KAKUZI LIMITED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2012

Transcription

1 KAKUZI LIMITED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2012 TABLE OF CONTENTS PAGE Chairman s statement.. 1 Consolidated statement of comprehensive income 2 Consolidated statement of financial position... 3 Company statement of financial position.. 4 Consolidated statement of changes in equity Company statement of changes in equity... 7 Consolidated statement of cash flows. 8 Notes to the consolidated interim financial statements Directors: Registrars: Mr. K W Tarplee * Chairman Custody & Registrars Services Limited Mr. G H Mclean * Managing Director Bruce House, 6 th Floor Mr. K R Shah Standard Street Mr. R Kemoli (upto 7 th August 2012) P O Box 8484, Nairobi Mr. N Nganga Telephone: (020) Mr. C Ames * Facsimile: (020) * British Secretary: Registered Office: J L G Maonga Main Office Maonga Ndonye Associates Punda Milia Road, Makuyu P O Box 7324 P O Box 24, Thika NAIROBI Telephone: (060) Telephone (020) Facsimile: (060) mail@kakuzi.co.ke

2 Chairman s Statement RESULTS See page 2 of the. The profit for the period is Kshs 103 million which is some 20% down on the represented equivalent position for last year (Kshs 132 million). Profit levels are lower on our two main export crops (Avocado and Tea) primarily driven by a strong Kenya shilling however this negative impact is alleviated to some extent by increased interest income from investment of our cash reserves. OPERATIONS Very dry conditions were experienced on our estates in Nandi and Makuyu during the first quarter of the year and although the rains returned we are 15% down on the 10 year average rainfall pattern at the half year stage. It is pleasing to note however that our dam levels at Makuyu are now satisfactory. Total tea production for Siret and Kaboswa Estates is down by 16% compared with last year thus having an adverse effect on turnover. World demand has however continued to outstrip supply and the price for our quality product has been satisfactory. Our Avocado Fuerte production through the pack house was down on last year due to unfavourable market conditions. Our Avocado Hass crop started well towards the end of May and although the season is far from completed our expectations are for improved volumes over last year. There has been adequate uptake of the export crop but prices in Kenya Shilling terms are down on last year, a position further exacerbated by the relative weakness of the Euro against the Kenya shilling. Logistics, and in particular timely shipping of the product to Europe, is still a major challenge. Our fresh pineapple, cattle and forestry operations all gave a profitable return in line with our expectations. The Joint Project with Del Monte Kenya now progresses well having satisfactorily resolved our dispute referred to in the past. Macadamia development is satisfactory and the dehusking facilities are now installed. We expect to utilize these for next year s cropping. On the ground, management of our operation during the first half of the year has not been without significant problems from an agronomical, logistics and personnel level, in particular, at Makuyu. An unprotected strike incident took place which resulted in damage to Company property. This was handled by Management and the Local Administration. We are grateful for the support and action received from the Government Security Administration. PROSPECTS As often repeated, in our business, predicting the future is difficult. We have a high interest rate economy with to date a relatively strong currency. Demand continues for our export crops but downward pricing pressure is unprecedented due to recessionary trends particularly in Europe. Our forecast is for profit levels below that of We have received Competitions Authority of Kenya approval for the sale of the balance of shares in Siret Tea Company Ltd and the Outgrower Company has notified us that they want to complete the transaction on 31 August This will add to our strong cash reserves which your Directors believe are necessary to continue to develop the potential of Kakuzi Limited. DIVIDEND The Directors do not recommend a dividend for the first half of the year. K W Tarplee CHAIRMAN 30 August

