August 13,1998
ASIATIC DEVELOPMENT BERHAD
INTERIM ANNOUNCEMENT
THE DIRECTORS OF ASIATIC DEVELOPMENT BERHAD ARE PLEASED TO ANNOUNCE THE UNAUDITED RESULTS OF THE GROUP AND OF THE COMPANY FOR THE HALF-YEAR ENDED 30TH JUNE 1998, TOGETHER WITH THE COMPARATIVE RESULTS FOR THE HALF-YEAR ENDED 30TH JUNE 1997 AS FOLLOWS:
| GROUP
HALF-YEAR ENDED 30TH JUNE | COMPANY HALF-YEAR ENDED 30TH JUNE | GROUP | COMPANY | ||||
| 1998 RM '000 | 1997 RM '000 | 1998 RM '000 | 1997 RM '000 | + or - % | + or - % | ||
| 1.(a) | OPERATING REVENUE | 153,548 | 110,949 | 60,744 | 39,578 | +38 | +53 |
| (b) | INVESTMENT AND INTEREST INCOME | 1,951 | 1,618 | 21,154 | 19,566 | +21 | +8 |
| 2.(a) | PROFIT BEFORE TAXATION AND MINORITY
INTERESTS AND AFTER INTEREST ON BORROWINGS AND DEPRECIATION [see notes (i) and (ii) below] | 67,506 | 40,126 | 53,786 | 32,753 | +68 | +64 |
| (b) | SHARE OF RESULTS OF ASSOCIATED COMPANIES | (273) | 106 | - | - | N/A | - |
| (c) | PROFIT BEFORE TAXATION | 67,233 | 40,232 | 53,786 | 32,753 | +67 | +64 |
| (d) | TAXATION | (15,183) | (12,371) | (14,072) | (10,097) | +23 | +39 |
| (e)(i) | PROFIT AFTER TAXATION BEFORE MINORITY INTERESTS | 52,050 | 27,861 | 39,714 | 22,656 | +87 | +75 |
| (ii) | MINORITY INTERESTS | 406 | 20 | - | - | N/A | - |
| (f) | PROFIT ATTRIBUTABLE TO MEMBERS OF THE COMPANY | 52,456 | 27,881 | 39,714 | 22,656 | +88 | +75 |
| Notes: (i) | INTEREST ON BORROWINGS | 2,135 | 16 | - | - | N/A | - |
| (ii) | DEPRECIATION INCLUDING AMORTISATION | 4,998 | 4,437 | 1,794 | 2,054 | +13 | -13 |
| 3.(a) | THE RESULTS OF THE GROUP AND OF THE COMPANY FOR
THE HALF-YEAR ENDED 30TH JUNE, 1998 ARE BETTER THAN THAT OF THE HALF-YEAR ENDED 30TH JUNE, 1997 MAINLY DUE TO HIGHER PALM PRODUCTS PRICES. IN ADDITION, THE RESULTS OF THE GROUP AND OF THE COMPANY HAVE ALSO BEEN AFFECTED BY THE FOLLOWING EXCEPTIONAL ITEMS :- |
GROUP HALF-YEAR | COMPANY HALF-YEAR ENDED 30TH JUNE | ||||
| 1998 RM '000 | 1997 RM '000 | 1998 RM '000 | 1997 RM '000 | ||
| GAIN ON FREEHOLD LAND AND PLANTATION ACQUIRED BY THE GOVERNMENT | 4,492 | 13,804 | 4,221 | 127 | |
| PROVISION FOR DIMINUTION IN VALUE OF INVESTMENT IN AN OVERSEAS SUBSIDIARY | - | (13,675) | - | - | |
| 4,492 | 129 | 4,221 | 127 | ||
APART FROM THE ABOVE, THE RESULTS OF THE GROUP AND OF THE COMPANY FOR THE HALF-YEAR ENDED 30TH JUNE, 1998 HAVE NOT BEEN AFFECTED BY ANY OTHER MATERIAL FACTORS OR ITEMS OF AN EXCEPTIONAL OR EXTRAORDINARY NATURE. |
| (b) | IN THE OPINION OF THE DIRECTORS, NO SIGNIFICANT TREND OR EVENT HAS OCCURRED BETWEEN 30TH JUNE, 1998 AND THE DATE OF THIS REPORT WHICH WOULD AFFECT SUBSTANTIALLY THE RESULTS OF THE GROUP AND OF THE COMPANY. |
| 4. | GROUP | |||
| 1998 | 1997 | |||
| EARNINGS IN SEN PER ORDINARY SHARE FOR THE HALF-YEAR BASED ON 2(f) DIVIDED BY 741,335,000 (1997 : 741,335,000) ORDINARY SHARES ISSUED | 7.08 sen | 3.76 sen | ||
| 5. | TAXATION FOR THE HALF-YEAR ENDED 30TH JUNE, 1998 INCLUDES THE FOLLOWING:- | ||||
| DEFERRED TAX CHARGE/(CREDIT) | GROUP HALF-YEAR ENDED 30TH JUNE | COMPANY HALF-YEAR ENDED 30TH JUNE | |||
| 1998 RM '000 | 1997 RM '000 | 1998 RM '000 | 1997 RM '000 | ||
| 240 | 193 | 303 | (123) | ||
| 6. | THE RESULTS DO NOT INCLUDE ANY PRE-ACQUISITION PROFITS. | ||||
| 7. | THE RESULTS DO NOT INCLUDE ANY PROFIT ON SALE OF INVESTMENTS AND PROPERTIES WHICH ARE NOT IN THE ORDINARY COURSE OF BUSINESS OF THE GROUP AND OF THE COMPANY OTHER THAN AS DISCLOSED IN 3(a) ABOVE. | ||||
