TIDMPOGL
RNS Number : 0224Z
Plant Offshore Group Ltd
15 September 2009
15 September 2009
Plant Offshore Group Limited
Unaudited Interim Results for the Six Months Ended 30 June 2009
Plant Offshore Group Limited ("POGL" or "the Company"), an AIM quoted company
that provides Engineering, Procurement and Construction Management ("EPCM")
services to the oil and gas, renewable energy and related industries, today
announces its unaudited interim results for the six months ended 30 June 2009.
Financial Highlights
* Revenue down 26% to RM24.5m (GBP4.5m) (2008: RM33.1m (GBP5.2m)).
* Profit from operations down 43% to RM1,099,000 (GBP201,000) (2008: RM1,931,000
(GBP303,000)).
* Profit before tax down 47% to RM956,000 (GBP175,000) (2008: RM1,819,000
(GBP285,000)).
* Basic earnings per share down 58% to RM0.004 (GBP0.0007) (2008: RM0.009
(GBP0.0014)).
* Cash flow from operating activities down 85% to RM394,000 (GBP72,000) (2008:
RM2,672,000 (GBP419,000)).
Note:
The highlighted financial information for the six months ended 30 June 2009,
other than balance sheet items, has been translated using RM5.4662:GBP1 (the
average month-end exchange rate from January to June 2009). The balance sheet
items have been translated using the closing date exchange rate of
RM5.9300:GBP1.
The comparable financial information for the six months ended 30 June 2008 has
been translated using RM6.3735:GBP1 ((the average month-end exchange rate from
January to June 2008).
Mr Cho Nam Sang, Non-Executive Chairman of POGL, commented:
"Despite a challenging business environment given the current weakness in the
global economy, the group managed to report a small profit for the six month
period.
"Although reports on the global economy are mixed, we remain cautiously
optimistic in securing further contracts, particularly in Malaysia."
Plant Offshore Group Limited
Hang Chin Juan, CEO Tel: +603 7805 5001
hang_cj@plantoffshore.com
Kenneth Chai, Head of Corporate
kenneth_cct@plantoffshore.com
www.plantoffshore.com
Allenby Capital Limited
Imran Ahmad/Nick Athanas Tel: +44(0)20 7510 8600
Threadneedle Communications
Josh Royston / Graham Herring Tel: +44(0)20 7653 9850
About POGL:
POGL is the holding company of an established and profitable group of companies
engaged in the business of providing integrated, multi-discipline EPCM services
to the oil and gas (onshore and offshore), petrochemical, biodiesel, energy and
other related industries. The group operates primarily in the ASEAN region but
this focus is expanding, with the group having won contracts in the Middle East.
The services of POGL are focused on EPCM services. This is broken down and
incorporates the following features:
- Engineering "E" - specialist engineering design services;
- Procurement "P" - the procurement of the relevant materials and equipment
to meet design specifications such as skid and process equipment; and
- Construction Management "CM" - the management on a client's behalf of the
construction or fabrication of a project. The services can be provided, together
with more general Project Management, either in totality or partially dependent
on the client's requirements. In addition POGL supplies industry specialists to
the oil and gas and related industries.
POGL listed on AIM, a market of the London Stock Exchange, in July 2007. For
more information on the company, please visit www.plantoffshore.com.
Chairman's Statement
I am pleased to present the interim results of POGL for the period ended 30 June
2009. This period has been a difficult and highly challenging one, not just for
us, but also for numerous other companies worldwide as a result of the global
recession. Our turnover and profit margins have been adversely affected by these
challenges and we are behind management expectations for the full year.
Nevertheless, I am pleased to be able to report that we are still profitable for
the six month period to 30 June 2009 despite the present market
conditions. Also, we believe there is a good possibility of securing new
contracts from Malaysian clients in the second half of this financial year for
EPCM contracts.
With oil prices recovering to $72.69 a barrel in June 2009 compared to the
lowest price of $33.87 a barrel this year, we expect long-term investment in oil
and gas infrastructure to continue and to remain strong. Also, given the high
demand for oil and gas products in most industries throughout the world, there
is a positive effect on the provision of oil and gas services.
