HIGHLIGHTS
Financials
· Profit for the year including discontinued operations US$35.3 million (2015 US$25.4 million)
· Profit for the year on continuing operations more than doubled to US$16.4 million (2015 US$7.8 million)
· Total dividends for the year, including special dividend of 5.00 pence per share, of 20.00 pence per share (2015 – 8.75 pence per share)
· Dividends for 2017, including special dividend of 10.00 pence per share, to be minimum of 25.00 pence per share
· Earnings per share 56.1 US cents (2015 – 43.4 US cents)
· Net funds at 31 December 2016 of US$75.3 million (2015 US$11.5 million)
Indonesian palm oil
· Plantation gross profit US$24.4 million (2015 US$15.1 million)
· Palm-oil prices c.i.f. Rotterdam higher at average of US$700 per tonne (2015 US$622)
· F.f.b. crops fell 6% due to dry weather of an exceptional 'El Niño', in line with global palm-oil production
· Strong average extraction rates of 24.1%
· New 60-tonne mill commissioned in Bangka; fourth Group mill to be completed in 2018
· Total new planting of 3,600 ha in the year (Group and smallholders)
· Active negotiation for substantial new hectarage following sale of minority share in Agro Muko
· Young planted areas, average age of 7½ years, mean Group crops projected to rise strongly in future years
Malaysian property
· 36% increase in Group share of Bertam Properties' profit as more sales completed in year
· Less development begun in 2016 than in previous years
Group valuation
· Directors' estimate of Group equity value at period end, based on independent valuation, of £11.00 per share
Commenting on the results, Peter Hadsley-Chaplin, executive chairman of MP Evans, said: “2016 proved an excellent year and the Group remains on track in its strategy of continued expansion in the Indonesian palm-oil sector, thereby providing the opportunity for enhanced earnings and further growth in the value of its assets. This is underpinned by the age profile of our current plantings, many of which are set to enter a phase of significant yield growth over the coming years. The board is excited at the prospect of increasing the Group's hectarage by adding significant new areas to our existing plantations.”