| 8. | SINCE THE PAYMENT OF THE FINAL DIVIDEND FOR THE YEAR ENDED 31ST DECEMBER 1997 TO THE DATE OF THIS REPORT, THE COMPANY DID NOT MAKE ANY RIGHTS, BONUS AND/OR OTHER ISSUES OF EQUITY SHARES. | ||||
| 9. | BARRING ANY UNFORESEEN CIRCUMSTANCES, THE DIRECTORS EXPECT THE RESULTS OF THE GROUP AND OF THE COMPANY FOR THE SECOND HALF-YEAR TO BE SATISFACTORY. | ||||
| 10. | THE GROUP HAS SET UP A TASK-FORCE COMMITTEE TO ADDRESS THE Y2K ISSUES, BOTH FROM THE INFORMATION TECHNOLOGY AS WELL AS BUSINESS PERSPECTIVES. SEVERAL MAJOR PHASES OF THE PROJECT HAVE BEEN COMPLETED TO-DATE, INCLUDING THE AWARENESS PROGRAM, PRODUCTION OF COMPLETE INVENTORY, IMPACT ANALYSIS, BUDGETING AND THE SETTING UP OF TESTING FACILITIES. THE GROUP IS NOW AT THE LATER STAGE OF IMPLEMENTING PROGRAM MODIFICATIONS, SOFTWARE AND HARDWARE UPGRADES, REPLACEMENTS AND TESTING REQUIRED TO BE Y2K READY. THE CURRENT TOTAL COST OF THE Y2K PROJECT IS ESTIMATED TO BE RM1 MILLION FOR THE GROUP AND RM 0.8 MILLION FOR THE COMPANY RESPECTIVELY. THESE AMOUNTS ARE NOT SIGNIFICANT AND THUS WILL NOT MATERIALLY IMPACT THE GROUP AND THE COMPANY'S FINANCIAL RESULTS. | ||||
| 11.(a) | AN INTERIM DIVIDEND OF 1.5 SEN LESS 28% TAX PER ORDINARY SHARE IN RESPECT OF THE HALF- YEAR ENDED 30TH JUNE 1998 HAS BEEN DECLARED BY THE DIRECTORS AND WILL BE PAYABLE ON 20TH OCTOBER, 1998 TO THE SHAREHOLDERS REGISTERED IN THE REGISTER OF MEMBERS AT THE CLOSE OF BUSINESS ON 28TH SEPTEMBER, 1998. | ||||
| (b) | INTERIM DIVIDEND PER ORDINARY SHARE: | ||||
| 1998 1.5 SEN LESS 28% TAX | 1997 1.5 SEN LESS 30% TAX (NOW DEEMED AS 28%) | ||||
| (c) | NET INTERIM DIVIDEND: | |
| 1998 RM 8,006,418 |
1997 RM 7,784,017 | |
(d) | CLOSURE OF BOOKS NOTICE IS HEREBY GIVEN THAT THE SHARE TRANSFER BOOKS AND REGISTER OF MEMBERS WILL BE CLOSED FROM 29TH SEPTEMBER 1998 TO 5TH OCTOBER 1998 BOTH DAYS INCLUSIVE, FOR THE PURPOSE OF DETERMINING SHAREHOLDERS' ENTITLEMENT TO THE INTERIM DIVIDEND. DULY COMPLETED REGISTRABLE TRANSFERS RECEIVED BY THE COMPANY'S SHARE REGISTRARS, GENTING MANAGEMENT AND CONSULTANCY SERVICES SDN. BHD, 23RD FLOOR, WISMA GENTING, JALAN SULTAN SMAIL, 50250 KUALA LUMPUR, UP TO 5.00 PM ON 28TH SEPTEMBER, 1998 WILL BE REGISTERED BEFORE ENTITLEMENTS TO THE DIVIDEND ARE DETERMINED. FURTHER NOTICE IS HEREBY GIVEN THAT THE MALAYSIAN CENTRAL DEPOSITORY SDN BHD SHALL NOT BE ACCEPTING ANY REQUEST FOR DEPOSIT AND/OR WITHDRAWAL OF SHARES COMMENCING 12.30PM ON 24TH SEPTEMBER 1998 UNTIL 12.29PM ON 28TH SEPTEMBER 1998. A DEPOSITOR SHALL QUALIFY FOR ENTITLEMENT TO THE INTERIM DIVIDEND ONLY IN RESPECT OF: | |
| i) | SHARES DEPOSITED INTO THE DEPOSITOR'S SECURITIES ACCOUNT BEFORE 12.30 PM ON 24TH SEPTEMBER 1998; | |
| ii) | SHARES NOT WITHDRAWN FROM THE DEPOSITOR'S SECURITIES ACCOUNT AS AT 12.29PM ON 24TH SEPTEMBER 1998; | |
| iii) | SHARES TRANSFERRED INTO THE DEPOSITOR'S SECURITIES ACCOUNT BEFORE 12.30 PM ON 28TH SEPTEMBER 1998 IN RESPECT OF ORDINARY TRANSFERS; | |
| iv) | SHARES TRANSFERRED INTO THE DEPOSITOR'S SECURITIES ACCOUNT AT OR BEFORE 3.00 PM ON 28TH SEPTEMBER 1998 IN RESPECT OF EXPRESS TRANSFERS; AND | |
| v) | SHARES BOUGHT ON THE KUALA LUMPUR STOCK EXCHANGE ON A CUM ENTITLEMENT BASIS ACCORDING TO THE RULES OF THE KUALA LUMPUR STOCK EXCHANGE. | |