Notwithstanding the near-term adverse industry conditions, the Board believes
the long term outlook remains favourable. We believe demand for POGL's EPCM
services should, over time, increase as overall energy demand and use over the
long-term is expected to continue to increase steadily, particularly in
developing countries. Besides this, we will continue to tender and negotiate
with clients for new contracts to replenish our order book. We remain cautiously
optimistic that these tenders and negotiations will turn into contracts in the
second half of this financial year. Our current major client is Oilfab Sdn Bhd
and we expect new oil and gas contracts from them. We also have tenders in place
for an oil and gas contract with RBS International Sdn Bhd and are in
negotiations with a Malaysian healthcare and nutraceutical company for an EPCM
contract. However, we acknowledge that, given the general weak market sentiment,
the timing of awarding of new contracts from clients is uncertain.
Financial Performance
Group revenue, profit from operations, profit before tax and basic earnings per
share for the six months ended 30 June 2009 declined compared with the six
months ended 30 June 2008. This was largely due to our clients' request to delay
some existing projects and thinning profit margins attributed to stiff
competition from our competitors. In addition, the current weak market sentiment
has led to a lower level of investment, resulting in fewer available contracts
in the marketplace.
Group revenue was down 26% to RM24.5m (GBP4.5m), profit from operations down 43%
to RM1,099,000 (GBP201,000), profit before tax down 47% to RM956,000
(GBP175,000), basic earnings per share was also down 58% to RM0.004 (GBP0.0007)
and group cash flow from operating activities decreased by 85% to RM394,000
(GBP72,000).
Current trading and outlook
During the period under review, we have completed two engineering contracts in
Malaysia. We have seven ongoing EPCM contracts in hand that are expected to
complete by the end of 2009. However, some of the group's existing projects have
been delayed due to changes in the clients' design specifications and
requirements. One project in particular, the EPCM of a biodiesel production
plant in Indonesia, has been temporarily put on hold due to the weak local
economy. However, we expect this project to kick-start again, at the latest, by
the second quarter of 2010. Besides this, a few contracts that we expect to
secure this year have been delayed. We have also experienced a delay in the
receipt of payments from our clients. As a result, we anticipate results for the
full year will be below management expectations. Notwithstanding this, and
despite the various challenges faced by the group, we are able to manage our
cash flow position.
The group currently has ongoing contracts and work in progress in excess of
RM151 million, covering the next 18 months. In addition, the group has tendered
for onshore and offshore oil and gas contracts in Malaysia and overseas
amounting to RM426 million. However, given the general weak market sentiment,
the timing of awarding of new contracts from clients is uncertain.
Finally, on behalf of the Board of Directors, I would like to thank all our
management and staff for their continued dedication, hard work and commitment
during the period under review. Your patience and dedication in this trying
period is greatly appreciated.
