact of its activities on the environment,
consumers, employees, communities,
stakeholders, and all other members of the
public sphere.
Our Group sustainability policy and commitment
to no deforestation and development on peat
land, no open burning, no exploitation, no forced
or child labour, and other best management
practices can be downloaded from the website
under Corporate Governance. Our Group also
released a statement on the UK Modern Slavery
Act 2015 which was published on the website
under the same section.
The majority of employees and their dependents
in the plantations and mills are housed in self-
contained communities built by the Group. The
employees and their dependents are provided
with free housing, clean water, and electricity.
Provide places of worship for workers of
different religious faiths
Our Group also builds, provides and repairs
places of worship for workers of different religious
faiths as well as schools and sports facilities in
these communities. Over the years, our Group
has built a total of 79 mosques and 20 churches
across its estates. During the fasting month, the
management team frequently broke fast with
the employees from the estates and mills as
well as with surrounding villagers. Our Group
has also sponsored and made donations to
celebrate religious festivals. Our Group spent $0.4
million (2023: $0.2 million) in 2024 to maintain
these amenities and to support the communal
activities.
Offer free education for all employees’
children in the local plantations
Our Group provides free education for all
employees’ children in the local plantations
and communities where they work. In addition,
our Group provides computers and funding
to construct educational facilities including
laboratories and libraries. The salaries of teachers
in the estates and the cost of buying and running
the school buses to transport employees’ children
are provided by our Group. Over the years a total
of 34 schools, which comprised of 18 pre-schools,
10 primary schools, 5 secondary and one high
school were built. Some 90% of the enrolment
are our employees’ children while the balance
is from the local communities. AEP currently
employs 129 full time teachers and operates 48
school bus. Our Group spent some $1.1 million
(2023: $1.2 million) in running the schools and
operating the buses in 2024.
Our Group spent some
$1.1 million
(2023: $1.2 million) in running the
schools and operating the buses in 2024.
Give scholarships to qualified students
As part of our Group’s contribution to education,
we provide scholarships to qualified students from
the communities as well as our employees’ children
to pursue tertiary education. 40 of our employees
were sponsored to study in various universities
in Indonesia up to 2024 at a cost of $0.2 million
since its inception in 1999. The popular courses
range from Engineering, Education, Economics to
Agriculture. 70 of these children have successfully
graduated from the universities with a number of
them now working for our Group.
In 2024, our Group engaged the local electricity
authority to supply electricity to 953 homes of
our employees in Bengkulu and Riau. They do not
have to rely on generators which limit the hours
of operation.
In 2024, our Group engaged the
local electricity authority to supply
electricity to 953 homes of our
employees in Bengkulu and Riau.
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ANGLO-EASTERN PLANTATIONS PLC
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Provide free comprehensive health care
Our Group continues to provide free
comprehensive health care for all its workers. We
have established 23 clinics of which 19 are still
operated by our Group with qualified doctors,
nurses, and hospital assistants in the estates. Our
Group had in the previous year upgraded two
of its clinics in North Sumatera and Bengkulu
to meet the minimum standard required by
the government under the country’s Health and
Social Security Agency. The upgraded clinics also
provide health care services to the surrounding
community without the need to travel to faraway
cities for medical treatment. Our Group also
operates 15 ambulances to support emergency
transportation needs within the estates, mills,
and surrounding villages. In addition, our Group
organised fogging to prevent the spread of
dengue mosquitoes.
In remote and isolated locations, where piped
water is not available, water is generally pumped
from underground or rivers sources. Reverse
osmosis water facilities are progressively installed
in all estates for distribution of clean drinking
water to workers. Related healthcare expenses for
full and part-time field workers including monthly
contributions to Health and Social Security Agency
in 2024 were $1.3 (2023: $1.8 million).
the years, one employee was promoted to General
Manager level with another 31 persons being
employed in various senior positions in the head
office, plantations and mills.
Separately, our Group also sends security
personnel regularly to training facilities organised
by the Police to be certified. Our Group frequently
hired professional trainers to conduct leadership
development training courses to upskill managers
at the estates and mills.
Our Group also recognises its obligations to the
wider farming communities in which it operates.
The Indonesian authorities have established that
not less than 20% of the newly planted areas
acquired from 2007 onwards are to be reserved
for the benefit of the smallholder cooperative
scheme, known as Plasma. These smallholder
developments are integrated alongside its estates.
The Plasma development has commenced
in stages for its estates in Sumatera, Bangka,
and Kalimantan. Out of the 6,899 ha plasma
commitment, our Group has planted oil palm in
5,563 ha. In 2024 our Group received 44,962 mt
of FFB from Plasma schemes compared to 48,700
mt in the previous year. Total revenue generated
by Plasma cooperatives was $7.8 million in 2024
against $6.8 million in 2023.
We have established 23 clinics
of which 19 are still operated by our
Group with qualified doctors, nurses,
and hospital assistants in the estates.
Offer employees the opportunity to attend
seminars and external trainings
AEP realises that employees are valuable assets
to run an efficient, effective, profitable and
sustainable business and operations. Selected
employees were given the opportunity to attend
seminars and external training to enhance
their working skills and capabilities. Our Group
constantly recruits potential field employees
who are sent to the Group’s central training
facilities in Blankahan, set up in 2014, to undergo
a rigorous 12-month training programme which
includes theory and practical fieldwork. A total
of 584 employees have participated in the
programme since its inception in 1993 with 35%
of participants still working for the Group. Over
Total revenue generated by Plasma
cooperatives was
$7.8 million
in 2024 against $6.8 million in 2023.
Corporate guarantees provided to Plasma
scheme cooperatives
To aid the development of Plasma schemes, our
Group provided corporate guarantees of over
$0.55 million through its subsidiaries to local
banks to cover loans raised by the cooperatives.
Our Group also assisted the cooperatives to
obtain the proper land rights certification from
the local land office.
Our Group has also participated in government
social and partnership programmes for farmers
and smallholders when it renewed cultivation
rights. These programmes include providing
financial support to farmers to cover agricultural
and planting materials and equipment on top
65
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Strategic Report (Continued)
of training and education on good plantation
practices to improve smallholders’ productivity
and output. The partnership also assists
farmers to obtain proper permits from relevant
government authorities and regencies to plant.
We also help them to obtain legal land titles
so that the smallholders can eventually apply
for Indonesian Sustainable Palm Oil (“ISPO”)
sustainable certification.
Our Group supported the Kas Desa smallholder
village development programme to supplement
the livelihood of the villages. Our Group has
to-date financed, developed and managed
22 smallholder village schemes of oil palm
across four companies. This programme allows
the participants to opt out to self-manage. 5
smallholders had successfully exited from the
programme since 2022 till 2024.
Help develop infrastructure
In addition, AEP also develops infrastructure
such as the construction and repair of bridges
and maintained over 215 km of external roads in
2024 at a cost of $2.1 million (2023: $3.6 million).
Our Group also provided initial aid and seed
capital to villagers such as fruit seedlings, fish fry,
cattle and ducks to start community sustainable
programmes.
Our Group leased 8 ha of land just outside Kuala
Lumpur, Malaysia and started to clear the land
from 2020 to build greenhouses for organic
farming. It aims to produce organic vegetables
and fruits in an environmentally sustainable
manner and make them available to consumers
at affordable prices as part of its corporate social
responsibility. Substantial part of the produce is
donated to orphanages and retirement homes.
Social Forestry Programme
Recognising the importance of the No
Deforestation, No Peat, and No Exploitation
(“NDPE”) commitments to our stake holders,
AEP incorporated these principles into its
Sustainability Policy, published on 15 June 2019:
Since 31 December 2015, AEP has been
committed to identifying potential loss of HCS
areas across its palm oil concessions in Indonesia.
The analysis identified 967 ha requiring full
recovery obligations to support environmental
sustainability and benefit surrounding
communities.
No Deforestation: Prevents clearing of
forests for agricultural development,
protecting High Conservation Value (“HCV”)
and High Carbon Stock (“HCS”) areas.
No Peat: Prohibits new developments on
peatlands, which are critical for carbon
storage, and promotes best management
practices for existing plantations.
No Exploitation: Safeguards the rights
of workers, local communities, and
smallholders, ensuring fair treatment,
gender equality, and the prevention of child
labour.
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FOREST CONSERVATION, PROTECTION, AND
SECURITY
AEP, in collaboration with the Seluma Social
Forestry team, assessed land cover at the
Gapoktanhut Hutan Karya (community forests) site
to guide area management. Forested areas with
good cover have been designated as protected
zones to prevent conversion into community
gardens. Efforts include optimising existing
gardens with agroforestry systems, rehabilitating
critical lands with woody plants, and establishing
agroforestry planting on open lands.
Key activities under the initiative include:
•
Demarcating boundaries of social forestry
areas.
•
Conserving forest ecosystems.
•
Conducting routine patrols to prevent
encroachment, illegal wildlife hunting, and
forest fires.
These measures aim to balance environmental
preservation with sustainable land use, creating
a framework for long-term community and
ecological benefits.
Coffee cutting training
In September 2024, AEP facilitated coffee-cutting
training sessions aimed at enhancing the skills
of forest farmer groups in the HKm Gapoktanhut
Hutan Karya area. These sessions focused on
enabling farmers to improve coffee yields and
produce high-quality beans.
Farmers in Sinar Pagi Village primarily grow
Robusta coffee using traditional methods.
However, aging coffee plants and the lack of
a coffee-cutting system have led to declining
production. While a ha of coffee plantation
typically yields one to two tons of coffee, the
output in Sinar Pagi Village has dropped to just
500kg–one ton per ha.
To address this issue, AEP is gradually
implementing a coffee-cutting system to boost
production. Initial efforts include raising farmers’
awareness of the system’s benefits, encouraging
its adoption, and steadily improving productivity.
To further support this initiative, frequent
visits were made to UKM Kopi Curup (small
Additionality: Seluma Regency has
the highest poverty rate in Bengkulu
Province, with poverty pockets
near areas rich in natural resources
and biodiversity. Empowering rural
communities through social forestry
is expected to improve their standard
of living, reduce poverty, and lessen
pressure on protected forest areas.
Long-Lasting Impact: The Recover
Programme is implemented within
the Social Forestry area, which
grants communities legal access
for 35 years, extendable thereafter.
AEP is committed to supporting the
programme for 25 years, fostering
community independence and long-
term forest conservation.
Equitability: The programme is
developed and implemented
collaboratively, involving local
communities, national NGOs, local
government, and the Ministry
of Environment and Forestry.
Representatives from the Bengkulu
Provincial Environment and Forestry
Service have emphasised the need
for broader support for these social
forestry activities. Local communities
have been actively consulted, and their
consent has been obtained.
Knowledge-Based Approach:
Using the Theory of Change framework,
the programme is based on a thorough
analysis of current and expected
conditions, threats, and contributing
factors. It sets conservation targets and
strategic approaches aimed at achieving
sustainable outcomes.
01
02
03
04
To address HCS loss, AEP has provided
compensation through support for social
forestry programmes in Seluma Regency,
Bengkulu Province. These initiatives cover
approximately 1,072 ha in Sinar Pagi Village,
North Seluma District. AEP’s recovery efforts
focus on protecting and restoring ecological
functions while addressing social and economic
aspects by developing alternative livelihoods and
establishing community-based business units.
The recovery plan is built around 4 key principles:
67
ANGLO-EASTERN PLANTATIONS PLC
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Strategic Report (Continued)
and medium enterprises in Curup, Bengkulu -
renowned for their coffee). Insights gained from
these visits were applied to Sinar Pagi Village,
broadening perspectives on production methods
and comparing coffee farming practices across
Bengkulu Province.
Proper facilities and infrastructure to
enhance coffee quality
To enhance coffee quality, AEP has provided
Coffee bean peeling machines to Sinar Pagi
farmers with 54 coffee drying racks to support
farmers interested in processing red-picked
coffee. This has resulted in a higher market price
than unripe coffee. As a result, several farmers
have shown increased interest in producing red-
picked coffee.
LAND REHABILITATION THROUGH
AGROFORESTRY
AEP has launched a land rehabilitation
programme in Sinar Pagi Village using an
agroforestry system. This initiative involves the
distribution of high-quality seeds of Avocado,
Pete, Jengkol, and Durian, which serve as shade
plants for coffee cultivation. These shade plants
not only protect coffee plants but also provide
ecological and economic benefits:
•
Ecological Benefits: Enhances soil and water
conservation, promotes biodiversity, enriches
nutrient content, increases carbon reserves,
and reduces pests and diseases.
•
Economic Benefits: Improves production
and quality while boosting overall community
income.
This integrated approach harmonises
environmental sustainability with economic
empowerment, ensuring lasting benefits for both
ecosystems and local livelihoods.
UTILISATION OF ENVIRONMENTAL SERVICES
AEP has been actively developing environmental
service activities within the social forestry area,
including:
•
Ecotourism: Promoting nature-based
tourism.
•
River Utilisation: Supporting the sustainable
use of water resources.
•
Biodiversity Protection: Conserving plant
and animal life.
•
Carbon Absorption and Storage:
Contributing to climate change mitigation.
•
Environmental Recovery: Restoring natural
areas.
To enhance agricultural productivity, AEP has
installed water pipes for improved irrigation,
maximising rice production in local paddy fields.
Further developments include a camping ground,
coffee agroforestry educational ecotourism, and
fruit gardens. These are all integrated into the
AEP social forestry management plan.
COMMUNITY EMPOWERMENT AND CORPORATE
RESPONSIBILITY
We have further empowered local communities
by involving them as members of patrol teams
to guard boundaries against illegal visitors and
logging activities. This initiative strengthens
community participation in safeguarding
environmental resources.
In line with Article 1 Paragraph 3 of the
Companies Act, corporate social and
environmental responsibility is defined as a
company’s commitment to sustainable economic
development, aimed at enhancing the quality of
life and the environment to benefit the company,
local communities, and the public. Our Group
fully embraces this responsibility by addressing
the impact of its activities on the environment,
consumers, employees, communities,
stakeholders, and the wider public. In engaging
the social dimension of CSR, our Group
acknowledges the importance of contributing
to its employees’ enrichment while continuing
efforts to improve the well-being of surrounding
communities.
SUSTAINABILITY POLICY AND COMMITMENTS
AEP’s sustainability policy outlines its
commitments to no deforestation, no
development on peatlands, no open burning,
no exploitation, and the prohibition of forced or
child labour, among other best management
practices. These policies reflect our Group’s
dedication to responsible and ethical operations
and can be accessed through the Corporate
Governance section of our website.
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RECOVERY OBLIGATIONS AND SUPPORT FOR
SOCIAL FORESTRY
AEP conducted an analysis to identify HCS
area losses, aiming to determine its recovery
obligations for presentation to the supply
chain and other stakeholders. For the 967 ha of
identified HCS loss in Bengkulu, our Group has
committed to fulfilling recovery obligations by
compensating through support for social forestry
programs and activities in Seluma Regency,
Bengkulu Province. These activities cover
approximately 1,072 ha in Sinar Pagi Village,
North Seluma District.
In collaboration with village governments and
Social Forestry Institution Management, our
Group has pledged to develop long-term plans,
co-management strategies, and annual activities
aligned with applicable laws and regulations.
A significant milestone was reached with
the signing of a Collaborative Management
Agreement with Sinar Pagi Village in January
2024.
COMMITMENT TO SUCCESSFUL
IMPLEMENTATION
Acknowledging the immense effort required to
ensure the success of these recovery initiatives,
our Group remains steadfast in its commitment
to engaging, interacting, and collaborating with
various stakeholders. This collaborative approach
is aimed at reaching a consensus and achieving
meaningful outcomes in fulfilling our Group’s
sustainability commitments.
SUSTAINABLE PALM OIL CERTIFICATION
The ISPO certification is legally mandatory for
all plantations in Indonesia, while the Malaysian
Sustainable Palm Oil (“MSPO”) certification is a
requirement for our Group’s Malaysian plantations.
In addition to complying with these certifications,
our Group enforces zero deforestation, zero
burning, and zero exploitation, as outlined in our
Sustainability Policy.
The ISPO scheme, designed to ensure that palm
oil in Indonesia is produced in an environmentally
and socially responsible manner, emphasises
sustainable procedures, including preventing
worker exploitation, reducing harmful chemical
use, and applying proper pesticide techniques.
To maintain certification, companies must
undergo regular audits and verification. Our Group
collaborates closely with certification bodies,
ensuring compliance, and all 13 of our operating
companies are ISPO-certified.
Our Group has also initiated the process to obtain
RSPO certification in 2024 and we expect our
membership approval in 2025. This significant
milestone reflects our commitment to adopting
a globally recognised standard for certified
sustainable palm oil. Achieving RSPO certification
will strengthen transparency, reinforce stakeholder
confidence, and underscore our dedication to
environmental, social and economic sustainability.
Our Group has also
initiated the process to
obtain RSPO certification
in 2024. This significant
milestone reflects our
commitment to adopting
a globally recognised
standard for certified
sustainable palm oil.”
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STRENGTHENING SAFETY AND WORKPLACE
PRACTICES
To foster a strong safety culture, AEP organises
workshops and training sessions on occupational
safety and healthcare across all estates and mills.
Employee development, well-being, and work-
life balance remain top priorities. Employees are
empowered to report Near-Miss incidents and
provide feedback through standardised forms,
enabling proactive identification of hazards and
continuous improvement of safety practices.
Any incident involving fatalities or serious injuries
is rigorously investigated to identify root causes
and implement corrective actions to prevent
recurrence. Additionally, AEP compiles and
reviews statistics on work-related accidents as part
of our safety monitoring efforts.
To meet safety and environmental standards
such as International Sustainability and Carbon
Certification, ISO 14001, and Program for Pollution
Control Evaluation and Rating (“PROPER”), our
Group continues to upgrade agricultural chemical
stores and diesel fuel storage tanks across various
plantations and mills.
Every estate is also mandated under ISPO to have
a fire team with fully trained personnel holding
certification from fire departments. AEP conducts
annual fire drills, constructs watchtowers in every
estate, and uses drones to monitor fire outbreaks.
Standard operating procedures have been refined
and documented based on sustainable oil palm
practices and in compliance with Indonesian
regulations, specifically the Regulation of the
Minister of Agriculture Number 05/PERMENTAN/
KB.410/1/2018 on plantation land management
without burning.
Internal audits, guided by checklists adapted from
sustainable practices, are conducted to ensure
operational compliance. These efforts strengthen
AEP’s commitment to safety and environmental
sustainability.
ESG PRACTICES
AEP believes that the responsible stewardship
of our environment is critical in benefiting our
consumers, employees, shareholders, and society
in general, thus maintaining the industry’s long-
term prospects.
AEP has established a dedicated sustainability
team based in the Medan Operations Office.
The team is led by the Sustainability & Risk
Management Controller and operates under the
guidance of key leadership, including the Chief
Corporate Planning & ESG Officer and other
key management members. They oversee and
implement strategies to achieve our Group’s
ESG goals while managing sustainability risks
effectively.
In 2024, our Group further enhanced its
governance framework by forming an ESG
and Corporate Governance Committee. This
committee, comprising the Executive Director, an
Independent Director, and with key management
members in attendance, convenes at least three
times a year to discuss material issues and monitor
the progress of ESG initiatives, ensuring alignment
with our Group’s sustainability objectives.
Our Board and key management maintain
visibility and general awareness of climate and
nature-related risks and opportunities. Plans,
objectives, and targets related to these risks
are discussed annually, or as needed, through
engagement with external sustainability partners
and management meetings where new or
material issues are raised. Climate change and
nature remain standing agenda items for the
Board, underscoring their significance in our
decision-making processes.
THE BOARD
• oversees reviews of our Group’s corporate
governance policies and initiatives,
including Sustainability Policy published
in 2019
• monitors and reviews the progress against
our sustainability-related targets on an
annual basis
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Our Sustainability Policy aims to drive change
needed in reducing environmental impact,
delivering more efficient land use, ensuring
social justice, and practicing responsible business
across all operations. It embeds policies to
mitigate key climate and nature-related risks. Our
Group also participates in the SPOTT assessment
by the Zoological Society London that uses
publicly available information to annually assess
palm oil producers on the transparency of their
commitments to environmental, social and
governmental best practice. Apart from aligning
with the TCFD, we have also looked to adopt the
recommendations of the Taskforce for Nature-
related Financial Disclosures (“TNFD”) despite this
not yet being a mandatory requirement.
The palm oil industry has continuously received
close scrutiny in the media due to concerns
on global warming and rainforest destruction.
Realising this, our Group has adopted a NDPE,
and zero burning policy throughout our Group.
Legume cover crops are planted to minimise soil
erosion, preserve the soil moisture and improve soil
chemical and physical properties, thus reducing
the use of chemical fertilisers. In mature areas,
fronds and EFB are neatly stacked on the inter-rows
to allow for the slow release of organic nutrients
while minimising soil erosion. Estates with sandy
areas use soft grass, Nephrolepis biserrata ferns
and cut fronds to cover bare ground to increase soil
moisture and improve organic matter contents.
Effluents discharged from our
mills are fully treated in anaerobic
lagoons and tanks to reduce its
biological demand (“BOD”)
Final discharge is applied to the
estate’s land as fertilisers and BOD
is tested regularly to ensure that
it is below the legal limit for land
application in Indonesia
Felled palm trunks are chipped,
shredded and left to decompose
on the site
Mitigates the release of
greenhouse gases commonly
associated with open burning
through the traditional land-
clearing method of slash-and-burn
Chipping and shredding palm
trunks enriches soil organic
matter & recycles nutrients back
onto the soil
HOW FALLEN PALM TRUNKS RECYCLES
NUTRIENTS BACK ONTO THE SOIL
Where land is sloping, terraces are built which
helps to prevent landslides and soil erosion,
conserve the water and nutrients and provide
better accessibility for operations. Conservation
pits and sumps are also constructed to harvest
and contain rainwater.
AEP operates 4 biogas plants, which enhance
the treatment of palm oil mill effluents while
simultaneously mitigating GHG emissions. The
captured biogas is utilised to generate electricity,
which is supplied to the national grid, reducing
reliance on fossil fuels. Alternatively, the biogas
may be purified and compressed to produce
BioCNG in plants such as the BioCNG plant in
our Blankahan estate. Plans are underway to
explore and implement similar biogas initiatives
at other mills, focusing on locations where such
projects are commercially viable. These efforts
will be carried out in stages, further advancing
our commitment to sustainability and renewable
energy.
AEP is committed to implementing good
agricultural practices as spelt out in its standard
operating procedures for all activities. An
Integrated Pest Management system has been
adopted to control the population of damaging
pests and to improve biological balance while
reducing dependency on chemical pesticides.
Barn owls, which are natural predators, have
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been introduced to control the rat population,
replacing the use of rat baits. Beneficial plants
such as Turnera subulata, Cassia cobanensis
and Antigonon leptopus were planted to
attract natural predators for biological control of
bagworms and leaf-eating caterpillars.
AEP minimises the use of toxic pesticides and
herbicides, with plans to phase them out when
viable alternatives are available. Employees are
regularly trained in safe and proper spraying
techniques, provided protective equipment,
on-site washing facilities, and routine medical
examinations. Chemicals are stored in designated
areas and inspected regularly, with strict adherence
to safety standards as per Indonesian regulations.
Under the Manpower and Transmigration
Ministerial Decree No. 08/2010, our Group
strictly enforces compliance with occupational
safety standards. Managers and employees
risk penalties or disciplinary actions if found
non-compliant, as safety audits are conducted
periodically. Additionally, ISPO-certified
companies are prohibited from using 36 banned
pesticide ingredients, which are known to pose
significant health risks to humans and harm the
environment. Chemicals banned under WHO
Class 1A and 1B, as well as the Stockholm and
Rotterdam Conventions including highly toxic
pesticides such as Paraquat, have been eliminated
from our plantation. Safer alternatives are currently
being evaluated.
A standard operating procedure ensures the
management is informed of any pesticide
poisoning cases among applicators, reinforcing
AEP’s commitment to safety and sustainability.
To minimise accidents at workplaces, regular
training and refresher courses are held to instil the
importance of safe working practices. Warnings
and reminders are displayed at the mills and
estates to remind the workers on their safety.
Warning signs are placed at strategic locations
such as speed limits in housing estates and
warning against crossing Irish bridges when river
water is at a dangerous level.
AEP continues to comply and preserve HCV as well
as HCS areas recognised by the Department of
Forestry. Every development has gone through the
proper environmental impact analysis. EIA studies,
environment management and monitoring
efforts are retained under the Indonesia Omnibus
Law passed in 2020, companies are however
no longer required to obtain environmental
license. All HCV and HCS areas were mapped
with boundaries clearly marked by independent
surveyors to ensure that our Group does not plant
in these sensitive areas. Our Group patrols these
protected areas to ensure no encroachment and
maintain regular monitoring and management
plans to preserve the flora and fauna of these
sensitive areas. Natural vegetation on uncultivable
lands such as deep peat, very steep areas and
riparian zones along watercourses and mangroves
are spared from planting in order to preserve
biodiversity and wildlife corridors as well as to
check erosion. Peatland is considered to be one of
the most efficient carbon sinks and any burning or
drying will release the sequestered carbon dioxide
into the air contributing to global warming.
Conservation of peatland is also important as it
is at high fire risk, raising concerns of sub-terrain
wildfires which is very difficult to put out. Peatland
is made up of decomposed vegetation which
not only holds carbon dioxide but also highly
inflammable when dry. We have a strict no-peat
policy and prohibit new planting in peat areas
since 2019. In places like the HPP estate where
palms were planted between 2006 to 2012 on
peat, before the introduction of no-peat policy,
42 permanent water gates were installed to
constantly monitor to keep surface of water stable.
Degradation of the mangroves on the other hand
causes coastal erosion and harm biodiversity and
economic losses for communities that depend
on them for a living. Progress has been made in
recent years to step up environmental protection
in Indonesia.
In Indonesia where drought occurs regularly, an
emergency response team is set up in every estate
armed with the proper equipment and gear to
put out fire and prevent them from spreading
during the dry months. Regular training on fire-
fighting techniques and safety is provided by the
fire departments. Our estates have also invested in
modern technology by utilising drones to pinpoint
areas of fire outbreak whenever they are detected
by the watchtowers. These drones are particularly
useful in remote areas where accessibility is
restricted. According to Indonesian Law No.
41/1999 on forestry, a deliberate act of forest
burning could lead to 15 years imprisonment
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and a fine of up to Rp5 billion or about $350,000,
while negligence act that leads to a forest fire is
punishable by a 5-year imprisonment and a fine of
up to Rp1.5 billion or $105,000 for environmental
crime. The government is stepping up its
enforcement where large fines were imposed on
companies for breach of environmental law. AEP
upholds its commitment to a no open burning
policy, ensuring it plays no part in such activities.
All sacred and customary lands are set aside and
also preserved by AEP out of respect for the local
tribes and customs to pray and conduct their ritual
ceremonies.
Our 7 mills are operating in compliance with
criteria set by PROPER overseen by the Indonesian
Department of Environment. Many of the
criteria set by PROPER are also part of the ISPO
requirement. These mills are officially graded
Blue and rated to adhere to the criteria set for
the management of waste and compliance to
environmental conservation over water resources,
land development, air and sea pollution and
dangerous toxic waste treatment which impact
the environment. The certification of the seventh
mill which has just commenced operation is
currently under review. 6 mills are certified to
ISO 14001:2015 (Environmental Management
System) standard with the seventh in progress.
Implementing an environmental management
system can provide the mills, the ability to manage
environmental performance through more
efficient use of resources and will also increase
the confidence of internal and external parties
that the environmental impacts of its activities
have been measured, managed and continuously
improved.
The ISCC is issued by ISCC System GmbH, a global
certification body based in Cologne, Germany. The
criteria used in the certification process are:
•
Implement social and ecological sustainability
criteria
•
Monitor deforestation-free supply chains
•
Avoid conversion of biodiverse grassland
•
Calculate and reduce GHG Emissions
•
Establish traceability in global supply chains
The Tasik Raja and United Kingdom Indonesia
Plantation estates and mills were ISCC certified in
2024. The certification identifies a company as a
responsible player in the industry that has taken
efforts to produce sustainable CPO.
We are currently progressing toward full
traceability of external FFB purchased from
suppliers’ farms or plantations to our mills. AEP
is actively managing a comprehensive database
of all our smallholders and aims to identify
the precise locations of their plantations. By
maintaining close relationships with our suppliers,
we provide them with technical and management
expertise while integrating our sustainability
policies into their practices. This collaborative
approach reinforces our commitment to
responsible sourcing and sustainable operations.
More details on our ESG efforts may be obtained
from the Company’s website.
PRINCIPAL AND EMERGING RISKS AND
UNCERTAINTIES
AEP regularly evaluates its principal risks.
Our Board, with support from Audit & Risk
Management Committee and key management,
reviews and assesses material issues related to
principal risks annually. These assessments are
integrated into strategic reviews and the overall
decision-making process.
Significant emerging business risks that are
identified are brought up for discussion during
regular key management meetings where
the impact is assessed and mitigating actions
agreed thereon. The key management, together
with our Group Chief Executive Officer and
Executive Director will in turn brief the Audit &
Risk Management Committee and the Board as
needed and during Directors’ meetings.
In 2024, the risk category previously titled “Covid
and Other Contagious Diseases” was renamed
“Highly Contagious & Severe Diseases,” reflecting
AEP’s commitment to early detection and
mitigation, despite the diminished severity of
Covid-19. Following the results of our Climate
Scenario Assessment, the likelihood of “Weather
and Natural Disasters” affecting AEP has been
reassessed as Low. Similarly, “Information
Technology Security” risk has been reevaluated
in light of our improved infrastructure and is
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now categorised as having a Low likelihood of occurrence but a Medium impact. “Country, regulatory
and governance practices” has now been split into “Indonesia Regulatory Environment”, “International
Regulatory Environment” and “Bribery and Corruption” to allow for more targeted focus on the distinct
regulatory challenges.
Additionally, “Produce Prices” has been renamed “CPO Price Decline,” which is now identified as having
a medium likelihood of occurrence with a potentially high impact. This continues to represent the most
significant risk to our Group.
An annual reporting cadence is established for principal risks, enabling consistent monitoring of
progress toward our objectives and targets.
IMPACT ON AEP
LIKELIHOOD OF OCCURRENCE
LOW
MEDIUM
HIGH
LOW
MEDIUM
HIGH
π Bribery & Corruption
ª CPO Price Decline
(Most significant risk)
∏ International Regulatory
Environment
∑ Indonesia Regulatory
Environment
∫ Currency Exchange
Rates
ø Environmental &
Conservation Practices
æ Weather & Natural
Disasters
Ω Highly Contagious &
Severe Diseases
¿ Information
Technology Security
º Social, Community &
Human Rights Issues
Key:
▲ Increase
▼ Decrease
◆ No change
F New risk
Risk
Impact
Mitigation
∑ Indonesia Regulatory Environment F
Our operations are
predominantly based
in Indonesia, where the
government may introduce new
laws and regulations and pose
challenges or create adverse
effects on our business.
Impact Medium
Likelihood High
Changes in Indonesia’s legal
or regulatory framework,
including foreign ownership
requirements, could negatively
impact our profitability.
Restrictions on foreign
ownership may limit operational
flexibility and investment
opportunities. Additionally,
regulatory changes could lead
to lower pricing, higher taxation,
or other unforeseen impacts.
AEP’s long-standing presence in
Indonesia, spanning 4 decades,
has allowed us to navigate
various regulatory and political
changes while benefiting
from the country’s political
stability and economic growth.
While adjustments to laws
and regulations are inevitable,
we closely monitor these
developments and adjust our
strategy to suit.
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Risk
Impact
Mitigation
∏ International Regulatory Environment F
International laws and
regulations, if introduced,
could present challenges
or adverse effects on our
business operations, potentially
impacting compliance
requirements, trade practices,
and profitability.
Impact Medium
Likelihood Medium
International regulations, such
as import controls, export
taxes, and trade barriers
like the EUDR, pose risks to
Indonesian planters like us
by increasing costs, limiting
market access, and requiring
compliance with strict
sustainability standards. These
measures influence operational
practices, encouraging the
adoption of certifications like
RSPO, while adding financial
and logistical challenges.
Although such regulations
promote sustainability, they
also impact competitiveness
and profitability for palm oil
producers.
Emerging international
regulations introduce
complexities to market access
and trade dynamics. In response,
we actively monitor regulatory
changes and adjust our
practices to ensure compliance,
protect market access, and
maintain competitiveness in
an increasingly demanding
global landscape. Furthermore,
we are progressively adopting
internationally recognised
sustainability standards,
including RSPO and other
certifications, to underscore our
commitment to ethical and
responsible production. These
initiatives enhance our credibility
and align our operations with
evolving global expectations.
π Bribery & Corruption F
Our operation in Indonesia is
considered high risk of bribery
and corruption according to
the International Transparency
Corruption Perceptions index.
Impact Medium
Likelihood Low
We face reputational damage,
and criminal sanctions should
we not be able to meet the
standards expected to combat
bribery and corruption.
To mitigate bribery and
corruption risks, our Group
has implemented a strict anti-
corruption policy, ensuring
zero tolerance toward
unethical practices. Regular
internal audits are conducted
to monitor compliance
and detect irregularities,
enhancing oversight and
accountability. Additionally, a
whistleblowing mechanism
is in place to encourage
employees and stakeholders
to report unethical behaviour
confidentially and without fear
of retaliation. Furthermore, AEP
actively promotes a culture of
integrity and ethical business
practices across all levels of the
organisation.
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Risk
Impact
Mitigation
∫ Currency Exchange Rates
Our reporting currency, as well
as the CPO commodity price,
is denominated in US Dollars.
Our operations, however, utilise
a combination of US Dollars
and Indonesian Rupiah. Key
expenses, such as fertilisers,
fuel, heavy machinery, and mill
equipment, are tied to the US
Dollar.
Impact Medium u
Likelihood High u
Adverse movements in the
Indonesian Rupiah against the
US Dollar can escalate operating
costs, negatively impacting
profitability and increasing
funding expenses. Furthermore,
fluctuations in the exchange
rate may affect portions of our
cash reserves held in Indonesian
Rupiah, adding additional
financial pressure.
Our Board acknowledges that
these currency risks are inherent
to the business operations. To
mitigate the impact of rate
fluctuations, a portion of our
Indonesian Rupiah reserves has
been converted to US Dollars.
This approach helps reduce
exposure to currency volatility
while maintaining a balanced
financial strategy.
ª CPO Price Decline
CPO, being a key commodity,
is influenced by the global
economy, inflation, and the
competition of alternative oils
like soybean, rapeseed, and
sunflower oil.
Impact High u
Likelihood Medium t
Our profitability and cash flow
depend upon the selling prices
of CPO and upon our ability to
sell CPO and palm by-products
at price levels comparable with
world prices.
The global demand for CPO
remains robust, driven by its
widespread applications in
food products, cosmetics,
and biofuels, with growing
consumption bolstering
price stability. Environmental
constraints on land availability
further restrict significant
increases in CPO supply.
Indonesia’s biodiesel use is
increasing, supported by its
B40 biodiesel mandate which
enhances domestic CPO
demand, absorbing excess
supply, stabilising prices, and
reducing export dependence.
Together, these factors help
moderate price volatility and
support the resilience of the
palm oil industry.
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Risk
Impact
Mitigation
º Social, Community & Human Rights Issues
Our relationship with the
local population near our
operations is crucial to our
business success. AEP employs
a large workforce, contributing
significantly to the economic
well-being of the surrounding
communities. However, disputes
may occasionally arise with
the indigenous community
for example, over land
compensation or land rights
issues.
Impact Medium u
Likelihood High u
Material breakdown in relations
would cause disruption in the
operation and consequently
financial loss. We may suffer loss
in local workforce or lose access
to parts of our plantation or mill
due to blockages and illegal
encroachment by the local
communities.
AEP mitigates risks by engaging
with village representatives to
resolve disputes and fostering
strong community relationships.
Our Group prioritises local
employment, supports farmers
and tradesmen, and significantly
invests in facilities and
infrastructure, including schools,
clinics, roads, and bridges,
to benefit the community.
Additionally, it helps villagers
develop oil palm plots via its
Plasma schemes, and also aids
their livelihood via Social Forestry
projects, thereby enhancing
overall welfare.
Ω Highly Contagious & Severe Diseases
Contagious and severe diseases
of pandemic proportions, such
as Covid-19, have the potential
to significantly disrupt our
operations.