3 Consolidated statement of comprehensive income Continuing Operations 6 Months to 30 June Months to 30 June 2011 Notes Represented Sales 3 336, ,103 Gains arising from changes in fair value less cost to sell of biological assets 10 18,025 9, , ,528 Cost of production (264,068) (285,552) Gross profit 3 90, ,976 Other income 4 4,042 3,977 Distribution costs 3 (31,836) (66,624) Operating profit 62,272 55,329 Finance income 5 54,274 4,300 Profit before income tax 116,546 59,629 Income tax expense 6 (45,303) (21,577) Profit for the period from continuing operations 71,243 38,052 Profit for the period from discontinuing operation 11 32,147 93,533 Profit for the period (of which Shs 152,582,568 has been dealt with in the accounts of the company) 103, ,585 Other comprehensive income - - Total comprehensive income 103, ,585 Profit for the period attributable to: Equity holders of the company: Profit for the period from continuing operations 71,243 38,052 Profit for the period from discontinuing operation 16,235 47,234 Profit for the period attributable to equity holders of the company 87,478 85,286 Non-controlling interest: Profit for the period from discontinuing operation 15,912 46, , ,585 Total comprehensive income attributable to: Equity holders of the company: 71,243 38,052 Profit for the period from continuing operations 16,235 47,234 Profit for the period from discontinuing operation 87,478 85,286 Profit for the period attributable to equity holders of the company 15,912 46,299 Non-controlling interest: Profit for the period from discontinuing operation 103, ,585 Earnings per share attributable to equity holders of the company: Shs Shs Basic and diluted earnings per stock unit

4 As at 30 June 2012 Consolidated statement of financial position Audited 30 June June December 2011 Notes EQUITY Share capital 98,000 98,000 98,000 Other reserves 2,413-2,413 Retained earnings 2,412,635 1,933,465 2,325,157 Proposed dividends ,500 Attributable to company s equity holders 2,513,048 2,031,465 2,499,070 Non-controlling interest 193, , ,695 Total equity 2,706,928 2,270,652 2,756,765 Non-current liabilities Deferred income tax 560, , ,631 Retirement benefit obligations 41,529 63,031 56, , , ,398 3,308,494 2,907,930 3,466,163 REPRESENTED BY Non-current assets Property, plant and equipment 9 539, , ,427 Biological assets 10 1,752,396 1,842,883 1,977,448 Prepaid operating lease rentals 4,409 8,103 8,099 Non-current receivables 18,988 21,827 26,701 2,315,269 2,486,015 2,642,675 Current assets Inventories 124, , ,830 Receivables and prepayments 139, ,108 97,483 Cash and cash equivalents , , , , ,764 1,174,645 Assets classified as held for sale , ,465, ,764 1,174,645 Current liabilities Payables and accrued expenses 155, , ,252 Current income tax payable 23,698 43,819 52,804 Post-employment benefit obligations 9,962 11,638 15, , , ,157 Liabilities classified as held for sale , , , ,157 Net current assets 993, , ,488 3,308,494 2,907,930 3,466,163 3

5 As at 30 June 2012 Company statement of financial position Audited 30 June June December 2011 Notes EQUITY Share capital 98,000 98,000 98,000 Other reserves 2,263-2,263 Retained earnings 2,322,613 1,796,848 2,170,032 Proposed dividends ,500 Attributable to company s equity holders 2,422,876 1,894,848 2,343,795 Non-current liabilities Deferred income tax 560, , ,746 Retirement benefit obligations 41,529 39,706 36, , , ,780 3,024,442 2,411,426 2,927,575 REPRESENTED BY Non-current assets Property, plant and equipment 9 539, , ,807 Biological assets 10 1,752,396 1,566,215 1,647,447 Prepaid operating lease rentals 4,409 4,414 4,414 Investments in subsidiaries 115, , ,536 Non-current receivables 18,988 18,762 21,757 2,430,805 2,242,467 2,326,961 Current assets Inventories 124,008 96,666 57,844 Receivables and prepayments 139, , ,431 Cash and cash equivalents , , , , , ,202 Current liabilities Payables and accrued expenses 162, , ,091 Current income tax payable 23,751 17,777 49,161 Retirement benefit obligations 9,962 6,644 9, , , ,588 Net current assets 593, , ,614 3,024,442 2,411,426 2,927,575 4