Mr. Cho Nam Sang
Non-Executive Chairman
15 September 2009
Consolidated Statement of Comprehensive Income for the six months ended 30 June
2009
Six months ended Six months ended Year ended
30th June 2009 30th June 2008 31st December
2008
+--------------------------+-------------+-------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
| | | and | |
| | | restated | |
+--------------------------+-------------+-------------+-------------+
| | RM000 | RM000 | RM000 |
+--------------------------+-------------+-------------+-------------+
| Revenue | 24,507 | 33,102 | 64,843 |
+--------------------------+-------------+-------------+-------------+
| Cost of sales | (20,403) | (28,082) | (53,204) |
+--------------------------+-------------+-------------+-------------+
| Gross profit | 4,104 | 5,020 | 11,639 |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Other Operating income | 7 | 13 | 53 |
+--------------------------+-------------+-------------+-------------+
| Total Income | 4,111 | 5,033 | 11,692 |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Administrative expenses | (2,209) | (2,770) | (5,630) |
+--------------------------+-------------+-------------+-------------+
| Other Operating expenses | (803) | (332) | (955) |
| | | | |
+--------------------------+-------------+-------------+-------------+
| Profit from operations | 1,099 | 1,931 | 5,107 |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Finance costs | (143) | (112) | (264) |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Profit before taxation | 956 | 1,819 | 4,843 |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Taxation | (320) | (322) | (130) |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Profit after taxation | 636 | 1,497 | 4,713 |
+--------------------------+-------------+-------------+-------------+
| Other comprehensive | | | |
| income | | | |
+--------------------------+-------------+-------------+-------------+
| Exchange difference on | 39 | 7 | (122) |
| translating foreign | | | |
| operations | | | |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Total comprehensive | 675 | 1,499 | 4,591 |
| income for the period | | | |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Profit attributable to: | | | | |
+--------------------------+-------------+-------------+-------------+-------------+
| Equity holders of the | 656 | 1,496 | 4,939 |
| Company | | | |
+--------------------------+-------------+-------------+-------------+
| Minority interests | (20) | 1 | (226) |
+--------------------------+-------------+-------------+-------------+
| Profit for the period | 636 | 1,497 | 4,713 |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Total comprehensive | | | | |
| income attributable to: | | | | |
+--------------------------+-------------+-------------+-------------+-------------+
| Equity holders of the | 675 | 1,499 | 4,591 |
| Company | | | |
+--------------------------+-------------+-------------+-------------+
| Minority interests | - | - | - |
+--------------------------+-------------+-------------+-------------+
| Profit for the period | 675 | 1,499 | 4,591 |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Earnings per share - | | | |
| from continuing | | | |
+--------------------------+-------------+-------------+-------------+
| operations | | | |
+--------------------------+-------------+-------------+-------------+
| | | | |
+--------------------------+-------------+-------------+-------------+
| Basic | RM0.004 | RM0.009 | RM0.030 |
+--------------------------+-------------+-------------+-------------+
| Fully diluted | RM0.004 | RM0.009 | RM0.030 |
+--------------------------+-------------+-------------+-------------+-------------+
Consolidated Statement of Changes in Equity
+------------+---------+-------------------+-------------+-------------+----+------+---+----+---+------+---+----+---+
| | Attributable to the equity holders of the | | | | |
| | Company | | | | |
+------------+--------------------------------------------------------------+------+--------+----------+--------+
| | | Non-Distributable | Foreign | Reverse | Distributable | | | |
| | | | currency | | | | | |
+------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| | Share | Share | Translation | Acquisition | Retained | Total | Minority | Total |
| | Capital | Premium | reserve | Reserve | Earnings | | Interest | Equity |
+------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| | RM000 | RM000 | RM000 | RM000 | RM000 | RM000 | RM000 | RM000 |
| | | | | | | | | |
+------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| At 1 | 113 | 19,347 | (154) | (8,166) | 27,163 | 38,303 | 33 | 38,336 |
| January | | | | | | | | |
| 2009 | | | | | | | | |
+------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| Profit for | - | - | 39 | - | 656 | 695 | (16) | 679 |
| the | | | | | | | | |
| financial | | | | | | | | |
| period | | | | | | | | |