Impact Medium u
Likelihood High u
The associated lock downs,
labour shortages, operational
inefficiencies, supply chain
delays, increased health and
safety costs, and market
volatility, may which negatively
impact productivity, profitability,
and community livelihoods
Mitigating factors such as
comprehensive standard
operating procedures,
heightened awareness and
preparedness stemming
from lessons learned during
Covid-19, and robust cash
reserves designed to sustain
our Company for at least 12
months provide critical resilience
against disruptions caused by
pandemics and other crises.
æ Weather & Natural Disasters
Oil palms rely on stable
weather conditions, including
regular sunshine and rainfall.
However, our operations may be
vulnerable to extreme weather
events, such as prolonged
droughts, excessive rainfall
leading to floods, and natural
disasters, like earthquakes.
Impact High u
Likelihood Medium t
Dry periods can reduce yields,
cause moisture stress, and
trigger wildfires, damaging
plantations. Excessive rainfall
disrupts operations, delays
harvesting, and raises Free
Fatty Acid levels in CPO,
leading to discounted sales.
Natural disasters can damage
plantations or mills, create
labour shortages, and halt
operations, with tsunamis and
earthquake potentially wiping
out plantation land and causing
significant losses.
Mitigating measures include
bunding, platforming, and
ensuring adequate drainage
around flood-prone areas,
alongside fire watch towers,
satellite imaging, and other
early warning systems to reduce
risks from extreme weather
and disasters. Additionally, our
analysis shows that our operations
are in areas without a history
of severe drought, flooding,
or natural disasters. To further
bolster operational resilience, we
maintain robust cash reserves
to sustain the business during
challenging periods.
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Risk
Impact
Mitigation
ø Environmental & Conservation Practices
Failure to comply and observe
environmental and conservation
practices in its oil palm
cultivation.
Impact Medium u
Likelihood High u
Reputational and financial
damage through criticisms
by conservation groups and
boycott of the Group’s produces.
Government could impose
hefty fine and penalties for
environmental breach.
We are committed to sustainable
development, maintaining
substantial conservation
reserves to protect biodiversity.
AEP has achieved ISPO and
MSPO certifications across
all operations. Independent
environmental impact
assessments are conducted
for plantation and mill
development. Additionally, we
collaborate with sustainability
partners and experts to address
climate-related risks and ensure
compliance.
¿ Information Technology (“IT”) Security
The security threats faced by
our Group include threats to
its IT infrastructure, unlawful
attempts to gain access
to classified information
and potential for business
disruptions associated with IT
failures.
Impact Medium s
Likelihood Low t
Failure to combat cyberattack
could cause disruption to our
business operations. Potential
loss including loss of financial
records leading to error or
misstatement in financial
statements. Recovery of lost
data can also be expensive.
To mitigate cybersecurity
risks by maintaining a secure
digital environment, including
implementing robust IT security
policies and procedures,
conducting regular employee
training on cybersecurity
awareness, and ensuring timely
updates of software, security
patches, and systems. We
employ advanced tools such as
firewalls and intrusion detection/
prevention systems (IDS/IPS)
to safeguard our networks and
data.
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CLIMATE AND NATURE-RELATED RISKS AND OPPORTUNITIES
AEP is committed to creating a sustainable future for all its stakeholders - its employees, shareholders,
investors and communities. It is on a journey of self-improvement on both the TCFD and TNFD
frameworks, having identified through previous consultant, gaps to improve its climate and nature
disclosure maturity.
Our Climate/Nature Disclosure Roadmap:
1
2
3
4
5
6
7
8
9
10
EXPLORE
• Information resourcing, upskilling, data
gathering
STRATEGY
• High level strategy staged sustainability/
climate actions. Establish GHG emission
reduction targets
RISK AND OPPORTUNITY ASSESSMENT
• Physical and transition, including
timeframes (Short, Medium, Long)
• Develop and apply materiality
assessment
• Integrate climate/nature and risk
ENGAGE
• Internal collaboration, address resource
gaps
DEVELOPMENT OF FRAMEWORK
• Align 4 pillars – Governance, Strategy,
Risk Management and Metrics and
Targets
SCENARIO ANALYSIS
• Identify scenarios and assess impact of
climate-related risks and opportunities
DEEP DIVE KEY PERILS
• Detailed study of impacts of high-risk
locations
FINANCIAL IMPACT ANALYSIS
• Quantification of physical and transition
risks and opportunities
• Understand impact on key assets
indirect on business operations
REPORTING
• Draft report aligning with regulatory
requirements TCFD
• Voluntary TCFD disclosures
• Prepare to transit to ISSB
• Report progress on GHG emissions
REVIEW AND REFINE
• Review process and learnings
• Feedback from internal and external
stakeholders
• Regular updates and benchmark against
sector
• Continuous improvements
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AEP’s priority in 2024 was to strengthen its
governance framework to enhance its foundation
for ESG and sustainability actions and progress
towards its goals. We have strongly focussed on
Governance actions in 2024 whilst improving
actions on Strategy and Risk Management
aspects. Both our Board and management have
been engaged in the process and committed to
the actions initiated.
We recognise that nature is core to our business
and closely interlinked with climate, in terms
of our impacts, dependencies, risks and
opportunities.
This is our fifth year disclosing against the eleven
TCFD recommendations. Following the TCFD gap
analysis we conducted in previous years, we have
continued to improve our alignment with TCFD’s
recommendations by acting in accordance with
the TCFD roadmap we have put in place last year.
We have revisited our climate and nature-related
risks and opportunities, incorporating findings
from our scenario analysis in line with TCFD
expectations.
This scenario analysis explores how strategically-
important climate and nature risks and
opportunities may change across short, medium
and long-term time horizons within distinctive
and plausible scenarios (including a Paris
Agreement Aligned scenario which limits global
warming to 1.5C by the end of the century).
We are also in the process of aligning our climate
and nature risk management to the TNFD by
explicitly considering nature risk alongside
climate risk, and by adopting elements of
the TNFD’s recommended scenario analysis
methodology – using a ‘What If’ process to
build out our scenarios to consider how climate
and nature risks might manifest. We will
further develop our holistic approach to risk
management which integrates climate and
nature in the future.
AEP’s priority in 2024 is to
strengthen its governance
framework to enhance
its foundation for ESG
and sustainability actions
and progress towards its
goals. We are strongly
focussed on Governance
actions in 2024 whilst
improving actions
on Strategy and Risk
Management aspects.”
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SUMMARY TCFD ALIGNMENT TABLE
Assessment
Remarks and reference page
Governance
Describe the board’s oversight of climate-
related risks and opportunities
Board has oversight which have been
enhanced in 2024.
Page 82: Board Oversight
Describe management’s role in assessing
and managing climate-related risks and
opportunities
Management has responsibilities and
resources which were enhanced in 2024.
Page 84: Management’s Role
Strategy
Describe the climate-related risks and
opportunities the organisation has
identified over the short, medium, and
long term
CSA identifying risks and opportunities
across short medium and long term. We
intend to continue to assess these risks
and opportunities at more in depth and
locational level.
Page 84: Material climate and nature-
related risks and opportunities
Describe the impact on the business of
climate-related risks and opportunities on
the organisation’s business, strategy and
financial planning
To date our analysis have enable AEP to
understand the potential impacts. We
intend to broaden the assessment further
in 2025 to understand further impacts on
the business.
Page 95: Impact on business, strategy and
financial planning
Describe the resilience of the
organisation’s strategy, taking into
consideration different scenarios,
including a 2 °C or lower climate scenario
We have considered the potential impacts
from climate and nature from different
scenarios and time horizons and resiliency
of strategy against the risks.
Page 96: Resilience of our Strategy
Risk Management
Describe the organisation’s processes for
identifying and assessing climate-related
risk
AEP has implemented a process for
identifying assessing prioritising and
managing climate and nature risks.
The process is now enhanced with the
establishment of an ESG committee and
dedicated ESG resources.
Page 97: Identifying and assessing climate
and nature-related risks
Describe the organisation’s process for
managing climate-related risks
The Process is described in page 97:
Managing dependencies, impacts, risks
and opportunities
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Assessment
Remarks and reference page
Describe how processes for identifying,
assessing, and managing climate-related
risks are integrated into the organisation’s
overall risk management
Currently compliant however as AEP is
intending to review and refresh its risk
management practice and integrate
climate and nature more deeply into the
Company’s practice.
Page 100: Integration of climate and
nature into overall risk management
Metrics & Targets
Disclose the metrics used by the
organisation to assess climate-related
risks and opportunities in line with its
strategy and risk management process
The metrics are disclosed in page 101
Metrics to assess climate and nature-
related risks and opportunities.
Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 GHG emissions, and
related risks
AEP discloses Scopes 1,2 and 3.
Page 105: Carbon Reporting – 2024
Results
Describe the targets used by the
organisation to manage climate-related
risks and opportunities and performance
against targets
Target disclosed in page 101: Targets
for dependencies, impacts, risks and
opportunities
CURRENT AND FUTURE STEPS ON TCFD AND
TNFD
GOVERNANCE
•
Focus in 2024 has been to enhance governance
to provide AEP with the necessary support to
put climate and nature at its forefront.
•
AEP’s focus has been to enhance its
compliance with current TCFD requirements
(refer to AEP’s report 2023 outlining its self-
assessment of compliance). Although not a
requirement, AEP has also started adopting
the TNFD framework with a view to enhancing
its TNFD disclosures over time.
•
In 2024, AEP’s focus has been to enhance
a number of key aspects of TCFD including
governance and risk management while at the
same time it is looking to take steps to prepare
to transition to International Sustainability
Standards Board (“ISSB”) ahead of new ISSB
regulations coming into force.
•
Having given careful consideration to
enhancing the maturity of AEP’s sustainability
journey, AEP has made a considered decision
to focus its attention to strengthen its
governance. It believes that by enhancing its
structure, this will enable our Company to put
sustainability at the forefront, meeting the
needs of its stakeholders including investors
employees and communities.
Board oversight
•
AEP Board has ultimate responsibility for
oversight of AEP’s management of material
business risks and opportunities including
climate and nature related risks in its strategy,
risks, budgets and capital expenditure. AEP
Board has taken active steps to improve
governance in a number of ways:
i.
Board upskilling – Our Board has
enhanced training on Sustainability topics.
In 2024, it has undertaken two upskilling
sessions focussing on climate and nature
risks and opportunities, and legal risks.
These were undertaken through inviting
external experts to attend and present
at meetings both virtually and in-person.
Two such training sessions were attended
by members (virtual and in-person)
together with key management staff
including our Group CEO, Chief Corporate
Planning & ESG Officer.
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Our intention is to continue Board
upskilling on a regular basis at least twice
a year and we plan to undertake joint
workshops/discussions with management
deep diving on specific climate scenario
outcomes in 2025.
ii. Changes to Board Committee Terms of
Reference – In 2024, a number of changes
to the Committee terms of reference
were adopted. These changes reflect the
significance and importance of the role
of the board in its oversight of climate
and nature related risks to its business.
Our Board considers and approve AEP’s
sustainability objectives and monitors and
reviews progress against our sustainability
targets annually including the emissions
reduction targets set in 2021. We plan to
increase the oversight of these targets by
informing the Board on GHG emissions
reduction progress at least two times a
year.
Our ESG & Corporate Governance
Committees oversees reviews of the
Group’s corporate governance policies
and initiatives, including our Sustainability
Policy which was published in 2019. Our
Sustainability Policy aims to drive change
needed in reducing environmental
impact, delivering more efficient land
use, ensuring social justice, and practicing
responsible business across all operations.
It embeds policies to mitigate key
climate and nature-related risks. Our
Group also participates in the SPOTT
assessment by the ZSL that uses publicly
available information to annually assess
palm oil producers on transparency of
commitments to environmental and best
practice.
Any material Sustainability and Climate
issues are to be brought to the Board’s
attention for approval after consideration
by the newly established ESG & Corporate
Governance committee. The Board will
have access to other Sustainability reports
and activities undertaken and reported
to the ESG & Corporate Governance
committee.
Topics on Sustainability and Climate will
be considered at board meetings, with
a cadence for reporting topics being
agreed for the year. The ESG & Corporate
Governance committee meets at least three
times a year and at each of these meetings,
progress against objectives and targets are
considered. The Board has adopted a new
reporting template addressing climate/
nature related issues for consideration when
making decisions. This initiative reflects
the significance of climate and nature
consideration in decision-making.
Other important changes include escalation
of environmentally significant events to the
Board on identification of issues.
iii. Establishment of a new ESG and
Corporate Governance Committee –
Recognising the importance of ESG to the
business, the committee was established
in January 2024 as ESG Committee and
subsequently renamed ESG and Corporate
Governance Committee. The Committee
comprises two Directors and is currently
supported by our Group CEO, Indonesian
CEO and Chief Corporate Planning &
ESG Officer. The Committee has overall
responsibility for the oversight of the
implementation of AEP’s ESG policy/
Sustainability and supporting AEP’s
ongoing commitment to environmental
stewardship, health and safety, CSR,
corporate governance, and sustainability.
The ESG and Corporate Governance
committee will meet two times or more
a year prior to Board meetings, with
strategic items referred to the Board for
approval. All other items may be endorsed
or notified to the Board from the ESG and
Corporate Governance committee.
iv. Other committees - We have introduced
several changes to our board sub-
committees, including the Audit,
Nomination, and Remunerations
Committees. Updates to the terms of
reference have been made to enhance the
scope of oversight and clarify roles and
relationships both with the Board and
among the committees.
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For instance, the Audit Committee
has been renamed the Audit & Risk
Management Committee to better
reflect its expanded responsibilities. This
includes strengthening its oversight of risk
management and compliance, as well as
ensuring the integration of ESG risks into
our overall risk profile. The Nomination &
Corporate Governance Committee has also
been renamed as Nomination Committee
to avoid overlapping responsibilities
with the ESG and Corporate Governance
Committee.
Management’s role
•
In September 2024, AEP created a new role
– Chief Corporate Planning & ESG Officer. This
role reports to Group Chief Executive and is
responsible for designing and implementing
all aspects of the sustainable programme
including:
- climate and nature reporting
- delivery of initiatives to improve
environmental performance
- resiliency of the business against climate
and nature risks
- progress towards reduction on emissions
•
Our Environment Health and Safety (“EHS”)
and Sustainability Department aids our
key management in addressing climate
and nature-related risks by integrating ESG
considerations into our risk management
framework. It identifies and assesses risks
such as climate change impacts, biodiversity
loss, and resource scarcity, ensuring these are
factored into strategic decision-making.
•
Our dedicated ESG team, comprising the
Chief Corporate Planning & ESG Officer and
the EHS and Sustainability Department,
oversees the tracking of ESG-related projects
and targets. The team collaborates with key
management across various functions within
our Group (including estates, mills, human
resources, legal, and finance) to ensure
alignment with our ESG objectives and to
address sustainability issues within AEP.
In addition to periodic reporting, prompt
escalation of material matters to our ESG and
Corporate Governance Committee and Board
ensures all parties informed, maintaining
transparency and accountability.
We remain committed to accountability and
continuously adapt our strategies to meet our
goals, as we progress toward further integrating
our climate and nature risk management
approach with broader strategic risk
management.
STRATEGY
Material climate and nature-related risks and
opportunities
•
In 2023, AEP engaged external consultants
to conduct a Climate Scenario Analysis
(“CSA”) of strategically important climate
and nature risks relevant to its business. This
process entailed identifying a long list of
climate- and nature-related risks under the
Network for Greening the Financial System’s
(“NGFS”) ‘Orderly’, ‘Disorderly’, and ‘Hot House’
scenarios in short, medium and long-term.
•
The CSA identified two transition and three
physical climate and nature risks of strategic
importance for further interrogation.
•
Transition risks to AEP emerge primarily
from increasing expectations regarding
climate and nature performance (from
both regulators and customers) and non-
compliance with those expectations.
•
Key climate-related physical risks to AEP were
identified as drought, flood and temperature
rise. Upon further investigation of these key
physical risks using the World Wide Fund
for Nature (“WWF”) and World Research
Institute (“WRI”) data, no discernible trend in
drought was projected for any of AEP’s sites
through to 2050, and although projections
suggest flood risk at AEP’s sites will increase
slightly, AEP is already operating – without
any significant disruption – within areas that
are categorised as having high flood risk .
However, the CSA showed the aggregated
impact of temperatures rise has the potential
to significantly impact palm yield in the
long-term, particularly in the Disorderly and
Hothouse scenarios, in which the potential
financial impact on AEP is deemed high by
2050.
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CLIMATE AND NATURE SCENARIO ANALYSIS FINDINGS
Risk
Impact
Scenario
Potential Exposure
Description
Short
(2025)
Medium
(2030)
Long
(2050)
Policy/
Regulation
A wide range of
climate and/or nature-
related regulation
has been adopted,
is in consultation, or
has been proposed in
different jurisdictions
around the world. While
there is considerable
uncertainty as to how
future regulation will
evolve, in scenarios
that limit warming to
1.5C – and/or in which
concern about nature/
biodiversity continues
to grow – it is highly
likely that expectations
of palm growers will
tighten.
Potential impact:
Increasing climate and
nature regulation could
increase compliance
and reporting costs,
require changes in
growing practices and,
if compliance is not
achieved, limit market
access.
Orderly
Low
Moderate
High
An internationally-
coordinated approach
limits risk in the short-
term but ever-increasing
obligations across a
range of sustainability
criteria require
continual investment in
the medium and long-
term.
Disorderly
Moderate
Moderate
High
A lack of international
coordination –
particularly regarding
the roll-out of regulation
around deforestation –
creates moderate risk
even in the short-term.
Different expectations
and frameworks apply
in different geographies
and, with a lack of
alignment between
climate and nature
policy, reporting, and
compliance costs
become very high
in the long-term for
companies seeking to
access all markets.
Hothouse
Low
Low
Moderate
This risk is low in the
short- and medium-
term as no new climate
or nature-related
regulation is introduced
or enforced. Reporting
and compliance costs
are low, although
expectations grow
over time to voluntarily
demonstrate climate/
nature resilience and an
ability to provide secure
supply.
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Risk
Impact
Scenario
Potential Exposure
Description
Short
(2025)
Medium
(2030)
Long
(2050)
Changing
Customer
Requirements
The palm sector’s
prominence in debates
about the drivers of
tropical deforestation
– and the adverse
perception of palm oil
as an environmentally-
unfriendly product
(particularly by
European consumers)
– has increased
pressure on public-
facing consumer-
goods companies to
demonstrate strong
performance on
climate and nature.
Those companies are
increasingly placing
expectations on their
suppliers to disclose
and improve strategy
and performance across
a suite of sustainability
issues and metrics.
Potential Impact:
Increasing customer
expectations regarding
climate and nature
could increase
administrative and
reporting costs, require
changes in growing
practices, and impact
sales.
Orderly
Low
Moderate
High
This risk is low in short-
term but escalates
rapidly as leading
fast-moving consumer
goods companies push
ever-more stringent
demands down their
supply chains – raising
compliance costs and
presenting the prospect
of lost sales if demands
are not met.
Disorderly
Low
Moderate
Moderate
This risk is low in
the short- and
medium-term,
although customers
that are *already*
pushing carbon and
nature disclosure
and performance
improvement continue
to do so. The percentage
of sales at risk from
‘non-compliance’ is low,
but sales are at risk from
protectionism. In the
long-term, additional
uncertainty arises from
volatile activism causing
poorly predictable
customer responses.
Hothouse
Low
Low
Moderate
This risk is low in
the short- and
medium-term,
although customers
that are *already*
pushing carbon and
nature disclosure
and performance
improvement continue
to do so. The percentage
of sales at risk from
‘non-compliance’ is low,
but sales are at risk from
protectionism. In the
long-term, additional
uncertainty arises from
volatile activism causing
poorly predictable
customer responses.
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Risk
Impact
Scenario
Potential Exposure
Description
Short
(2025)
Medium
(2030)
Long
(2050)
Drought
Our estates are located
within regions that
are categorised as
having ‘low’ drought
risk. However, our
current models
may underestimate
associated risks with El
Niño-induced droughts,
and its potential
frequency and intensity
due to climate change.
Potential Impact
If climate change
increases drought,
conditions and/or
water stress it will have
a negative impact on
yield and revenues.
Orderly
Low
Low
Low
Our estates are located
within regions that are
categorised as having
‘low’ drought risk.
Disorderly
Low
Low
Moderate
Due to uncertainty
of El Niño, drought
risk by 2050 has been
increased to moderate
within the Disorderly
and Hot House
scenarios. This has been
informed by qualitative
analysis, rather than
financial modelling.
Hothouse
Low
Low
Moderate
Flooding
Heavy rainfall/flooding
can disrupt operations,
both on- and off-site.
Potential Impact:
If climate change
increases the frequency
and intensity of heavy
rainfall/flooding events,
it will negatively impact
operational efficiencies
and costs.
Orderly
Low
Low
Low
With projections
suggesting that flood
risk at our sites will
only increase slightly
– even within the Hot
House scenario – our
analysis did not flag any
significant risk over the
timeframes considered
(the risk to revenue
arising from operational
disruption was <1% in
all scenarios across all
time horizons).
Disorderly
Low
Low
Low
Hothouse
Low
Low
Low
The
aggregated
impacts
of climate
change at
different
temperature
thresholds
Different studies
assessing the combined
impacts of climate
change on the palm
sector in Indonesia and
Malaysia offer varying
outcomes, ranging from
positive to negative
effects. However, the
specific study we
referenced is designed
to explore uncertainty
and highlights a
predominantly negative
impact.
Potential impact:
Palm yield may be
negatively impacted as
temperature thresholds
are crossed.
Orderly
Low
Moderate
Moderate
The findings indicate
that AEP’s potential
exposure to risks
becomes significantly
elevated, categorised
as ‘high,’ by 2050
under the Disorderly
– and particularly the
Hothouse scenarios.
Our exposure to physical
climate risk will be
lessened by effective
societal action to
address climate change.
As well as reducing our
own emissions, we will
support and advocate
for wider government
and industry action on
climate.
Disorderly
Low
Moderate
High
Hothouse
Low
Moderate
High
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Scenario notes
Archetype
Orderly
Disorderly
Hot House
Temperature
alignment
(2100)
~1.5°C
>2°C
>4°C
External
Data
Alignment
RCP 2.6 (IPCC)
Optimistic (WRI/WWF)
Net Zero 2050 (NGFS)
RCP 6.0 (IPCC)
Current/Business as Usual
(WRI/WWF)
Delayed Transition (NGFS)
RCP 8.5 (IPCC)
Pessimistic (WRI/WWF)
Summary
Strong, sustained and
internationally-coordinated
action on climate results in
net zero emissions being
achieved globally by 2050.
Nature rapidly emerges as
a key issue for companies
and governments alike
through the 2020s.
Climate and nature
action is divergent across
countries and sectors.
Differing, and sometimes
competing regulations,
incentives and climate/
nature ‘solutions’ are
embraced in different
regions.
Governments fail to build
on current policies and
action is insufficient to keep
warming below 2°C by
2050. Progressive investors
and companies attempt
to drive continued action
and activism becomes
increasingly unpredictable
and extreme.
Associated
‘what if’
questions
What if all current and
proposed climate and
nature regulation is
adopted and scaled
globally?
What if customers
demand best-practice on
both climate and nature?
What if a complex/
conflicting regulatory
landscape emerges, with
differing regional priorities
and/or differing emphases
on nature/climate?
What if key customers
impose differing demands
on growers re:climate and
nature?
What if no new regulation
is introduced to drive
climate action and
progress on nature stalls?
How might customers –
and other stakeholders
– respond if governments
backtrack?
Timescale
Short Term
0-2 year
Aligned to risk management planning cycle
2023-2025
Medium
Term
2-5 year
Aligned to Near-Term Science-Based Target dates for
many companies
2025-2030
Long Term
5-20 year
Aligned to Net Zero Target dates for much of the
world and to average economic life of an oil palm
plant
2030-2050
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•
Key Climate related risks and mitigation approaches – The table below outlines key climate-related
risks and our corresponding approaches. These insights have been carefully developed and incorporate
findings from the CSA, ensuring a comprehensive and informed overview:
risk
opportunity
Type
Primary risk/
opportunity
driver
Rationale for inclusion as
priority risk
Management approach
Policy &
Legal
Compliance
with
changing
regulations
Import tariffs and taxes and
other import restrictions
imposed by importing
countries will affect the
demand for CPO and its
derivative products can
encourage substitution by
other vegetable oils. The
ISPO certification, which
requires producers to
mitigate their environmental
impacts, is legally
mandatory for all plantations
in Indonesia and therefore
non-compliance presents a
financial risk through fines.
AEP is legally required to
incorporate climate-related
financial disclosures into
annual reporting, in line
with recommendations
of the TCFD. AEP expects
additional nature-related
disclosures to become
mandatory in the future, in
line with recommendations
of the TNFD.
Other legislation aimed at
achieving nature-positive
outcomes is anticipated
to increase as a result of
COP15, such as the EU
regulation on deforestation-
free products, which seeks to
encourage regeneration as
well as halting deforestation.
All of our Indonesian plantations
are currently certified under ISPO.
Our Malaysian plantation has also
received the MSPO certification. Our
mills in Tasik Raja and Blankahan
have received the ISCC and we
have obtained ISO 14001:2015
certification for all our mills to
improve our PROPER rating. The
mills are regularly audited for
renewal of certification. Example,
every one year for ISCC, three years
for ISO 14001 and 4 years for ISPO.
Our current list of sustainability
certifications is available on our
website.
We are in the process of applying
for a RSPO membership. We
have completed LUCA on 7
companies and are implementing
remediation/conservation projects.
Our sustainability certifications are
available on our website.
In addition to pursuing certification,
we are committed to advancing
transparency by achieving full
traceability of our FFB sources. This
proactive measure ensures that we
exceed our buyers’ expectations
while reinforcing trust in our supply
chain and aligning with the highest
standards of sustainability and
accountability.
Increasing climate and nature
regulation could increase
compliance and reporting costs,
require changes in growing
practices and, if compliance is not
achieved, limit market access.
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Type
Primary risk/
opportunity
driver
Rationale for inclusion as
priority risk
Management approach
Market &
Reputation
Changes
in buyer
preferences/
Difficulty
accessing
capital
Negative perceptions about
palm oil and its links to
deforestation can affect
market access/demand and
possibly lead to changes in
international legislation or
regulations.
Many large buyers and their
investors have targets to
source a certain % of palm
oil from RSPO certified
producers or producers with
carbon reduction targets.
The loss of a major customer
through a lack of RSPO
certification or Scope 1, 2 & 3
carbon targets may impact
profitability.
Access to capital, through
banks and investors, is
also increasingly tied to
the ability to evidence the
sustainability of palm oil
products, with several large
banks, investors and RSPO
members.
As tenders are performed on
a weekly basis, we do not find
ourselves overly reliant on a single
customer. We ensure transparency
in our palm oil production practices
through annual disclosure to SPOTT
and certification as detailed above.
Rising customer expectations
regarding climate and nature
may lead to higher administrative
and reporting costs, necessitate
adjustments in growing practices,
and potentially affect sales. To
address this, we maintain regular
communication with buyers and
capital providers to understand and
proactively anticipate their evolving
expectations.
Our financial position also currently
negates the need for financing
through bank loans.
We have commissioned an
external consultant to prepare
a Sustainability Report for 2024,
which will be published on our
website once completed.
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Type
Primary risk/
opportunity
driver
Rationale for inclusion as
priority risk
Management approach
Market &
Reputation
Development
of new
products
Palm oil can be used
to produce a range of
products, including low-
carbon alternative fuels and
materials. The development
of new products can provide
both reputational and
financial opportunities,
despite in many instances
being expensive to produce.
For example, increasing
demand for biodiesel in
markets such as China
offers additional sources of
revenue. However, policies in
the EU to reduce and phase
out the use of palm oil in
biodiesel by 2030 means
that this opportunity may be
limited.
We have signed long term contracts
with an investor to construct
purified/compressed biogas plants
BioCNG. These plants will purify the
biogas produced from the biogas
plants in the mills to generate
compressed biogas with a high
methane content to be used to
replace diesel in industrial use.
BioCNG can also be used in trucks
carrying FFB within our estates. This
can provide a reputational benefit,
increased operational resilience,
and new revenue streams.
Indonesia’s first commercial
BioCNG plant at our Blankahan
estate commenced operations
in January 2024. We remain
committed to exploring innovative
projects which utilise palm by-
products, including further BioCNG
and Biogas plants.
Technology
Use of lower
emission
sources of
energy
POME is used as a feedstock
in anaerobic digesters to
produce biogas which
contains about 60%
methane. The biogas is
purified and used as a fuel in
biogas engines to generate
electrical power which
reduces our reliance on
diesel.
4 of our mills are equipped with
biogas plants to capture biogas
and generate electricity for sale
to the state authorities or for own
consumption. This also reduces the
purchase of diesel for our estates,
as they are instead supplied power
by the grid, therefore reducing our
emissions.
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Type
Primary risk/
opportunity
driver
Rationale for inclusion as
priority risk
Management approach
Physical
Heavy rainfall
& flooding
Excessive rainfall generally
leads to poor pollination
of palms and reduces the
effectiveness of fertilisers.
High levels of rainfall
can also disrupt estate
operations and result in
harvesting delays with loss
of FFB or deterioration in
fruit quality. Where leading
to a reduction in revenues,
insurance cover may not
be available or may be
disproportionately expensive.
Where appropriate, bunding is
built around flood prone areas and
canals/drainage/retention ponds
and water gates are constructed
and adapted to evacuate surplus
water. Riparian reserves are also
protected to mitigate flood risks.
Where the land is undulating,
we build terraces for planting
which helps to prevent landslides,
ensures that water runs off into
groundwater stores, conserves
nutrients effectively, and provides
better accessibility for operations.
Where practical, natural disasters
are also covered by insurance
policies. Flood risk is generally
low based on scenario analysis
conducted in 2023 and are
not expected to cause serious
disruption to our operations.
Periods of more intense
precipitation can also
benefit AEP, by enabling the
conservation of more water
to mediate dry periods.
Droughts
Dry periods affect palm
oil yields in the short and
medium term through
moisture stress and can
result in wildfires that may
damage the palms. Drought
events are localised to our
Kalimantan and Bangka
estates, where long droughts
(>three months) can affect
soil quality and lead to a
lower yield the following
year (~10-15% decrease at
most).
Legume cover crops are planted to
minimise soil erosion, preserve soil
moisture and improve soil chemical
and physical properties. In mature
areas, fronds and EFB are placed
inter-rows to allow the slow release of
organic nutrients while minimising
soil erosion. Conservation pits and
sumps are constructed to harvest
and contain rainwater, whilst the
spreading of oil mill effluent in lines
provides a water storage medium.
‘Terracing’ also ensures that water
runs off into groundwater stores.
We are also closely following
developments of drought-resistant
oil palm varieties.
Risk of drought is also expected to
be manageable based on scenario
analysis conducted in 2023, but
that the scenario did not take into
account weather conditions that
cause draught such as El Nino which
emerged in June 2023, affecting
our estates in both Indonesia and
Malaysia.
Lower rainfall provides
opportunities, however, to
repair and realign roads to
improve the transport of
crops.
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Type
Primary risk/
opportunity
driver
Rationale for inclusion as
priority risk
Management approach
Physical
Aggregated
impacts of
temperature
thresholds
being
reached
Related to drought risk,
temperature increase
was identified as a key
change factor which may
moderate palm oil FFB yield.
Evidence suggests that as
temperatures increase and
global warming surpasses
temperature thresholds,
aggregated factors relevant
to climate change will have
a significant impact on palm
oil success and yield.
AEP is managing its carbon
emissions in order to reduce its
contribution to climate change
and therefore help to mitigate
temperature increase globally.
Fires
During drought season
the risk of fire is present at
several estates, especially
where neighbouring land
is burnt for crop cultivation
by locals. El Nino weather
events can indirectly drive
widespread forest fires and
haze. The financial impact
of fire damage is relatively
low to our Group due to the
diverse geographical spread
of plantations.
Fire response crews are stationed in
each estate, with regular training on
firefighting techniques and safety
provided by local fire departments.
Ditches and boundaries are created
to prevent the spread of fire, whilst
watch towers have been built in
every estate to pinpoint outbreaks
of fire as soon as smoke is detected.
Our Group has also invested in
drones to pinpoint outbreaks of
fire where accessibility is restricted.
Where practical, natural disasters
are also covered by insurance
policies.
Pests &
disease
Rhinoceros beetle or
Oryctes damage has been
observed in areas of large-
scale replanting, whilst
plantations have previously
been detrimentally impacted
by stem rot. More extreme
fluctuations in precipitation
may drive increased damage
from bagworms and leaf
beetles.
There is evidence that
pollinating weevils, which
help to pollinate palm trees,
are showing smaller flight
capabilities and pollinating
less because of changing
climatic conditions.
Pest and disease events are localised,
with early-warning provided by
supervision and monitoring, and
generally impact immature palms.
Outbreaks are managed through
biological controls, such as the
planting of beneficial plants that
host natural predators to divert
bagworms from oil palms, and the
introduction of barn owls to control
rats. Individual estates have also
been replanted with more resistant
anti-Ganoderma material to reduce
the threat of stem rot. A variety of
planting materials are also being
considered to provide variability
and pollens, to mitigate changes
to pollinating insects, and hand
pollination can also be carried out
where required.
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Type
Primary risk/
opportunity
driver
Rationale for inclusion as
priority risk
Management approach
Physical
Sea Level Rise
Sea level rise related to
climate change may impact
AEP’s plantation and milling
locations, or logistics routes
that are coastal or at sea
level.
The majority of AEP’s operations
occur at locations inland and above
sea level.
Systemic
Risk
Systemic
Disruption
The TNFD has built upon
the TCFD’s categorisation
of risk by asking companies
to consider systemic risk
alongside physical and
transition risk. It outlines two
categories of nature-related
systemic risk:
Ecosystem stability risk:
Risk of the destabilisation
of a critical natural system,
so it can no longer provide
ecosystem services in the
same manner as before.
Financial stability risk:
Risk that a materialisation
and compounding of
physical and/or transition risk
leads to the destabilisation
of an entire financial system.
AEP examined this risk at a high
level to better understand and
gather evidence on whether/how
systemic risks might manifest
change over time.
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Impact on business, strategy, and financial
planning
•
Strategic adjustments are implemented to
mitigate disruptions, ensure resilience, and
harness opportunities that support long-term
growth and alignment with our sustainability
goals.
•
Climate and nature-related risks and
opportunities are being incorporated into
our approach and planning process through
the following key processes, enabling us
to effectively adapt to climate and nature
challenges:
i.
Scenario Analysis: Various scenarios are
employed to assess potential future
impacts of climate change, including
extreme weather events, policy and
regulatory changes, as well as shifts in
market dynamics.
ii. Risk Assessment: The impacts of key risks
are assessed, including impact on our
business, financial performance, cash
flow, insurance premiums and capital
expenditures to mitigate climate and
nature-related impacts.
iii. Sustainability Policy and Governance
Strategy: Our operations are guided by our
sustainability policies developed based
on globally recognised frameworks and
industry best practices, such as NDPE
policies, to mitigate environmental risks
and enhance market competitiveness.
These efforts are supported by our
dedicated ESG and Corporate Governance
Committee and ESG team, who oversee
climate and nature-related planning
to effectively integrate risks and
opportunities into our broader strategic
goals.
iv. Development of Metrics and Targets:
Metrics and targets are systematically
designed to measure and track progress
toward climate and nature-related
objectives. These metrics provide
clear benchmarks for evaluating the
effectiveness of initiatives and ensure
alignment with broader strategic goals,
fostering continuous improvement and
accountability.
v. Stakeholder Engagement: Collaboration
with investors, regulators, non-profit
organisations and local communities
ensures that climate considerations are
factored into long-term planning and
operational decisions.
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Resilience of our Strategy
Our scenario analysis has highlighted a strong
degree of resilience in the immediate term. We
are effectively managing drought and flood
risks with plans to further enhance our CSA by
2026. Our strategic decision to pursue RSPO
certification, combined with our commitment to
ensuring palm oil supply traceability, positions us
well to meet emerging regulatory requirements
and evolving customer expectations.
We recognise, however, that both regulatory
and customer demands surrounding climate
and nature are subject to rapid change.
Furthermore, over extended timeframes, climate
change presents potential challenges to yields,
particularly in scenarios where societal action to
mitigate its effects remains insufficient. As such,
we remain dedicated to enhancing our climate
and nature-related performance and regularly
revisiting associated risks to safeguard our
resilience.
Sustainability is at the heart of our operations,
reflected in our adoption of the NDPE policy.
