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Performance Review
Acquisition of Java Plantations Sdn Bhd
(Now known as FCB Eastern Plantations Sdn Bhd)
Details of the acquisition
FCB Plantation Holdings Sdn Bhd (“FCBPH”) entered into an agreement with
Java Berhad on 6 October 2017 to acquire Java Plantations Sdn Bhd (“JPSB”).
JPSB is an investment holding company having an 80% stake in Ladang Bunga
Tanjong Sdn Bhd, a joint venture company with Kumpulan Pertanian Kelantan
Berhad, which operates an oil palm plantation held under the Individual Title
Geran 36415, Lot 2429, Mukim Lubok Bongor, Jajahan Jeli, Kelantan measuring
approximately 3,290 acres or 1,331 hectares. The lease period for the land is for
66 years and expiring on 28 September 2069. Under the terms of the agreement
FCBPH has also assumed JPSB’s trade and other payables totalling RM29.18
million. The fair value of the net assets acquired was RM4.89 million (excluding
the shares of the non-controlling interest) resulting in a negative goodwill on
acquisition of RM275,000.
The acquisition was completed on 20 February 2018 and the effective price paid
for the acquisition is RM10,255 per acre.
Benefits of the acquisition
The acquisition would enable the Group to realise its strategy to expand its plantation
business in Malaysia and capitalise on the bright prospects of the palm oil industry,
which would provide a broader earnings base for the Group.
Progress made so far
Rehabilitation works on 566 hectares are ongoing to-date. Replanting works will
commence in this current financial year and scheduled to be completed by next
financial year.
Letter from the Group Managing Director
and intense competition between
terminals, as the overall decrease in
throughput had created excess capacity
for all players.
Group Earnings Before Interest and Tax
(“EBIT”) decreased 4.0% to RM81.98
million. Earnings per share and net
assets per share stood at 11.36 sen and
RM2.67, respectively.
As at 31 March 2018, we have cash and
cash equivalents of RM235.30 million.
Our capital expenditures (including
biological asset expenditures) totalled
RM32.50 million.
A more detailed review of the results and
the operating performance for the year
of each of the Group’s business divisions
is presented on pages 30 to 41 of this
Annual Report.
Dividend
The Board is pleased to recommend for
shareholders’ approval a final single-tier
dividend of 9.0 sen per share for the
financial year ended 31 March 2018 at
the forthcoming Annual General Meeting.
If approved at the forthcoming Annual
General Meeting, the dividend will be
paid on 5 October 2018 to shareholders
whose names appear on the register as
at 20 September 2018.
Sustainability
Besides improving our financial
outcomes, we are also stepping up our
sustainability aspirations. FYE2018 has
been a busy year for our sustainability
programme as we have been formalising
and communicating our approach. There
is still much to do but we are happy
with the progress that has been made;
in particular, the support our employees
have given. In the coming year, we will
give higher profile to the communication
of different aspects of our sustainability
programme to our employees as we
intend to set measurable environmental
targets.