+------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| At 30 June | 113 | 19,347 | (115) | (8,166) | 27,819 | 38,998 | 17 | 39,015 |
| 2009 | | | | | | | | |
+------------+---------+-------------------+-------------+-------------+----+------+---+----+---+------+---+----+---+
+-------------+---------+-------------------+-------------+-------------+----+------+---+----+---+------+---+----+---+
| | Attributable to the equity holders of the | | | | |
| | Company | | | | |
+-------------+--------------------------------------------------------------+------+--------+----------+--------+
| | | Non-Distributable | Foreign | Reverse | Distributable | | | |
| | | | currency | | | | | |
+-------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| | Share | Share | Translation | Acquisition | Retained | Total | Minority | Total |
| | Capital | Premium | reserve | Reserve | Earnings | | Interest | Equity |
+-------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| | RM000 | RM000 | RM000 | RM000 | RM000 | RM000 | RM000 | RM000 |
| | | | | | | | | |
+-------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| At 1 | 113 | 19,347 | (32) | (8,166) | 22,224 | 33,486 | 266 | 33,752 |
| January | | | | | | | | |
| 2008 | | | | | | | | |
+-------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| Profit for | - | - | 7 | - | 1,497 | 1,504 | 1 | 1,505 |
| the | | | | | | | | |
| financial | | | | | | | | |
| period | | | | | | | | |
+-------------+---------+-------------------+-------------+-------------+---------------+--------+----------+--------+
| At 30 June | 113 | 19,347 | (25) | (8,166) | 23,721 | 34,990 | 267 | 35,257 |
| 2008 | | | | | | | | |
+-------------+---------+-------------------+-------------+-------------+----+------+---+----+---+------+---+----+---+
Consolidated Statement of Financial Position as at the six months ended 30
June 2009
Six months ended Six months ended Year ended
30th June 2009 30th June 2008 31st December 2008
+----------------------+------------+------------+--------------+
| | Unaudited | Unaudited | Audited |
| | | and | |
| | | restated | |
+----------------------+------------+------------+--------------+
| | RM000 | RM000 | RM000 |
+----------------------+------------+------------+--------------+
| Assets | | | |
+----------------------+------------+------------+--------------+
| Non-current assets | | | |
+----------------------+------------+------------+--------------+
| Property, plant and | 4,806 | 4,574 | 5,158 |
| equipment | | | |
+----------------------+------------+------------+--------------+
| Goodwill | 933 | 933 | 933 |
+----------------------+------------+------------+--------------+
| Software | 259 | 194 | 231 |
+----------------------+------------+------------+--------------+
| Unquoted investment | 32,000 | - | 32,000 |
+----------------------+------------+------------+--------------+
| Development cost | 6,894 | 5,511 | 6,814 |
+----------------------+------------+------------+--------------+
| Total non-current | 44,892 | 11,212 | 45,136 |
| assets | | | |
+----------------------+------------+------------+--------------+
| Current assets | | | |
+----------------------+------------+------------+--------------+
| Trade receivables | 13,469 | 35,688 | 6,724 |
+----------------------+------------+------------+--------------+
| Other receivables | 3,786 | 3,384 | 3,759 |
+----------------------+------------+------------+--------------+
| Stock | - | 1,200 | - |
+----------------------+------------+------------+--------------+
| Property development | 187 | 216 | 170 |
| cost | | | |
+----------------------+------------+------------+--------------+
| Amount due from | 9,635 | 10,747 | 7,396 |
| contract customers | | | |
+----------------------+------------+------------+--------------+
| Tax recoverable | 582 | - | 762 |
+----------------------+------------+------------+--------------+
| Cash and bank | 281 | 1,157 | 840 |
| balances | | | |
+----------------------+------------+------------+--------------+
| Total current assets | 27,940 | 52,392 | 19,651 |
| | | | |
+----------------------+------------+------------+--------------+
| Total assets | 72,832 | 63,604 | 64,787 |
+----------------------+------------+------------+--------------+
| Current liabilities | | | |
+----------------------+------------+------------+--------------+
| Trade payables | (18,120) | (15,814) | (18,688) |
+----------------------+------------+------------+--------------+
| Other payables | (1,083) | (784) | (833) |
+----------------------+------------+------------+--------------+
| Amount due to | (8,273) | (4,285) | (501) |
| contract customers | | | |
+----------------------+------------+------------+--------------+
| Amount due to | (69) | (5) | (54) |
| director | | | |
+----------------------+------------+------------+--------------+
| Borrowings - secured | (4,650) | (4,237) | (4,520) |
+----------------------+------------+------------+--------------+
| Tax payable | - | (1,287) | - |