6 Consolidated statement of changes in equity Attributable to company s equity holders Share capital Other reserves Retained earnings Proposed dividend Total Shs'000 Non-controlling interest Total equity Period ended 30 June 2011 At start of period 98,000-1,848,179 49,000 1,995, ,325 2,210,504 Total comprehensive income for the period: Profit for the period ,286-85,286 46, ,585 Other comprehensive income Total ,286-85,286 46, ,585 Contributions by and distributions to owners: Dividend paid to non-controlling interest (22,437 ) (22,437 ) Dividends: - Final for (49,000 ) (49,000 ) - (49,000 ) Total (49,000 ) (49,000 ) (22,437 ) (71,437 ) At end of period 98,000-1,933,465-2,031, ,187 2,270,652 5

7 Consolidated statement of changes in equity (continued) Attributable to company s equity holders Period ended 30 June 2012 Share capital Other reserves Retained earnings Proposed dividend Total Shs'000 Non-controlling interest Total equity At start of period 98,000 2,413 2,325,157 73,500 2,499, ,695 2,756,765 Total comprehensive income for the period: Profit for the period ,478-87,478 15, ,390 Other comprehensive income Total ,478-87,478 15, ,390 Contributions by and distributions to owners: Dividend paid to non-controlling interest (79,727 ) (79,727 ) Dividends: - Final for (73,500 ) (73,500 ) - (73,500 ) Total (73,500 ) (73,500 ) (79,727 ) (153,227 ) At end of period 98,000 2,413 2,412,635-2,513, ,880 2,706,928 6

8 Company statement of changes in equity Period ended 30 June 2011 Share Other Retained Proposed Total capital reserves earnings dividend equity At start of period 98,000-1,735,604 49,000 1,882,604 Total comprehensive income for the period: Profit for the period ,244-61,244 Other comprehensive income Total ,244-61,244 Contributions by and distributions to owners: Dividends: - Final for (49,000) (49,000) Total (49,000) (49,000) At end of period 98,000-1,796,848-1,894,848 Period ended 30 June 2012 At start of period 98,000 2,263 2,170,032 73,500 2,343,795 Total comprehensive income for the period: Profit for the period , ,581 Other comprehensive income Total , ,581 Contributions by and distributions to owners: Dividends: - Final for (73,500) (73,500) Total (73,500) (73,500) At end of period 98,000 2,263 2,322,613-2,422,876 7

9 Consolidated statement of cash flows 30 June June 2011 Notes Represented Operating activities Cash (outflow)/generated from operations 15 (22,232 ) 189,706 Cash generated from continuing operations: Interest received 51,590 2,777 Income tax paid (58,422 ) (5,421 ) Cash generated from discontinuing operation 12,475 4,805 Net cash (outflow)/generated from operating activities (16,589 ) 191,867 Investing activities Investing activities from continuing operations: Purchase of property, plant and equipment 9 (29,093 ) (19,033 ) Purchase of biological assets and development 10 (119,833 ) (96,519 ) Proceeds from disposal of property, plant and equipment 1,523 1,842 Investing activities from discontinuing operation 761 (11,089 ) Net cash used in investing activities (146,642 ) (124,799 ) Financing activities Financing activities from continuing operations: Dividend paid to company s shareholders (73,500 ) (49,000 ) Financing activities from discontinuing operation: Dividend paid to non-controlling interest (79,727 ) (22,437 ) Net cash used in financing activities (153,227 ) (71,437 ) Decrease in cash and cash equivalents (316,458 ) (4,369 ) Movement in cash and cash equivalents At start of period 897, ,621 Decrease (316,458 ) (4,369 ) At end of period , ,252 Included in cash and equivalents per the balance sheet 526,403 Included in the assets of the disposal group 54, ,874 8