This policy underscores our unwavering
commitment to sustainable practices by
prioritising environmental preservation and social
responsibility. We strictly oppose deforestation
and new development on peatlands,
safeguarding biodiversity and mitigating climate
change, while promoting best management
practices for existing peat areas. Furthermore, the
policy reinforces our dedication to human rights,
the protection of local communities through
Free, Prior and Informed Consent (“FPIC”), the
assurance of fair working conditions, and the
inclusion of smallholders within our supply chain.
Through adherence to NDPE principles, we aim
to uphold transparency, accountability, and
alignment with global sustainability standards.
In addition to NDPE principles, we emphasise
the identification and protection of HCV and
HCS areas, further ensuring the preservation
of biodiversity and critical ecosystems. We also
strictly oppose child and forced labour across our
operations and supply chains.
Our agricultural practices reflect our focus on
responsible land management. These include
zero burning, integrated pest management, soil
and water conservation, and biomass recycling.
During replanting, felled palms are chipped,
shredded, and left to decompose on-site. This
process eliminates greenhouse gas emissions
typically associated with burning, while
simultaneously enriching soil organic matter and
recycling nutrients.
Our Sustainability Policy (available on our
website) provides additional information on the
commitments we have made which will reduce
the likelihood and/or impact in some of our key
risk areas.
To enforce our policy, we employ comprehensive
strategies, including:
•
Regular monitoring and audits
•
Training and awareness programme
•
Collaboration with communities and value
chain partners
•
Thorough documentation and verification
processes
•
Whistle-blowing and grievance mechanisms
As we continue to implement additional actions
to improve TCFD and TNFD alignment, we will
update our policy as relevant, including our
response to the emergence of new risks and
opportunities as well as further sustainability-
related metrics and targets.
In 2024, we commissioned Aon Global Risk
Consulting to review the CSA and provide
recommendations on next steps to improve
the CSA results. A summary of the key
recommendations for 2025/2026 are as follows:
•
Further assessment of potential flood-related
impacts – Reliance has been made on the
WWF and WRI global datasets to draw
conclusions on AEP’s exposure to flooding.
These datasets show aggregated exposure at
basin/regional levels and although may be
suitable for climate perils such as temperature
rise and drought, may over- or under-
estimate exposure to flooding at a particular
site because flood is a localised hazard and
can vary quite considerably even over small
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distances. Once flood exposure has been
assessed at a site level, potential damage and
disruption and the overall financial impact on
our Group can be assessed.
•
Further research into drought exposure –
Drought has been assumed not to have
major impact on our assets and operations
based on the WWF and WRI with drought
hazard information showing no change
in drought risk. However, there are other
sources indicating potential increase in
drought probability for Indonesia. Therefore,
given the importance of this climate stressor
and its direct impact, more research is
recommended to validate the assumptions
around drought exposure.
•
Identify and disclose climate and nature-
related opportunities – Climate and nature-
related opportunities should be identified and
their financial impact quantified and reported
alongside risks to provide a balanced and
more realistic view of potential climate- and
nature-related impacts on AEP’s business.
•
Better communication of AEP’s climate and
nature-related initiatives – AEP has come
a long way to make its plantation business
more sustainable. Examples of our efforts
include the implementation of NDPE policy in
2019 or making the necessary arrangements
for compliance with the traceability
expectations of the EUDR. However, not
all initiatives are well communicated
externally and therefore not fully reflected
in some of our external ESG scores. Better
communication of these initiatives are
recommended.
CLIMATE & NATURE RELATED RISK
MANAGEMENT
Identifying and assessing climate and nature-
related risks
Our Board maintains ultimate responsibility
for ensuring ongoing risk oversight, including
the identification of emerging risks and the
reassessment of materiality as conditions evolve.
At the operational level, our key management,
estate and mill managers continuously identify
and assess risks, including those related to
climate and nature. This risk management
approach is primarily guided by compliance with
various standards and certifications implemented
across several of our estates and mills, such as
ISO14001:2015, PROPER, ISPO, and ISCC.
AEP recognises the importance of embedding
climate and nature-related risk management
into these processes and is committed to
ensuring that staff possess a comprehensive
understanding of these elements. This will
enable a holistic and integrated approach to risk
management across the organisation.
Managing dependencies, impacts, risks and
opportunities
AEP is committed to establishing a robust
internal framework with clearly defined
stakeholder responsibilities to mitigate, transfer,
accept, and manage climate and nature-
related risks. Short-term operational risks, such
as site-specific risks of flooding or drought, are
recorded by Group management and prioritised
by risk level (high, medium, or low). Oversight
of these risks lies with the plantation and mill
heads, who collaborate with the Sustainability &
Risk Management department. Sustainability-
related risks are reported to key management
and key issues escalated to the Board, ensuring
comprehensive Group-level oversight, approval
of mitigation activities at each site, and
regular progress reviews. Annual risk reviews
are conducted by the Sustainability and EHS
department, alongside continuous updates to
the Group-wide risk register to reflect regulatory
changes.
Our Board, equipped with deep knowledge
of the palm oil industry and geopolitical and
economic issues in AEP’s operating regions,
undertakes an annual risk assessment with
management, including emerging risks.
Recognising the intrinsic link between climate
and nature risks and broader strategic and
operational risks, these are incorporated into
business risk registers. Risks are ranked based on
likelihood and impact (low, medium, or high),
with mitigation strategies identified for action.
Risk management processes include Corporate
(financial), Operational, and Engineering registers,
all of which are reviewed by management and
reported to the Board annually.
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The following are the climate and nature related risks extracted from our Palm Oil Risk Register which
is reviewed annually:
Risk
ID
Risk
Description
Likelihood
Impact
Mitigation Strategies
Owner
H
M
L
H
M
L
R1
The long
dry period
which causes
drought
- Record the rainfall data from units
- Fire patrol using drone and watch
tower
- Routine patrol by security
- Monitoring and early warning
systems using websites, such as:
https://sipongi.menlhk.go.id/
https://spartan.bmkg.go.id/
https://www.globalforestwatch.org/
Estate
Managers,
Agronomist,
Sustainability
team
R2
Extreme
rainfall
which causes
flooding
- AEP has implemented effective
water management to reduce
the impact of floods on palm
oil production which includes
implementing drainage systems,
improving soil drainage, and
managing water flow on the
plantation.
- Land Use Planning to reduce
the impact of floods on palm oil
production, avoiding areas prone to
flooding, ensuring drainage systems
are in place, and maintaining
natural flood buffers, such as
wetlands and forests.
- Infrastructure design to reduce
the impact of floods on palm oil
production, by building flood-
resistant infrastructure, such
as elevated roads, bridges, and
buildings using flood-resistant
materials.
- Early warning systems to identify
the risk of floods and allow for early
intervention and management.
Weather monitoring systems and
remote sensing technologies are
used to track rainfall and river levels.
Training workers in emergency
response procedures and having
contingency plans in place.
Estate
Managers,
Agronomist,
Sustainability
team
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Risk
ID
Risk
Description
Likelihood
Impact
Mitigation Strategies
Owner
H
M
L
H
M
L
R3
Deforestation,
Biodiversity &
Habitat Loss
- AEP commits to sustainable and
responsible production practices,
such as zero-deforestation and
NDPE. This includes protection
and restoration of HCV areas and
HCS forests, respecting the rights
of indigenous communities, and
implementing environmentally
sound land management practices.
- Engage with local communities,
indigenous groups, NGOs, and
other stakeholders to understand
their concerns, respect their rights,
and seek their input in decision-
making processes. This includes
obtaining FPIC from affected
communities and involving
them in land use planning and
management.
Estate
Managers,
Sustainability
team
R5
Fires
- Monitoring and early warning
systems can help to identify the
risk of drought and allow for early
intervention and management.
This can include the use of weather
monitoring systems and remote
sensing technologies to assess soil
moisture and vegetation health.
- Additional fire towers are being
built to monitor fires.
- Commit to zero deforestation and
no-burn policies, which aim to
protect forests and peatlands from
conversion and fires (Sustainability
Policy).
- Engage with local communities
to raise awareness and provide
alternative livelihoods to reduce
their reliance on fire for land
clearing.
- Implement sustainable standards,
such as RSPO, ISPO, ISCC, ISO
14001 and PROPER and train
our communities to aid in fire
prevention and firefighting.
Estate
Managers,
Sustainability
team
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Risk
ID
Risk
Description
Likelihood
Impact
Mitigation Strategies
Owner
H
M
L
H
M
L
R7
Land Rights &
Conflicts
- Respecting for FPIC: Engage with
local communities, especially
indigenous groups, to obtain their
FPIC before starting any palm
oil project on their traditional
lands. This involves an open
dialog, respecting the rights
and preferences of affected
communities.
- AEP has implemented land
tenure mapping and land rights
recognition programmes to clarify
land boundaries and ensure that
communities’ land rights are legally
recognised and protected.
- AEP conducted thorough due
diligence on land acquisition to
identify and address potential land
rights issues before investing in new
plantations.
- AEP is providing adequate
compensation to the communities
for use of land.
- AEP has already implemented
sustainable standards such as
ISPO, ISCC, ISO, PROPER etc. and is
implementing RSPO.
Estate
Managers,
Legal,
Sustainability
team
Integration of climate and nature into overall risk management
As part of our ongoing efforts, AEP aims to enhance transparency in climate and nature-related risk
management. This includes providing detailed accounts of implemented management activities, their
impact on inherent risks, and any changes to the materiality of identified risks and opportunities.
AEP is actively integrating climate and nature-related risks into its risk management framework while
aligning its processes with best management practices. Continuous improvements to these processes
are being planned and implemented to ensure they remain robust and effective. In the coming years,
priority will be given to integrating these strategies into global risk management frameworks and
continuously monitoring mitigation efforts to ensure their effectiveness.
At the same time, AEP will continue managing strategic and operational risks incorporating
climate and nature, reporting these to the relevant Committees and Board. Risks and opportunities
across different climate scenarios and time horizons identified are incorporated as part of regular
management review and actions. AEP is aligning the risk reporting frequency to every quarter to the
Audit & Risk Management Committee in line with our Board’s reporting cycles.
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AEP is also instigating a new template for use
in reporting – this approach specifically enables
decision-makers to turn their minds to any specific
climate/nature risks as part of a due diligence
process when approving significant investments/
projects. For example, prior to agreeing to purchase
additional plantation land, impact on climate, and
nature should be tabled and discussed.
METRICS AND TARGETS
Metrics to assess climate and nature-related
risks and opportunities
AEP employs key metrics to manage risks and
opportunities within the business. Our annual GHG
reporting, aligned with the GHG Protocol Corporate
Accounting Standard and industry guidelines,
enables us to assess the impact of business
decisions on emissions (measured in metric tonnes
CO2e). Carbon intensity metrics, such as emissions
per ha of planted area, per tonne of FFB produced,
and per tonne of CPO produced, serve as indicators
of business efficiency throughout the year. These
metrics also provide indirect insights into potential
physical risks like droughts or excessive rainfall.
Additional sustainability-related metrics support
the management of climate and nature-related
risks and opportunities. These include data from
certifications (e.g., ISPO and MSPO), HCV areas,
waste production, water consumption, and global
cost premiums for certified palm oil products (e.g.,
RSPO), which help evaluate risks and opportunities
arising from shifting market preferences.
Building on our review and update of climate and
nature-related risks and opportunities (outlined
in the Strategy section), we aim to identify
further relevant metrics linked to these risks and
opportunities. This will include both historical
trends and forward-looking projections.
AEP reports Scope 1 and 2 emissions in line with
the UK Streamlined Energy and Carbon Reporting
(“SECR”) regulation. We have also published
comprehensive assessment of our Scope 3
emissions across our corporate value chain. We
plan to improve our emissions calculation on an
ongoing basis by incrementally strengthening our
data collection to reduce reliance on estimation.
The GHG Protocol Land Sector and Removals
Guidance on how companies should account for
and report GHG emissions and removals from land
management, land use change, biogenic products,
carbon dioxide removal technologies, and related
activities is currently being developed. A draft
of this guidance was initially released in 2023,
with the finalised version currently scheduled
for publication in the fourth quarter of 2025. We
plan to undertake a review of our methodology
following the release of the guidance.
As outlined above, we maintain additional nature-
related metrics through compliance with legal
obligations and certifications across several of our
estates and mills, including HCV, ISPO, PROPER,
ISO14001, and ISCC. These metrics support our
commitment to sustainability and responsible
business practices.
In parallel, the TNFD provides a voluntary
framework for organisations to identify and
address nature-related risks and opportunities.
While adherence to the TNFD is not compulsory,
we acknowledge its value in enhancing our
strategic approach to sustainability. Consequently,
we are proactively engaging with this framework
to further strengthen our management of nature-
related factors and to ensure alignment with
evolving global expectations.
Targets for dependencies, impacts, risks, and
opportunities
AEP remains committed to achieving its
sustainability goals, including the target to reduce
absolute Scope 1 and 2 emissions by 20.5% by
2030, using a 2019 baseline. However, during the
year under review, we observed an increase in
Scope 1 and 2 emissions, primarily attributable
to our replanting activities. These activities, while
temporarily contributing to higher emissions,
are essential for long-term productivity and
sustainability improvements across our plantations.
We continue to assess the appropriateness and
ambition of our emissions target to ensure it
remains aligned with our business and stakeholder
expectations. Meanwhile, strengthened data
collection processes have enabled more precise
monitoring and reporting, laying the groundwork
for more effective emissions management in the
future.
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In addition, progress has been made in other areas of sustainability. We have started gathering trend
data for water consumption and waste production, which will inform the setting of actionable targets
in these areas. Following the completion of our emissions reporting methodology review, we have also
finalised the calculation of Scope 3 emissions and are initiating feasibility studies for setting Science-
Based Targets (“SBTs”), including SBTi-FLAG in 2025. Furthermore, we are actively exploring guidance
from the Science Based Targets Network to integrate climate and nature targets into our broader
sustainability strategy.
These developments reflect AEP’s ongoing dedication to balancing operational requirements with our
long-term environmental commitments.
BIODIVERSITY AND NATURE
Nature loss and climate change are intrinsically linked, with climate change being a major driver of
nature change. AEP is committed to voluntarily making nature-related disclosures using the TNFD
framework. Building on the disclosures made last year, we are actively progressing in our TNFD
compliance journey, recognising the critical need to allocate resources toward nature and biodiversity
to safeguard natural ecosystems. As part of this commitment, we are exploring avenues where we can
strategically channel efforts to drive a meaningful impact.
It is important to note that our compliance to the TNFD framework is currently limited. We view this
as an evolving journey and are dedicating resources to strengthen our alignment with the framework
over time. The table below outlines our ongoing efforts and forward-looking plans to enhance TNFD
compliance and address nature-related risks and opportunities effectively.
TNFD ALIGNMENT SUMMARY
Compliance
Reference
Governance
Describe the board’s oversight
of nature-related dependencies,
impacts, risks, and opportunities
Board has oversight which have been enhanced in
2024.
Page 82: Board Oversight
Describe management’s role in
assessing and managing nature-
related dependencies, impacts,
risks, and opportunities
Management has responsibilities and resources
which were enhanced in 2024.
Page 84: Management’s Role
Strategy
Describe the nature-related
dependencies, impacts,
risks, and opportunities the
organisation has identified over
the short, medium and long
term
Limited compliance. Some nature-related risks
were identified during our climate and nature risk
identification exercise conducted in 2023. However,
we recognise the importance of undertaking a
more comprehensive assessment to encompass a
wider range of nature-related factors and will be
conducting it in the near future.
Page 84: Material climate and nature-related risks
and opportunities including the table
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Compliance
Reference
Strategy (Continued)
Describe the impact on the
business of nature-related
risks and opportunities on the
organisation’s business, strategy,
and financial planning
Limited compliance. A scenario analysis was
previously conducted to assess how prioritised
climate and nature-related risks could impact our
business, strategy, and financial planning. However,
an update to this analysis will be conducted in
the near future to ensure its continued relevance
and alignment with current risks and evolving
circumstances.
Page 95: Impact on business, strategy and financial
planning
Describe the resilience of the
organisation’s strategy, taking
into consideration different
scenarios, including a 2°C or
lower climate scenario
The resiliency of strategy against the risks identified
earlier is disclosed.
Page 96: Resilience of our Strategy
Describe the organisation’s
interactions with low integrity &
high importance ecosystems or
areas of water stress
Not
applicable
None of our sites have been identified as located
within areas of water stress, but all are located
within regions of high biodiversity value.
We will outline our interactions with high
importance ecosystems in future reports.
Risk Management
Describe the organisation’s
processes for identifying and
assessing nature-related
dependencies, impacts, risks,
and opportunities
AEP has implemented a process for identifying
assessing prioritising and managing climate and
nature risks. The process is now enhanced with the
establishment of an ESG and Corporate Governance
committee and dedicated ESG resources.
Page 97: Identifying and assessing climate and
nature-related risks
Describe the organisation’s
process for managing nature-
related dependencies, impacts,
risks, and opportunities
The process is described in page 97: Managing
dependencies, impacts, risks and opportunities.
Describe how processes for
identifying, assessing, and
managing nature-related
risks are integrated into the
organisation’s overall risk
management
Currently compliant however as AEP is intending
to review and refresh its risk management practice
and integrate climate and nature more deeply into
the company’s practice.
Page 100: Integration of climate and nature into
overall risk management
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Compliance
Reference
Describe the organisation’s
approach to locate the sources
of inputs used to create value
that may generate nature-
related dependencies, impacts,
risks and opportunities
AEP’s FFB come from our plantations where we
are committed to NDPE. We have identified HCV
and HCS areas and implemented conservation
programs to mitigate habitat loss (see page 72 for
more details). Additionally, we are continuously
enhancing traceability of third-party FFB to ensure
sourcing from compliant areas.
Risk Management (Continued)
Describe how stakeholders,
including rightsholders, are
engaged by the organisation in
its assessment and response to
nature-related dependencies,
impacts risks, and opportunities
AEP upholds the FPIC principles, ensuring land
rights protection and equitable community
engagement. In Seluma Regency, Bengkulu, AEP
is actively collaborating with local communities on
a social forestry scheme aimed at land recovery,
sustainable land use, and community development
(See page 66 on details of our social forestry
project). This initiative is integrated into AEP’s
broader stakeholder collaboration efforts, working
alongside NGOs and local groups to monitor nature
and environmental changes and support effective
land management.
Metrics & Targets
Disclose the metrics used by the
organisation to assess nature-
related risks and opportunities
in line with its strategy and risk
management process
The metrics are disclosed in page 101: Metrics
to assess climate and nature-related risks and
opportunities.
Disclose the metrics used by
the organisation to assess and
manage direct, upstream and,
if appropriate, downstream
dependencies and impacts on
nature
Not yet
This is an area for further investigation by AEP and
for future reporting.
Describe the targets used by the
organisation to manage nature-
related dependencies, impacts,
risks and opportunities, and
performance against targets
Not yet
This is an area for further investigation by AEP and
for future reporting.
Describe how targets on nature
and climate are aligned and
contribute to each other, and
any trade-offs
Not yet
This is an area for further investigation by AEP and
for future reporting.
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CARBON REPORTING 2024
SECR compliant directors’ statement
AEP recognises that our global operations have
an environmental impact and we are committed
to monitoring and reducing our emissions year-
on-year. We are also aware of our reporting
obligations under The Companies (Directors’
Report) and Limited Liability Partnerships (Energy
and Carbon Report) Regulations 2018. As such,
we continue to report on our energy and carbon
performance and are committed to transparent
communication about our environmental impact
to our stakeholders.
This Carbon Reporting, other than the last section
on ‘Comprehensive assessment of Scope 3
emissions’ is extracted from Carbon and Energy
Data 2024 Report by Accenture published in
April 2025. The report accounted for emissions
from agricultural cultivation on our own estates
under direct Scope 1 emissions, emissions
resulting from the purchased electricity used
by us under Scope 2, and estimated emissions
from outgrower crops processed in AEP Group’s
mills. The outgrower crop emissions are included
only in the 2024 vs 2023 vs 2019 emissions
comparison.
2024 Performance Summary
AEP’s scope 1 & 2 emissions increased by 25%
(including removals) and 8% (excluding removals)
in 2024 compared with 2023. This rise is primarily
attributed to a 24% expansion in land clearance
activities, which resulted in a proportional
increase in emissions. As an agricultural business,
our carbon footprint is inherently tied to land
management and planting practices.
Additionally, the increase in emissions was
compounded by a 17% reduction in carbon
sequestration across our estates. This decline
was driven by a decrease in sequestration
ha compared to the previous year, further
influencing our overall emissions profile.
The increase in land clearance activities and
reduction in sequestrable land was mainly
attributed to our replanting programme, initiated
in 2022.
Replanted area (ha)
2022
2023
2024
1,110
1,301
1,700
Between 2025 and 2029, we aim to further
replant around 10 thousand ha to support the
long-term sustainability of our business. The
newly replanted areas are anticipated to require
less fertiliser and deliver higher yields compared
to the ageing palms they are replacing. The
young palms are also expected to sequester
carbon more effectively through photosynthesis.
Our fuel emissions have decreased by 6%,
corresponding to the increase in 2023 in this
category due to national grid disruptions that
caused an uptake in usage of fuels.
Total operational emissions have decreased by
5%, driven by a reduction in POME treatment.
There is also a small variance in our overall
transport emissions. Onsite transport decreased
by 7% due to fewer vehicles in operation during
2024.
Energy and Carbon Action
In the period covered by the report AEP has
undertaken the following emissions and energy
reduction initiatives:
•
Transitioning to LED lighting for office and the
mills.
•
Utilising biogas production to generate
electricity using gas engine.
•
Using transparent roofing for the mill and
store building. This will prevent the switching
on of lights during daytime.
We have reviewed our past carbon footprint
performance and conducted an exercise to
establish specific emissions reduction targets for
the business. We are aware of upcoming changes
in best practice guidance, both in the form of
the GHG Protocol Land Sector and Removals
guidance and across wider target setting
guidance.
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Metrics and Targets
AEP commits to a reduction in absolute
Scope 1 and 2 emissions by 20.5% by 2030
from a 2019 baseline. This target does not
include the impact of sequestration on site,
as activity on this is limited to the age profile
of our crop.
We have identified the key areas we need
to take action as a business to achieve
this target, including the conversion of
our remaining mills to biogas plants
from anaerobic lagoons, limiting our
land clearance levels, implementing a
no new peat policy and investigating our
peat management processes, particularly
regarding management of drainage depths.
We commit to reporting progress towards
this target each year and revisiting its
appropriateness and ambition on a regular
basis to maintain its value to our business
and stakeholders.
2024 Scope 1 & 2 and Outgrower Results
Methodology
The methodology used to calculate the GHG
emissions is in accordance with the requirements
of the following standards:
•
WRI GHG Protocol (revised version)
•
Defra’s Environmental Reporting Guidelines:
Including SECR requirements (March 2019).
Following an operational control approach
to defining our organisational boundary, our
calculated GHG emissions from business activities
fall within the reporting period of 1 January 2024
to 31 December 2024 and use the reporting
period of January 2023 to December 2023 for
comparison.
Note on agricultural emissions
Emissions from agricultural cultivation form the
most significant part of our carbon footprint.
As such we have assessed these emissions in
line with the methodology development by
the RSPO. Version 4 of the RSPO’s Palm GHG
application has been used to source relevant
emission factors and provide a sense check of
calculations.
We account for emissions from agricultural
cultivation on our own estates under direct Scope
1 emissions, whereby Scope 1 are the direct
emissions sources that we own and control.
Emissions from land clearance are reported
only for the reporting year in which the land
clearance activity took place. No amortisation
has been applied, whereby the emissions would
be allocated equally over several years based on
the changing land use during that time. We have
chosen not to apply amortisation as there is a
lack of industry-acknowledge guidance on this
topic at present.
We review industry guidance each year and
update our methodology as appropriate and
are aware a review is currently underway with
reporting guidelines to be released in 2025.
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Emissions and energy use (Scope 1& 2 with removals)
Emissions Source
Global Emissions tCO2e
2024 vs
2023
2022
2023
2024
Scope 1
Removals (sequestration)
-476,707
-447,716
-369,446
-17%
Total with removals
626,316
671,357
841,254
25%
Scope 2
Removals
0
0
0
-
Total with removals
2,947
2,715
3,632
34%
Total Scope 1 & 2 with removals
629,263
674,072
844,886
25%
Emissions and energy use (Scope 1 & 2 without removals)
Emissions Source
Global Emissions tCO2e
2024 vs
2023
2022
2023
2024
Scope 1
Fuels
18,565
19,994
18,769
-6%
Plantation vehicles
9,209
9,688
8,977
-7%
Fertiliser use
25,425
23,961
24,931
4%
Land clearance
424,476
450,333
557,270
24%
Peat soil cultivation
490,314
490,311
483,070
-1%
POME Treatment
135,034
124,786
117,683
-6%
Total Scope 1
1,103,023
1,119,073
1,210,700
8%
Total Scope 2
Electricity
2,947
2,715
3,632
34%
Total Scope 1 & 2
1,105,970
1,121,788
1,214,332
8%
Total Energy Usage (gWh)
1,520
1,434
1,287
-10%
Intensity ratio
tCO2e per ha of
planted area
16.3
17.3
18.6
7%
Intensity ratio
tCO2e per tonne
CPO production
2.8
2.5
3.1
21%
Intensity ratio
tCO2e per tonne
FFB production
1.1
1.0
1.2
19%
Notes:
•
AEP is a UK-registered company. However, it has minimal physical presence within the UK. As a result, its
contribution to UK emissions stands at 0%. This disclosure is provided in the interest of transparency.
•
The analysis of GHG emissions is partially based on the country-specific CO2 emission factors developed
by the International Energy Agency, © OECD/IEA 2022 but the resulting analysis of GHG emissions has
been prepared by Accenture for AEP and does not necessarily reflect the views of the International Energy
Agency.
AEP is mandated to report under the UK SECR regulations, as outlined above. To facilitate a direct
comparison with our 2019 reporting, the data is additionally presented in a comparable format
below for clarity and consistency, and is aligned to the WRI reporting principles of completeness and
relevance. This table includes emission estimates of outgrower crops and electricity Transmission and
Distribution (“T&D”), which are scope 3 and not included in the earlier Scope 1 & 2 tables.
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2024 vs 2023 vs 2019 emissions comparison
Emissions
source
Results (tCO2e)
2019
2023
2024
2024 vs 2019
POME
Treatment
212,215
124,786
117,683
-44%
Fertiliser
application
26,614
23,961
24,931
-6%
Fuel use
18,838
19,994
18,769
0%
Diesel
n/a
5,252
5,435
n/a
Biomass
n/a
14,742
13,334
n/a
Electricity
consumption
1,984
2,715
3,632
83%
Electricity T&D
n/a
227
303
n/a
Company
owned
vehicles
9,399
9,688
8,977
-4%
Third-party
vehicles
7,367
6,505
5,371
-27%
Total
operational
emissions
276,417
187,876
179,666
-35%
Own
crop
Outgrower
Own
crop
Outgrower
Own
crop
Outgrower
Own
crop
Outgrower
Land clearance
322,182
285,094
450,333
435,042
557,270
539,613
74%
89%
Peat soil
cultivation
488,823
54,790
490,311
59,997
483,070
54,862
-1%
0%
Subtotal
before
removals
811,005
339,884
940,644
495,039
1,040,340
594,475
28%
75%
Carbon
sequestered
-549,475
-446,388
-447,716
-432,514
-369,446
-395,497
-33%
11%
Subtotal
including
removals
261,530
-106,504
492,928
62,525
670,894
198,978
157%
287%
Total land use
emissions
155,026
555,453
869,872
461%
Overall
emissions
431,443
743,329
1,049,538
143%
Between 2019 and 2024, total operational emissions fell by 35%, with significant reductions in POME
treatment (-44%) and third-party vehicle emissions (-27%). However, land-use emissions surged by
461%, driven by a 74% rise in land clearance and a 33% decline in carbon sequestration. Despite
operational improvements, overall emissions increased by 143%, reaching 1,049,538 tCO2e in 2024.
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2024 vs 2019 Operational emissions intensity (excluding land use change emissions) (tCO2e)
Operational emissions reporting metric
2019
2023
2024
2024
vs 2019
Per ha of planted area
4.07
2.88
2.75
-32%
Per tonne CPO production
0.70
0.42
0.45
-36%
Per tonne FFB production
0.27
0.17
0.18
-33%
The normaliser reported within the main report is calculated using total CO2e emissions. In previous
years, the normaliser has been calculated on operational emissions only. This reduces the influence of
the fluctuations in agricultural emissions. As such, the operational normalisers are also reported below.
The operational planted area intensity has decreased by 32%. Conversely, the operational emissions
intensity of CPO and FFB production has decreased by 36% and 33%, respectively.
Comprehensive assessment of Scope 3 emissions
In addition to the SECR-mandated emissions detailed in the previous section, we have included
an additional comprehensive inventory of our Scope 3 emissions extracted from the Scope 3
Emission Report 2024 by Peterson Solutions published in March 2025. The assessment of emissions
quantification is carried out in accordance with the methodology of the GHG Protocol and aided by
the calculation guidance of:
•
Corporate Value Chain (Scope 3) Accounting and Reporting Standard
•
Technical Guidance for Calculating Scope 3 Emission (version 1.0)
AEP has classified this Scope 3 GHG emissions into 15 distinct categories. This classification enhances
transparency across our corporate value chain while minimising inaccuracies. Below is the summary
and breakdown for 2024:
Scope 3 Emission
Plantation
(EST)
Mill
(POM)
Office
(HO)
Total
tCO2e (Conventional)
591,489.2
628,201.8
309.7
1,220,000.7
tCO2e (Biogenic)
-
0.1
-
0.1
Scope 3 Emission Contribution of 2024 (tCO2e)
0.03%
51.5%
48.5%
EST
POM
HO
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Breakdown:
Scope 3 Category
Emission
(tCO2e)
Current Performance
(%)
No. Category
Applicability
2023
2024
2024
Contribution
2024
vs 2023
1
Purchased goods and
services
Relevant
924,138
755,064
61.9%
-18%
2
Capital goods
Relevant
2,246
7,027
0.6%
213%
3
Fuel-and energy- related
activities
Relevant
81
162
0.0%
100%
4
Upstream transportation
and distribution
Relevant
66,645
139,812
11.5%
110%
5
Waste generated in
operations
Relevant
244,087
246,550
20.2%
1%
6
Business travel
Relevant
172
20
-
-88%
7
Employee commuting
Relevant
1,771
3,993
0.3%
125%
8
Upstream leased assets
Relevant
192,092
183
0.0%
-100%
9
Downstream transportation
and distribution
Relevant
10,064
15,361
1.3%
53%
10
Downstream processing of
sold products
Relevant
67,309
51,829
4.2%
-23%
11
Downstream use of sold
products*
Relevant
273
0.08
-
-
12
Downstream end-of-life
treatment of sold products
Irrelevant
-
-
-
-
13
Downstream leased assets
Irrelevant
-
-
-
-
14
Franchises
Irrelevant
-
-
-
-
15
Investments
Irrelevant
-
-
-
-
TOTAL
1,508,876
1,220,001
100.0%
-19%
Note:
* All emissions of Category 11 originate from biodegradation process of POME to produce electricity via
biogas. For more information refer to Section Results – Biogenic Emission.
In 2024, the indirect emission from AEP’s value chain is shown to be reduced by 19% from the
baseline of 2023. The reduction is linked to decreased procurement of goods and services within the
supply chain, primarily driven by Category 1 and 8. Despite the decreased intensity of procurement,
few categories are shown to have surging increases in emissions due to the rise of capital expenditure
(Category 2) and improved data activities of energy-related usage (Category 3). However, the increased
emission from said categories remains overshadowed by the higher reduction from a decline in
procurement intensity.
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DIVERSITY
Table for reporting on gender identity or sex pursuant to the UK Listing Rules (“UKLR”):
Number of
board
members
Percentage
of the Board
Number of
senior positions
on the Board
Number in
executive
management
Percentage
of executive
management
Men
3
75%
2
6
100%
Women
1
25%
1
-
-
Total
4
100%
3
6
100%
Table for reporting on gender identity or sex pursuant to the UKLR:
Number
of board
members
Percentage
of the Board
Number
of senior
positions on
the Board
Number in
executive
management
Percentage
of executive
management
White British
or other White
(including minority-
white groups)
1
25%
-
-
-
Mixed/Multiple
ethnic groups
-
-
-
-
-
Asian/Asian British
3
75%
3
6
100%
Black/African/
Caribbean/ Black
British
-
-
-
-
-
Other ethnic
groups
-
-
-
-
-
Not specified/
prefer not to say
-
-
-
-
-
Total
4
100%
3
6
100%
With respect to diversity under the UKLR, our Board has not met the target of achieving at least 40%
female representation. Historically, the upstream palm oil industry has faced challenges with female
representation in senior roles, resulting in a limited pool of qualified candidates for board positions.
Nevertheless, we are committed to enhancing female representation while ensuring the Board
upholds its focus on quality and competence.
We have, however, met the UKLR requirement of having at least one senior board position held by a
woman. Additionally, 75% of our Directors are of Asian background, fulfilling the UKLR requirement to
have at least one Board member from a minority ethnic background.
The reference date for this disclosure is 31 December 2024, coinciding with the end of our financial
year. Moving forward, we intend to continue using 31 December as our reference date, unless
circumstances necessitate a change.
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There have been no changes to the Board
between 31 December and the approval date
of this annual financial report that impact our
compliance. To support transparency, we identify
all Directors using their passports to confirm
gender and ethnicity.
Our Board oversees the structure and
composition of the management team to ensure
selections are grounded in merit, focusing on
skills, qualifications, and experience. At the same
time, balanced representation is encouraged
across age, social, and ethnic backgrounds. This
strategy reflects AEP’s commitment to equity
and inclusivity, fostering a positive and respectful
work environment where every individual feels
valued. Our Board remains confident that the
current management team exemplifies well-
balanced diversity across these key dimensions.
EMPLOYEES
Oil palm cultivation is a labour-intensive industry.
In 2024, the number of full-time workers in our
Group averaged 7,486 (2023: 7,515), marking a
0.4 % decrease. Part-time labour averaged 7,954
(2023: 7,812), reflecting a 2% increase. Our Group
has introduced mechanisation in the field to
boost productivity. While mechanisation has
its limitations, it can help alleviate acute labour
shortages and mitigate cost pressures from rising
minimum wages where feasible.
In 2024, the number of full-time
workers in our Group averaged
7,486 (2023: 7,515), marking a
0.4% decrease.
AEP enforces a zero-cost recruitment policy for all
local and foreign employees.
We have formal recruitment processes,
particularly for key managerial positions, which
include psychometric testing to support hiring
decisions. Departing employees participate in
exit interviews to help management address
significant concerns.
To enhance workforce competency, our
Group regularly selects employees for training
programmes conducted at our training centre,
offering grounding and refresher courses
on technical aspects of oil palm estate and
mill management. These programmes are
complemented by external management
development courses and industry conferences
on topics such as work ethics, motivation, health
and safety, and technical updates. In 2024, we
invested $91,800 in staff training and professional
development, compared to $83,000 in 2023,
highlighting our commitment to productivity
improvement through training.
Our cadet programme provides local university
graduates with theory and field training over
a 12-month period, after which successful
candidates are assigned as assistants to various
mills and estates.
A large workforce and their families live across
our plantations. The extensive benefits provided
to them were detailed in the CSR section of
the Strategic Report. Along with competitive
salaries and bonuses, these benefits help us
retain and motivate employees. Our Group
adheres to Indonesia’s minimum wage policy,
respects employee rights, and strictly opposes
exploitation, including child or forced labour and
human trafficking, as outlined in the UK’s Modern
Slavery Act 2015*.
Note: A full statement is available under Corporate
Governance on our website.
Employees are covered by a government-
mandated personal accident scheme, with death
benefits up to 48 months of monthly salary. The
spouses and children of full-time employees are
also privately insured for death benefits by our
Group.
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In addition to Indonesia’s mandatory retirement
programme managed by BPJS, casual workers
are enrolled in a defined contribution pension
scheme managed by AIA Financial, while
Indonesian managers and permanent employees
benefit from a post-employment compensation
fund managed by Allianz Indonesia.
Employee rights and extensive benefits,
encompassing salary reviews, allowances,
bonuses, housing, training, safety, health,
and ethical conduct, are documented in
our Company’s handbook, accessible to all
employees.
Our Group is committed to creating equal and
ethnically diverse employment opportunities,
including gender diversity.
Key performance indicators determine employee
increments and bonus entitlements. Human
Resources and the Remuneration Committee
engage annually with labour unions representing
full-time workers to address performance
bonuses and grievances.
Note: More details are available in the Directors
Remuneration Report.