+----------------------+------------+------------+--------------+
| Total current | (32,195) | (26,412) | (24,596) |
| liabilities | | | |
+----------------------+------------+------------+--------------+
| Net current assets | (4,255) | 25,980 | (4,945) |
+----------------------+------------+------------+--------------+
| Non-current | | | |
| liabilities | | | |
+----------------------+------------+------------+--------------+
| Borrowings - secured | (809) | (1,287) | (1,042) |
+----------------------+------------+------------+--------------+
| Amount due to | (548) | (548) | (548) |
| director | | | |
+----------------------+------------+------------+--------------+
| Deferred tax | (265) | (100) | (265) |
| liability | | | |
+----------------------+------------+------------+--------------+
| Total non-current | (1,622) | (1,935) | (1,855) |
| liabilities | | | |
+----------------------+------------+------------+--------------+
| Total liabilities | (33,817) | (28,347) | (26,451) |
+----------------------+------------+------------+--------------+
| Net assets | 39,015 | 35,257 | 38,336 |
+----------------------+------------+------------+--------------+
| | | | |
+----------------------+------------+------------+--------------+
| Equity | | | |
+----------------------+------------+------------+--------------+
| Called up share | 113 | 113 | 113 |
| capital | | | |
+----------------------+------------+------------+--------------+
| Share premium | 19,347 | 19,347 | 19,347 |
+----------------------+------------+------------+--------------+
| Foreign currency | (115) | (25) | (154) |
| translation reserve | | | |
+----------------------+------------+------------+--------------+
| Reverse acquisition | (8,166) | (8,166) | (8,166) |
| reserve | | | |
+----------------------+------------+------------+--------------+
| Retained earnings | 27,819 | 23,721 | 27,163 |
+----------------------+------------+------------+--------------+
| | | | |
+----------------------+------------+------------+--------------+
| Total equity | 38,998 | 34,990 | 38,303 |
| attributable to | | | |
| equity holders of | | | |
| the Company | | | |
+----------------------+------------+------------+--------------+
| | | | |
+----------------------+------------+------------+--------------+
| Minority interests | 17 | 267 | 33 |
+----------------------+------------+------------+--------------+
| Total equity | 39,015 | 35,257 | 38,336 |
+----------------------+------------+------------+--------------+
Consolidated Statement of Cash Flows for the six months ended 30 June 2009
Six months ended Six months ended Year ended
30th June 2009 30th June 2008 31st December
2008
+--------------------------+------------+------------+--------------------------+
| | Unaudited | Unaudited | Audited |
| | | and | |
| | | restated | |
+--------------------------+------------+------------+--------------------------+
| | RM000 | RM000 | RM000 |
+--------------------------+------------+------------+--------------------------+
| Cash flow from operating | | | |
| activities | | | |
+--------------------------+------------+------------+--------------------------+
| Profit before taxation | 956 | 1,819 | 4,843 |
+--------------------------+------------+------------+--------------------------+
| Adjustments for: | | | |
+--------------------------+------------+------------+--------------------------+
| Profit on disposal of | - | - | (2) |
| property, plant and | | | |
| equipment | | | |
+--------------------------+------------+------------+--------------------------+
| Depreciation | 388 | 368 | 707 |
+--------------------------+------------+------------+--------------------------+
| Interest expense | 143 | 112 | 264 |
+--------------------------+------------+------------+--------------------------+
| Amortization of | 435 | 290 | 628 |
| development cost | | | |
+--------------------------+------------+------------+--------------------------+
| Unrealised loss/(gain) | 23 | (20) | (40) |
| on foreign exchange | | | |
+--------------------------+------------+------------+--------------------------+
| Amortization of | 38 | 16 | 66 |
| intangible assets | | | |
+--------------------------+------------+------------+--------------------------+
| Allowance for doubtful | 383 | - | 154 |
| debts | | | |
+--------------------------+------------+------------+--------------------------+
| Operating profit before | 2,366 | 2,585 | 6,620 |
| changes in working | | | |
| capital | | | |
+--------------------------+------------+------------+--------------------------+
| (Increase)/Decrease in | (7,130) | 18,843 | 15,239 |
| receivables | | | |
+--------------------------+------------+------------+--------------------------+
| Increase/(Decrease) in | (325) | (15,158) | (12,283) |
| payables | | | |
+--------------------------+------------+------------+--------------------------+
| (Increase)/Decrease in | - | (86) | (59) |
| property development | | | |
| cost | | | |
