24th February 1999
ASIATIC DEVELOPMENT BERHAD
PRELIMINARY ANNOUNCEMENT
The Directors of Asiatic Development Berhad are pleased to announce the audited results of the Group and of the Company for the year ended 31st December, 1998 together with the comparative results for the year ended 31st December, 1997 as follows:-
| GROUP | COMPANY | GROUP | COMPANY | ||||||
| 1998 RM '000 | 1997 RM '000 | 1998 RM '000 | 1997 RM '000 | + OR - % | + OR - %
| ||||
| 1.(a) | Operating Revenue | 351,304 | 313,316 | 136,557 | 91,206 | +12 | +50 | ||
| 1.(b) | Investment and interest income | 3,938 | 1,937 | 63,109 | 49,330 | N/A | +28 | ||
| 2.(a) | Profit before taxation, minority interests and extraordinary items and after interest on borrowings and depreciation [see notes (i) and (ii) below] | 164,856 | 99,454 | 140,228 | 85,487 | +66 | +64 | ||
2.(b) | Share of results of associated companies | 148 | 2,928 | - | - | -95 | - | ||
| 2.(c) | Profit before taxation | 165,004 | 102,382 | 140,228 | 85,487 | +61 | +64 | ||
| 2.(d) | Taxation | (40,957) | (26,191) | (37,533) | (23,169) | +56 | +62 | ||
| 2.(e) |
| 124,047 | 76,191 | 102,695 | 62,318 | +63 | +65 | ||
| 955 | 263 | - | - | N/A | - | |||
| 2.(f) | Profit attributable to Members of the Company | 125,002 | 76,454 | 102,695 | 62,318 | +63 | +65 | ||
| Notes: 2.(i) | Interest on borrowings | 3,689 | 2,892 | - | - | +28 | - | ||
| 2.(ii) | Depreciation | 9,594 | 8,536 | 3,648 | 3,936 | +12 | -7 | ||
| 3. | Profit [2(e)(i) above] as a percentage of operating revenue [1(a) above] | 35.3% | 24.3% | 75.2% | 68.3% | ||||
| 4. | 15.5% | 10.7% | 11.7% | 7.8% | |||||
| 5. | Earnings in sen per ordinary share for the year based on 2(f) divided by number of shares in issue of 741,335,000 ordinary shares | 16.9 Sen | 10.3 Sen | ||||||
| 6. | Net tangible assets backing per ordinary share of 50 sen each | 109 Sen | 97 Sen | ||||||
| f | |
| 7.(a) | The results of the Group and of the Company for the year ended 31st December, 1998 have been higher than the results for the year ended 31st December, 1997 mainly due to better selling prices of palm products. In addition, the results of the Group and of the Company also include the following exceptional items:- |
GROUP | COMPANY | ||||
| 1998 RM '000 | 1997 RM '000 | 1998 RM '000 | 1997 RM '000 | ||
| Gain on freehold land and plantations acquired by the Government | 7,776 | 16,539 | 7,624 | 143 | |
| Write-down of long-term investment in a quoted foreign corporation | (691) | - | (368) | - | |
| Provision for diminution in value of investment in a foreign subsidiary | - | (25,037) | - | - | |
| 7,085 | (8,498) | 7,256 | 143 | ||
| Apart from the above, the results of the Group and of the Company for the year ended 31st December, 1998 have not been affected by any material factors or items of an exceptional or extraordinary nature. |
| 7.(b) | In the opinion of the Directors, no significant trend or event has occurred between 31st December, 1998 and the date of this report which would affect substantially the results of the Group and of the Company. |
| GROUP | COMPANY | GROUP | COMPANY | ||||
| 1998 RM '000 | 1997 RM '000 | 1998 RM '000 | 1997 RM '000 | + OR - % | + OR - % | ||
| 8.(a) | Profit [2(f) above] reported for first half year | 52,456 | 27,881 | 39,714 | 22,656 | +88 | +75 |
| 8.(b) | Profit [2(f) above] for second half year | 72,546 | 48,573 | 62,981 | 39,662 | +49 | +59 |
| 125,002 | 76,454 | 102,695 | 62,318 | +63 | +65 | ||
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| 10. | The results do not include any pre-acquisition profits. | ||||||||||||||||||||||||||||||
| 11. | 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 those as stated in Note 7 (a). | ||||||||||||||||||||||||||||||
| 12. | Since the payment of the interim dividend for the year ended 31st December, 1998 and the date of this report, the Company did not make any rights, bonus or other issue of equity shares. | ||||||||||||||||||||||||||||||
| 13. | The Directors are of the opinion that the results for the current year are dependent on the economic conditions in the region and volatility of global edible oils' prices. | ||||||||||||||||||||||||||||||
| 14. | As previously announced, the Group has set up a task force committee to address the Y2K issues. The Group is currently in the testing, validation and remediation phases of the project. The Group has also commenced the development of contingency plans. | ||||||||||||||||||||||||||||||
| The total cost incurred todate is approximately RM0.3 million for the Group and the Company. The total cost of the Y2K project is estimated to be RM1 million for the Group and RM0.8 million for the Company. | |||||||||||||||||||||||||||||||
| 15.(a) | A final dividend of 3 sen less 28% tax per ordinary share of 50 sen each in respect of the financial year ended 31st December, 1998 has been recommended by the Directors for approval by shareholders. The entitlement date and the date of payment of the said final dividend will be determined by the Directors and announced at a later date. | ||||||||||||||||||||||||||||||
| . (b) | The interim dividend was 1.5 sen less 28% tax per ordinary share. | ||||||||||||||||||||||||||||||
| .(c) | Annual dividend per ordinary share | ||||||||||||||||||||||||||||||
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| (d) | Total annual net dividend | ||
| 1998 RM | 1997 RM | ||
| Interim | 8,006,418 | 7,784,016 | |
| Final | 16,012,836 | 13,344,030 | |
| 24,019,254 | 21,128,046 | ||
Tan Sri Mohd Amin bin Osman
Chairman
Asiatic Development Berhad