We have fostered a culture of accountability
through our whistle-blower policy, introduced in
2019, which allows employees to confidentially
or anonymously raise concerns for independent
investigation. The policy is available on our
website.
Recognising employees as vital assets, our
Group encourages their involvement through
meetings, performance appraisals, and feedback
mechanisms. Annual events, including a dinner
to honour high achievers, and family gatherings,
promote camaraderie among employees and
management.
Although we do not have a specific policy
on employing disabled persons, our Group
welcomes them into the workforce based on
their suitability and capabilities.
Anti-bribery and Anti-corruption
The Group has in place policies and procedures in
respect of bribery and corruption, with detailed
guidelines and reporting requirements for its
UK, Indonesian and Malaysian operations which
may be viewed from our Company’s website.
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The whistleblowing and grievance mechanism
policies which include reporting on corruption
practices are also highlighted in Company’s
handbook. Management and senior staff have
had training programmes and updates as part
of their responsibility to ensure that bribery and
corruption do not exist in the Group’s operation.
New employees are also briefed on anti-
corruption practices during their orientation. Our
Group has in place a communication channel
for employees to report to the Chairman of the
Audit & Risk Management Committee via email
at aepwhistleblowers@angloeastern.co.uk
on incidences of bribery and corruption, on a
strictly confidential basis. Our Group uses its best
endeavour to ensure that its business partners
comply with the anti-bribery and anti-corruption
regulations.
OUTLOOK
FFB Production and Plantation Growth
FFB production for the first quarter of 2025
increased by approximately 4% compared to the
same period last year. The growth in production
is primarily attributed to newly matured palms
in Bengkulu and the recovery of production in
Bangka.
Annual Production Forecast
Based on our current trajectory, we are targeting
a 10% increase in FFB production for 2025
compared to 2024.
Market Dynamics and Pricing Outlook
- CPO supply is expected to remain stable, with
production in both Indonesia and Malaysia
projected to increase in the second half of
2025.
- Domestic demand in Indonesia continues to
strengthen, driven by the implementation
of the B40 biodiesel mandate, which raises
the palm oil blend in biodiesel to 40% (up
from 35% in 2023). This move supports the
government’s efforts to reduce reliance on
fossil fuel imports and promote sustainable
energy use.
- In India, vegetable oil imports fell by 32% in
April, pushing inventory levels to a five-year
low. This may trigger a rebound in import
volumes in the coming months, providing
support for palm oil demand.
- While the United States maintains a 32% tariff
on Indonesian goods, its limited demand for
palm oil means the impact on CPO prices
remains negligible.
- The recent tariff truce between the US and
China could temporarily ease trade barriers,
possibly prompting short-term changes in
China’s soybean procurement. Although
China continues to favour Brazilian soybeans,
the suspension may open new opportunities
for refined palm oil imports.
CIF Rotterdam price for CPO has seen volatility,
with recent settlement prices ranging from
$1,110/mt to $1,412/mt from early April to 8 May
2025. The market remains sensitive to global
vegetable oil trends.
Despite potential challenges, such as competition
from vegetable oils and global pricing
dynamics, we remain confident in the long-term
sustainability of CPO demand. As a result, we
expect a satisfactory financial results and stable
cash flow for 2025.
STATEMENT BY DIRECTORS IN PERFORMANCE
OF THEIR STATUTORY DUTIES IN ACCORDANCE
WITH SECTION 172 (1) OF THE COMPANIES ACT
2006
Our Board is dedicated to promoting the long-
term success of AEP in line with Section 172(1)
of the Companies Act 2006, by balancing
the interests of shareholders and broader
stakeholders. In fulfilling this duty, the Board
Our Group is committed
to creating equal
and ethnically
diverse employment
opportunities, including
gender diversity.”
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Strategic Report (Continued)
carefully considers the interests of employees,
business relationships with suppliers and
customers, the impact of AEP’s operations
on the environment and communities, and
the need to act fairly between shareholders
while maintaining high standards of corporate
governance.
Engagement with Shareholders and Capital
Management
•
Shareholder Concerns on Pre-Emption
Rights:
Following the AGM on 24 June 2024, where
a significant portion of shareholders opposed
the resolution to allot equity securities with
the disapplication of pre-emption rights, the
Board engaged directly with shareholders to
understand their concerns. A key issue raised
was dilution risk, with shareholders preferring
case-by-case approvals over a general
authority. In response, AEP has decided not
to pursue private placements, rights issues, or
seek a general disapplication of pre-emption
rights in 2025. This decision reflects AEP’s
commitment to aligning with shareholder
preferences and promoting transparency
while maintaining a robust and sustainable
capital structure that supports long-term
growth.
•
Dividend Policy and Distribution:
Our Board has carefully balanced the capital
needs for expansion and acquisitions with
shareholders’ expectations for dividends.
In response to shareholders feedback, AEP
formalised a policy to distribute at least 25%
of retained profits annually. This policy ensures
that AEP remains focused on long-term
growth while providing regular returns to
shareholders, strengthening shareholder trust,
and supporting AEP’s continued success.
It is designed to reflect both the need for
reinvestment in the business and the interests
of shareholders who value returns.
•
Share Buyback Programme:
In 2024, AEP repurchased 71,852 shares
for £0.5 million (equivalent to $0.6 million).
Recognising the strong fundamentals and
growth potential of AEP, the Board increased
efforts in 2025, deploying £5 million through
a non-discretionary buyback programme.
This move is designed to enhance EPS,
provide additional value to shareholders, and
maintain our Company’s financial health.
By reducing the share count, the buyback
strengthens AEP’s capacity to return capital to
shareholders, contributing to long-term value
creation.
Strategic growth and operational
enhancements
•
Full Ownership of Indonesian Subsidiaries:
In 2024, AEP successfully acquired the
remaining minority stakes in two Indonesian
subsidiaries, achieving full ownership of
all its Indonesian operations. This strategic
acquisition enhances operational efficiency,
reduces complexity, and maximises
shareholder value. It also supports AEP’s
broader growth strategy by consolidating its
presence in high-quality plantation lands in
Malaysia and Indonesia, ensuring sustainable
expansion and long-term operational success.
This acquisition aligns with our Board’s vision
to create value not only for shareholders but
also for employees and local stakeholders
through operational efficiencies and
increased profitability.
•
Sustainable Investments and Renewable
Energy Initiatives:
AEP inaugurated Indonesia’s first commercial
BioCNG plant via a strategic collaboration
with PT KIS Biofuel Indonesia, marking a
significant step in reducing carbon emissions
and enhancing energy efficiency. This
initiative underscores AEP’s commitment to
environmental responsibility and aligns with
broader sustainability objectives
Financial Strategy and Risk Management
•
Capital Management and Financial
Investments:
To optimise returns on surplus funds while
ensuring capital preservation, AEP allocated
$29.1 million in 2024 to capital-protected
structured products and investment-grade
US dollar-denominated bonds. This prudent
strategy enhances liquidity and stability,
supporting AEP’s financial goals. It ensures
that AEP’s capital is working efficiently for the
benefit of shareholders, employees, and other
stakeholders, while also safeguarding our
Company against potential market volatility.
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Strategic Report (Continued)
SUSTAINABILITY CERTIFICATIONS AND
COMMITMENTS
AEP is committed to sustainable plantation
management in Indonesia and Malaysia, ensuring
compliance with national standards such as ISPO
and MSPO. Recognising the increasing global
focus on deforestation regulations, particularly
from the European Union, the Board has decided
to pursue RSPO membership to strengthen AEP’s
sustainability credentials. This initiative aligns
with AEP’s commitment to responsible palm oil
production and addresses key concerns related to
the EUDR.
In fulfilling our Section 172 duties, the Board
ensures that decisions are made with careful
consideration of the long-term consequences, the
interests of employees, and the need to maintain
strong relationships with suppliers, customers,
and other stakeholders. We also remain
committed to fostering an excellent reputation
for business conduct and environmental
responsibility, while ensuring fairness among
shareholders.
This Strategic Report, including the non-financial
reporting and sustainability information contained
herein, has been prepared in accordance with
the requirements of the Companies Act 2006 and
reflects the Board’s commitment to transparency
and responsible governance.
On behalf of the Board:
MARCUS CHAN JAU CHWEN
Executive Director of Corporate Affairs
30 May 2025
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Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc
OPINION
We have audited the financial statements of Anglo-Eastern Plantations Plc (the ‘parent company’) and
its subsidiaries (the ‘Group’) for the year ended 31 December 2024 which comprise:
•
the consolidated income statement;
•
the consolidated statement of comprehensive income;
•
the consolidated statement of financial position;
•
the consolidated statement of changes in equity;
•
the consolidated statement of cash flows;
•
the company statement of financial position;
•
the company statement of changes in equity; and
•
notes to the financial statements, including a summary of material accounting policy information.
The financial reporting framework that has been applied in their preparation is applicable law and UK-
adopted international accounting standards and, as regards the parent company financial statements,
as applied in accordance with the provisions of the Companies Act 2006. The financial reporting
framework that has been applied in the preparation of the company financial statements is applicable
law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 “Reduced
Disclosure Framework.
In our opinion:
•
the financial statements give a true and fair view of the state of the Group’s and of the parent
company’s affairs as at 31 December 2024 and of the Group’s profit for the year then ended;
•
the Group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards;
•
the parent company financial statements have been properly prepared in accordance with
United Kingdom Generally Accepted Accounting Practice, including FRS 101 “Reduced Disclosure
Framework”, as applied in accordance with the provisions of the Companies Act 2006; and
•
the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))
and applicable law. Our responsibilities under those standards are further described in the “Auditor’s
responsibilities for the audit of the financial statements” section of our report. We are independent
of the Group and the parent company in accordance with the ethical requirements that are relevant
to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied
to listed entities and public interest entities and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
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Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
Our audit procedures to evaluate the directors’ assessment of the Group’s and the parent company's
ability to continue to adopt the going concern basis of accounting included but were not limited to:
•
Undertaking an initial assessment at the planning stage of the audit to identify events or conditions
that may cast significant doubt on the Group’s and the parent company’s ability to continue as a
going concern;
•
Obtaining an understanding of the relevant controls relating to the directors’ going concern
assessment;
•
Making enquiries of the directors to understand the period of assessment considered by them, the
assumptions they considered and the implication of those when assessing the Group’s and the
parent company’s future financial performance;
•
Challenging the appropriateness of the directors’ key assumptions in their cash flow forecasts,
as described in note 1, by reviewing supporting and contradictory evidence in relation to these
key assumptions and assessing the directors’ consideration of severe but plausible scenarios. This
included assessing the viability of mitigating actions within the directors’ control;
•
Testing the accuracy and functionality of the model used to prepare the directors’ forecasts;
•
Assessing the historical accuracy of forecasts prepared by the directors;
•
Considering the consistency of the directors’ forecasts with other areas of the financial statements
and our audit;
•
Reviewing of the Group’s available cash balance as of 30 April 2025, and
•
Evaluating the appropriateness of the directors’ disclosures in the financial statements on going
concern
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group’s and the
parent company’s ability to continue as a going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described
in the relevant sections of this report.
In relation to Anglo-Eastern Plantations Plc’s reporting on how it has applied the UK Corporate
Governance Code, we have nothing material to add or draw attention to in relation to the directors’
statement in the financial statements about whether the director’s considered it appropriate to adopt
the going concern basis of accounting.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) we identified, including those which had
the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing
the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
We summarise below the key audit matters in forming our opinion above, together with an overview of
the principal audit procedures performed to address each matter and our key observations arising from
those procedures.
These matters, together with our findings, were communicated to those charged with governance
through our Audit Completion Report.
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Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
Key audit matter
How our scope addressed this matter
Impairment of property, plant and equipment
(Group)
Refer to note 2 (accounting policies) and note
12 (Property, plant and equipment) to the
consolidated financial statements.
Property, plant and equipment represented
$271.2 million at 31 December 2024 and $274.4
million at 31 December 2023. The Group is
required to annually assess for any indicators of
impairment and conduct an impairment review
if such indicators are identified.
The valuation of property, plant and equipment,
including the assessment of the recoverable
amount of these assets is a key audit matter, due
to the high degree of estimation and judgement
required
by
management.
This
involves
judgements in identifying Cash Generating Units
(“CGU’s”), assumptions about the future evolution
of trading and production yield considering the
impact of climate change, Crude Palm Oil (“CPO”)
prices, discount rates applied to future cash flows
and the valuation of land.
Following the analysis of impairment indicators,
the Group conducted an impairment review for
seven CGUs.
Our audit procedures included, but were not
limited to:
• Reviewing
the
assessment
prepared
by
management,
which
included
a
formal
memorandum
and
relevant
supporting
documentation. We conducted interviews
with management to understand the basis
and process for assessing impairment, and
tested the design and implementation of the
key controls.
• Assessing management’s identification and
determination of the carrying value of CGUs,
ensuring alignment with requirements of IAS
36 Impairment of Assets.
• Evaluating
the
appropriateness
and
completeness of management’s impairment
indicators analysis.
• Reviewing the cashflow forecasts used to
support the value in use calculations (where
this was applied to assess the recoverable
amount of CGUs) and ensuring they were
based on budgets or plans approved by the
Board.
• Testing
the
mathematical
integrity
of
impairment models and the completeness
and accuracy of data inputs.
• With the assistance of our valuation experts
in the UK, challenging key assumptions used
in the impairment models, such as CPO price,
production yield, inflation rate and WACC.
• Challenging management on the achievability
of the cash flow forecasts and assessing the
appropriateness of the projected financial
information against original forecasts and
other market data to assess the robustness of
management’s forecasting process.
• Conducting independent sensitivity analysis,
considering
management’s
forecasting
accuracy, historical trends, post year-end
results, and market data.
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Key audit matter
How our scope addressed this matter
• Where fair value less cost to sell valuations
were used to assess the recoverable amount,
engaging our valuation experts to challenge
management’s expert and management on
the method and key assumptions used in their
valuations, and testing the reasonableness of
assumptions used against external sources.
We also assessed the impact of legal and
environmental factors on asset valuations.
• Reviewing management’s expert reports and
considering
the
capabilities,
competence,
objectivity, and independence of management’s
experts.
• Assessing the adequacy of the disclosures in the
consolidated financial statements, particularly
around the key assumptions and key sources of
estimation uncertainty.
Our observations
Based on our audit work performed, the carrying
value of property, plant and equipment reflected
in the consolidated financial statements is
appropriate. Control recommendations relevant to
the impairment of property, plant and equipment
were communicated to the Audit Committee.
Valuation of plasma receivables (Group)
Refer to note 2 (accounting policies), note 14
(receivables: non-current) and note 18 (trade
and other receivables) to the consolidated
financial statements.
Receivables due from cooperatives under the
plasma scheme amounted to $21.6 million
at 31 December 2024 and $20.3 million at 31
December 2023. These receivables represent
amounts due from cooperatives under the plasma
programme to fund the development of new
plantings including land cost, and maintenance
and upkeep of matured plantations.
The valuation of plasma receivables is a key audit
matter, due to the high degree of estimation
and judgement required by management. This
includes judgements regarding the accounting
treatment, the period and methods for recovery of
these balances, and assumptions about the future
evolution of production and Fresh Fruit Bunches
(FFB) prices.
Our audit procedures included, but were not
limited to:
• Obtaining
the
assessment
prepared
by
management,
which
included
a
formal
memorandum
and
relevant
supporting
workings, and conducting a meeting with
them to understand the basis and process for
accounting and assessing the recoverability of
plasma receivables.
• Testing the design and implementation of the
key controls related to this business process.
• With the assistance of our technical department
in the UK, assessing the accounting treatment
used by management to record the value
of plasma receivables at initial recognition,
including
challenging
management’s
judgement that the advances can be repaid on
demand.
• Reviewing and examining the contracts and
agreements between the plantations and
plasma farmers to understand the terms and
conditions, including payment terms and
obligations.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
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Key audit matter
How our scope addressed this matter
• Assessing the ECL model applied to plasma
receivables
including
challenging
the
assumptions used in the impairment analysis.
• Assessing the adequacy of the presentation
and disclosures in the consolidated financial
statements,
particularly
around
the
key
judgements and key sources of estimation
uncertainty.
Our observations
Based on our audit work performed, the carrying
value of plasma receivables reflected in the
consolidated financial statements is appropriate.
Control recommendations relevant to plasma
receivables were communicated to the Audit
Committee.
Recoverability of taxes receivable (Group)
Refer to note 2 (accounting policies) and note
8 (tax expense) to the consolidated financial
statements.
Tax receivables amounted to $62.1 million at 31
December 2024 and $58.1 million at 31 December
2023.
These receivables represent VAT and corporate
income taxes paid to tax authorities in advance
based on prior year results. When the profit of
the prior year exceeds that of the current year, it
will result in a corporate tax overpayment. This
excess amount must be reclaimed from the
tax authorities following a tax audit. Claiming
a prepaid income tax refund in Indonesia is a
lengthy and complex process that requires a tax
audit and multiple levels of arbitration, often with
uncertain outcomes.
The recoverability of these tax receivables is a key
audit matter due to the high degree of estimation
and judgment required by management. This
includes assessing the probability of recovery and
determining the amounts likely to be recovered.
Our audit procedures were performed by the
component auditor and tax experts in Indonesia,
under the guidance of the Group auditor. These
procedures included, but were not limited to:
• Examining the company’s tax returns and
filings to ensure that the amounts claimed
as receivables are accurate and supported by
documentation.
• Testing the design and implementation of the
key controls over the business process.
• Tracing the tax payments made during the year
to bank statements.
• Examining the historical recovery rates and
past precedents to assess the appropriateness
of management’s judgement on recoverability.
• Reviewing correspondence with tax authorities
for any indications of disputes or issues that
might affect the recoverability of the receivables.
• Challenging
management’s
assumptions
regarding the probability of recovering those
balances.
Our observations
Based on our audit work performed, the
carrying value of taxes receivable reflected
in the consolidated financial statements are
appropriate. Control recommendations relevant
to taxes receivables were communicated to the
Audit Committee.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
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OUR APPLICATION OF MATERIALITY AND AN OVERVIEW OF THE SCOPE OF OUR AUDIT
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine the
scope of our audit and the nature, timing and extent of our audit procedures on the individual financial
statement line items and disclosures and in evaluating the effect of misstatements, both individually
and on the financial statements as a whole. Based on our professional judgement, we determined
materiality for the financial statements as a whole as follows:
GROUP MATERIALITY
Overall materiality
$3,950,000
How we determined it
5% of profit before tax
Rationale for
benchmark applied
Profit before tax was selected as the benchmark for determining materiality
for the Group financial statements as it is considered the primary indicator
of the Group’s financial performance.
Performance
materiality
Performance materiality is set to reduce to an appropriately low level
the probability that the aggregate of uncorrected and undetected
misstatements in the financial statements exceeds materiality for the
financial statements as a whole.
We set performance materiality at $1,980,000, which represents 50% of
overall materiality.
In determining performance materiality, we considered the history of
misstatements detected in previous years, the effectiveness of the control
environment and the fact that this is our first year as the Group’s auditor.
Reporting threshold
We agreed with the directors that we would report to them misstatements
identified during our audit above $120,000 as well as misstatements below
that amount that, in our view, warranted reporting for qualitative reasons.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
122
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
PARENT COMPANY MATERIALITY
Overall materiality
$1,375,000
How we determined it
2% total assets
Rationale for
benchmark applied
The company does not trade, with its main operations being that of a
holding company. Total assets are considered to be the most appropriate
benchmark for the users of the financial statements.
Performance
materiality
Performance materiality is set to reduce to an appropriately low level
the probability that the aggregate of uncorrected and undetected
misstatements in the financial statements exceeds materiality for the
financial statements as a whole.
We set performance materiality at $690,000, which represents 50% of
overall materiality.
In determining performance materiality, we considered the history of
misstatements detected in previous years, the effectiveness of the control
environment and the fact that this is our first year as the parent company’s
auditor.
Reporting threshold
We agreed with the directors that we would report to them misstatements
identified during our audit above $42,000 as well as misstatements below
that amount that, in our view, warranted reporting for qualitative reasons.
As part of designing our audit, we assessed the risk of material misstatement in the financial statements,
whether due to fraud or error, and then designed and performed audit procedures responsive to those
risks. In particular, we looked at where the directors made subjective judgements, such as assumptions
on significant accounting estimates.
SCOPE OF THE GROUP AUDIT
We tailored the scope of our audit to ensure that we performed sufficient work to be able to give
an opinion on the financial statements as a whole. We used the outputs of our risk assessment, our
understanding of the Group and the parent company, their environment, controls, and critical business
processes, to consider qualitative factors to ensure that we obtained sufficient coverage across all
financial statement line items.
The Group financial statements are a consolidation of 24 components made up of the Parent Company,
a principal sub-holding company, two management companies, five dormant companies and 15
operating companies. 13 of the operating companies are located in Indonesia and 2 in Malaysia. The
head office with an accounting function is located in Kuala Lumpur, Malaysia, with a second office and
main accounting function located in Medan, Indonesia.
Based on our risk assessment, we identified 13 operating companies, one management company and
the UK parent company as key or material components. These entities required a full scope audit of
their complete financial information due to their financial significance. Additionally, two companies,
consisting of one management company and one operating company required audit procedures on
specific areas due to their risk characteristics or because they had balances that were material to the
Group.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
123
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Below is a summary of the Group approach demonstrating the coverage of Group revenue, profit before
tax, net assets and total assets.
Scope
Revenue
Profit
before tax
Net assets
Total assets
Full scope audit
99%
100%
96%
96%
Audit procedures over one or more account
balances and/or disclosures
0%
0%
4%
4%
Total coverage
99%
100%
100%
100%
For components located in Indonesia, the audit work was conducted by the Forvis Mazars network
firm in Indonesia. For those located in the UK or Malaysia, the work was performed by the Group audit
team without the involvement of a component team. Certain additional procedures were performed at
the Group level by the Group audit team regarding the Key Audit Matters. These, along with the audit
procedures over the Group consolidation, provided the necessary evidence to form our opinion on the
Group financial statements as a whole.
As part of the audit strategy, senior members of the Group audit team visited Indonesia to meet the
component auditor as well as local and Group management. They also attended several meetings with
management and the Board via video conference. The Group Engagement Partner met with members
of senior management in Indonesia and with the Chair of the Audit Committee in the UK.
Our involvement with component auditors
For the work performed by the component auditor, we determined the level of involvement required
to conclude whether sufficient appropriate audit evidence had been obtained to support our audit
opinion on the Group financial statements as a whole. Our involvement, which commenced from the
planning phase, included the following:
•
Planning phase: We issued Group audit instructions to the Indonesian component audit team and
held several planning meetings via video conference to discuss the Group and local risks identified, as
well as agree on the testing approach and audit timelines. Senior members of the Group audit team,
who had direct access to the component auditor’s files, reviewed the planning documentation.
•
On-site planning visit: The Group Engagement Partner, along with another senior member of the
Group audit team, visited Medan to meet with the component auditor and management for further
audit planning. This visit also included site visits of three plantation estates.
•
Fieldwork stage: Senior members of the Group audit team, including the Group Engagement
Partner, revisited Medan, Indonesia to review the audit files for all 14 Indonesian components in
scope. The Group auditors also performed audit work on areas they were responsible for in person
with management in Indonesia. The component auditor visited all 14 plantation estates to conduct
audit testing and perform on-site stock takes. The Group audit team attended local closing meetings
with the component auditor in person.
•
Post-fieldwork review: After the visit to Indonesia, any additional work required by the Group audit
team was performed by the component auditors and reviewed remotely by the Group audit team.
•
Completion stage: The Group audit team attended closing meetings with the local audit team and
with management via video conference, and reviewed their reporting. Discussions were held with
Group management regarding the audit findings, including any adjustments raised.
Additionally, at the Group level, the Group audit team tested the consolidation process and carried
out analytical procedures to confirm our conclusion that there were no significant risks of material
misstatement in the aggregated financial information.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
124
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Component materiality
Component materiality applied in our Group audit ranged from $200,000 to $2,100,000.
OTHER INFORMATION
The other information comprises the information included in the annual report other than the financial
statements and our auditor’s report thereon. The directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained in the course of
audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or
apparent material misstatements, we are required to determine whether this gives rise to a material
misstatement in the financial statements themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that
fact.
We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared
in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the strategic report and the directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements and those reports
have been prepared in accordance with applicable legal requirements;
•
the information about internal control and risk management systems in relation to financial reporting
processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the
Disclosure Guidance and Transparency Rules sourcebook made by the Financial Conduct Authority
(the FCA Rules), is consistent with the financial statements and has been prepared in accordance
with applicable legal requirements; and
•
information about the parent company’s corporate governance code and practices and about its
administrative, management and supervisory bodies and their committees complies with rules
7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In light of the knowledge and understanding of the Group and the parent company and their
environment obtained in the course of the audit, we have not identified material misstatements in the:
•
strategic report or the directors’ report; or
•
information about internal control and risk management systems in relation to financial reporting
processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 of the
FCA Rules.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
125
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
We have nothing to report in respect of the following matters in relation to which the Companies Act
2006 requires us to report to you if, in our opinion:
•
adequate accounting records have not been kept by the parent company, or returns adequate for
our audit have not been received from branches not visited by us; or
•
the parent company financial statements and the part of the directors’ remuneration report to be
audited are not in agreement with the accounting records and returns; or
•
certain disclosures of directors’ remuneration specified by law are not made; or
•
we have not received all the information and explanations we require for our audit; or
•
a corporate governance statement has not been prepared by the parent company.
CORPORATE GOVERNANCE STATEMENT
The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term
viability and that part of the Corporate Governance Statement relating to Anglo-Eastern Plantations
Plc’s compliance with the provisions of the UK Corporate Governance Statement specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the Corporate Governance Statement is materially consistent with the financial statements
or our knowledge obtained during the audit:
•
Directors’ statement with regards the appropriateness of adopting the going concern basis of
accounting and any material uncertainties identified, set out on page 56;
•
Directors’ explanation as to its assessment of the entity’s prospects, the period this assessment
covers and why they period is appropriate, set out on page 56;
•
Directors’ statement on fair, balanced and understandable, set out on page 19;
•
Board’s confirmation that it has carried out a robust assessment of the emerging and principal
risks, set out on page 73;
•
The section of the annual report that describes the review of effectiveness of risk management and
internal control systems, set out on page 37; and
•
The section describing the work of the audit committee, set out on page 34.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the directors’ responsibilities statement set out on page 23, the directors
are responsible for the preparation of the financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the
parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Group or the parent company or to cease operations, or have no realistic alternative but
to do so.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
126
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect
of irregularities, including fraud.
Based on our understanding of the Group and the parent company and their industry, we considered
that non-compliance with the following laws and regulations might have a material effect on the
financial statements: health and safety legislation, labour and employment laws in Indonesia, the
requirements of the Anti-Bribery and Corruption Acts in the UK, Indonesia and Malaysia, Malaysian and
Indonesian Land Laws, Indonesian plasma regulations, the Indonesian Sustainable Palm Oil (“ISPO”) and
Malaysian Sustainable Palm Oil (“MSPO”) certification schemes and we considered the extent to which
non-compliance might have a material effect on the Group financial statements.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and
assessing the risks of material misstatement in respect to non-compliance, our procedures included,
but were not limited to:
•
Gaining an understanding of the legal and regulatory framework applicable to the Group and the
parent company, the industry in which they operate, and the structure of the Group, and considering
the risk of acts by the Group and the parent company which were contrary to the applicable laws
and regulations, including fraud;
•
Inquiring of the directors, management and, where appropriate, those charged with governance,
as to whether the Group and the parent company is in compliance with laws and regulations, and
discussing their policies and procedures regarding compliance with laws and regulations;
•
Inspecting correspondence with relevant regulatory and tax authorities for any instances of non-
compliance with laws and regulations;
•
Involvement of tax specialists in the audit;
•
Reviewing minutes of directors’ meetings in the year; and
•
Discussing amongst the engagement team the laws and regulations listed above, and remaining
alert to any indications of non-compliance.
We also considered those laws and regulations that have a direct effect on the preparation of the financial
statements. We identified such laws and regulations to be the Companies Act 2006, Indonesian pension
legislation and tax legislation.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent
manipulation of the financial statements, including the risk of management override of controls, and
determined that the principal risks related to posting manual journal entries to manipulate financial
performance, the posting of inappropriate journals to revenue, management bias through judgements
and assumptions in significant accounting estimates, in particular in relation to impairment of property,
plant and equipment, valuation of plasma receivable, revenue recognition (which we pinpointed to the
occurrence and cut-off assertion), and significant one-off or unusual transactions.
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
127
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Our procedures in relation to fraud included but were not limited to:
•
Making enquiries of the directors and management on whether they had knowledge of any actual,
suspected or alleged fraud;
•
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
•
Discussing amongst the engagement team the risks of fraud; and
•
Addressing the risks of fraud through management override of controls by performing journal entry
testing.
The primary responsibility for the prevention and detection of irregularities, including fraud, rests
with both those charged with governance and management. As with any audit, there remained a
risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions,
misrepresentations or the override of internal controls.
The risks of material misstatement that had the greatest effect on our audit are discussed in the “Key
audit matters” section of this report.
A further description of our responsibilities is available on the Financial Reporting Council’s website at
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
OTHER MATTERS WHICH WE ARE REQUIRED TO ADDRESS
Following the recommendation of the Audit Committee, we were appointed by the Directors of
Anglo-Eastern Plantations Plc’s at the Company’s Annual General Meeting on 24 June 2024 to audit
the financial statements for the year ending 31 December 2024 and subsequent financial periods. The
period of total uninterrupted engagement is 1 year.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the
parent company and we remain independent of the Group and the parent company in conducting our
audit.
Our audit opinion is consistent with our additional report to the audit committee.
USE OF THE AUDIT REPORT
This report is made solely to the parent company’s members as a body in accordance with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the
parent company’s members those matters we are required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the parent company and the parent company’s members as a body for our audit
work, for this report, or for the opinions we have formed.
Natalia Moolman (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
30 Old Bailey
London
EC4M 7AU
30 May 2025
Independent Auditor’s Report
to the members of Anglo-Eastern Plantations Plc (Continued)
128
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Consolidated Income Statement
For the year ended 31 December 2024
Note
2024
$000
(Restated)
2023*
$000
Continuing operations
Revenue
3
372,263
370,435
Cost of sales
(286,583)
(291,553)
Changes in fair value of biological assets
17
2,942
(875)
Gross profit
88,622
78,007
Administration expenses
(8,980)
(8,832)
Other income
1,094
527
Impairment loss
(133)
(35)
Gain arising from fair value of investments
13
1,131
45
Operating profit
81,734
69,712
Exchange gains
1,056
164
Finance income
4
5,365
7,977
Finance expense
4
(65)
(45)
Profit before tax
5
88,090
77,808
Tax expense
8
(20,478)
(21,715)
Profit for the year from continuing operations
67,612
56,093
Gain on discontinued operations, net of tax
9
-
6,524
67,612
62,617
Profit for the year attributable to:
- Owners of the parent
67,514
53,225
- Non-controlling interests
98
9,392
67,612
62,617
Profit for the year from continuing operations attributable to:
- Owners of the parent
67,514
49,418
- Non-controlling interests
98
6,675
67,612
56,093
Earnings per share attributable to the owners of the parent
during the year
Profit
- basic and diluted
10
170.88cts
134.54cts
Profit from continuing operations
- basic and diluted
10
170.88cts
124.92cts
Earnings per share are shown in note 10.
* The details of prior year restatement are disclosed in note 32.
There have been two classification changes made to the financial statements resulting in comparative
amounts for the year ended 31 December 2023 being reclassified. In 2023, $527,000 was reclassified
from revenue to other income to better reflect its nature (refer to Note 3). In addition, administrative
expenses amounted to $8,867,000, including an impairment loss of $35,000, which has been presented
separately in the comparative figures.
The accompanying notes are an integral part of this consolidated income statement.
129
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
2024
$000
(Restated)
2023*
$000
Profit for the year
67,612
62,617
Other comprehensive loss:
Items may be reclassified to profit or loss:
(Loss)/profit on exchange translation of foreign operations
(23,184)
9,957
Recycling of foreign exchange on disposal
-
(10,431)
Net other comprehensive loss may be reclassified to profit or loss
(23,184)
(474)
Items not to be reclassified to profit or loss:
Remeasurement of retirement benefits plan, net of tax
378
(375)
Net other comprehensive income/(loss) not being reclassified to profit
or loss
378
(375)
Total other comprehensive loss for the year, net of tax
(22,806)
(849)
Total comprehensive income for the year
44,806
61,768
Total comprehensive income for the year attributable to:
- Owners of the parent
44,612
52,840
- Non-controlling interests
194
8,928
44,806
61,768
* The details of prior year restatement are disclosed in note 32.
The accompanying notes are an integral part of this consolidated statement of comprehensive income.
130
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Consolidated Statement of Financial Position
As at 31 December 2024
Company Number: 01884630
Note
31.12.2024
$000
(Restated)
31.12.2023*
$000
(Restated)
31.12.2022*
$000
Non-current assets
Property, plant and equipment
12
271,170
274,382
252,414
Investments
13
5,111
10,035
42
Receivables
14
19,363
17,617
17,042
Deferred tax assets
15
1,900
2,126
3,950
297,544
304,160
273,448
Current assets
Inventories
16
18,767
16,684
19,590
Income tax receivables
8
18,316
17,497
4,122
Other tax receivables
8
43,749
40,575
37,576
Biological assets
17
8,057
5,419
6,161
Trade and other receivables
18
7,062
13,378
5,389
Investments
13
23,976
-
-
Short-term investments
19
1,253
14,076
55,566
Cash and cash equivalents
19
181,908
152,984
221,476
303,088
260,613
349,880
Assets in disposal groups classified as held for
sale
9
-
-
9,000
303,088
260,613
358,880
Current liabilities
Trade and other payables
20
(21,403)
(26,862)
(33,372)
Income tax liabilities
8
(5,466)
(2,951)
(10,230)
Other tax liabilities
8
(1,201)
(1,184)
(1,221)
Dividend payables
(46)
(41)
(32)
Lease liabilities
21
(307)
(300)
(73)
(28,423)
(31,338)
(44,928)
Net current assets
274,665
229,275
313,952
Non-current liabilities
Deferred tax liabilities
15
(2,225)
(813)
(805)
Retirement benefits - net liabilities
22
(11,073)
(11,298)
(10,874)
Lease liabilities
21
(453)
(709)
(31)
(13,751)
(12,820)
(11,710)
Net assets
558,458
520,615
575,690
131
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Consolidated Statement of Financial Position
As at 31 December 2024 (Continued)
Company Number: 01884630
Note
31.12.2024
$000
(Restated)
31.12.2023*
$000
(Restated)
31.12.2022*
$000
Issued capital and reserves attributable to
owners of the parent
Share capital
23
15,504
15,504
15,504
Treasury shares
23
(2,487)
(1,847)
(1,171)
Share premium
23,935
23,935
23,935
Capital redemption reserve
1,087
1,087
1,087
Exchange reserves
(364,402)
(341,180)
(288,891)
Retained earnings
877,394
816,140
715,631
551,031
513,639
466,095
Non-controlling interests
7,427
6,976
109,595
Total equity
558,458
520,615
575,690
The financial statements were approved and authorised for issue by the Board of Directors on 30 May
2025 and were signed on its behalf by:
Marcus Chan Jau Chwen
Executive Director of Corporate Affairs
* The details of prior year restatements are disclosed in note 32.
The accompanying notes are an integral part of this consolidated statement of financial position.