+--------------------------+------------+------------+--------------------------+
| (Increase)/Decrease in | (2,239) | (745) | 2,606 |
| amount due from contract | | | |
| customers | | | |
+--------------------------+------------+------------+--------------------------+
| (Increase)/Decrease in | - | (1,200) | - |
| stock | | | |
+--------------------------+------------+------------+--------------------------+
| (Increase)/Decrease in | 9 | - | 53 |
| amount due to directors | | | |
+--------------------------+------------+------------+--------------------------+
| Increase/(Decrease) in | 7,772 | (1,567) | (5,352) |
| amount due to contract | | | |
| customers | | | |
+--------------------------+------------+------------+--------------------------+
| Cash flows generated | 453 | 2,672 | 6,824 |
| from operating | | | |
| activities | | | |
+--------------------------+------------+------------+--------------------------+
| Interest paid | (143) | (112) | (264) |
+--------------------------+------------+------------+--------------------------+
| Income tax paid | (142) | (597) | (2,231) |
+--------------------------+------------+------------+--------------------------+
| Net cash generated from | | | |
+--------------------------+------------+------------+--------------------------+
| operating activities | 168 | 1,963 | 4,329 |
+--------------------------+------------+------------+--------------------------+
| | | | |
+--------------------------+------------+------------+--------------------------+
| | | | |
+--------------------------+------------+------------+--------------------------+
| Cash flows from | | | |
| investing activities | | | |
+--------------------------+------------+------------+--------------------------+
| Purchase of property, | (26) | (444) | (1,516) |
| plant and equipment | | | |
+--------------------------+------------+------------+--------------------------+
| Purchase of intangible | (68) | (103) | (125) |
| assets | | | |
| | | | |
+--------------------------+------------+------------+--------------------------+
| Proceeds from disposal | - | - | 5 |
| of property, plant and | | | |
| equipment | | | |
+--------------------------+------------+------------+--------------------------+
| Addition to development | (515) | (1,209) | (2,785) |
| cost | | | |
+--------------------------+------------+------------+--------------------------+
| Net cash used in | (609) | (1,756) | (4,421) |
| investing activities | | | |
+--------------------------+------------+------------+--------------------------+
| | | | |
+--------------------------+------------+------------+--------------------------+
| Cash flows from | | | |
| financing activities | | | |
+--------------------------+------------+------------+--------------------------+
| (Decrease)/Increase in | - | - | - |
| amount due to director | | | |
+--------------------------+------------+------------+--------------------------+
| (Repayment)/Drawdown of | 4 | (94) | 296 |
| short term borrowings | | | |
+--------------------------+------------+------------+--------------------------+
| Repayment of term loan | (72) | (66) | (134) |
+--------------------------+------------+------------+--------------------------+
| Repayment of hire | (154) | (187) | (361) |
| purchase payables | | | |
+--------------------------+------------+------------+--------------------------+
| Net cash | (222) | (347) | (199) |
| (used)/generated from | | | |
| financing activities | | | |
+--------------------------+------------+------------+--------------------------+
| | | | |
+--------------------------+------------+------------+--------------------------+
| Net decrease in cash and | (663) | (140) | (291) |
| cash equivalents | | | |
+--------------------------+------------+------------+--------------------------+
| Effect of foreign | (13) | - | (59) |
| exchange rate changes | | | |
+--------------------------+------------+------------+--------------------------+
| Cash and cash | 767 | 1,297 | 1,117 |
| equivalents at beginning | | | |
| of period/year | | | |
+--------------------------+------------+------------+--------------------------+
| Cash and cash | 91 | 1,157 | 767 |
| equivalents at end | | | |
| of period/year | | | |
+--------------------------+------------+------------+--------------------------+
Notes to the Unaudited Interim Report for the six months ended 30 June 2009
1. Significant Accounting Policies
(a)Basis of preparation and accounting policies
The financial information contained in the Interim Results has been prepared in
accordance with International Financial Reporting Standards ("IFRS") as adopted
by the European Union. It has been prepared in accordance with IAS 34 "Interim
Financial Reporting" and does not include all of the information required for
full annual financial statements. Full details of the accounting policies
adopted which are consistent with those disclosed in the consolidated financial
statements for the year ending 31 December 2008.