132
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Consolidated Statement of Changes in Equity
As at 31 December 2024
Note
Share
capital
Treasury
shares
Share
premium
Capital
redemption
reserve
Exchange
reserves
Retained
earnings
Total
Non-
controlling
interests
Total
equity
$000
$000
$000
$000
$000
$000
$000
$000
$000
Balance at 31 December 2022
15,504
(1,171)
23,935
1,087
(289,434)
722,191
472,112
111,865
583,977
Restatements
32
-
-
-
-
543
(6,560)
(6,017)
(2,270)
(8,287)
Balance at 31 December 2022 (Restated)
15,504
(1,171)
23,935
1,087
(288,891)
715,631
466,095
109,595
575,690
Items of other comprehensive income/(loss)
- Remeasurement of retirement benefit
plan, net of tax
22
-
-
-
-
-
(374)
(374)
(1)
(375)
- Recycling of foreign exchange on disposal
-
-
-
-
(8,307)
-
(8,307)
(2,124)
(10,431)
- Gain on exchange translation of foreign
operations (Restated)
-
-
-
-
8,296
-
8,296
1,661
9,957
Total other comprehensive loss (Restated)
-
-
-
-
(11)
(374)
(385)
(464)
(849)
Profit for the year (Restated)
-
-
-
-
-
53,225
53,225
9,392
62,617
Total comprehensive income for the year
(Restated)
-
-
-
-
(11)
52,851
52,840
8,928
61,768
Acquisition of non-controlling interests
(Restated)
31
-
-
-
-
(52,278)
63,512
11,234
(99,042)
(87,808)
Share buy back
-
(676)
-
-
-
-
(676)
-
(676)
Dividends paid
-
-
-
-
-
(15,854)
(15,854)
(12,505)
(28,359)
Balance at 31 December 2023 (Restated)
15,504
(1,847)
23,935
1,087
(341,180)
816,140
513,639
6,976
520,615
Items of other comprehensive (loss)/
income
- Remeasurement of retirement benefit
plan, net of tax
22
-
-
-
-
-
378
378
-
378
- Loss on exchange translation of foreign
operations
-
-
-
-
(23,280)
-
(23,280)
96
(23,184)
Total other comprehensive (loss)/income
-
-
-
-
(23,280)
378
(22,902)
96
(22,806)
Profit for the year
-
-
-
-
-
67,514
67,514
98
67,612
Total comprehensive (loss)/income for the
year
-
-
-
-
(23,280)
67,892
44,612
194
44,806
Acquisition of non-controlling interests
31
-
-
-
-
58
(715)
(657)
257
(400)
Share buy back
-
(640)
-
-
-
-
(640)
-
(640)
Dividends paid
-
-
-
-
-
(5,923)
(5,923)
-
(5,923)
Balance at 31 December 2024
15,504
(2,487)
23,935
1,087
(364,402)
877,394
551,031
7,427
558,458
133
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
2024
$000
2023
$000
Cash flows from operating activities
Profit before tax from continuing operations
88,090
77,808
Adjustments for:
Changes in fair value of biological assets
(2,942)
875
Gain on disposal of property, plant and equipment
(380)
(49)
Depreciation
18,986
16,400
Retirement benefit provisions
2,764
2,581
Finance income
(5,365)
(7,977)
Finance expense
65
45
Unrealised loss/(gain) in foreign exchange
31
(164)
Gain arising from fair value
(1,131)
(45)
Property, plant and equipment written off
451
191
Impairment losses
133
35
(Reversal)/Provision for expected credit loss
(9)
331
Operating cash flows before changes in working capital
100,693
90,031
(Increase)/Decrease in inventories
(2,907)
3,405
Decrease/(Increase) in non-current, trade and other receivables
5,588
(8,520)
Decrease in trade and other payables
(5,059)
(6,939)
Cash inflows from operations
98,315
77,977
Retirement benefits paid
(1,984)
(1,206)
Overseas tax paid
(22,384)
(43,108)
Operating cash flows from continuing operations
73,947
33,663
Operating cash flows used in discontinued operations
-
(1,808)
Net cash generated from operating activities
73,947
31,855
Investing activities
Property, plant and equipment
- purchases
(29,013)
(33,421)
- sales
872
315
Interest received
5,365
7,977
Increase in receivables from cooperatives under plasma scheme
(5,010)
(4,894)
Repayment from cooperatives under plasma scheme
2,689
1,921
Investment in investment portfolio or bond portfolio
(45,990)
(9,948)
Disposal of investment portfolio
28,069
-
Disposal of subsidiaries
-
8,500
Placement of fixed deposits with original maturity of more than three months
(1,253)
(14,076)
Withdrawal of fixed deposits with original maturity of more than three months
14,076
55,566
Cash (used in)/generated from investing activities from continuing operations
(30,195)
11,940
Cash used in investing activities from discontinued operations
-
(1,786)
Net cash (used in)/generated from investing activities
(30,195)
10,154
134
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Consolidated Statement of Cash Flows
For the year ended 31 December 2024 (Continued)
Note
2024
$000
2023
$000
Financing activities
Dividends paid to the holders of the parent
(5,918)
(15,845)
Dividends paid to non-controlling interests
-
(12,505)
Repayment of lease liabilities - principal
(340)
(243)
Repayment of lease liabilities - interest
(65)
(45)
Acquisition of non-controlling interests
(400)
(86,620)
Share buy back
(640)
(676)
Cash used in financing activities from continuing operations
(7,363)
(115,934)
Cash used in financing activities from discontinued operations
-
-
Net cash used in financing activities
(7,363)
(115,934)
Net increase/(decrease) in cash and cash equivalents
36,389
(73,925)
Cash and cash equivalents
At beginning of year
152,984
221,476
Exchange (losses)/gains
(7,465)
5,433
At end of year
181,908
152,984
Comprising:
Cash at end of year
19
181,908
152,984
The variance of finance income from the prior year relates to the reclassification of finance expenses,
which are now disclosed separately.
The accompanying notes are an integral part of this consolidated statement of cash flows.
135
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
1
Basis of preparation
AEP is a company incorporated in the UK under the Companies Act 2006 and is listed on the London
Stock Exchange. The registered office of AEP is located at Quadrant House, 6th Floor, 4 Thomas More
Square, London E1W 1YW, UK. The principal activity of the Group is plantation agriculture, mainly
in the cultivation of oil palm in Indonesia and Malaysia, of which Indonesia is the principal place of
business.
The principal accounting policies applied in the preparation of these consolidated financial
statements are set out below. These policies have been consistently applied to all years presented.
Basis of preparation
The consolidated financial statements have been prepared in accordance with UK adopted
International Accounting Standards and with the requirements of the Companies Act 2006 as
applicable to companies reporting under those standards.
The consolidated financial statements have been prepared on a historical cost basis, except for the
following items:
•
Biological assets (note 17)
•
Retirement benefits (note 22)
•
Investments (note 13)
The Directors have carried out stress tests, factoring in the identified uncertainties and risks such
as commodity prices, together with the current economic to ensure that the Group has adequate
resources in a worst-case scenario to remain as a going concern for at least twelve months from the
date of this report.
The Directors have a reasonable expectation, having made the appropriate enquiries, that the
Group has sufficient cash resources to cover the Group’s operating expenses for a period of at
least twelve months from the date of approval of these financial statements. For these reasons,
the Directors adopted a going concern basis in the preparation of the financial statements. The
Directors have made this assessment after consideration of the Group’s budgeted cash flows and
related assumptions including stress testing of identified uncertainties, as well as the impact of a
50% decrease in the demand for palm oil. Stress testing of other identified uncertainties and risks
such as commodity prices was also undertaken. The US tariff war had no material impact on the
Indonesian palm oil industry during the reporting period.
Changes in accounting standards
(a)
New standards, interpretations and amendments effective for the first time for the accounting
periods beginning on or after 1 January 2024 in these financial statements in the current year
•
IAS 1 Presentation of Financial Statements, amendment related to Classification of
Liabilities as Current or Non-Current
•
IAS 1 Presentation of Financial Statements, amendment related to Non-current Liabilities
with Covenants
•
IFRS 16 Leases, amendment related to Lease Liability in a Sale and Leaseback
•
IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures, amendment
related to Supplier Finance Arrangements
136
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
1
Basis of preparation (continued)
(b) New standards, interpretations and amendments not yet effective.
The following new standards, interpretations and amendments are effective for future periods
(as indicated) and have not been applied in these financial statements:
•
IAS 21 The Effects of Changes in Foreign Exchange Rates, amendment related to Lack of
Exchangeability (1 January 2025, not yet adopted)
•
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments:
Disclosures: Classification and Measurement of Financial Instruments (1 January 2026,
not yet adopted)
•
IFRS 18 Presentation and Disclosure in Financial Statements (1 January 2027, not yet
adopted)
•
IFRS 19 Subsidiaries without Public Accountability: Disclosures (1 January 2027, not yet
adopted).
None of the above new standards, interpretations and amendments are expected to have a
material effect on the Group's future financial statements.
2
Accounting policies
(a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company
and entities controlled by the Company (its subsidiaries) made up to 31 December each year.
The Company controls a subsidiary if all three of the following elements are present; power
over the subsidiary, exposure to variable returns from the subsidiary, and the ability of the
investor to use its power to affect those variable returns. The financial statements of subsidiaries
are included in the consolidated financial statements from the date that control commences
until the date control ceases. In respect of cooperatives under the Plasma scheme, the Group
has not consolidated these entities, as it neither has control nor significant influence. All key
decisions are made independently by the cooperatives, and the Group holds no voting rights
or representation on governing bodies. The Group has assessed the relationship with the
cooperatives based on the criteria set out in IFRS, specifically evaluating control and significant
influence. Despite the Group’s involvement in the scheme, it does not exercise de facto control
or influence over the cooperatives’ decision-making processes. Accordingly, the cooperatives
do not meet the criteria for consolidation or equity accounting under IFRS.
(b) Business combinations
The consolidated financial statements incorporate the results of business combinations using
the acquisition method. In the consolidated statement of financial position, the acquiree’s
identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values
at the acquisition date. Acquisitions of entities that comprise principally land with no active
plantation business do not represent business combinations, in such cases, the amount paid
for each acquisition is allocated between the identifiable assets/liabilities at the acquisition
date.
137
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(c)
Foreign currency
Critical judgement on functional currency
The individual financial statements of each subsidiary are presented in the currency of the
country in which it operates (its functional currency), being the currency in which the majority
of their transactions are denominated. The Company and its UK subsidiaries present in their
financial statements in US Dollar, which is also their functional currency. The presentation
currency for the consolidated financial statements is also US Dollar, chosen because, as
internationally traded commodities, the price of the bulk of the Group’s products are ultimately
linked to the US Dollar.
On consolidation, the results of overseas operations are translated into US Dollar at average
exchange rates for the year unless exchange rates fluctuate significantly in which case the actual
rate is used. All assets and liabilities of overseas operations are translated at the rate ruling at
the balance sheet date. Exchange differences arising on re-translating the opening net assets
at opening rate and the results of overseas operations at actual rate are recognised directly in
equity (the “exchange reserves”). Exchange differences recognised in the income statement
of Group entities’ separate financial statements on the translation of long-term monetary
items forming part of the Group’s net investment in the overseas operation concerned are
reclassified to the exchange reserves if the item is denominated in the presentational currency
of the Group or of the overseas operation concerned.
On disposal of a foreign operation, the cumulative exchange differences recognised in the
exchange reserves relating to that operation up to the date of disposal are transferred to the
income statement as part of the profit or loss on disposal.
All other exchange profits or losses are credited or charged to the income statement.
(d) Revenue recognition
The Group derives its revenue from the sale of CPO, palm kernel, FFB, shell nut, biogas products
and rubber slab. Revenue for CPO, palm kernel, shell nut and FFB are recorded net of sales taxes,
including export taxes and recognised when the customer has taken delivery of the goods or
the goods has been delivered, which is deemed to be the point at which the performance
obligation is satisfied. The collection/delivery of the goods will not take place until the goods
are paid for. Sales of rubber slab are recognised on signing of the sales contract, this being the
point at which control is transferred to the buyer. Sales of biogas products are recognised upon
generation, when control over the generated electricity is transferred to the buyer.
The transacted price for each product is based on the market price or predetermined monthly
contract value. There is no right of return nor warranty provided to the customers on the sale
of products and services rendered. The payment terms for CPO, palm kernel, and shell nut are
mainly based on advance payments from customers, whereby payments are typically received
prior to or upon delivery. This arrangement helps mitigate credit risk and ensures timely cash
flow for the Group’s operations.
Advance receipts represent the Group's obligation to transfer goods to a customer for which
the Group has received consideration but the goods have yet to be delivered to/collected by
the customer.
138
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(e) Tax
Tax is recognised in the consolidated income statement, except to the extent that is relates to
items recognised in other comprehensive income, or directly in equity. In this case, tax is also
recognised in other comprehensive income or directly in equity accordingly.
UK and foreign corporation tax are provided at amounts expected to be paid or recovered
using the tax rates and laws that have been enacted or substantively enacted by the balance
sheet date.
The directors consider that the carrying amount of tax receivables approximates its fair value.
Uncertainty Over Income Tax Treatments – IFRIC 23
The Group applies IFRIC 23 – Uncertainty over Income Tax Treatments, which clarifies the
accounting for uncertainties in income taxes under IAS 12.
Where there is uncertainty over the income tax treatment of an item, the Group assesses
whether it is probable that the taxation authority will accept the uncertain tax treatment. This
involves:
•
Considering uncertain tax treatments either individually or collectively, depending on
which approach better predicts the resolution of the uncertainty;
•
Assuming full examination by the relevant tax authorities with complete knowledge of all
related facts and circumstances;
•
If it is probable that the tax authority will accept the treatment, the entity determines
taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates
consistently with that treatment;
•
If it is not probable, the Group reflects the uncertainty using either the most likely amount
or the expected value method, depending on which is the most predictive.
Judgements and estimates under IFRIC 23 are applied consistently to both current and
deferred tax. The Group reassesses these judgements and estimates whenever there is a
change in facts and circumstances that might affect the outcome of the tax treatment.
(f)
Dividends
Equity dividends are recognised when they become legally payable. The Company may pay an
interim dividend each year. The final dividend becomes legally payable when approved by the
shareholders at the next annual general meeting.
139
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(g) Property, plant and equipment
Plantations comprise of the cost of planting and development of oil palm and other plantation
crops. Costs of new planting and development of plantation crops are capitalised from the
stage of land clearing up to the stage of maturity. The costs of immature plantations consist
mainly of the accumulated cost of land clearing, planting, fertilising and maintaining the
plantation and other indirect overhead costs up to the time the trees are harvestable and
to the extent appropriate. Oil palm plantations are considered mature within three to four
years after planting and generating average annual CPO of four to six metric tons per hectare.
Immature plantations are not depreciated as they are not yet available for use.
The Indonesian authorities have granted certain land exploitation rights and operating
permits for the estates. The land rights are usually renewed without significant cost subject
to compliance with the laws and regulations of Indonesia therefore, the Group has classified
the land rights as leasehold land. The leasehold land is recognised at cost initially and is not
depreciated except the leasehold land in Malaysia which is depreciated over the term of
the lease as its renewal cannot be guaranteed. Costs include the initial cost of obtaining the
location permits and subsequent payments to compensate existing land owners plus any legal
costs incurred to acquire the necessary land exploitation rights.
Construction in progress is stated at cost. The accumulated costs will be reclassified to the
appropriate class of assets when construction is completed and the asset is ready for its
intended use. Construction in progress is also not depreciated until such time when the asset
is available for use.
Social infrastructure assets, including public-benefit facilities such as schools and other public
buildings, are classified as part of the buildings category.
Plantations, buildings and oil mills are depreciated using the straight-line method. The yearly
rates of depreciation are as follows:
Leasehold land in Malaysia - over the term of the lease
Plantations: 5% per annum
Buildings: 5% to 10% per annum
Oil Mill: 5% per annum
Estate plant, equipment & vehicles: 12.5% to 50% per annum
Office plant, equipment & vehicles: 25% to 50% per annum
Although fruit yield varies annually, the straight-line method for plantations is considered
appropriate as it reflects a consistent pattern of economic benefits over the productive life of
the trees and provides a systematic allocation of cost in accordance with IAS 16.
Plantation development costs are capitalised and depreciated over a 20-year useful life,
commencing from maturity. As of the reporting date, some plantations have reached the end
of their depreciable lives and are fully depreciated, yet remain in use as replanting has not
commenced. These plantations continue to generate economic benefits but are carried at nil
net book value in accordance with IAS 16 Property, Plant and Equipment, until replanting or
disposal.
140
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(h) Leases
Land rights are recognised at historical cost without depreciation at the balance sheet date
except for leasehold land in Malaysia where it is recognised at historical cost and depreciated
over the term of the lease.
Right-of-Use Assets
The Group recognises right-of-use assets and corresponding lease liabilities for leases in which
it is the lessee, mainly for office premises in Malaysia and Indonesia. These are measured at cost
and depreciated over the lease term or useful life, whichever is shorter. Refer to Note 21 Leases
for further details.
Lease Income – Lessor
PT United Kingdom Indonesia Plantations, a subsidiary of the Group, acts as a lessor under
various operating lease arrangements, including those related to the use of biogas facilities.
Lease income from these operating leases is recognised as part of “Other Income” on a straight-
line basis over the lease term, in accordance with IFRS 16.
Due to the immaterial nature of the income generated from these leases, it is not presented
separately in the consolidated statement of profit or loss.
In addition, PT Tasik Raja and PT Bina Pitri Jaya, subsidiaries of the Group, have entered into
operating lease arrangements for the use of certain biogas-related facilities. These contracts
do not include any minimum lease payments and consist entirely of variable lease payments,
which are determined based on output or usage metrics. Accordingly, no fixed lease receivables
are recognised. Lease income from these arrangements is recognised in the period in which
the related output or usage occurs.
(i)
Inventories
Inventories are initially recognised at cost, and subsequently at the lower of cost and net
realisable value. In the case of processed produce for sale which comprises palm oil and kernel,
cost represents the monthly weighted-average cost of production and appropriate production
overheads. Estate and mill consumables are valued on a weighted average cost basis.
(j)
Biological assets
Biological assets comprise an estimation of the fair value less costs to sell of unharvested FFB.
The fair value of biological assets is classified as Level 3 in the fair value hierarchy. Net movement
in the fair value of biological assets is recognised in the income statement as changes in fair
value of biological assets.
(k) Financial assets
The Group classifies its financial assets into one of the categories discussed below, depending
on the purpose for which the asset was acquired. The Group's accounting policy for each
category is as follows:
Fair value through profit or loss
Investments which are held for strategic gain are carried in the statement of financial position
at fair value with changes in fair value recognised in the consolidated statement of income
statement in gain or loss arising from fair value.
141
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(k) Financial assets (continued)
Amortised cost
The Group's financial assets measured at amortised cost comprise trade and other receivables
and cash and cash equivalents in the consolidated statement of financial position. All the
Group's receivables and loans are non-derivative financial assets with cash flows that are
solely payments of principal and interest. They are recognised at fair value at inception and
subsequently at amortised cost as this is what the Group considers to be most representative
of the business model for these assets.
Cash and cash equivalents consist of cash in hand and short-term deposits at banks with an
original maturity not exceeding three months. Bank overdrafts are shown within loans and
borrowings under current liabilities on the statement of financial position.
The Group considers a trade receivable or other receivable as credit impaired when one or more
events that have a detrimental impact on the estimated cash flow have occurred. Trade and other
receivables are written off when there is no expectation of recovery based on the assessment
performed. If the receivables are subsequently recovered, these are recognised in the income
statement.
The Group use three categories for those receivables which reflect their credit risk and how
the loss provision is determined for those categories. These include trade receivables using the
simplified approach and debt instruments at amortised costs other than trade receivables and
financial guarantee contracts using the three-stage approach.
(l)
Financial liabilities
All the Group's financial liabilities are non-derivative financial liabilities.
Trade and other payables are shown at fair value at recognition and subsequently at amortised
cost.
(m) Deferred tax
Deferred tax is the expected tax payable or recoverable on temporary differences which arise
between the carrying amount of assets and liabilities in the financial statements, and the
corresponding tax bases used in the computation of taxable profit and is provided for using
the liability method. extent that it is probable that taxable profits will be available against
which deductible temporary differences can be utilised.
Deferred tax liabilities are generally recognised for all taxable temporary differences, and
deferred tax assets are recognised to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference arises from goodwill or
from the initial recognition (other than in a business combination) of other assets and liabilities
in a transaction which affects neither the tax profit nor the accounting profit. The Group
recognises deferred tax liabilities arising from taxable temporary differences on investments in
subsidiaries, except where the Group is able to control the reversal of the temporary differences,
and it is probable that the temporary difference will not reverse in the foreseeable future.
142
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(m) Deferred tax (continued)
Recognition of deferred tax assets is restricted to those instances where it is possible that
taxable profit will be available against which the difference can be utilised. Deferred tax assets
arising from unused tax losses are recognised only when it is probable that future taxable
profits will be available to utilise those losses, with the critical judgment applied as described
in note 2(p).
(n) Retirement benefits
Defined contribution schemes
Contributions to defined contribution pension schemes are charged to the consolidated
income statement in the year to which they relate.
Defined benefit schemes
The Group operates a number of defined benefit schemes which include other long-term
employee benefits in respect of its Indonesian operations. The schemes’ surpluses and deficits
are measured at:
•
The fair value of plan assets at the reporting date; less
•
Plan liabilities calculated using the projected unit credit method discounted to its present
value using yields available on Indonesian Government bonds that have maturity dates
approximating to the terms of the liabilities; plus
•
Past service costs; less
•
The effect of minimum funding requirements agreed with scheme trustees.
Remeasurements of the net defined benefit obligation are recognised in other comprehensive
income. The remeasurements include:
•
Actuarial gains and losses;
•
Return on plan assets (interest exclusive); and
•
Any asset ceiling effects (interest inclusive).
Service costs are recognised in the income statement and include current and past service
costs as well as gains and losses on curtailments.
Net interest expense/(income) is recognised in the income statement, and is calculated by
applying the discount rate used to measure the defined benefit obligation/(asset) at the
beginning of the annual period to the balance of the net defined benefit obligation/(asset),
considering the effects of contributions and benefit payments during the period.
Gains or losses arising from changes to scheme benefits or scheme curtailment are recognised
immediately in the income statement. Settlements of defined benefit schemes are recognised
in the period in which the settlement occurs.
The Group has agreed funding arrangements with the trustees to address the defined benefit
scheme deficit, primarily through cash contributions, and actuarial valuations are conducted
annually, with the most recent valuation performed as of 31 December 2024.
143
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(o) Financial guarantee contracts
Where the Company and its subsidiaries enter into financial guarantee contracts and guarantee
the indebtedness of other companies within the Group and/or third-party entities, these are
accounted for under IFRS 9. The details of financial guarantee contracts are disclosed in note 27.
(p) Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future. Estimates and
judgements are continually evaluated based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. In
the future, actual experience may differ from these estimates and assumptions. The estimates
and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
Judgements
•
Assessment of de-facto control of cooperatives under Plasma scheme (see note 2(a) and
note 14).
•
Determination of functional currency (see note 2(c)).
•
Classification of land as leasehold with no depreciation charged (see note 12).
•
Carrying value of income tax receivables - determination of historic recovery rates (see note 8).
•
Measurement of plasma receivables (see note 14).
•
Income taxes and deferred tax - provisions for income taxes in various jurisdictions (see
note 8 and note 15).
•
Recognition of deferred tax on losses - estimate of future profitability of respective entities
(see note 15).
Estimates and assumptions
•
Impairment of plantation assets - determination of the discount rate and other assumptions
(see note 12).
•
Expected credit losses (“ECL”) on amounts due from cooperatives under Plasma scheme
- determination of possible outcomes and their weighted probability (see note 14).
•
Valuation of biological assets - oil content of FFB (note 17)
•
Retirement benefits - actuarial assumptions (see note 22).
Fair value measurement - a number of assets and liabilities included in the Group’s financial
statements require measurement at, and/or disclosure of, fair value. The fair value measurement
of the Group’s financial and non-financial assets and liabilities utilises market observable
inputs and data as far as possible. Inputs used in determining fair value measurements are
categorised into different levels based on how observable the inputs used in the valuation
technique utilised are (the ‘fair value hierarchy’):
-
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
-
Level 2 - inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly or indirectly; and
-
Level 3 - unobservable inputs for the asset or liability.
The classification of an item into the above levels is based on the lowest level of the inputs
used that has a significant effect on the fair value measurement of the item. Transfers of items
between levels are recognised in the period they occur.
144
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
2
Accounting policies (continued)
(p) Critical accounting estimates and judgements (continued)
The Group measures the following assets at fair value:
-
Biological assets (note 17).
-
Investment (note 13).
3
Revenue
Disaggregation of Revenue
The Group has disaggregated revenue into various categories in the following table which is
intended to:
•
depict how the nature, amount and uncertainty of revenue and cash flows are affected by
timing of revenue recognition; and
•
enable users to understand the relationship with revenue segment information provided in note 6.
Year to 31 December 2024
CPO and
palm
kernel
FFB
Rubber
Shell
nut
Biogas
products
Others
Total
$000
$000
$000
$000
$000
$000
$000
Contract counterparties
Government
-
-
-
-
637
-
637
Non-government
- Wholesalers
358,745
8,923
112
3,840
-
6
371,626
358,745
8,923
112
3,840
637
6
372,263
Timing of transfer of
goods
Delivery to customer
premises
-
8,923
112
-
-
-
9,035
Delivery to port of
departure
74,767
-
-
-
-
-
74,767
Customers collect from
our mills/estates
283,978
-
-
3,840
-
-
287,818
Upon generation/others
-
-
-
-
637
6
643
358,745
8,923
112
3,840
637
6
372,263
Year to 31 December 2023
Contract counterparties
Government
-
-
-
-
1,081
-
1,081
Non-government
- Wholesalers
357,183
6,784
529
4,844
-
14* 369,354*
357,183
6,784
529
4,844
1,081
14* 370,435*
145
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
3
Revenue (continued)
Disaggregation of Revenue (continued)
CPO
and
palm
kernel
FFB
Rubber
Shell
nut
Biogas
products
Others
Total
$000
$000
$000
$000
$000
$000
$000
Year to 31 December 2023 (continued)
Timing of transfer of goods
Delivery to customer
premises
-
6,784
529
-
-
-
7,313
Delivery to port of departure
77,044
-
-
-
-
-
77,044
Customers collect from our
mills/estates
280,139
-
-
4,844
-
-
284,983
Upon generation/others
-
-
-
-
1,081
14*
1,095*
357,183
6,784
529
4,844
1,081
14* 370,435*
The Group recognised advance receipts of $6,666,000 as disclosed in Note 20 as contract liabilities
at the beginning of the period. These contract liabilities primarily relate to advance payments
received from customers for goods and services to be delivered in future periods.
During the period, these contract liabilities were subsequently recognised as revenue as the Group
satisfied the related performance obligations.
*As part of the review in FY2024, the Group has reclassified $527,000 from Revenue to Other
Income for FY2023. This reclassification reflects a more accurate presentation, as the amount
pertains to various non-operating items, such as management fees from plasma, asset disposals, or
other incidental income, which were previously classified under revenue. Additionally, the FY2023
reconciliation table has been represented to show 'delivery to port of departure' as a new line
item, providing more relevant and helpful information. This change improves the transparency
of the Group's earnings by clearly distinguishing between core operational revenue and other
income sources. As a result, Revenue for FY2023 has decreased by $527,000, and Other Income has
increased by $527,000.
4
Finance income and expense
2024
$000
2023
$000
Finance income
Interest receivable on:
Credit bank balances and time deposits
5,365
7,977
Finance expense
Interest payable on:
Interest expense in lease liabilities (note 21)
(65)
(45)
Net finance income recognised in income statement
5,300
7,932
146
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
5
Profit before tax
2024
$000
2023
$000
Profit before tax is stated after charging:
Purchase of FFB
174,022
160,692
Depreciation (note 12)
18,986
16,400
Impairment losses (note 12)
133
35
Impairment loss on adjustments to fair value of assets held for sale
-
1,376
(Reversal)/Provision for expected credit loss (note 18):
- continuing operations
(9)
331
- discontinued operations
-
7
(9)
338
Exchange gains
(1,056)
(164)
Legal and professional fees
1,371
1,426
Staff costs (note 7)
59,266
64,823
Remuneration received by the Group’s auditor or associates of the
Group’s auditor:
- Audit of parent company
5
5
- Audit of consolidated financial statements
289
299
- Audit of UK subsidiaries
13
13
Total audit services
307
317
Non-audit service
- Audit related assurance service (interim review)
13
10
Total audit and non-audit service
320
327
Audit of overseas subsidiaries
- Malaysia
27
22
- Indonesia
150
152
Total audit services
177
174
Total auditor’s remuneration
497
501
147
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
6
Segment information
Description of the types of products and services from which each reportable segment derives its
revenues
In the opinion of the Directors, the operations of the Group comprise one class of business which is
the cultivation of plantation in Indonesia and Malaysia. From the cultivation of plantation, the Group
produced the crude palm oil and associated products such as palm kernel, biogas products and
rubber.
Factors that management used to identify reportable segments in the Group
The reportable segments in the Group are strategic business units based on the geographical spread.
Operating segments are consistent with the internal reporting provided to the Board of Directors.
The Board of Directors is responsible for allocating resources and assessing the performance of the
operating segments. The Board decision is implemented by the Management Committee, that is
made up of a Group Chief Executive Officer, Chief Corporate Planning & ESG Officer and Group
Accountant in Malaysia, the President Director, the Chief Operating Officer, Finance Director and the
Engineering Director in Indonesia.
Measurement of operating segment profit or loss, assets and liabilities
The Group evaluates segmental performance on the basis of profit or loss before tax calculated in
accordance with IFRS.
Inter-segment transactions are made based on terms mutually agreed by the parties to maximise
the utilisation of Group’s resources at a rate acceptable to local tax authorities. This policy was applied
consistently throughout the current and prior period.
The Group’s assets are allocated to segments based on geographical location.
148
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
6
Segment information (continued)
North
Sumatera
Bengkulu
Riau
Bangka
Kalimantan
Total
Indonesia
Malaysia
UK
Total from
continuing
operations
$000
$000
$000
$000
$000
$000
$000
$000
$000
2024
Total sales revenue (all external)
- CPO and palm kernel
134,013
96,639
59,405
-
68,688
358,745
-
-
358,745
- FFB
-
-
-
3,212
2,821
6,033
2,890
-
8,923
- Rubber
112
-
-
-
-
112
-
-
112
- Shell nut
1,281
1,148
1,368
-
43
3,840
-
-
3,840
- Biogas products
87
216
-
-
334
637
-
-
637
- Others
-
-
-
-
-
-
6
-
6
Total revenue
135,493
98,003
60,773
3,212
71,886
369,367
2,896
-
372,263
Profit/(loss) before tax for the
year per consolidated income
statement
43,663
11,281
13,351
(731)
22,941
90,505
(857)
(1,558)
88,090
Interest income
3,569
877
792
3
70
5,311
49
5
5,365
Interest expense
(22)
-
-
-
-
(22)
(23)
(20)
(65)
Depreciation
(7,281)
(3,703)
(831)
(598)
(6,200)
(18,613)
(277)
(96)
(18,986)
Impairment losses
-
-
-
-
-
-
(133)
-
(133)
(Provision)/Reversal for
expected credit loss
(4)
1
-
(1)
13
9
-
-
9
Inter-segment transactions
6,354
(2,804)
(802)
(455)
(3,059)
(766)
715
51
-
Inter-segmental revenue
23,812
2,489
-
-
12,899
39,200
-
-
39,200
Tax (expense)/credit
(11,607)
(1,723)
(3,066)
268
(4,180)
(20,308)
(167)
(3)
(20,478)
Total assets
251,963
113,498
40,488
20,079
145,586
571,614
25,259
3,759
600,632
Non-current assets
80,473
52,375
8,171
16,838
105,239
263,096
7,621
453
271,170
Non-current assets - additions
7,021
9,823
1,199
1,576
9,009
28,628
287
208
29,123
Total liabilities
(16,096)
(11,222)
(5,164)
(534)
(7,624)
(40,640)
(865)
(668)
(42,173)
149
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
6
Segment information (continued)
North
Sumatera
Bengkulu
Riau
Bangka
Kalimantan
Total
Indonesia
Malaysia
UK
Total from
continuing
operations
South*
Sumatera
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
2023
Total sales revenue (all
external)
- CPO and palm
kernel
120,788
100,998
53,193
-
82,204
357,183
-
-
357,183
3,810
- FFB
-
-
-
3,315
1,426
4,741
2,043
-
6,784
-
- Rubber
529
-
-
-
-
529
-
-
529
-
- Shell nut
2,013
1,299
1,479
-
53
4,844
-
-
4,844
-
- Biogas products
339
350
-
-
392
1,081
-
-
1,081
-
- Others
-#
-#
-
-#
-#
-#
14
-#
14#
122
Total revenue
123,669#
102,647#
54,672
3,315#
84,075#
368,378#
2,057
-#
370,435#
3,932
Profit/(loss) before
tax for the year
per consolidated
income statement
31,876
15,363
13,432
(90)
19,403
79,984
(890)
(1,286)
77,808
(1,947)
Interest income
4,392
2,358
1,106
1
47
7,904
69
4
7,977
3
Interest expense
(26)
-
-
-
-
(26)
(11)
(8)
(45)
-
Depreciation
(5,139)
(3,561)
(854)
(488)
(6,131)
(16,173)
(203)
(24)
(16,400)
-
Impairment losses
-
-
-
-
-
-
(35)
-
(35)
-
(Provision)/Reversal
for expected credit
loss
(17)
57
-
-
(387)
(347)
-
16
(331)
(7)
Inter-segment
transactions
(1,011)
(2,310)
(6,815)
(358)
3,464
(7,030)
533
50
(6,447)
6,447
Inter-segmental
revenue
33,790
5,296
-
-
10,947
50,033
-
-
50,033
2,716
Tax (expense)/credit
(Restated)
(7,659)
(2,619)
(1,368)
68
(4,921)
(16,499)
17
(5,233)
(21,715)
(584)
150
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
6
Segment information (continued)
North
Sumatera
Bengkulu
Riau
Bangka
Kalimantan
Total
Indonesia
Malaysia
UK
Total from
continuing
operations
South*
Sumatera
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Total assets
(Restated)
231,013#
107,389
41,794#
18,951
149,629
548,776#
10,519
5,478
564,773#
-
Non-current assets
85,235
48,846
8,196
16,648
107,574
266,499
7,542
341
274,382
-
Non-current assets
- additions
9,792
10,612
1,100
1,945
10,041
33,490
496
365
34,351
-
Total liabilities
(Restated)
(17,401)
(10,938)
(4,006)
(310)
(10,256)
(42,911)
(606)
(641)
(44,158)
-
The details of prior year restatements are disclosed in note 32.
*
South Sumatera represents the operations which have been discontinued and have therefore been separated from the continuing
operations. The details of discontinued operations for South Sumatera are disclosed in note 9.
#
A reclassification of certain revenue amounts to other income, totalling $527,000, was made for the year ended 31 December 2023.
Further details are provided in Note 3, which also includes the reclassification of plasma from non-current to current receivables, the
correction of deferred tax on temporary differences, and the reversal of an immaterial provision, as disclosed in Note 32.
Below is an analysis of revenue from the Group’s top 4 customers, incorporating all those contributing greater than 10% of the Group’s
external revenue in accordance with the requirements of IFRS 8. In year 2024, revenue from top 4 customers of the Indonesian segment
represents approximately $165.8m (2023: $194.2m) of the Group’s total revenue for continuing operations. Although Customer 1 to 4
made up over 10% of the Group’s total revenue, there was no over reliance on these Customers as tenders were performed on a weekly
basis involving numerous other potential customers. Three of the top four customers were the same as in the prior year.
North
Sumatera
Bengkulu
Riau
Bangka
Kalimantan
Total
Indonesia
Malaysia
UK
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
2024
Customer 1
14,772
19,944
20,968
-
28,948
84,632
-
-
84,632
Customer 2
-
31,809
-
-
-
31,809
-
-
31,809
Customer 3
26,392
6
-
-
-
26,398
-
-
26,398
Customer 4
14,943
-
7,973
-
-
22,916
-
-
22,916
56,107
51,759
28,941
-
28,948
165,755
-
-
165,755
151
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
6
Segment information (continued)
North
Sumatera
Bengkulu
Riau
Bangka
Kalimantan
Total
Indonesia
Malaysia
UK
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
2023
Customer 1
-
15,001
25,203
-
24,565
64,769
-
-
64,769
Customer 2
-
53,607
-
-
-
53,607
-
-
53,607
Customer 3
41,735
1,362
-
-
-
43,097
-
-
43,097
Customer 4
32,738
-
-
-
-
32,738
-
-
32,738
74,473
69,970
25,203
-
24,565
194,211
-
-
194,211
%
%
%
%
%
%
%
%
%
2024
Customer 1
4.0
5.4
5.6
-
7.8
22.8
-
-
22.8
Customer 2
-
8.5
-
-
-
8.5
-
-
8.5
Customer 3
7.1
-
-
-
-
7.1
-
-
7.1
Customer 4
4.0
-
2.1
-
-
6.1
-
-
6.1
15.1
13.9
7.7
-
7.8
44.5
-
-
44.5
2023
Customer 1
-
4.0
6.8
-
6.6
17.4
-
-
17.4
Customer 2
-
14.5
-
-
-
14.5
-
-
14.5
Customer 3
11.3
0.4
-
-
-
11.7
-
-
11.7
Customer 4
8.8
-
-
-
-
8.8
-
-
8.8
20.1
18.9
6.8
-
6.6
52.4
-
-
52.4
Save for a small amount of rubber, all the Group’s operations are devoted to oil palm. The Group’s report is by geographical area, as each
area tends to have different agricultural conditions.
152
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
7
Employees' and Directors' remuneration
2024
Number
2023
Number
Average numbers employed (primarily overseas) during the year:
- full-time
7,486
7,515
- part-time field workers
7,954
7,812
15,440
15,327
2024
$000
2023
$000
Staff costs (including discontinued operations) comprise:
Wages and salaries
53,622
57,173
Social security costs
3,798
4,058
Retirement benefit costs
- United Kingdom
-
-
- Indonesia
1,776
3,543
- Malaysia
70
49
59,266
64,823
The information required by the Large and Medium-sized Companies and Groups (Accounts and
Reports) Regulations 2008 contained in the Directors’ Remuneration Report on page 42 and the
labelled information on page 44 has also been audited.
2024
$000
2023
$000
Directors’ emoluments
444
321
2024
$000
2023
$000
Remuneration expense for key management personnel comprise:
Short-term employee benefits
2,478
2,170
Post-employment benefits
-
-
2,478
2,170
The Executive Director, Non-Executive Directors and senior management (general managers
and above) are considered to be the key management personnel. The remuneration of Executive
Director and Non-Executive Directors is shown on page 42. No short-term employee benefits have
been provided to the Directors.
153
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
8
Tax expense
2024
$000
(Restated)
2023
$000
Foreign corporation tax - current year
18,163
19,450
Foreign corporation tax - prior year
828
308
Deferred tax adjustment - reversal of temporary differences (note 15)
1,628
1,904
Deferred tax - prior year (note 15)
(141)
53
Total tax charge for year
20,478
21,715
Corporation tax rate in Indonesia is at 22% (2023: 22%) whereas Malaysia is at 24% (2023: 24%). The
standard rate of corporation tax in the UK for the current year is 25% (2023: 23.5%). The Group’s
charge for the year differs from the standard Indonesian rate of corporation tax as explained below:
2024
$000
(Restated)
2023
$000
Profit before tax from continuing operations
88,090
77,808
Profit before tax multiplied by standard rate of Indonesia corporation
tax of 22% (2023: 22%)
19,380
17,118
Effects of:
Irrecoverable withholding tax
782
5,183
Group accounting adjustments not subject to tax
(136)
1,154
Expenses not allowable for tax
860
970
Deferred tax assets not recognised
89
84
Income not subject to tax
(1,184)
(1,737)
Under provision of prior year income tax
828
308
Utilisation of tax losses not previously recognised
-
(1,418)
Under provision of prior year deferred tax
(141)
53
Total tax charge for year
20,478
21,715
The above reconciliation has been prepared by reference to the Indonesian tax rate rather than
the UK tax rate as, in accordance with IAS 12, this is the applicable tax rate that provides the most
meaningful information, given this is the country in which the majority of tax arises.
The provision for tax expenses under Foreign corporation tax - current year in 2023 has been
restated from $17,760,000 to $19,450,000, and the deferred tax adjustment has changed from
$2,049,000 to $1,904,000 due to the restatement of deferred tax assets. The restatement relates to
the non-recognition of deferred tax assets in respect of tax losses, as well as the deferred tax impact
of group-level adjustments. As a result, additional tax expense has been recorded from $20,170,000
to $21,175,000. Please refer to Note 32 for details of the prior year adjustments.
154
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
8
Tax expense (continued)
The tax receivables represent the corporate income tax (“CIT”) and value added tax (“VAT”) that have
yet to be refunded by the Indonesia tax authority. The tax receivables relating to CIT arose due to over
payment of tax. The tax receivables relating to VAT as shown in the table below under other taxes
arose because the majority of the Groups’ CPO was sold to bonded zones which do not attract output
VAT whilst input VAT on purchases is claimable. Upon submission of a tax return (for CIT) or a request
letter (for VAT refund), a tax audit will be conducted by the tax authority and whilst every effort is
made to resolve this quickly, the process can sometimes take more than 12 months.
The breakdown of the tax receivables and tax liabilities is as follows:
2024
$000
(Restated)
2023
$000
Tax Receivables
Income tax
18,316
17,497
Other taxes
43,749
40,575
62,065
58,072
Tax Liabilities
Income tax
(5,466)
(2,951)
Other taxes
(1,201)
(1,184)
(6,667)
(4,135)
Critical judgement on carrying value of income tax receivables and provision for income taxes
Management has exercised significant judgement in determining the recoverability of income tax
receivables, which mainly comprise long-outstanding claims from the Indonesian tax authority.
Given the prolonged settlement timeline and uncertainty around the outcome, the Group assessed
these balances based on historical recovery trends, legal interpretations, and advice from local
tax advisors. Where recovery is uncertain, a provision has been made. Judgement is also applied
in estimating provisions for income tax liabilities, reflecting potential exposures from differing
interpretations of tax laws in various jurisdictions. Changes in assumptions or tax developments
could materially impact these balances.
9
Assets held for sale and discontinued operations
PT Riau Agrindo Agung, PT Karya Kencana Sentosa Tiga and PT Empat Lawang Agro Perkasa (“South
Sumatera Plantations”), subsidiaries of the Group, had on 5 July 2023, completed the disposal of its
entire 100% equity interest to Mrs Lina (also known as Liena Efendy) and Miss Lenny Nurimba for a
total cash consideration of $8,500,000.
The entire operations of the disposal group are presented within the South Sumatera operating
segment disclosed in Note 7 and represent a separate geographical area of operations. The activities
for the financial year ended 31 December 2023 have been classified as discontinued operations in
the consolidated income statement as a single line.
155
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
9
Assets held for sale and discontinued operations (continued)
The post-tax loss on disposal of discontinued operations was determined as follows:
Note
2023
$000
Discontinued operations
Revenue
6
3,932
Cost of sales
(5,707)
Changes in fair value of biological assets
(111)
Gross loss
(1,886)
Administration expenses
(56)
Impairment loss
12
-
Provision for expected credit loss
18
(7)
Operating loss
(1,949)
Exchange loss
(1)
Finance income
3
Finance expense
-
Loss before tax
6
(1,947)
Tax expense
(584)
Loss for the year from discontinued operations
(2,531)
Impairment loss on adjustment to fair value
(1,376)
Recycling of foreign exchange on disposal
10,431
6,524
Attributable to:
- Owners of the parent
3,807
- Non-controlling interests
2,717
6,524
Earnings per share attributable to the owners of the parent during the
year
- Basic and diluted EPS
9.62cts
156
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
9
Assets held for sale and discontinued operations (continued)
Statement of cash flows
The statement of cash flows includes the following amounts relating to discontinued operations:
2023
$000
Operating activities
(1,808)
Investing activities
(1,786)
Financing activities
-
Net decrease in cash and cash equivalents from discontinued operations
(3,594)
The following major classes of assets relating to the discontinued operations have been classified
as held for sale in the consolidated statement of financial position before their respective dates of
disposal:
2023
$000
Property, plant and equipment
26,017
Impairment loss on adjustment to fair value
(26,017)
Property, plant and equipment net of impairment losses
-
Non-current receivables
5,763
Impairment loss on adjustment to fair value
(230)
Non-current receivables net of impairment losses
5,533
Deferred tax assets
2,821
Inventories
108
Income tax receivable
35
Biological assets
-
Trade and other receivables
3
Exchange differences
-
Total assets held for sale
8,500
In 2023, an accumulated impairment loss of $26,247,000 on the measurement of the disposal
group to fair value less cost to sell has been recognised and was included in discontinued operations.
The difference of impairment loss was due to exchange in translation and further impairment of
$1,376,000 in 2023. The fair value is based on the actual selling price. They are categorised as level
3 non-recurring fair value measurements. The fair value measurement is based on the above items’
highest and best uses, which do not differ from their actual use.
157
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
9
Assets held for sale and discontinued operations (continued)
Statement of cash flows (continued)
Details of the assets, liabilities and net cashflow arising from the disposal of the subsidiaries are as
follows:
2023
$000
Consideration received
8,500
Property, plant and equipment net of impairment losses
-
Non-current receivables
5,533
Deferred tax assets
2,821
Inventories
108
Income tax receivable
35
Trade and other receivables
3
Net assets disposed
8,500
Gain before reclassification adjustment
-
Recycling of foreign exchange on disposal
10,431
Gain on disposal of the subsidiaries
10,431
Consideration received
8,500
Less: cash and cash equivalents in the subsidiaries
-
Net cash inflow from disposal of subsidiaries
8,500
10
Earnings per ordinary share (“EPS”)
2024
$000
(Restated)
2023
$000
Earnings used in basic and diluted EPS
Total operations
67,514
53,225
Continuing operations
67,514
49,418
Discontinued operations
-
3,807
158
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
10
Earnings per ordinary share (“EPS”) (continued)
2024
Number
‘000
(Restated)
2023
Number
‘000
Weighted average number of shares in issue in the year
- used in basic EPS
39,510
39,560
- dilutive effect of outstanding share options
-
-
- used in diluted EPS
39,510
39,560
Basic and diluted EPS
Total operations
170.88cts
134.54cts
Continuing operations
170.88cts
124.92cts
Discontinued operations
-
9.62cts
The details of prior year restatement are disclosed in note 32.
11
Dividends
2024
$000
2023
$000
Paid during the year
Final dividend of 15.0cts per ordinary share for the year ended 31
December 2023 (2022: 25.0cts)
5,923
9,909
Interim dividend of 15.0cts per ordinary share for the year ended 31
December 2024 (2023: 15.0cts)
-
5,945
Proposed final dividend of 51.0cts per ordinary share for the year
ended 31 December 2024 (2023: 15.0cts)
20,139
5,923
The proposed dividend for 2024 is subject to shareholders’ approval at the forthcoming annual
general meeting and has not been included as a liability in these financial statements.
159
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
12
Property, plant and equipment
Plantations
Mill
Leasehold
land
Buildings
Estate
plant,
equipment
& vehicle
Office
plant,
equipment
& vehicle
Right
-of-use
assets#
Construction
in progress
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
Cost
At 1 January 2023
185,446
73,587*
49,803
57,262
16,109
1,926
883
19,232*
404,248
Exchange translations
3,062
1,506
345
1,036
209
(1)
(5)
302
6,454
Reclassification
-
25
-
5,531
3
(9)
-
(5,550)
-
Additions
4,430
5,935
2,159
419
1,580
439
1,160
9,862
25,984
Development costs
capitalised
7,545
-
819
-
3
-
-
-
8,367
Disposals
(161)
(210)
-
-
(144)
(157)
-
-
(672)
Written off
(1,556)
(1,589)
(3)
(277)
(498)
(77)
(466)
-
(4,466)
At 31 December 2023
198,766
79,254*
53,123
63,971
17,262
2,121
1,572
23,846*
439,915
Exchange translations
(8,628)
(4,111)
(1,770)
(2,977)
(692)
(57)
(4)
(719)
(18,958)
Reclassification
-
21,757
-
5,793
47
-
-
(27,597)
-
Additions
348
3,964
2,641
477
1,644
464
82
8,039
17,659
Development costs
capitalised
11,464
-
-
-
-
-
-
-
11,464
Disposals
(1,344)
(1,352)
-
-
(121)
(26)
-
-
(2,843)
Written off
(2,431)
(1,150)
(3)
(528)
(984)
(81)
-
-
(5,177)
At 31 December 2024
198,175
98,362
53,991
66,736
17,156
2,421
1,650
3,569
442,060
160
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
12
Property, plant and equipment (continued)
Plantations
Mill
Leasehold
land
Buildings
Estate
plant,
equipment
& vehicle
Office
plant,
equipment
& vehicle
Right
-of-use
assets#
Construction
in progress
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
Accumulated depreciation
and impairment
At 1 January 2023
75,606
31,928
3,809
26,167
12,353
1,088
883
-
151,834
Exchange translations
860
628
(113)
442
139
(11)
-
-
1,945
Reclassification
-
8
-
-
(8)
-
-
-
-
Charge for the year
7,593
4,009
114
3,066
1,313
112
193
-
16,400
Impairment losses
-
-
-
-
35
-
-
-
35
Disposal
-
(139)
-
-
(128)
(139)
-
-
(406)
Written off
(1,525)
(1,554)
-
(164)
(486)
(80)
(466)
-
(4,275)
At 31 December 2023
82,534
34,880
3,810
29,511
13,218
970
610
-
165,533
Exchange translations
(3,196)
(1,682)
52
(1,339)
(503)
(17)
-
-
(6,685)
Reclassification
-
(18)
-
4
14
-
-
-
-
Charge for the year
7,761
6,092
113
3,146
1,308
267
299
-
18,986
Impairment losses
-
-
-
67
1
-
65
-
133
Disposal
(882)
(1,327)
-
-
(120)
(22)
-
-
(2,351)
Written off
(2,289)
(1,037)
-
(381)
(941)
(78)
-
-
(4,726)
At 31 December 2024
83,928
36,908
3,975
31,008
12,977
1,120
974
-
170,890
Carrying amount
At 31 December 2022
109,840
41,659*
45,994
31,095
3,756
838
-
19,232*
252,414
At 31 December 2023
116,232
44,374*
49,313
34,460
4,044
1,151
962
23,846*
274,382
At 31 December 2024
114,247
61,454
50,016
35,728
4,179
1,301
676
3,569
271,170
#
Right-of-use assets had been disclosed in note 21.
*
As part of the FY2024 review, the Group has reclassified the cost and net book value as of 1 January 2023, amounting to $2,246,000,
from mills into construction in progress. This reclassification provides a more accurate representation of the assets, with no impact on
the net book value of property, plant, and equipment. Accordingly, the balances as of 31 December 2023 have also been reclassified,
transferring $2,246,000 from mills to construction in progress.
161
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
12
Property, plant and equipment (continued)
The average capitalisation rate of borrowing costs was 0% (2023: 0%) as there were no borrowings
in either 2024 or 2023 from which borrowing costs could be capitalised. The estates included $nil
(2023: $nil) of interest and $2,458,000 (2023: $412,000) of overheads capitalised during the year in
respect of expenditure on estates under development.
The Indonesian authorities have granted certain land exploitation rights and operating permits for
the estates. In the case of established estates in North Sumatera, these rights and permits expire
between 2026 and 2058 with rights of renewal thereafter. As of estates in Bengkulu land titles
were issued between 1994 and 2016 and the titles expire between 2028 and 2051 with rights of
renewal thereafter for two consecutive periods of 25 and 35 years respectively. In Riau, land titles
were issued in 2003 and expire in 2033 with rights of renewal thereafter. In Kalimantan, land titles
were issued between 2015 and 2019 and expire between 2049 and 2054 with rights of renewal
thereafter. In Bangka, land titles were issued in 2018 and expire in 2053.
Critical judgement on classification of land as leasehold with no depreciation charge
Subject to compliance with the laws and regulations of Indonesia, land rights are usually renewed.
The cost of renewing the land rights is not significant. On the basis that the Group has an indefinite
right to renew, leasehold land is not depreciated except leasehold land in Malaysia. The land title of
the estate in Malaysia is a long-term lease expiring in 2084.
Critical estimate on impairment of plantation assets
In accordance with IAS 36, management assesses indicators of impairment at each reporting date.
These indicators include historical production levels, comparisons between historical and forecasted
CPO and FFB prices, average historical and forecasted EBITDA, and the expected recovery period of
the CGU’s carrying amount.
An impairment loss of $133,000 (2023: $35,000) related to building and right-of-use asset in Malaysia
was provided for 2024 as the recoverable amounts based on its value-in-use were lower than the
carrying amounts and the reason of acquisition of the plant and equipment was for corporate
social responsibility purposes. The recoverable amounts are $nil (2023: $nil) as the subsidiary in
Malaysia is making losses.
Impairment for cash generating units (“CGUs”) is measured by comparing their carrying amount
with their recoverable amount, which is the higher of the fair value less cost to sell or their value
in use. The impairment assessment is performed against the combined cost of PPE and other
working capital for each company, which represents the CGUs, except Alno, which has been split
into 2 CGUs as Alno and Sumindo. This is because the plantations within each company are located
in close proximity and share similar soil and climate conditions, as well as interdependent assets,
thereby operating as a single cash-generating unit. The recoverable amount has been determined
based on value in use calculations. However, where value in use could not be reliably measured,
management has determined recoverable amount based on fair value less costs of disposal, using
a price per hectare approach. For this purpose, management engaged an external expert to assist
in the valuation.
Based on the assessment carried out by management, no impairment has been recognised in
2024 in respect of land and plantations in Indonesia (2023: $nil).
162
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
12
Property, plant and equipment (continued)
The value in use for certain CGUs, including Alno and HPP, have been determined by management
using a discounted cash flow (“DCF”) model. Projected future cash flows are assessed over the
expected economic life of the assets, which ranges from 13 to 25 years, and discounted at 12.2%
(2023: 13.5%). These projections are based on historical data, industry performance, economic
conditions, and other available information, including the impact of climate change.
For remaining CGUs, including KAP, BML, Sumindo, MPM valuations have been performed using
market comparisons conducted by independent valuers, MV Valuers from Malaysia. These valuations
take into account prevailing market conditions, recent transactions, and other relevant industry
benchmarks.
Compliance with changing regulations, changes in buyer preferences, development of new
products and use of lower emission sources of energy will affect the FFB production, CPO price and
its growth. Heavy rainfall & flooding, droughts and fires will have an effect on company specific risk
within the calculation of our discount rate as well as potential impacts on the ability of our plants
to produce FFB. Pests & disease will impact the upkeeping cost.
The key assumptions have been identified as the CPO CIF-Rotterdam price, the pre-tax discount
rate and the inflation rate. Based on sensitivity analysis performed, there are no reasonably possible
changes in these assumptions which would have a material impact on impairment.
13
Investment
Investment analysed as:
2024
$000
2023
$000
Non-current
5,111
10,035
Current
23,976
-
29,087
10,035
The movement of the fair value through profit and loss investment as following:
2024
$000
2023
$000
1 January
10,035
42
Additions
45,990
9,948
Disposal
(28,069)
-
Change in fair value recognised in profit and loss
1,131
45
31 December
29,087
10,035
163
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
13
Investment (continued)
Fair value through profit and loss financial assets includes the following:
2024
$000
2023
$000
Quoted:
Equity securities – United Kingdom
27
27
Bonds - Indonesia
18,014
-
Treasury Bills – United States
5,962
-
Unquoted:
Investment portfolio - Luxembourg
5,084
10,008
29,087
10,035
Fair value through profit and loss financial assets are denominated in the following currencies:
2024
$000
2023
$000
Currency
Sterling
27
27
US Dollar
29,060
10,008
29,087
10,035
The fair value of investment for quoted equity securities is classified as Level 1 in the fair value
hierarchy and fair value of investment for unquoted investment portfolio is classified as Level 2.
The valuation inputs for quoted equity securities are obtained from the active market while for
unquoted investment portfolio is obtained from the custodian bank. For investment portfolios
subject to capital protection arrangements, where the fair value was below the original cost in 2023,
the Group historically recognised these investments at cost, relying on the capital protection feature
to guarantee recovery of the initial investment amount. In 2024, the fair value of the investment
portfolio has risen above cost.
14
Receivables: non-current
2024
$000
2023
$000
Due from cooperatives under Plasma scheme
Current (note 18)
2,278
2,689
Non-current
19,363
17,617
21,641
20,306
164
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
14
Receivables: non-current (continued)
Critical judgement on de-facto control of cooperative under Plasma scheme
Plasma scheme is an initiative by the Indonesian Government that mandated plantation owners to
allocate a percentage of their land acquired to the surrounding community and to further provide
financial and technical assistance to cultivate oil palm on that land to improve the income and welfare
of the community or cooperatives. The Group does not have de facto control or significant influence
over the decision-making processes of the cooperatives. Refer to Note 2(a) for further details.
The Group makes finance available to its associated co-operatives under Plasma scheme, covering
both the immature stage of initial plantings and working capital needs for mature areas. Furthermore,
the Group provides financial guarantees for certain bank loans outstanding amounting to $0.3
million (2023: $0.9 million), as disclosed in Note 27.
Throughout the year, certain subsidiary companies collectively funded Plasma with a gross amount
of $22,105,000 (2023: $20,788,000) before ECL, recoverable from the cooperatives. Details on ECL
are provided in note 18. The Group incurred additional capital expenditure of $5,010,000 in FY2024
(2023: $4,894,000) and received repayments of $2,689,000 in 2024 through the sale of FFB from the
cooperative (2023: $1,921,000).
Critical judgement on measurement of plasma receivables
All balances due from cooperatives under the Plasma scheme, including those related to immature
areas, are repayable on demand as there are no formal terms in place. However, the Group may grant
extended financing periods at its discretion. The directors consider that the carrying amount due
from cooperatives under Plasma scheme closely approximates their fair value. There is no discounting
applied to these amounts, as they are repayable on demand. The amounts due are classified between
the portions that are current and non-current. The non-current portion relates to the amounts that
are not expected to be settled or recovered within 12 months from the reporting date.
Prior year reclassification
During the financial year ended 31 December 2024, the Group undertook a review of the
classification of receivables due from cooperatives under the plasma scheme. Following this
reassessment, the Group determined that certain amounts previously presented as non-current
assets in the statement of financial position as at 31 December 2023 should be more appropriately
classified as current assets, given that these receivables were settled during 2024. As a result, the
Group retrospectively reclassified $2,689,000 and $1,921,000 from non-current assets to current
assets in FY2023 and FY2022, respectively. This change reflects a reclassification in presentation
and does not constitute a correction of an error under IAS 8. The reclassification has no impact on
total assets, net profit, or retained earnings in either the current or prior year.
15
Deferred tax
The movement on the deferred tax account as shown below:
2024
$000
(Restated)
2023
$000
At 1 January
1,313
3,146
Recognised in income statement from continuing operations
(1,487)
(1,957)
Recognised in other comprehensive income
(95)
93
Exchange differences
(56)
31
At 31 December
(325)
1,313
165
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
15
Deferred tax (continued)
The deferred tax assets as at 1 January 2023 have been restated from $12,026,000 to $3,146,000, and
the amount recognised in the income statement from continuing operations has been revised from
$2,102,000 to $1,957,000. These adjustments reflect the restatement of deferred tax assets related to
tax losses and the recognition of deferred tax assets arising from other temporary differences. Further
details are provided in Note 32.
The most significant movement in deferred tax was due to the utilisation of some of the losses
against taxable profits during the year.
The deferred tax asset and liability, together with the amounts recognised in income statement
and other comprehensive income are detailed as follows:
Asset
$000
Liability
$000
Net
$000
(Charged)/
credited
to income
statement
$000
(Charged)/
credited to
equity
$000
2024
Impairment of land
159
-
159
-
-
Retirement benefits
2,036
-
2,036
299
(95)
Biological assets
-
(1,757)
(1,757)
(630)
-
Unutilised tax losses
1,152
-
1,152
417
-
Unremitted earnings
-
(1,360)
(1,360)
-
-
Other temporary
differences
638
(1,193)
(555)
(1,573)
-
Tax assets/(liabilities)
3,985
(4,310)
(325)
(1,487)
(95)
Set off of tax
(2,085)
2,085
-
-
-
Net tax assets/(liabilities)
1,900
(2,225)
(325)
(1,487)
(95)
2023 (Restated)
Impairment of land
167
-
167
-
-
Retirement benefits
1,920
-
1,920
305
93
Biological assets
-
(1,193)
(1,193)
192
-
Unutilised tax losses
779
-
779
(572)
-
Unremitted earnings
-
(567)
(567)
-
-
Other temporary
differences
573
(366)
207
(1,882)
-
Tax assets/(liabilities)
3,439
(2,126)
1,313
(1,957)
93
Set off of tax
(1,313)
1,313
-
-
-
Net tax assets/(liabilities)
2,126
(813)
1,313
(1,957)
93
The deferred tax assets of unutilised tax losses have been restated from $10,331,000 to $779,000
as well as charge to income statement restated from $2,262,000 to $572,000. The deferred tax
assets related to other temporary differences have been restated from nil to $573,000. In addition,
the charge to the income statement has been restated by $1,545,000, increasing from $337,000 to
$1,882,000. Further details are provided in Note 32.
166
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
15
Deferred tax (continued)
2024
$000
2023
$000
A deferred tax asset has not been recognised for the following items:
Unutilised tax losses
30,721
21,206
Critical judgement on deferred tax on losses
The Group had recognised tax assets arising from the unutilised tax losses of certain subsidiaries
as the Group believes that the tax assets of these subsidiaries can be realised in the future periods
based on their budget, as their respective plantation assets becoming more mature and historically
resulting in the companies becoming profitable. However, the Group does not recognise the
tax losses in certain companies within the Group as tax assets in UK and Malaysia as the future
recoverability of losses of these companies cannot be certain and insufficient forecast future taxable
profits. The time limit on utilisation of tax losses is subject to the tax laws in various countries. As
of 31 December 2024, the relevant time limits are 5 years in Indonesia, 7 years in Malaysia and
unlimited in UK.
At 31 December 2024, all unutilised tax losses were recognised in Indonesia. The unutilised tax
losses will expire as per below:
Year
$000
2025
316
2027
333
2028
94
2029
409
1,152
At the balance sheet date, the aggregate amount of temporary differences associated with
undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised was
$839,135,000 (2023: $845,774,000). No liability has been recognised in respect of these differences
because either the Group is in a position to control the timing of the reversal of the temporary
differences and does not expect such a reversal to occur in the foreseeable future, or such a reversal
would not give rise to an additional tax liability. The deferred tax liability on unremitted earnings
recognised at the balance sheet date was related to the estimated dividend declared for 2024 by
the subsidiaries.
16
Inventories
2024
$000
2023
$000
Estate and mill consumables
6,902
9,443
Processed produce for sale
11,865
7,241
18,767
16,684
167
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
16
Inventories (continued)
The movement on the inventories as shown below:
2024
$000
2023
$000
As at 1 Jan
16,684
19,590
Purchase of FFB
174,022
160,317
Labour and production overheads
115,468
127,693
Total purchase production cost
289,490
288,010
Less: cost of sales recognised in income statement
(286,583)
(291,553)
Reversal of inventory write-down
-
210
Exchange differences
(824)
427
18,767
16,684
During the financial year, inventories recognised as an expense amounted to $286,583,000 (2023:
$291,553,000).
This includes the cost of raw materials (including purchases of Fresh Fruit Bunches), direct labour,
and production overheads related to inventories sold during the year. In FY2023, it also includes
reversals of such write-downs that were recognised in previous periods.
17
Biological assets
2024
$000
2023
$000
At 1 January
5,419
6,161
Changes in fair value less cost to sell
165,924
146,616
Decreases due to harvest
(162,982)
(147,491)
Fair value gain/(loss) recognised in the income statement for
continuing operations
2,942
(875)
Exchange translations
(304)
133
At 31 December
8,057
5,419
Critical estimate on valuation of biological assets
The estimation in respect of FFB prior to harvest is based on the market price of FFB in each of the
Group’s locations on 31 December, less the cost of harvesting and transport to mill. The market
price is applied to a weight of FFB. This weight derives from the assumption that value accrues
exponentially to FFB from the increase in oil content in the two weeks prior to harvest: in terms of
tonnage at any given month end, equivalent to 50% of the following month’s crop.
The fair value of biological assets is classified as Level 3 in the fair value hierarchy. During the year, all
of the opening balance of biological assets was harvested while all of the closing balance arose in
the year due to movements in fair value less costs to sell. The gain or loss recognised in the income
statement represents the net movement in the fair value of biological assets during the year.
168
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
17
Biological assets (continued)
The valuation techniques and significant unobservable inputs used in determining the fair value
measurement of biological assets, as well as the inter-relationship between key unobservable
inputs and fair value, are set out in the table below:
Item
Valuation
approach
Inputs used
Inter-relationship between key
unobservable inputs and fair value
Biological assets
- Unharvested
produce
Based on FFB
weight multiplied
by the sum of FFB
selling price less
harvesting cost
FFB weight
FFB selling price
Harvesting cost
The higher the weight, the higher the
fair value
The higher the selling price, the
higher the fair value
The higher the harvesting cost, the
lower the fair value
The key assumptions are considered to be the computation of oil content of FFB based on research
studies, selling price less harvesting costs and FFB production and a decrease of 1% in any of these
would result in an $81,000 decrease in the valuation.
18
Trade and other receivables
2024
$000
2023
$000
Trade receivables
458
1,040
Other receivables
852
4,752
Prepayments and accrued income
3,474
4,897
Due from cooperatives under Plasma scheme (note 14)
2,278
2,689
7,062
13,378
The carrying amount of trade and other receivables classified as amortised cost approximates fair
value.
Trade receivables
The Group applies the IFRS 9 simplified approach to measure ECL using a lifetime ECL provision
for trade receivables. To measure ECL on a collective basis, trade receivables are grouped based on
similar credit risk and age.
The expected loss rate is based on a combination of the Group’s historical credit losses experienced
over the 5-year period prior to the year end and forward-looking information on macroeconomic
factors affecting the Group’s customers. The ECL has been calculated at 1% on trade receivables
balances.
Other receivables
The Group assesses the ECL associated with its debt instruments carried at amortised cost on a
forward-looking basis using the three-stage approach. The impairment methodology applied
depends on whether there has been a significant increase in credit risk.
169
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
18
Trade and other receivables (continued)
The Group considers the probability of default upon initial recognition of an asset and whether there
has been significant increase in credit risk on an on-going basis at each reporting date. To assess
whether there is a significant increase in credit risk, the Group compares the risk of default occurring
on the asset as at the reporting date with the risk of default as at the date of initial recognition. The
Group considers available, reasonable and supportable forward-looking information, such as:
-
internal credit rating;
-
external credit rating (as far as available);
-
actual or expected significant adverse changes in business, financial or economic conditions
that are expected to cause a significant change to the debtor’s ability to meet its obligation;
-
significant changes in the value of the collateral supporting the obligation or in the quality of
third-party guarantees or credit enhancements; and
-
significant changes in the expected performance or behaviour of the debtor, including changes
in the payment status of the debtor.
There has not been a significant increase in credit risk since initial recognition on any of the group’s
financial assets therefore 12-month ECL have continued to be recognised on all balances other
than trade receivables which are discussed above.
Critical estimate of ECL on amount due from cooperatives under Plasma scheme
The Group assesses the ECL on amounts due from cooperatives under Plasma scheme by considering
various probability weighted outcomes. The possible outcome is considered to be:
-
recovery is limited to the future cashflows of the cooperative, being the FFB revenue less
development costs; and
-
recovery in full via bank financing obtained by the cooperative.
Prior year reclassification
During the financial year ended 31 December 2024, the Group reassessed the classification of amounts
due from cooperatives under the plasma scheme between current and non-current assets. The Group
has retrospectively reclassified $2,689,000 from non-current assets to current assets in the financial
statements for FY2023, as the amounts were received in FY2024. This reclassification has no impact
on total assets, net income, or retained earnings, and reflects the appropriate classification of the
receivables for both FY2023 and FY2024, as detailed in note 14.
The amounts due from cooperative under plasma scheme are classified between the portions that
are current and non-current. The non-current portion relates to the amounts that are not expected
to be settled or recovered within 12 months from the reporting date.
Movements on the Group’s loss provision on current, non-current other receivables and financial
guarantee contracts are as follows:
2024
$000
2023
$000
At 1 January
508
1,622
Loss provision during the year
(9)
331
Written off during the year
-
(1,441)
Exchange difference
(23)
(4)
At 31 December
476
508
170
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
18
Trade and other receivables (continued)
At 31 December 2024, the expected loss provision for receivables is as follows:
Gross
carrying
amount
$000
Loss
provision
$000
Net
carrying
amount
$000
2024
Trade receivable
462
(4)
458
Other receivables
857
(5)
852
Receivables: non-current (note 14)
- Due from cooperatives under Plasma scheme
22,105
(464)
21,641
23,424
(473)
22,951
Financial guarantee contracts (note 27)
-
(3)
(3)
23,424
(476)
22,948
Gross
carrying
amount
$000
Loss
provision
$000
Net
carrying
amount
$000
2023
Trade receivables
1,051
(11)
1,040
Other receivables
4,758
(6)
4,752
Receivables: non-current (note 14)
- Due from cooperatives under Plasma scheme
20,788
(482)
20,306
26,597
(499)
26,098
Financial guarantee contracts (note 27)
-
(9)
(9)
26,597
(508)
26,089
19
Notes supporting statement of cash flows
Cash and cash equivalents for purposes of the statement of cash flows comprised:
2024
$000
2023
$000
Cash at bank available on demand
103,866
92,682
Short-term deposits
77,988
60,289
Cash in hand
54
13
As reported in statement of financial position
181,908
152,984
Short-term investments
1,253
14,076
183,161
167,060
The short-term with licensed banks refer to the fixed deposits with original maturity of more than
three months but less than one year.
An amount of $108,000, included within cash and cash equivalents, has been pledged as collateral
for a loan facility granted to a cooperative under the plasma scheme, and is secured by Bank Syariah
Mandiri, as disclosed in Note 27. While the amount remains classified as cash and cash equivalents,
it is subject to a pledge and is not freely available for use.
171
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
19
Notes supporting statement of cash flows (continued)
Significant non-cash transactions from investing activities are as follows:
2024
$000
2023
$000
Property, plant and equipment purchased but not yet paid at year end
81
53
Repayment of amounts due from cooperatives under the plasma
scheme through the purchase of FFB (restated)
2,689
1,921
Increase in receivables from cooperatives under plasma scheme
(5,010)
(4.894)
The repayment of amounts due from cooperatives under the plasma scheme, recognised through
the sale of FFB, has been restated from $6,776,000 to $1,921,000. The previously reported amount
included 100% of FFB sales from plasma cooperatives to the Group; however, only 30% of these
sales represented actual repayments to the Group.
The increase in receivables from cooperatives under the plasma scheme represents financing for
new planting, development of immature plantation areas, land cost, and other charges for which
the group expects to be reimbursed.
Non-cash transactions from financing activities are shown in the reconciliation of liabilities from
financing transactions as follows:
Non-current
lease
liabilities
$000
Current
lease
liabilities
$000
Total
$000
At 1 January 2024
(709)
(300)
(1,009)
Cash Flows
-
405
405
Non-cash flows
- Effect of foreign exchange
-
(9)
(9)
- New lease
(25)
(57)
(82)
- Lease liabilities classified as non-current at 31
December 2023 becoming current during 2024
281
(281)
-
- Interest accruing during the year
-
(65)
(65)
(453)
(307)
(760)
Non-current
lease
liabilities
$000
Current
lease
liabilities
$000
Total
$000
At 1 January 2023
(31)
(73)
(104)
Cash Flows
-
288
288
Non-cash flows
- Effect of foreign exchange
1
3
4
- New lease
(709)
(443)
(1,152)
- Lease liabilities classified as non-current at 31
December 2022 becoming current during 2023
30
(30)
-
- Interest accruing during the year
-
(45)
(45)
(709)
(300)
(1,009)
172
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
20
Trade and other payables
2024
$000
(Restated)
2023
$000
Trade payables
6,900
9,572
Other payables
442
1,041
Advance receipts
4,637
6,666
Accruals
9,424
9,583
21,403
26,862
The trade and other payables have been restated from $27,456,000 to $26,862,000, relating to the
reversal of accruals amounting to $594,000. Further details are provided in Note 32.
The carrying amount of trade and other payables classified as financial liabilities measured at
amortised cost approximates fair value. Advance receipts from customers are expected to be
recognised in full as revenue in the subsequent year. The advance receipts at 31 December 2023
have been recognised in revenue in the current period.
21
Leases
2024
$000
2023
$000
Lease liabilities analysed as:
Non-current
(453)
(709)
Current
(307)
(300)
(760)
(1,009)
The weighted average incremental borrowing rate per annum was 7.6% (2023: 7.3%).
Maturity analysis for the lease liabilities has been given in note 28.
Amounts recognised in income statement:
2024
$000
2023
$000
Depreciation expense on right-of-use assets (note 12)
(299)
(193)
Interest expense on lease liabilities
(65)
(45)
Expense relating to short-term leases
(12)
(269)
Expense relating to leases of low value assets
(4)
(4)
(380)
(511)
At 31 December 2024, the Group was committed to $0.01 million (2023: $0.01 million) for short-
term leases.
All the leases are fixed payments. The total cash outflow for leases amount to $0.42 million (2023:
$0.56 million).
173
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
21
Leases (continued)
The Group leases a piece of land and office under the right-of-use assets. The remaining lease term
is between 1 to 5 years. (2023: 1 to 5 years). On expiry the Group has the option to renew based
on mutually agreed future rental. The right-of-use assets is classified as part of property, plant and
equipment in note 12.