(b)Basis of consolidation
The consolidated income statement and balance sheet include financial statements
of the company and its subsidiaries made up to 30 June 2009.
(c)Nature of financial information
The financial information contained in this Interim Results for the six months
ended 30 June 2009 and 30 June 2008 are unaudited. The comparative figures for
the year ended 31 December 2008 do not constitute statutory financial statements
of the group. Full audited accounts of the Group in respect of that financial
period prepared in accordance with IFRS, which we received an unqualified audit
opinion have been delivered to Registrar of Companies.
(d)Restatement of comparative
The comparative financial information for the period ended 30 June 2008 has been
restated as a result of application of the Intangible Assets in accordance
with IAS38.
(e) Revenue recognised for contract is in accordance to IAS 11 - Construction
Contracts. Where the outcome of a contract work can be reliably estimated,
contract revenue and contract costs are recognised as revenue and expenses
respectively by using the stage of completion method. The stage of completion is
measured by reference to the proportion of contract costs incurred for work
performed to date to the estimated total contract costs. Where the outcome of a
contract work cannot be reliably estimated, contract revenue is recognised to
the extent of contract costs incurred that it is probable will be recoverable.
Contract costs are recognised as expenses in the period in which they are
incurred. When it is probable that total contract costs will exceed total
contract revenue, the expected loss is recognised as an expense immediately.
(f) Significant accounting policies
The interim condensed consolidated financial statements have been prepared
applying the same accounting policies that were applied in the preparation of
the Company's published consolidated financial statements for the year ended 31
December 2008 except for the adoption of the following new and amended reporting
standards, which are effective for periods commencing on or after 1 January
2009:
* IAS1 (revised) - "Presentation of Financial Statements"
A new primary statement, "Consolidated Statement of Changes in Equity" is
required containing information previously disclosed in the notes to the
accounts. In addition, the Consolidated Statement of Recognised Income and
Expense is replaced with the Consolidated Statement of Comprehensive Income,
which may be shown separately or combined with the Income Statement.
* IFRS8 - "Operating Segments"
This standard replaces IAS14 - "Segment Reporting" which required operating
segments to be analysed into Primary (business) and Secondary (geographical)
segments. IFRS8 requires that operating segments should be aligned with those
reviewed by the "Chief Operating Decision Maker" which is considered to be the
Board of Directors.
Various other amendments to standards and interpretations of standards are
effective for periods commencing on or after 1 January 2009 as detailed in the
2008 Annual Report, none of which have any impact on reported results.
The consolidated financial information is presented in RM (Ringgit Malaysia)
because the Group transact more of its business in RM (functional currency) than
any other currency.
The highlighted financial information has been translated using the following
exchange rate: RM5.4662:GBP1 (average month-end exchange rate from January to
June 2009). The balance sheet item has been translated using the closing date
exchange rate of RM5.9300:GBP1.
2. Taxation
The charge for income tax expense included in the interim results is based on
the unaudited results for the six months ended 30 June 2009 and is calculated at
the expected rate applicable to the group for the full year ending 31 December
2009.
3. Earnings per share
Earnings per share is calculated by dividing the profit attributable to equity
shareholders in the period ended 30 June 2009 by the weighted average number of
shares in issue in the period.
The profit attributable to equity shareholders in the period ended 30 June 2009
was RM636,000 (30 June 2008: RM1,496,000; year ended 31 December 2008:
RM4,939,000). The weighted average number of shares in POGL in issue in the
period ended 30 June 2009 was 166,666,667, the weighted average number of shares
in the period ended 30 June 2008 was 166,666,667.
4. Contingent and other liabilities
Corporate guarantees amounting to RM5,075,000 given to licensed banks for credit
facilities granted to a subsidiary company. Corporate guarantees amounting to
RM1,051,000 given to licensed banks in respect of property, plant and equipment
acquired under hire purchase arrangement by a subsidiary company.