Right-of-Use assets
Land
$000
Building
$000
Total
$000
At 1 January 2024
-
962
962
Additions
82
-
82
Amortisation
(16)
(283)
(299)
Impairment losses
(65)
-
(65)
Effect of foreign exchange
(1)
(3)
(4)
At 31 December 2024
-
676
676
Land
$000
Building
$000
Total
$000
At 1 January 2023
-
-
-
Additions
-
1,160
1,160
Amortisation
-
(193)
(193)
Effect of foreign exchange
-
(5)
(5)
At 31 December 2023
-
962
962
Lease liabilities
Land
$000
Building
$000
Total
$000
At 1 January 2024
(30)
(979)
(1,009)
Additions
(82)
-
(82)
Interest expense
(2)
(63)
(65)
Lease payments
75
330
405
Effect of foreign exchange
(3)
(6)
(9)
At 31 December 2024
(42)
(718)
(760)
174
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
21
Leases (continued)
Land
$000
Building
$000
Total
$000
At 1 January 2023
(104)
-
(104)
Additions
-
(1,152)
(1,152)
Interest expense
(3)
(42)
(45)
Lease payments
73
215
288
Effect of foreign exchange
4
-
4
At 31 December 2023
(30)
(979)
(1,009)
The tables above relates to a right of use asset and is presented in note 12.
22
Retirement benefits
The Group provides Post-Employment Benefit plans to its employees in Indonesia in accordance
with Job Creation Law No.11/2020, Government Regulation No.35/2021 effective since February
2021 and Collective Labour Agreements. These are defined benefit plans and provide lump sum
benefits to employees on retirement, death, disability and voluntary resignation. There is no
requirement for the Group to advance fund these benefits.
The Group has set up a separate fund with PT Asuransi Allianz Life Indonesia to fund the Post-
Employment Benefit plan obligation for Staff employees. The assets in the fund can only be used
to pay the employees’ benefits.
Defined contribution plan managed by Dana Pension Lembaga Keuangan AIA Financial (“DPLK
AIAF”) and allocated to the individual participants. From 2020 onwards, these employees will
receive the higher of the benefit from DPLK AIAF and the Post-Employment Benefit plan. The DPLK
AIAF plan covers a smaller proportion of the overall Post-Employment Benefit obligation.
The Group provides other long-term employee benefits in the form of Long Service Awards for Staff
and Non-Staff employees in Indonesia. The Long Service Awards are for amounts of up to 2 months
of basic salary, paid on completion of 10 or 20 years’ continuous service (Staff) and on completion
of 25, 30, 35, and 40 years’ continuous service (Non-Staff). These benefits are unfunded.
Critical estimates on actuarial assumptions on retirement benefits
The defined benefit plans are valued by an actuary at the end of each financial year. The major
assumptions used by the actuary were:
2024
2023
Rate of increase in wages
8.0%
8.0%
Discount rate
7.3%
6.8%
Mortality rate*
100% TMI4
100% TMI4
Disability rate
10% TMI4
10% TMI4
*
Mortality Table used in this calculation is Tabel Mortalita Indonesia IV (TMI IV) which was
released in December 2019. This is the latest table which reflects the mortality rate of Indonesia’s
population. The mortality rate in the table differs by age and gender.
175
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
22
Retirement benefits (continued)
2024
$000
2023
$000
Service cost
Current service cost
1,703
1,539
Past service cost
473
375
Net interest expense
664
616
Remeasurements on net defined benefit liability
(76)
51
Total employee benefits expense
2,764
2,581
The reconciliation on the remeasurement of retirement benefit plan as shown below:
2024
$000
2023
$000
Included in other comprehensive income:
Continuing operations
(378)
375
Discontinued operations
-
-
Remeasurement of retirement benefit plan, net of tax recognised in
other comprehensive income
(378)
375
Included in other comprehensive income:
Remeasurement of retirement benefit plan
(473)
468
Deferred tax on retirement benefits
95
(93)
Remeasurement of retirement benefit plan, net of tax recognised in
other comprehensive income
(378)
375
176
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
22
Retirement benefits - continued
(i)
Reconciliation of defined benefit obligation and fair value of scheme assets including discontinued operations
Defined benefit obligation
Fair value of scheme assets
Net defined scheme liability
Funded
scheme
Unfunded
scheme
Total
Funded
scheme
Unfunded
scheme
Total
Funded
scheme
Unfunded
scheme
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
At 1 January 2023
(4,211)
(8,098)
(12,309)
1,435
-
1,435
(2,776)
(8,098)
(10,874)
Service cost - current
(722)
(817)
(1,539)
-
-
-
(722)
(817)
(1,539)
Service cost - past
(373)
(2)
(375)
-
-
-
(373)
(2)
(375)
Adjustment due to change in
attribution method
(2,114)
2,114
-
-
-
-
(2,114)
2,114
-
Interest (cost)/income
(370)
(351)
(721)
105
-
105
(265)
(351)
(616)
Remeasurements on net defined
benefit liability
-
(51)
(51)
-
-
-
-
(51)
(51)
Included in income statement
(3,579)
893
(2,686)
105
-
105
(3,474)
893
(2,581)
Remeasurement (loss)/gain
Actuarial (loss)/gain from:
Adjustments (experience)
(179)
197
18
-
-
-
(179)
197
18
Financial assumptions
(242)
(232)
(474)
-
-
-
(242)
(232)
(474)
Return on plan assets (exclude interest)
-
-
-
(12)
-
(12)
(12)
-
(12)
Included in other comprehensive income
(421)
(35)
(456)
(12)
-
(12)
(433)
(35)
(468)
Effect of movements in exchange rates
(53)
(193)
(246)
26
-
26
(27)
(193)
(220)
Employer contribution
-
-
-
742
-
742
742
-
742
Benefits paid
689
324
1,013
(516)
-
(516)
173
324
497
Cost of termination - payment
-
1,956
1,956
-
-
-
-
1,956
1,956
Cost of termination
196
(546)
(350)
-
-
-
196
(546)
(350)
Other movements
832
1,541
2,373
252
-
252
1,084
1,541
2,625
At 31 December 2023
(7,379)
(5,699)
(13,078)
1,780
-
1,780
(5,599)
(5,699)
(11,298)
177
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
22
Retirement benefits - continued
(i)
Reconciliation of defined benefit obligation and fair value of scheme assets (continued)
Defined benefit obligation
Fair value of scheme assets
Net defined scheme liability
Funded
scheme
Unfunded
scheme
Total
Funded
scheme
Unfunded
scheme
Total
Funded
scheme
Unfunded
scheme
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
At 1 January 2024
(7,379)
(5,699)
(13,078)
1,780
-
1,780
(5,599)
(5,699)
(11,298)
Service cost – current
(1,131)
(572)
(1,703)
-
-
-
(1,131)
(572)
(1,703)
Service cost - past
(291)
(182)
(473)
-
-
-
(291)
(182)
(473)
Adjustment due to change in
attribution method
(3,014)
3,014
-
-
-
-
(3,014)
3,014
-
Interest (cost)/income
(607)
(189)
(796)
132
-
132
(475)
(189)
(664)
Remeasurements on net defined
benefit liability
-
76
76
-
-
-
-
76
76
Included in income statement
(5,043)
2,147
(2,896)
132
-
132
(4,911)
2,147
(2,764)
Remeasurement (loss)/gain
Actuarial (loss)/gain from:
Adjustments (experience)
3
120
123
-
-
-
3
120
123
Financial assumptions
403
(20)
383
-
-
-
403
(20)
383
Return on plan assets (exclude
interest)
-
-
-
(33)
-
(33)
(33)
-
(33)
Included in other comprehensive
income
406
100
506
(33)
-
(33)
373
100
473
Effect of movements in exchange
rates
419
217
636
(107)
-
(107)
312
217
529
Employer contribution
-
-
-
1,562
-
1,562
1,562
-
1,562
Benefits paid
644
121
765
(343)
-
(343)
301
121
422
Other
223
(239)
(16)
19
-
19
242
(239)
3
Other movements
1,286
99
1,385
1,131
-
1,131
2,417
99
2,516
At 31 December 2024
(10,730)
(3,353)
(14,083)
3,010
-
3,010
(7,720)
(3,353)
(11,073)
178
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
22
Retirement benefits (continued)
(ii)
Disaggregation of defined benefit scheme assets
The fair value of the funded assets is analysed as follows:
2024
$000
2023
$000
Bonds
- Government bonds
1,529
1,090
- Corporate bonds
-
-
1,529
1,090
Cash/deposits
1,481
690
3,010
1,780
None of the plan assets are invested in the Group’s own financial instruments, property or
other assets used by the Group. All plan assets invested in bonds which have a quoted market
price in an active market.
(iii) Defined benefit obligation - sensitivity analysis
The following table exhibits the sensitivity of the Group’s retirement benefits to the fluctuation
in the discount rate, wages and mortality rate:
Reasonably
Defined benefit obligation
Possible
Change
Increase
$000
Decrease
$000
Discount rate
(+/- 1%)
(1,018)
1,146
Growth in wages
(+/- 1%)
1,185
(1,070)
The weighted average duration of the defined benefit obligation is 8.61 years (2023: 8.78 years).
The total contribution paid into the defined contribution plan in 2024 amounted to $224,000
(2023: $227,000). The Group expects to pay contributions of $459,000 to the funded plans
in 2025. For the unfunded plans, the Group pays the benefits directly to the individuals; the
Group expects to make direct benefit payments of $1,376,000 for defined benefit plan and
$220,000 for defined contribution plan in 2025.
179
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
23
Share capital and treasury shares
Authorised
Number
Issued
and
fully paid
Number
Authorised
£000
Issued and
fully paid
£000
Authorised
$000
Issued
and
fully paid
$000
Ordinary shares of
25p each
Beginning and
end of year
60,000,000
39,976,272
15,000
9,994
23,865
15,504
Cost
Cost
2024
2023
2024
2023
Treasury shares:
Number
Number
$’000
$’000
Beginning of year
415,826
339,900
(1,847)
(1,171)
Share buy back
71,852
75,926
(640)
(676)
End of year
487,678
415,826
(2,487)
(1,847)
Market value of treasury shares:
$’000
Beginning of year (670.0p/share)
3,551
End of year (654.0p/share)
3,996
71,852 treasury share was purchased in 2024 (2023: 75,926).
All fully paid ordinary shares have full voting rights, as well as to receive the distribution of dividends
and repayment of capital upon winding up of company.
24
Ultimate controlling shareholder
At 31 December 2024, Genton International Limited (“Genton”), a company registered in Hong Kong,
held 20,247,814 (2023: 20,247,814) shares of the Company representing 51.3% (2023: 51.2%) of the
Company’s issued share capital, excluding treasury shares. Together with other deemed interested
parties, Genton‘s shareholding totals 20,551,914 or 52.0%. The ultimate beneficial shareholders
of Genton International Limited are vested in the estates of Madam Lim with the application for
probate in progress.
25
Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been
eliminated on consolidation and are not disclosed in this note.
An office premises lease agreement was entered with Infra Sari Sdn Bhd, a company controlled
by the late Madam Lim Siew Kim. The rental paid during the year was $166,800 (2023: $246,317).
There was no balance outstanding at the year end (2023: Nil).
180
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
25
Related party transactions (continued)
In 2024, the final dividend paid to Genton International Limited, a company controlled by the late
Madam Lim Siew Kim, was $3,037,172 for the year ended 31 December 2023 (2023: $5,061,954 for the
year ended 31 December 2022) and no interim dividend was paid to Genton International Limited
for the year ended 31 December 2024 (2023: $3,037,172). The final dividend paid to other companies
controlled by the late Madam Lim Siew Kim was $45,615 for the year ended 31 December 2023
(2023: $76,025 for the year ended 31 December 2022). There was no balance outstanding at the year
end (2023: Nil). No interim dividend paid to other companies controlled by the late Madam Lim Siew
Kim for the year ended 31 December 2024 (2023: $45,615 for the year ended 31 December 2023).
26
Reserves
Nature and purpose of each reserve:
Share capital
Amount of shares subscribed at nominal value.
Share premium
Amount subscribed for share capital in excess of nominal value.
Capital redemption reserve
Amounts transferred from share capital on redemption of issued shares.
Treasury shares
Cost of own shares held in treasury.
Exchange reserves
Gains/losses arising from translating the net assets of overseas
operations into US Dollar.
Retained earnings
Cumulative net gains and losses recognised in the consolidated income
statement.
27
Guarantees and other financial commitments
2024
$000
2023
$000
Capital commitments at 31 December
Contracted but not provided - normal estate operations
184
282
Contracted but not provided – mill development
-
23
Authorised but not contracted - plantation and mill development
45,790
34,143
A subsidiary company, PT Sawit Graha Manunggal (“SGM”) has provided a corporate guarantee
to Koperasi Bartim Sawit Sejahtera (“KBSS”), a party under Plasma scheme as disclosed in note
14, in relation to a loan taken by KBSS from PT Bank Mandiri (Persero) Tbk. of Rp226.02 billion
($14.7million). The guarantee that was in place as at 31 December 2023 has been settled as the
loan has been settled during 2024.
On 3 February 2017, a subsidiary company, PT Alno Agro Utama and Koperasi Perkebunan Plasma
Maju Sejahtera (“KPPM”) signed a Refinancing Agreement with PT Bank Syariah Mandiri (“BSM”) to fund
its plasma development. The Agreement provides a loan of Rp 8.75 billion ($0.5 million) (2023: Rp8.75
billion, $0.6 million), with 10 (Ten) years maturity period effective from 24 July 2017 with an interest rate
of 13.25% per annum and in 2021 decreased to 12.5% per annum. This loan is collateralized by 125.4
hectares of KPPM’s land located in Desa Serami Baru, Kecamatan Malin Deman, Kabupaten Mukomuko,
Bengkulu and its plantation with a carrying amount of $0.6 million as at 31 December 2024 (31
December 2023: $0.6 million) as security under the agreement while the Company provides corporate
guarantee amounting to Rp 8.75 billion ($0.5 million). As of 31 December 2024, the outstanding bank
loans amounted to $0.3 million, compared to $0.9 million in 2023.
181
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
27
Guarantees and other financial commitments (continued)
The Group’s loss provision on these financial guarantee contracts was immaterial for 2023 and
2024.
28
Disclosure of financial instruments and other risks
The Group's principal financial instruments comprised investment, cash, short and long-term bank
loans, trade receivables excluding prepayments and payables excluding advance receipts and
receivables from local partners in respect of their investments.
The Group’s accounting classification of each class of financial asset and liability at 31 December
2024 and 2023 were:
Fair value
through
profit and
loss
$000
Financial
assets at
amortised
cost
$000
Financial
liabilities
at
amortised
cost
$000
Total
carrying
value
$000
2024
Investments
29,087
-
-
29,087
Non-current receivables
-
19,363
-
19,363
Trade and other receivables
-
3,588
-
3,588
Short-term investments
-
1,253
-
1,253
Cash and cash equivalents
-
181,908
-
181,908
Trade and other payables
-
-
(16,766)
(16,766)
29,087
206,112
(16,766)
218,433
Fair value
through
profit and
loss
$000
Financial
assets at
amortised
cost
$000
Financial
liabilities
at
amortised
cost
$000
Total
carrying
value
$000
2023 (Restated)
Investments
10,035
-
-
10,035
Non-current receivables
-
17,617
-
17,617
Trade and other receivables
-
8,481
-
8,481
Short-term investments
-
14,076
-
14,076
Cash and cash equivalents
-
152,984
-
152,984
Trade and other payables
-
-
(20,196)
(20,196)
10,035
193,158
(20,196)
182,997
The trade and other payables have been restated from $20,790,000 to $20,196,000, relating to the
reversal of accruals amounting to $594,000. Further details are provided in Note 32.
182
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
28
Disclosure of financial instruments and other risks (continued)
Financial instruments not measured at fair value
Financial instruments not measured at fair value include cash and cash equivalents, trade and other
receivables, trade and other payables, borrowings due within one year and non-current receivables.
Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other
receivables, trade and other payables approximates their fair value. The non-current receivables
were measured at cost less ECL.
The principal financial risks to which the Group is exposed are:
-
commodity price risk; and
-
currency risk;
which, in turn, can affect financial instruments and/or operating performance.
The Company does not hedge any of its risks. Its trade credit risks are low. Financial assets that are
held at fair value through the profit or loss include investment to generate higher return.
The Board is directly responsible for setting policies in relation to financial risk management and
monitors the levels of the main risks through review of regular operational reports.
Commodity price risk
The Group is exposed to fluctuations in the market prices of palm produce, which directly affect the
revenue. The Group does not normally contract to sell produce more than one month ahead.
Currency risk
Most of the Group's operations are in Indonesia. The Company and Group accounts are prepared
in US Dollar which is not the functional currency of the operating subsidiaries. The Group does not
hedge its net investment in its overseas subsidiaries and is therefore exposed to a currency risk on
that investment. The historical cost of investment (including intercompany loans) by the parent in
its subsidiaries amounted to $10,808,000 (2023 (Restated): $10,808,000), while the statement of
financial position value of the Group's share of underlying assets at 31 December 2024 amounted
to $551,031,000 (2023: $513,639,000).
All the Group's sales are made in local currency and any trade receivables are therefore denominated
in local currency. No hedging is therefore necessary.
Selling prices of the Group's produce are directly related to the US Dollar denominated world
prices. Appreciation of local currencies, therefore, reduces profits and cash flow of the Indonesian
and Malaysian subsidiaries in US Dollar terms and vice versa.
There are no borrowings in the Group and therefore there is no longer any currency risk for the
Group in respect of this. The average interest rate on local currency deposits was 0.12% higher
(2023: 0.19% higher) than on US Dollar deposits. The unmatched balance at 31 December 2024
was represented by the $33,435,000 shown in the table below (2023: $6,844,000).
183
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
28
Disclosure of financial instruments and other risks (continued)
Currency risk (continued)
The table below shows the net monetary assets and liabilities of the Group as at 31 December 2024
and 2023 that were not denominated in the operating or functional currency of the operating unit
involved.
Net foreign currency assets/(liabilities)
Functional currency of Group operation
US Dollar
$000
Sterling
$000
Total
$000
2024
Rupiah
17,853
-
17,853
US Dollar
-
2,621
2,621
Ringgit
15,582
-
15,582
Total
33,435
2,621
36,056
2023
Rupiah
6,538
-
6,538
US Dollar
-
990
990
Ringgit
306
-
306
Total
6,844
990
7,834
The following table summarises the sensitivity of the Group’s financial assets and financial liabilities
to foreign exchange risk. The impact on equity if Ringgit or Rupiah strengthen or weaken by 10%
against US Dollar:
2024
2023 (Restated)
Carrying
Amount
US$
-10% in
Rp : $ and
RM : $
+10% in
Rp : $ and
RM : $
Carrying
Amount
US$
-10% in
Rp : $ and
RM : $
+10% in
Rp : $ and
RM : $
$000
$000
$000
$000
$000
$000
Financial Assets
Non-current receivables
19,363
(1,760)
2,151
17,617
(1,602)
1,957
Trade and other
receivables
3,588
(320)
391
8,481
(450)
551
Short-term investments
1,253
-
-
14,076
(1,280)
1,564
Cash and cash
equivalents
181,908
(16,359)
19,995
152,984
(13,763)
16,822
Financial Liabilities
Trade and other
payables
(16,766)
1,493
(1,825)
(20,196)
1,800
(2,200)
Total (decrease)/increase
(16,946)
20,712
(15,295)
18,694
The trade and other payables have been restated from $20,790,000 to $20,196,000, relating to the
reversal of accruals amounting to $594,000. Further details are provided in Note 32.
184
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
28
Disclosure of financial instruments and other risks (continued)
Liquidity risk
Profitability of new sizable plantations normally requires a period of between six and seven years
before cash flow turns positive. Because oil palms do not begin yielding significantly until four
years after planting, this development period and the cash requirement is affected by changes in
commodity prices.
The Group attempts to ensure that it is likely to have either self-generated funds or further loan/
equity capital to complete its development plans and to meet loan repayments. Long-term
forecasts are updated twice a year for review by the Board. In the event that falling commodity
prices reduce self-generated funds below expectations and to a level where Group resources may
be insufficient, further new planting may be restricted. Consideration is given to the funds required
to bring existing immature plantings to maturity.
The Group’s trade and tax payables are all due for settlement within a year. At 31 December 2024,
the Group had no external loans and facilities.
The following table sets out the undiscounted contractual cashflows of financial liabilities:
Less
than
1 year
Between
1 and 2
years
Between
2 and 5
years
More
than
5 years
Total
$000
$000
$000
$000
$000
At 31 December 2024
Trade and other payables
(7,342)
-
-
-
(7,342)
Accruals
(9,424)
-
-
-
(9,424)
Lease liabilities
(347)
(199)
(291)
-
(837)
(17,113)
(199)
(291)
-
(17,603)
At 31 December 2023
Trade and other payables
(10,613)
-
-
-
(10,613)
Accruals (Restated)*
(9,583)
-
-
-
(9,583)
Lease liabilities
(364)
(333)
(453)
-
(1,150)
(20,560)
(333)
(453)
-
(21,346)*
*
The accruals have been restated from $10,177,000 to $9,583,000, relating to the reversal of
accruals amounting to $594,000. Further details are provided in Note 32. The total also restated
from $21,940,000 to $21,346,000, respectively.
185
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
28
Disclosure of financial instruments and other risks (continued)
Liquidity risk (continued)
The figures for trade and other payables exclude accruals and advance receipts.
The Group does not face a significant liquidity risk with regard to its financial liabilities.
Interest rate risk
The Group's surplus cash is subject to variable interest rates. The Group had net cash throughout
2024. A 1% change in the deposit interest rate would not have a significant impact on the Group’s
reported results as shown in the table below.
2024
2023
Carrying
amount
-1% in
interest
rate
+1% in
interest
rate
Carrying
amount
-1% in
interest
rate
+1% in
interest
rate
$000
$000
$000
$000
$000
$000
Financial Assets
Short-term
investments
1,253
(10)
6
14,076
(208)
74
Cash and cash
equivalents
181,908
(1,681)
1,799
152,984
(1,407)
1,543
Total (decrease)/
increase
(1,691)
1,805
(1,615)
1,617
There is no policy to hedge interest rates, partly because of the net cash position and the net interest
income position of the Group.
Average US Dollar deposit rate in 2024 was 4.72% (2023: 4.30%) and Rupiah deposit rate was 4.60%
(2023: 4.49%).
Credit risk
The Group has two types of financial assets that are subject to the ECL model:
•
trade receivables for sales of goods and services; and
•
current and non-current receivables carried at amortised cost.
The Group also has financial guarantee contracts for which the ECL model is also applicable.
186
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
28
Disclosure of financial instruments and other risks (continued)
Credit risk - continued
While cash and cash equivalents are also subject to the impairment requirements as set out in IFRS
9, there is no impairment loss identified given the financial strength of the financial institutions
in which the Group have a relationship with. Credit risk arises from cash and cash equivalents
and deposits with banks and financial institutions. The Group has taken necessary steps and
precautions in minimising the credit risk by lodging cash and cash equivalents only with reputable
licensed banks, and particularly in Indonesia, independently rated banks with a minimum rating of
“A”. The cash and cash equivalents are in US dollars, Rupiah, Ringgit and Sterling according to the
requirements of the Group. The list of the principal banks used by the Group is given on the inside
of the back cover of this report.
The Group use three categories for those receivables which reflect their credit risk and how the loss
provision is determined for those categories.
(i)
Trade receivables using the simplified approach
The Group applies the simplified approach under IFRS 9 to measure ECL, which uses a
lifetime expected loss provision for all trade receivables. To measure the expected losses, trade
receivables have been grouped based on shared credit risk characteristics and days past due.
The expected loss rates are based on historical payment profiles of sales and the corresponding
historical credit losses experienced during these periods. The historical loss rates are adjusted
to reflect current and forward-looking information on macroeconomic factors (such as palm
product prices and crude oil price) affecting the ability of the customers to settle the receivables.
The historical loss rates will be adjusted based on the expected changes in these factors. No
significant changes to estimation techniques or assumptions were made during the reporting
period.
In determining the expected loss rates, the Group also takes into consideration the collateral
or payments received in advance, as set out below:
Receivables are generally collected within the credit term and therefore there is minimal
exposure to doubtful debts. Upfront payments are also collected for certain sales made by the
Group’s subsidiaries in Indonesia.
The Group’s maximum exposure to credit risk and loss provision recognised as at 31 December
2023 is disclosed in note 18. The ECL has been calculated at 1% on trade receivables balances
while the remaining amount in which no ECL provision was recognised is deemed to be
recoverable, with low probability of default. Default is defined by the management as the non-
repayment of the balance.
187
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
28
Disclosure of financial instruments and other risks (continued)
Credit risk - continued
(ii)
Other receivables at amortised costs other than trade receivables using the three-stage
approach
All of the Group’s debt instruments at amortised costs other than trade receivables are
considered to have a low credit risk except amount due from cooperatives under Plasma
scheme. Whilst Plasma receivables are generally considered to have a relatively higher credit
risk, at the reporting date as these were considered to be performing, have low risks of default
and historically there were minimal instances where contractual cash flow obligations have not
been met, the credit risk was considered to be low. There has not been a significant increase in
credit risk since initial recognition.
The 12-month ECL has been calculated at 1% on the majority of balances (unless it has been
considered there to be no ECL), with the exception of amounts due from cooperatives under
Plasma scheme where the ECL is largely calculated, having considered various probability
weighted outcomes, as being the balance of the receivable in excess of the recovery from the
future cashflows of the cooperative or via bank financing which effectively would be returned
to the Company if the receivable is not repaid.
The maximum exposure to credit risks for debt instruments at amortised cost other than trade
receivables are represented by the carrying amounts recognised in the statements of financial
position.
(iii) Financial guarantee contracts using the three-stage approach
All of the financial guarantee contracts are considered to be performing, have low risks of
default and historically there were no instances where these financial guarantee contracts
were called upon by the parties of which the financial guarantee contracts were issued.
Information regarding other non-current assets and trade and other receivables is disclosed in
notes 14 and 18 respectively.
Deposits with banks and other financial institutions and investment securities are placed, or
entered into, with reputable financial institutions or companies with high credit ratings and no
history of default.
Capital
The Group defines its Capital as Share capital and Reserves, shown in the statement of financial
position as "Issued capital attributable to owners of the parent" and amounting to $551,031,000
at 31 December 2024 (2023: $513,639,000).
Group policy presently attempts to fund development from self-generated funds and loans and
not from the issue of new share capital. At 31 December 2024, the Group had no borrowings
(2023: nil), but depending on market conditions, the Board is prepared for the Group to have
borrowings.
Plantation industry risk
Please refer to pages 73 - 78.
188
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
29
Subsidiary companies
The principal subsidiaries of the Company all of which have been included in these consolidated
financial statements are as follows:
Name
Country of
incorporation
and principal
place of business
Proportion of
ownership
interest at
31 December
Non-controlling
interests
ownership/voting
interest at
31 December
2024
2023
2024
2023
Principal sub-holding company
Anglo-Indonesian Oil Palms
Limited**
United Kingdom
100%
100%
-
-
Management company
Anglo-Eastern Plantations
Management Sdn Bhd**
Malaysia
100%
100%
-
-
PT Anglo-Eastern Plantations
Management Indonesia
Indonesia
100%
100%
-
-
Operating companies
Anglo-Eastern Plantations (M)
Sdn Bhd**
Malaysia
55%
55%
45%
45%
All For You Sdn Bhd
Malaysia
100%
100%
-
-
PT Alno Agro Utama
Indonesia
100%
100%
-
-
PT Anak Tasik
Indonesia
100%
100%
-
-
PT Bangka Malindo Lestari*
Indonesia
100%
95%
-
5%
PT Bina Pitri Jaya
Indonesia
100%
100%
-
-
PT Cahaya Pelita Andhika
Indonesia
100%
100%
-
-
PT Hijau Pryan Perdana
Indonesia
100%
100%
-
-
PT Kahayan Agro Plantation*
Indonesia
100%
99.5%
-
0.5%
PT Mitra Puding Mas
Indonesia
100%
100%
-
-
PT Musam Utjing
Indonesia
100%
100%
-
-
PT Sawit Graha Manunggal
Indonesia
100%
100%
-
-
PT Simpang Ampat
Indonesia
100%
100%
-
-
PT Tasik Raja
Indonesia
100%
100%
-
-
PT United Kingdom Indonesia
Plantations
Indonesia
100%
100%
-
-
189
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
29
Subsidiary companies (continued)
Name
Country of
incorporation
and principal
place of business
Proportion of
ownership
interest at
31 December
Non-controlling
interests
ownership/voting
interest at
31 December
2024
2023
2024
2023
Dormant companies
The Ampat (Sumatra) Rubber
Estate (1913) Limited
United Kingdom
100%
100%
-
-
Gadek Indonesia (1975) Limited
United Kingdom
100%
100%
-
-
Mergerset (1980) Limited
United Kingdom
100%
100%
-
-
Musam Indonesia Limited
United Kingdom
100%
100%
-
-
Indopalm Services Limited**
United Kingdom
100%
100%
-
-
*
The Group purchased some of the shares of the non-controlling interest during the year. Hence,
the Company’s effective ownership has increased.
**
Direct subsidiaries of the Company
The principal United Kingdom sub-holding company, and UK dormant companies are registered
in England and Wales. The Malaysian operating companies and management company are
incorporated in Malaysia. The Indonesian operating companies and management company are
incorporated in Indonesia. The principal activity of the operating companies is plantation agriculture.
The registered office of the principal subsidiaries is disclosed below:
Subsidiaries by country
Registered address
UK registered subsidiaries
Quadrant House, 6th Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
Malaysia registered subsidiaries
7th Floor, Wisma Equity
150 Jalan Ampang
50450 Kuala Lumpur
Malaysia
Indonesia registered subsidiaries
Sinar Mas Land Plaza, 3rd Floor #301, Jl. Pangeran
Diponegoro No. 18
Kelurahan Madras Hulu, Kecamatan Medan Polonia
Medan 20152, North Sumatera
Indonesia
30
Non-controlling interests
In 2024 and 2023, none of the subsidiaries which have non-controlling interests (“NCI”) contributed
more than 10% of the Group’s total assets.
190
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
31
Acquisition of non-controlling interests
In October 2024, the Group acquired some additional 5% of the issued share capital of PT Bangka
Malindo Lestari ("BML") and 0.5% of the issued share capital of PT Kahayan Agro Plantation ("KAP")
for a total consideration of $0.4mil, increasing the Group ownership interest to 100%.
The following is the schedule of additional interest:
2024
$000
Consideration paid to non-controlling shareholders
400
Carrying value of the additional net liability
257
Difference recognised in retained earnings (Consolidated Statement of Changes in
Equity)
657
Acquisition of additional interest in 2023.
In June 2023, the Group acquired some additional 0.4% and 4.5% interest in the voting shares of
PT Sawit Graha Manunggal (“SGM”) and PT Kahayan Agro Plantation (“KAP”), respectively, increasing
the Group ownership interest to almost 100% with a consideration of $2.6 million.
In July 2023, the Group also completed the acquisition of 25% of the issued share capital of PT
United Kingdom Indonesia Plantations and the 10% of the issued share capital of PT Mitra Puding
Mas, from PT. Canadianty Corporindo, the minority shareholder in Indonesia, for a total cash
consideration of $25.2million, increasing the Group ownership interest to 100%.
In November 2023, the Group also completed the acquisition of 20% of the issued share capital
of PT Tasik Raja, PT Hijau Pryan Perdana, PT Bina Pitri Jaya, the 10% of the issued share capital of
PT Alno Agro Utama and the 25% of the issued share capital of PT Musam Utjing, from PT Marison
Nauli Ventura, the minority shareholder in Indonesia, for a total cash consideration of $60 million,
increasing the Group ownership interest to 100%.
(Restated)
2023
$000
Consideration paid to non-controlling shareholders
87,808
Carrying value of the additional interest
(99,042)
Difference recognised in retained earnings (Consolidated Statement of Changes in
Equity)
(11,234)
The total consideration of $86.6 million was in cash with the remaining $1.2 million being offset
against an existing loan.
The carrying value of the additional interest has been restated from $101,342,000 to $99,042,000
due to the restatement of deferred tax assets as of 1 January 2023, which reduced the non-
controlling interest. Following the acquisition of the non-controlling interest during FY2023, the
carrying amount of the additional interest was adjusted to reflect the reduction. However, this
adjustment had no impact on the balance of non-controlling interest as at 31 December 2023.
191
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
32
Prior year restatements
Nature of the Restatement
In the 2023 financial statements, the Group recognised a deferred tax asset in relation to capital
losses incurred in Indonesia. This recognition was based on management’s interpretation of the
Indonesian Income Tax Law, which was understood to permit capital losses arising from trading
assets to be offset against future taxable profits.
However, during a reassessment undertaken in the 2024 financial year, management concluded
that the recognition did not satisfy the criteria under IAS 12 Income Taxes and relevant Indonesian
tax regulations. As such, a prior period error was identified, and the Group restated its comparative
financial information in accordance with IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors to reflect the appropriate accounting treatment.
As of the approval date of the 2024 financial statements, the Indonesian tax assessment related to
the capital losses remains ongoing.
In addition, the Group identified and corrected the following additional accounting misstatements:
-
A historical error in the recognition of deferred tax assets associated with temporary differences
between the accounting and tax bases of property, plant and equipment.
-
The reversal of certain accruals included in trade and other payables that were deemed no
longer necessary.
The effects of the restatements are summarised as follows:
2023
$000
Impact on consolidated income statement
Profit for the year
64,162
Effect of change in restatement:
Tax expense
(1,545)
Profit for the year after restatement
62,617
The prior year adjustments reduced earnings per share from continuing operations by 3.9 cents,
from 128.82 cents to 124.92 cents for the year ended 31 December 2023.
2023
$000
Impact on consolidated statement of comprehensive income
Other comprehensive loss for the year before restatement
(624)
Effect of change in restatement:
Loss on exchange translation of foreign operations
(225)
Other comprehensive loss for the year after restatement
(849)
192
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
32
Prior year restatements (continued)
The following table summarises the impact of these prior year restatements on the Consolidated
Statement of Financial Position:
Balance
as reported
1 January
2023
$000
Effect of
restatements
$000
Restated
balance at
1 January
2023
$000
Impact on Consolidated Statement of Financial
Position
Deferred tax assets
12,773
(8,823)
3,950
Deferred tax liabilities
(747)
(58)
(805)
Trade and other payables
(33,966)
594
(33,372)
Exchange reserves
(289,434)
543
(288,891)
Retained earnings
722,191
(6,560)
715,631
Non-controlling interests
111,865
(2,270)
109,595
Balance
as reported
31
December
2023
$000
Effect of
restatements
$000
Restated
balance
at 31
December
2023
$000
Impact on Consolidated Statement of Financial
Position
Deferred tax assets
11,054
(8,928)
2,126
Income tax receivable
19,169
(1,672)
17,497
Deferred tax liabilities
(762)
(51)
(813)
Trade and other payables
(27,456)
594
(26,862)
Exchange reserves
(341,639)
459
(341,180)
Retained earnings
826,656
(10,516)
816,140
Detailed Explanation of Adjustments
Deferred Tax Assets
-
As at 1 January 2023, deferred tax assets were restated by a net decrease of $8.8 million,
comprising a $10.9 million reversal of deferred tax assets related to investment losses and a
$2.1 million recognition of deferred tax assets related to property, plant and equipment.
-
As at 31 December 2023, deferred tax assets were restated by a net decrease of $8.9 million,
reflecting a $9.5 million reversal for investment loss-related deferred tax assets and a $0.6
million recognition for property, plant and equipment-related temporary differences. This
$0.6 million recognition represents a $2.1 million deferred tax asset arising from temporary
differences, which was partially offset by a $1.5 million reversal of deferred tax assets that was
recognised through the income statement during the year.
193
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
32
Prior year restatements (continued)
Detailed Explanation of Adjustments
Deferred Tax Liabilities
-
As at 1 January 2023, deferred tax liabilities increased by $58,000. These increases resulted
from the shift in the net deferred tax position from an asset to a liability due to the reversal of
the deferred tax asset previously recognised for investment losses.
-
As at 31 December 2023, deferred tax liabilities increased by $51,000. These increases resulted
from the shift in the net deferred tax position from an asset to a liability due to the reversal of
the deferred tax asset previously recognised for investment losses.
Income Tax Receivables
-
As at 31 December 2023, income tax receivables were restated by a decrease of $1.7 million.