5. Dividends
The Directors do not recommend the payment of any dividend in respect of the
current interim ended 30 June 2009.
6. Segmental analysis
Six months ended Six months ended Year ended
30th June 2009 30th June 2008 31st December
2008
+--------------------------+-----------+--------------+----------------+
| | Unaudited | Unaudited | Audited |
| | | | |
+--------------------------+-----------+--------------+----------------+
| | RM000 | RM000 | RM000 |
+--------------------------+-----------+--------------+----------------+
| Revenue | | | |
+--------------------------+-----------+--------------+----------------+
| EPCM | 18,847 | 28,278 | 51,054 |
+--------------------------+-----------+--------------+----------------+
| Supply of Specialists | 4,910 | 4,824 | 10,289 |
| (SOS) | | | |
+--------------------------+-----------+--------------+----------------+
| Engineering Design | 750 | - | 3,500 |
| Software | | | |
+--------------------------+-----------+--------------+----------------+
| TOTAL | 24,507 | 33,102 | 64,843 |
+--------------------------+-----------+--------------+----------------+
Profit/Loss
+--------------------------+-----------+--------------+----------------+
| EPCM | 918 | 1,142 | 956 |
+--------------------------+-----------+--------------+----------------+
| Supply of Specialists | 382 | 174 | 241 |
| (SOS) | | | |
+--------------------------+-----------+--------------+----------------+
| Engineering Design | (257) | (684) | 2,005 |
| Software | | | |
+--------------------------+-----------+--------------+----------------+
| | | | |
+--------------------------+-----------+--------------+----------------+
| Unallocated | (407) | 865 | 1,511 |
| income/expenses | | | |
+--------------------------+-----------+--------------+----------------+
| TOTAL | 636 | 1,497 | 4,713 |
+--------------------------+-----------+--------------+----------------+
Total Assets
+--------------------------+-----------+--------------+----------------+
| EPCM | 26,352 | 46,546 | 16,140 |
+--------------------------+-----------+--------------+----------------+
| Supply of Specialists | 4,823 | 9,122 | 6,553 |
| (SOS) | | | |
+--------------------------+-----------+--------------+----------------+
| Engineering Design | 8,063 | 5,981 | 7,781 |
| Software | | | |
+--------------------------+-----------+--------------+----------------+
| | | | |
+--------------------------+-----------+--------------+----------------+
| Unallocated assets | 33,594 | 1,955 | 34,313 |
+--------------------------+-----------+--------------+----------------+
| | | | |
+--------------------------+-----------+--------------+----------------+
| TOTAL | 72,832 | 63,604 | 64,787 |
+--------------------------+-----------+--------------+----------------+
Total Liabilities
+--------------------------+-----------+--------------+----------------+
| EPCM | 25,526 | 22,555 | 21,016 |
+--------------------------+-----------+--------------+----------------+
| Supply of Specialists | 5,122 | 3,586 | 1,241 |
| (SOS) | | | |
+--------------------------+-----------+--------------+----------------+
| Engineering Design | 2,046 | 1,380 | 2,530 |
| Software | | | |
+--------------------------+-----------+--------------+----------------+
| | | | |
+--------------------------+-----------+--------------+----------------+
| Unallocated liabilities | 1,123 | 826 | 1,664 |
+--------------------------+-----------+--------------+----------------+
| | | | |
+--------------------------+-----------+--------------+----------------+
| TOTAL | 33,817 | 28,347 | 26,451 |
+--------------------------+-----------+--------------+----------------+
7. Material events subsequent to the end of the quarter
There are no material events subsequent to the end of the quarter.
8. Dividends
The Company has not proposed or declared an interim dividend
9. Interim report
This interim statement was approved by the Board on 14 September 2009 and has
not been audited by the Group's auditors Jeffreys Henry LLP. The interim results
will be available from the Group's website: www.plantoffshore.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GUUUWBUPBGCC
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