This adjustment arose from the recognition of additional tax liabilities, as the Group could no
longer utilise the tax losses previously associated with investment losses.
Trade and Other Payables
-
As at both 1 January and 31 December 2023, trade and other payables were reduced by
$594,000 following the reversal of previously recognised accruals that were no longer required.
Exchange Reserves
-
As at 1 January 2023, exchange reserves increased by $0.5 million. This comprises a $0.6 million
positive adjustment from exchange differences on the deferred tax asset, partially offset by a
$0.1 million adjustment related to non-controlling interests.
-
As at 31 December 2023, exchange reserves increased by a further $0.5 million, driven by
continued foreign exchange effects linked to the tax asset reversal.
Retained Earnings
-
As at 1 January 2023, retained earnings were restated by a net decrease of $6.6 million. This
consisted of:
-
Reduction of $11.7 million ($10.9 million at closing rate) from the reversal of deferred tax assets
on investment losses;
-
Increase of $2.4 million resulting from the reallocation of adjustments to non-controlling
interests;
-
Increase of $0.6 million from the reversal of accruals;
-
Increase of $2.1 million from the recognition of deferred tax assets on property, plant and
equipment.
-
As at 31 December 2023, retained earnings were restated by a net decrease of $10.5 million,
comprising:
-
Reduction of $11.7 million ($10.9 million at closing rate) from the reversal of deferred tax assets
on investment losses;
-
Increase of $0.6 million from the reversal of accruals;
-
Net increase of $0.6 million related to deferred tax assets on property, plant and equipment,
which included the recognition of $2.1 million offset by a $1.5 million reversal recognised
through the income statement.
Non-Controlling Interests
-
As at 1 January 2023, non-controlling interests were restated by a net decrease of $2.3 million,
comprising a $2.4 million decrease related to the reversal of deferred tax assets and a $0.1
million increase from related exchange rate adjustments.
-
As at 31 December 2023, there was no impact on non-controlling interests as the affected
subsidiaries were wholly owned during the reporting period.
194
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements (Continued)
33
Events after the reporting period
The Company on 20 March 2025, announced that it has entered into an irrevocable commitment
with Panmure to manage a programme to repurchase up to 3,963,637 ordinary shares of 25 pence
each in the capital of the Company representing approximately 10% of the Ordinary Shares in
issued. This authority expires on 30 June 2025, of if earlier, at the conclusion of the forthcoming
annual general meeting. All such purchases will be market purchases made through the London
Stock Exchange. Companies can hold their own shares which have been purchased in this way in
treasury rather than having to cancel them.
195
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Company Statement of Financial Position
As at 31 December 2024
Company Number: 01884630
Note
2024
$000
(Restated)
2023
$000
(Restated)
2022
$000
Non-current assets
Property, plant & equipment
4
453
341
-
Investments in subsidiaries
5
10,808
10,808
49,264
Investments
27
27
42
11,288
11,176
49,306
Current assets
Receivables
6
84,689
61,735
1,163
Short-term investments
1,253
-
-
Cash at bank and in hand
1,956
1,587
954
87,898
63,322
2,117
Current liabilities
Other payables
7
(383)
(2,708)
(2,688)
Lease liabilities
8
(71)
(65)
-
(454)
(2,773)
(2,688)
Net current assets
87,444
60,549
(571)
Non-current liabilities
Lease liabilities
8
(214)
(277)
-
(214)
(277)
-
Net assets
98,518
71,448
48,735
Capital and reserves
Share capital
9
15,504
15,504
15,504
Treasury shares
9
(2,487)
(1,847)
(1,171)
Share premium
23,935
23,935
23,935
Capital redemption reserve
1,087
1,087
1,087
Exchange reserves
3,872
3,872
3,872
Retained earnings
56,607
28,897
5,508
Shareholders' funds
98,518
71,448
48,735
The profit after tax for the year for the Company in the consolidated financial statements was $33,633,000
(2023: profit after tax $39,243,000).
The financial statements were approved and authorised for issue by the Board of Directors on 30 May
2025 and were signed on its behalf by:
Marcus Chan Jau Chwen
Executive Director of Corporate Affairs
The accompanying notes are an integral part of this statement of financial position.
196
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Company Statement of Changes in Equity
For the year ended 31 December 2024
Share
capital
Treasury
shares
Share
premium
Capital
redemption
reserve
Exchange
reserves
Retained
earnings
Total
$000
$000
$000
$000
$000
$000
$000
Balance at 31 December 2022
15,504
(1,171)
23,935
1,087
3,872
6,359
49,586
Restatements (note 15)
-
-
-
-
-
(851)
(851)
Balance at 31 December 2022
(Restated)
15,504
(1,171)
23,935
1,087
3,872
5,508
48,735
Comprehensive profit for the year
Profit for the year
-
-
-
-
-
39,243
39,243
Total comprehensive profit for the
year
-
-
-
-
-
39,243
39,243
Share buy back
-
(676)
-
-
-
-
(676)
Dividends paid
-
-
-
-
-
(15,854)
(15,854)
Balance at 31 December 2023
(Restated)
15,504
(1,847)
23,935
1,087
3,872
28,897
71,448
Comprehensive profit for the year
Profit for the year
-
-
-
-
-
33,633
33,633
Total comprehensive profit for the
year
-
-
-
-
-
33,633
33,633
Share buy back
-
(640)
-
-
-
-
(640)
Dividends paid
-
-
-
-
-
(5,923)
(5,923)
Balance at 31 December 2024
15,504
(2,487)
23,935
1,087
3,872
56,607
98,518
The accompanying notes are an integral part of this statement of changes in equity.
197
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements
1
Basis of preparation
The financial statements have been prepared in accordance with Financial Reporting Standard 100
Application of Financial Reporting Requirements (“FRS 100”) and Financial Reporting Standard
101 Reduced Disclosure Framework (“FRS 101”).
Disclosure exemptions adopted
In preparing these financial statements the Company has taken advantage of all disclosure
exemptions conferred by FRS 101. Therefore, these financial statements do not include:
•
certain comparative information as otherwise required by IFRS;
•
certain disclosures regarding the Company’s capital;
•
a statement of cash flows;
•
the effect of future accounting standards not yet adopted;
•
the disclosure of the remuneration of key management personnel; and
•
disclosure of related party transactions with other wholly owned members of Anglo-Eastern
Plantations Plc group of companies.
In addition, and in accordance with FRS 101 further disclosure exemptions have been adopted
because equivalent disclosures are included in the Company’s consolidated financial statements.
These financial statements do not include certain disclosures in respect of:
•
financial instruments (other than certain disclosures required as a result of recording financial
instruments at fair value); or
•
fair value measurement (other than certain disclosures required as a result of recording
financial instruments at fair value).
2
Accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set
out below. The policies have been consistently applied to all the years presented unless otherwise
stated.
(a) Basis of accounting
The separate financial statements of the Company are presented as required by the Companies
Act 2006. They have been prepared under the historical cost convention. The presentation
currency used is US Dollar and amounts have been presented in thousands (“$000”). The
principal accounting policies are summarised below.
(b) Foreign currency
The Company’s functional currency is the US Dollar, as it reflects the primary currency
that influences its financing activities, cost structure, and cash flows. Both dividends and
management fees, being the Company’s sources of income, are received in US Dollar, further
supporting the determination of US Dollar as the functional currency.
Foreign currency transactions are translated into US Dollar at the exchange rates prevailing on
the transaction dates. Monetary assets and liabilities denominated in foreign currencies are
translated at the closing rate at the balance sheet date. Exchange differences are recognised
in the income statement.
(c)
Investments
Investments in subsidiaries are stated at cost less provision for any impairment.
198
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
2
Accounting policies (continued)
(d) Property, plant and equipment
All items of property, plant and equipment are initially measured at cost. Cost includes
expenditure that is directly attributable to the acquisition of the items. After initial recognition,
all items of property, plant and equipment are stated at cost less accumulated depreciation
and any accumulated impairment losses.
Office plant and equipment is depreciated using the straight-line method. The yearly rate of
depreciation is as follows:
Office plant, equipment & vehicles: 20% per annum
(e) Leases
The Company assesses whether a contract is or contains a lease, at inception of the contract.
The Company recognises a right-of-use asset and a corresponding lease liability with respect
to all lease arrangements in which it is the lessee, except for short-term leases (defined as
leases with a lease term of 12 months or less) and leases of low value assets (such as tablets
and personal computers, small items of office furniture and telephones). For these leases, the
Group recognises the lease payments as an operating expense on a straight-line basis over the
term of the lease unless another systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted by using the rate implicit in the lease. If this rate
cannot be readily determined, the lessee uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
•
Fixed lease payments (including in-substance fixed payments), less any lease incentives
receivable.
The lease liability is presented as a separate line in the consolidated statement of financial
position.
The lease liability is subsequently measured by increasing the carrying amount to reflect
interest on the lease liability (using the effective interest method) and by reducing the carrying
amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability,
lease payments made at or before the commencement day, less any lease incentives received
and any initial direct costs. They are subsequently measured at cost less accumulated
depreciation and impairment losses.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the
underlying asset which is 5 years. If a lease transfers ownership of the underlying asset or the
cost of the right-of-use asset reflects that the Company expects to exercise a purchase option,
the related right-of-use asset is depreciated over the useful life of the underlying asset. The
depreciation starts at the commencement date of the lease.
The right-of-use assets are presented together in property, plant and equipment in the
consolidated statement of financial position.
199
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
2
Accounting policies - continued
(f)
Dividends
Equity dividends are recognised when they become legally payable. The Company may pay an
interim dividend each year. The final dividend becomes legally payable when approved by the
shareholders at the next annual general meeting.
(g) Deferred taxation
A deferred tax asset has not been recognised in relation to brought forward tax losses of
$13.7m (2023: $13.7m) because it is not certain those losses can be utilised in the foreseeable
future.
(h) Treasury shares
Consideration paid or received for the purchase or sale of the Company’s own shares for holding
in treasury is recognised directly in equity, where the cost is presented as the treasury shares.
Any excess of the consideration received on the sale of treasury shares over the weighted
average cost of shares sold is taken to the share premium account. Any shares held in treasury
are treated as cancelled for the purpose of calculating earnings per share.
(i)
Financial guarantee contracts
Where the Company enters into financial guarantee contracts and guarantees the indebtedness
of other companies within the Group, these are accounted for under IFRS 9. The details of
financial guarantee contracts are disclosed in note 27 of the consolidated financial statements.
(j)
Critical accounting estimates and judgements
The Company makes certain estimates and assumptions regarding the future. Estimates and
judgements are continually evaluated based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. In
the future, actual experience may differ from these estimates and assumptions. The estimates
and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
Estimates and assumptions
•
Recoverability of investments – estimate based on fair value less cost of disposal method
(note 5).
3
Income statement
As permitted by section 408 of the Companies Act 2006, a separate income statement dealing
with the results of the Company has not been presented. The profit before tax for the year for the
Company in the consolidated financial statements of the Company was $33,636,000 (2023: profit
before tax $39,246,000) and profit after tax for the year was $33,633,000 (2023: profit after tax
$39,243,000).
The remuneration of the directors of the Company is disclosed in note 7 to the consolidated financial
statements. Auditor’s remuneration is disclosed in note 5 to the consolidated financial statements.
200
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
4
Property, plant & equipment
Office
plant,
equipment
& vehicle
$000
Right-
of-use
assets*
$000
Total
$000
Cost
At 1 January 2023
-
-
-
Additions
3
362
365
At 31 December 2023
3
362
365
Additions
208
-
208
At 31 December 2024
211
362
573
Accumulated depreciation and impairment
At 1 January 2023
-
-
-
Charge for the year
0
24
24
At 31 December 2023
0
24
24
Charge for the year
24
72
96
At 31 December 2024
24
96
120
Carrying amount
At 31 December 2022
-
-
-
At 31 December 2023
3
338
341
At 31 December 2024
187
266
453
*
Right-of-use assets has been disclosed in Note 8.
5
Investments in subsidiaries
2024
$000
(Restated)
2023
$000
Investments in subsidiaries undertakings
13,716
13,716
Impairment loss
(2,908)
(2,908)
Net carrying amount
10,808
10,808
The Company’s impairment loss on subsidiaries were as follows:
2024
(Restated)
2023
$000
$000
At 1 January/31 December
2,908
2,908
201
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
5
Investments in subsidiaries (continued)
The Company has retrospectively recognised an impairment loss on its investment in a subsidiary
based on a 31 December 2024 valuation, using the fair value less costs to dispose method (Level 3).
This resulted in a reduction in net assets and equity, with no impact on profit or loss, cash flows, or
earnings per share. Certain disclosures are included in the basis of preparation note under the FRS
101 exemption, as detailed in Note 15.
The details of the subsidiaries are disclosed in note 29 of the consolidated financial statements.
6
Receivables
2024
$000
2023
$000
Amounts owed by group undertakings:
Anglo-Eastern Plantations Management Sdn Bhd
16,128
1,145
Anglo-Indonesian Oil Palms Limited
68,477
57,019
PT Anglo-Eastern Plantations Management Indonesia
14
48
84,619
58,212
Other receivables
70
3,523
84,689
61,735
The amounts owed by group undertakings arise as a result of advances made to subsidiary
companies and expenses paid on their behalf by the Company. These amounts are repayable
on demand and do not have fixed repayment terms. These advances are different to normal
intercompany loans as the advances are unsecured amounts, interest-free and they do not represent
formal loan arrangements.
Other receivables comprise non-trade amounts due from third parties, deposits, and advances,
which are measured at amortised cost and are expected to be recovered within twelve months,
unless otherwise stated.
A receivable is considered in default when it is over 90 days past due or there is evidence of significant
financial difficulty or unlikelihood of payment by the counterparty, triggering recognition of lifetime
expected credit losses (ECL) under IFRS 9. The Group applies the simplified ECL approach, including
for intercompany balances repayable on demand, where ECL is minimal if the borrower can repay
in full or recovery is expected over time. Receivables are written off when recovery is no longer
expected, with write-offs derecognised under IFRS 9 and any recoveries recognised in profit or loss.
In accordance with IFRS 9, the Company assesses expected credit losses (ECL) on intercompany
balances, including those classified as repayable on demand. The ECL assessment follows a prudent,
forward-looking approach and considers the financial condition and liquidity of the counterparty
at the reporting date.
202
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
6
Receivables (continued)
The following key assumptions are applied in assessing ECL:
-
If the borrower has sufficient accessible highly liquid assets to settle the balance in full if
demanded, the ECL is assessed as immaterial.
-
If the borrower cannot repay on demand in full, the Company evaluates recovery strategies
(e.g. repayment over time or fire sale of less liquid assets).
-
Where recovery is expected to be full under a reasonable timeframe, the ECL is considered
minimal.
As of the reporting date, based on an assessment of subsidiaries’ cash positions and financial health,
the Company concluded that all intercompany balances are fully recoverable. Accordingly, only an
ECL provision of $0.7m has been recognised which is deemed to be immaterial.
The details of other receivables related to ECL were disclosed in note 18 and note 28 of the
consolidated financial statements.
Movements on the Company’s loss provision on other receivables were as follows:
2024
$000
2023
$000
At 1 January
2,587
2,235
Loss provision during the year
699
352
At 31 December
3,286
2,587
At 31 December 2024, the expected loss provision for receivables was as follows:
Gross
carrying
amount
$000
Loss
provision
$000
Net
carrying
amount
$000
2024
Amounts owed by group undertakings
87,905
(3,286)
84,619
Other receivables
70
-
70
87,975
(3,286)
84,689
Gross
carrying
amount
$000
Loss
provision
$000
Net
carrying
amount
$000
2023
Amounts owed by group undertakings:
60,799
(2,587)
58,212
Other receivables
3,523
-
3,523
64,322
(2,587)
61,735
203
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
7
Other payables
2024
$000
(Restated)
2023
$000
Amounts owed to group undertakings:
Mergerset (1980) Limited
-
2,163
Musam Indonesia Limited
-
246
-
2,409
Accruals
383
299
383
2,708
The other payables have been restated from $3,302,000 to $2,708,000 relating to the reversal of
accruals amounting to $594,000. Further details are provided in Note 15.
The amounts owed to group undertakings arise as a result of advances from subsidiary companies
and expenses paid on our behalf. The amounts are unsecured, interest free and do not have fixed
repayment terms.
8
Leases
2024
$000
2023
$000
Lease liabilities analysed as:
Non-current
(214)
(277)
Current
(71)
(65)
(285)
(342)
The weighted average incremental borrowing rate per annum was 6.6%.
Maturity analysis for the lease liabilities has been given. The following table sets out the undiscounted
contractual cashflows of lease liabilities:
2024
$000
2023
$000
Less than 1 year
(87)
(85)
Between 1 and 2 years
(87)
(85)
Between 2 and 5 years
(145)
(226)
Lease liabilities
(319)
(396)
204
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
8
Leases (continued)
Amounts recognised in income statement:
2024
$000
2023
$000
Depreciation expense on right-of-use assets (note 4)
(72)
(24)
Interest expense on lease liabilities
(20)
(8)
Expense relating to short-term leases
-
(132)
Expense relating to leases of low value assets
-
-
(92)
(164)
At 31 December 2024, the Company has no short-term lease commitment (2023: nil).
All the leases are fixed payments. The total cash outflow for leases amount to $86,000 (2023:
$160,000).
The Company leases an office premises under the right-of-use assets. The remaining lease term is 8
months. On expiry the Company has the options to renew based on mutually agreed future rental
and the Company will continue to rent for another for 5 years. The right-of-use assets is classified as
part of property, plant and equipment in note 4.
Right-of-Use assets
Building
Total
$000
$000
At 1 January 2024
338
338
Amortisation
(72)
(72)
At 31 December 2024
266
266
Building
Total
$000
$000
At 1 January 2023
-
-
Additions
362
362
Amortisation
(24)
(24)
At 31 December 2023
338
338
205
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
8
Leases (continued)
Lease liabilities
Building
Total
$000
$000
At 1 January 2024
(342)
(342)
Interest expense
(20)
(20)
Lease payments
86
86
Effect of foreign exchange
(9)
(9)
At 31 December 2024
(285)
(285)
Building
Total
$000
$000
At 1 January 2023
-
-
Additions
(362)
(362)
Interest expense
(8)
(8)
Lease payments
28
28
At 31 December 2023
(342)
(342)
9
Share capital and treasury shares
The details of the share capital and treasury shares are disclosed in note 23 of the consolidated
financial statements.
10
Related party transactions
An office premises lease agreement was entered with Infra Sari Sdn Bhd, a company controlled by
late Madam Lim Siew Kim. The rental paid during the year was $86,000 (2023: $160,569). There was
no balance outstanding at the year end (2023: nil).
The details of the dividend payment to the related parties controlled by late Madam Lim Siew Kim
are disclosed in note 25 of the consolidated financial statements.
Transactions between the Company and its subsidiaries are disclosed below:
Nature of transactions
Name
2024
$000
2023
$000
Management fees from
Anglo-Eastern Plantations Malaysia Sdn Bhd
37
36
Commissioner services
income
PT Anglo-Eastern Plantations Management
Indonesia
14
14
Receivable from
Subsidiaries (note 6)
84,619
58,212
Payable to
Subsidiaries (note 7)
-
2,409
The details of the intercompany receivables and payables are disclosed in note 6 and note 7 of the
Company financial statements respectively.
206
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
11
Employees’ and Directors’ remuneration
There are no other employees in the company other than directors. The Directors’ Remuneration
Report is presented on pages 38 to 47 of which pages 42 and 44 are audited.
12
Dividends
In FY2024, the Company received a preference dividend of $835,000 and ordinary dividends totaling
$35,000,000 from its subsidiaries (2023: $40,000,000). The details of the dividends declared by the
Company are disclosed in note 11 of the consolidated financial statements.
13
Guarantees and other financial commitments
The Company has provided nil guarantees for loans to subsidiaries (2023: nil) as set out in note 27
of the consolidated financial statements.
14
Ultimate controlling shareholder
At 31 December 2024, Genton International Limited (“Genton”), a company registered in Hong Kong,
held 20,247,814 (2023: 20,247,814) shares of the Company representing 51.3% (2023: 51.2%) of the
Company’s issued share capital, excluding treasury shares. Together with other deemed interested
parties, Genton‘s shareholding totals 20,551,914 or 52.0%. The ultimate beneficial shareholders
of Genton International Limited are vested in the estates of Madam Lim with the application for
probate in progress.
207
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
15
Prior year restatements
The Company made retrospective corrections to its financial statements. An impairment loss was
recognised on its investment in Anglo-Eastern Plantations (M) Sdn Bhd, measured using the fair
value less costs to dispose methodology. This was based on a valuation dated 31 December 2024
that had not been obtained in previous reporting years. The fair value measurement is classified
within Level 3 of the fair value hierarchy. In accordance with FRS 101, the Company applied
disclosure exemptions under IAS 36.130(f)(ii) and (f)(iii), with related disclosures provided in the
basis of preparation note.
In addition, the Company identified and corrected the additional accounting misstatements
related to the reversal of certain accruals included in trade and other payables that were deemed
not required.
The following table summarises the impact of this prior year restatements on the Company
Statement of Financial Position:
Balance as
reported
$000
Effect of
restatements
$000
Restated
balance
$000
Impact on company statement of financial position
31 December 2023
Investments in subsidiaries
12,253
(1,445)
10,808
Other payables
(3,282)
594
(2,688)
Retained earnings
29,748
(851)
28,897
1 January 2023
Investments in subsidiaries
50,709
(1,445)
49,264
Other payables
(3,302)
594
(2,708)
Retained earnings
6,359
(851)
5,508
Explanation of Adjustments:
Investments in subsidiaries
-
The balance was reduced by $1.4 million as at both 1 January 2023 and 31 December 2023 to
reflect the recognition of an impairment loss on the Company’s investment in Anglo-Eastern
Plantations (M) Sdn Bhd.
Other payables
-
The balance was reduced by $0.6 million at both 1 January 2023 and 31 December 2023 dates
following the reversal of accruals that were not required.
Retained earnings
-
The net adjustment to retained earnings was a reduction of $0.9 million at both 1 January
2023 and 31 December 2023. This reflects the combined impact of the $1.4 million reduction
from the impairment of investment in subsidiaries, partially offset by a $0.6 million increase
resulting from the reversal of accruals that were not required under other payables.
208
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notes to the Company Financial Statements (Continued)
16
Events after the reporting period
The Company on 20 March 2025, announced that it has entered into an irrevocable commitment
with Panmure to manage a programme to repurchase up to 3,963,637 ordinary shares of 25 pence
each in the capital of the Company representing approximately 10% of the Ordinary Shares in
issued. This authority expires on 30 June 2025, of if earlier, at the conclusion of the forthcoming
annual general meeting. All such purchases will be market purchases made through the London
Stock Exchange. Companies can hold their own shares which have been purchased in this way in
treasury rather than having to cancel them.
209
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notice of Annual General Meeting
MESSAGE FROM THE CHAIRMAN Jonathan Law, our chairman, is delighted to extend an invitation to
all shareholders for our annual general meeting. As we mark the Group’s 40-year anniversary, we take
this opportunity to express our heartfelt gratitude for your continued support and partnership. Together,
we look forward to achieving even greater milestones in the years to come.
Notice is hereby given that the 40th Annual General Meeting of Anglo-Eastern Plantations Plc will be
held at UHY Hacker Young LLP, 6th floor Quadrant House, 4 Thomas More Square, London E1W 1YW on
23 June 2025 at 11.00am (UK time GMT. UTC +0).
The meeting will be for the following purposes, and voting will be decided on a show of hands unless a
poll is validly demanded:
AS ORDINARY BUSINESS
Resolution
Details
1
To receive and consider the accounts and the reports of the directors and auditor for
the year ended 31 December 2024
2
To receive and consider the Directors' Remuneration Report as set out in the annual
report and accounts for the year ended 31 December 2024
3
To re-elect Jonathan Law Ngee Song as a director
4
To re-elect Marcus Chan Jau Chwen as a director
5
To re-elect Michael Henry Stainer as a director
6
To re-elect Farah Suhanah Tun Ahmad Sarji as a director
7
To declare a final dividend
8
To appoint Forvis Mazars as auditors and to authorise the directors to determine their
remuneration
AS SPECIAL BUSINESS
9
That our Company is hereby generally and unconditionally authorised to make one or
more market purchases (within the meaning of section 693 of the Companies Act 2006
(“Act”)) of its ordinary shares of 25p each in the capital of our Company to be held as
treasury shares, provided that:
a) the maximum aggregate number of ordinary shares hereby authorised to be
purchased is 3,415,777;
b) the minimum price (exclusive of expenses) which may be paid for each share is 25p;
c) the maximum price (exclusive of expenses) which may be paid for each share may
not exceed the higher of:
i.
105% of the average of the middle-market quotations for such shares as derived
from the Daily Official List of the London Stock Exchange for the 5 business days
immediately preceding the day of purchase;
ii. an amount equal to the price of the last independent trade; and
iii. the highest current independent purchase bid on the London Stock Exchange;
d) the authority hereby conferred shall expire at the conclusion of the next annual
general meeting of our Company or on 30 June 2026 whichever shall be the earlier,
save that our Company may, before the expiry of this authority, make a contract of
purchase which will or may be executed wholly or partly after such expiry and may
make a purchase of shares pursuant to any such contract.
210
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notice of Annual General Meeting (Continued)
Resolution
Details
10
To approve the change of name of our Company from Anglo-Eastern Plantations Plc to
AEP Plantations Plc.
11
That a general meeting of our Company other than an annual general meeting may be
called on not less than 14 clear days’ notice.
By order of the Board CETC (Nominees) Limited Company Secretary
Date: 30 May 2025
Notes:
1.
Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, our Company has specified that only
those shareholders on the register of members of our Company at close of business on 19 June 2025 shall be
entitled to vote in respect of the number of shares registered in their name at that time. Changes to the register
of members after 19 June 2025 or, if the meeting is adjourned, in the register of members at close of business
on the date which is two days before the day of the adjourned meeting shall be disregarded in determining the
rights of any person to vote at the meeting by proxy.
2.
As at 19 May 2025 (being the latest practicable date prior to the publication of this notice), the Company’s issued
share capital comprised 39,976,272 Ordinary Shares of 25p each. Each share carries one vote except 581,850
shares held as treasury shares and therefore the total number of voting rights in our Company as at 6:00pm (UK
Time) on 19 May 2025 is 39,394,422.
3.
A member of our Company may appoint one or more proxies to vote at the meeting. Where more than one
proxy is appointed in relation to the meeting, each proxy must be appointed to exercise rights attaching to a
different share or shares. You may not appoint more than one proxy to exercise rights attached to any one share.
A proxy need not be a member of the Company. Members are encouraged to appoint the Chairman of the
meeting as their proxy.
4.
The instrument appointing a proxy must be deposited at the office of the Registrar by 9.30am (UK time) on
19 June 2025 not less than forty-eight hours before the time appointed for holding the meeting (or any
adjournment thereof).
5.
In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the
appointment submitted by the most senior holder will be accepted. Seniority is determined by the order in
which the names of the joint holders appear in the Company’s register of members in respect of the joint
holding (the first-named being the most senior).
6.
CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment
service may do so for the annual general meeting to be held on 23 June 2025 and any adjournment thereof by
using the procedures described in the CREST Manual on the Euroclear website at www.euroclear.com/CREST.
CREST personal members or other CREST sponsored members and those CREST members who have appointed
a voting service provider should refer to their CREST sponsor or voting service provider, who will be able to take
the appropriate action on their behalf. In order for a proxy appointment or instruction made using the CREST
service to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly authenticated
in accordance with Euroclear’s specifications and must contain the information required for such instructions,
as described in the CREST Manual. All messages relating to the appointment of a proxy or an instruction to a
previously appointed proxy must be transmitted so as to be received by Computershare Investor Services PLC
[CREST ID: 3RA50] by 9.30am on 19 June 2025. It is the responsibility of the CREST member concerned to
take such action as shall be necessary to ensure that a message is transmitted by means of the CREST system
by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or
voting service providers are referred, in particular, to those sections of the CREST Manual concerning practical
limitations of the CREST system and timings. Our Company may treat a CREST Proxy Instruction as invalid in the
circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
211
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Notice of Annual General Meeting (Continued)
7.
You may submit your proxy electronically using the link https://www-uk.computershare.com/investor/. If not already
registered, you will need your Shareholder Reference Number (“SRN”) which is detailed on your share certificates.
8.
The statement of the rights of shareholders in relation to the appointment of proxies does not apply to a person
who receives this notice of general meeting as a person nominated to enjoy “information rights” under section
146 of the Companies Act 2006. If you have been sent this notice of meeting because you are such a nominated
person the following statements apply: (i) you may have a right under an agreement between you and the
registered shareholder by whom you were nominated to be appointed (or to have someone else appointed) as
a proxy for this general meeting and (ii) if you have no such a right, or do not wish to exercise it, you may have
a right under such an agreement to give instructions to that registered shareholder as to the exercise of voting
rights. Nominated persons should contact the registered member by whom they were nominated in respect of
these arrangements.
9.
A member of our Company which is a corporation may authorise a person or persons to act as its representative(s)
at the meeting. In accordance with the provisions of the Companies Act 2006, each such representative may
exercise (on behalf of the corporation) the same powers as the corporation could exercise if it were an individual
member of the Company, provided that they do not do so in relation to the same shares. It is no longer necessary
to nominate a designated corporate representative.
10.
Members satisfying the requirements of section 527 of the Companies Act 2006 may require our Company
to publish on a website a statement by them (at the Company’s cost) relating to the audit of the Company’s
accounts which are being laid before this meeting (including the auditor’s report and the conduct of the audit)
or, where applicable, any circumstances connected with an auditor of our Company ceasing to hold office since
the previous general meeting at which accounts were laid. Should such a statement be received, it will be
published on the Company’s website at https://www.angloeastern.co.uk/. In those circumstances our Company
would be under an obligation to forward a copy of the statement to the auditor forthwith and the statement
would form part of the business which may be dealt with at this meeting.
11.
Shareholders are welcomed to submit questions to the Board by email to stakeholder.relations@angloeastern.
co.uk by 11 June 2025 and they will be answered after the AGM or at the AGM for those shareholders who are in
attendance. Our Company must cause to be answered any such questions relating to the business being dealt
with at the meeting but no such answer need be given if (a) to do so would interfere unduly with the preparation
of the meeting or involve the disclosure of confidential information, (b) the answer has already been given on a
website in the form of an answer to a question, or (c) it is undesirable in the interests of our Company or the good
order of the meeting that the question be answered.
12.
A copy of this notice and the other information required by section 311A of the Companies Act 2006 can be
found at https://www.angloeastern.co.uk/.
13.
If you are in any doubt as to any aspect of Resolutions 9 to 12 or as to the action you should take, you should
immediately take your own advice from a stockbroker, solicitor, accountant or other independent financial
advisor authorised under the Financial Services and Markets Act 2000. The Board believes that these Resolutions
are in the best interests of our Company and shareholders as a whole.
14.
If you have sold or otherwise transferred all your shares in the Company, please hand this document and the
accompanying form of proxy to the purchaser or transferee, or to the bank, stockbroker or other agent through
whom the sale or transfer was effected, for transmission to the purchaser or transferee. If you sell or have sold or
otherwise transferred only part of your holding of existing shares please consult the bank, stockbroker or other
agent through whom the sale or transfer was effected.
15.
The following documents are available for inspection by members at the registered office of our Company during
normal business hours (except Bank Holidays) and at the place of the meeting not less than 15 minutes prior to and
during the meeting. The documents can also be obtained by email to stakeholder.relations@angloeastern.co.uk.
(a)
a copy of the Executive Director’s service agreement;
(b) copies of Non-Executive Directors’ letters of appointment; and
(c)
a copy of the Company’s existing Articles of Association.
212
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Our Offices and Advisers
SECRETARY AND REGISTERED OFFICE
Anglo-Eastern Plantations Plc
(Number 01884630)
(Registered in England and Wales)
CETC (Nominees) Limited
Quadrant House, 6th Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
Tel
: +44 (0)20 7216 4621
+44 (0)20 7216 4600
OPERATIONS
Malaysia
Anglo-Eastern Plantations Management Sdn Bhd
7th Floor, Wisma Equity
150 Jalan Ampang
50450 Kuala Lumpur
Malaysia
Tel
: +60 (0)3 2162 9808
Indonesia
PT Anglo-Eastern Plantations Management
Indonesia
Sinar Mas Land Plaza
Jl. P.Diponegoro No.18, 3rd Floor #301
Kelurahan Madras Hulu
Kecamatan Medan Polonia
Medan 20152
North Sumatera
Indonesia
Tel
: +62 (0)61 452 8683
ADVISERS
Independent auditor
Forvis Mazars LLP
30 Old Bailey
London EC4M 7AU
United Kingdom
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
Stockbroker
Panmure Liberum Ltd
Ropemaker Place, Level 12
25 Ropemaker Street
London EC2Y 9LY
213
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Glossary
Terms
Meaning
£
British Pound Sterling
¢
Cents
CPO
Crude Palm Oil
CSA
Climate Scenario Analysis
CSR
Corporate Social Responsibility
DTR4
Disclosure And Transparency Rules
4
EFB
Empty Fruit Bunches
EHS
Environment Health and Safety
EIA
Environmental Impact Assessment
EPS
Earnings Per Share
ESG
Environmental, Social and
Governance
EU
European Union
EUDR
European Union Deforestation
Regulation
FCA
Financial Conduct Authority
FFB
Fresh Fruit Bunches
FPIC
Free, Prior and Informed Consent
FRC
Financial Reporting Council
GHG
Greenhouse Gas
Ha
Hectare
HCS
High Carbon Stock
HCV
High Conservation Value
IAS
International Accounting
Standards
IPCC
Intergovernmental Panel on
Climate Change
ISCC
International Sustainability and
Carbon Certification
ISPO
Indonesian Sustainable Palm Oil
MSPO
Malaysian Sustainable Palm Oil
MT
Metric Tonne
Terms
Meaning
NDPE
No Deforestation, No Peat, and No
Exploitation
NGFS
Network for Greening the Financial
System
NGO
Non-Governmental Organisation
OER
Oil Extraction Rate
p
pence
PLN
Perusahaan Listrik Negara
POME
Palm Oil Mill Effluent
PROPER
Program for Pollution Control
Evaluation and Rating
RM
Ringgit Malaysia
Rp
Indonesian Rupiah
RSPO
Roundtable on Sustainable Palm
Oil
SECR
UK Streamlined Energy and
Carbon Reporting
SPOTT
Sustainability Transparency Toolkit
TCFD
Taskforce on Climate Related
Financial Disclosure
TNFD
Taskforce for Nature-related
Financial Disclosures
$
United States Dollars
WRI
World Resource Institute
WWF
World Wide Fund for Nature
214
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
Glossary (Continued)
Region
Plantation
Also referred to as
Terengganu, Malaysia
Anglo-Eastern Plantations (M) Sdn Bhd
Cenderung
North Sumatera
PT. Musam Utjing
Sungei Musam
North Sumatera
PT. United Kingdom Indonesia Plantation
Blankahan
North Sumatera
PT. Simpang Ampat
Rambung
North Sumatera
PT. Tasik Raja
Tasik
North Sumatera
PT. Anak Tasik
Anak Tasik
North Sumatera
PT. Cahaya Pelita Andhika
CPA
North Sumatera
PT. Hijau Pryan Perdana
HPP
Bangka
PT Bangka Malindo Lestari
BML
Riau
PT. Bina Pitri Jaya
BPJ
Bengkulu
PT. Mitra Puding Mas
MPM
Bengkulu
PT. Alno Agro Utama
Alno
Kalimantan
PT. Sawit Graha Manunggal
SGM
Kalimantan
PT. Kahayan Agro Plantation
KAP
215
ANGLO-EASTERN PLANTATIONS PLC
ANNUAL REPORT 2024
London Office
Anglo-Eastern Plantations Plc
Company Number: 01884630
Anglo-Eastern Plantations Plc
Quadrant House, 6th Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
Tel :
+44 (0)20 7216 4621
Malaysian Office
Anglo-Eastern Plantations Management Sdn Bhd
7th Floor, Wisma Equity
150 Jalan Ampang
50450 Kuala Lumpur
Malaysia
Tel : +60 (0)3 2162 9808
Indonesian Office
PT Anglo-Eastern Plantations Management Indonesia
Sinar Mas Land Plaza
Jl. P. Diponegoro No. 18, 3rd Floor #301
Keluruhan Madras Hulu
Kecamatan Medan Polonia
Medan 20152
North Sumatera
Indonesia
Tel :
+62 (0)61 452 8683
www.angloeastern.co.uk