10 Notes 1. GENERAL INFORMATION Kakuzi Limited is incorporated in Kenya under the Kenyan Companies Act as a public limited liability company, and is domiciled in Kenya. 2. BASIS OF PREPARATION a) The interim financial statements are prepared in compliance with International Financial Reporting Standards (IFRS). The interim financial statements are presented in the functional currency, Kenya Shillings (Shs), rounded to the nearest thousand, and prepared under the historical cost convention as modified by the carrying of biological assets and agricultural produce at fair values less costs to sell. The preparation of interim financial statements in conformity with IFRS requires the use of estimates and assumptions. Although these estimates are based on the directors best knowledge of current events and actions, actual results ultimately may differ from those estimates. b) The accounting policies used in the preparation of the interim financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2011 unless otherwise stated. c) Costs that occur unevenly during the financial year are anticipated or deferred in the interim only if it would be also appropriate to anticipate or defer such costs at the end of the financial year. d) Income tax expense is recognised based on the annual income tax rate expected for the full financial year. The annual tax rate used for 2012 is 30% (2011 was 30%). e) These unaudited interim financial statements should be read in conjunction with the 2011 annual financial statements. f) Where necessary, comparative figures have been adjusted to conform to the presentation of the current year. 3. SEGMENTAL REPORTING Management has determined the operating segments based on the reports reviewed by the Executive Directors that are used to make strategic decisions. The Group operates in two geographical areas in Kenya, Makuyu and Nandi Hills under several operating segments. The principal operating segments currently consist of Avocados and Tea. Macadamia will become a reportable operating segment in future (currently under all other segments) as it is expected to materially contribute to Group sales in the future. Other segments derive their sales from forestry, livestock, fresh pineapples and joint projects and are included under all other segments as they individually fall below the threshold of 10% of Group sales. Segmental assets consist primarily of property, plant and equipment, biological assets, inventories, receivables and prepayments. Unallocated assets are property, plant and equipment, inventories relating to Main Office and Engineering and tax recoverable. Segmental liabilities consist primarily of borrowings, payables and accrued expenses. Unallocated liabilities are taxes, borrowings and non-current liabilities. 9

11 Notes (continued) 3. SEGMENTAL REPORTING (continued) The segment information for the reportable segments for the six month period ended 30 June 2012 and 30 June 2011 is as follows: Tea Avocados All other segments Consolidated Represented Sales continuing operations Sales to external customers 107, ,121 77, , , , , ,103 Sales discontinuing operation Sales to external customers 286, , , , ,842 Comprising continuing operations Major external customers sales , , , ,948 All other external customers sales 107, ,121 2,059 32, , , , , , ,121 77, , , , , ,103 Comprising discontinuing operation Major external customers sales 219, , , ,836 All other external customers sales 66, ,006 1,036 67, , , , , , ,842 Geographical analysis continuing operations Continental Europe , , , ,948 Kenya 107, ,121 2,059 32, , , , , , ,121 77, , , , , ,103 Geographical analysis discontinuing operation United Kingdom 70, , , ,481 Continental Europe 53,890 47, ,890 47,991 Kenya 54, , ,036-55, ,082 Others 106,781 95, ,781 95, , , , , ,842 10

12 Notes (continued) 3. SEGMENTAL REPORTING (continued) Tea Avocados All other segments Consolidated Profit/(loss) Represented Gross profit /(loss) before depreciation and fair value changes in biological assets 19,342 35,976 49,470 98,896 30,296 (2,731 ) 99, ,141 Depreciation charge (2,402) (1,781 ) (8,873 ) (9,363 ) (15,792 ) (12,446 ) (27,067 ) (23,590 ) Changes in fair value of biological assets - - (2,161 ) (3,487 ) 20,186 12,912 18,025 9,425 Gross profit 16,940 34,195 38,436 86,046 34,690 (2,265 ) 90, ,976 Distribution costs - - (31,836 ) (66,624 ) - - (31,836 ) (66,624 ) Segment profit 16,940 34,195 6,600 19,422 34,690 (2,265 ) 58,230 51,352 Other unallocated income and expenses Other income 3,061 1,341 (179) (413 ) 1,160 3,049 4,042 3,977 Finance income ,274 4,300 54,274 4,300 Profit before income tax 20,001 35,536 6,421 19,009 90,124 5, ,546 59,629 Income tax expense (4,928) (9,814 ) (1,511 ) (4,856 ) (38,864 ) (6,907 ) (45,303 ) (21,577 ) Profit for the period from continuing operations 15,073 25,722 4,910 14,153 51,260 (1,823 ) 71,243 38,052 Profit for the period from discontinuing operation 21,739 88, ,408 4,963 32,147 93,533 Profit for the period 36, ,292 4,910 14,153 61,668 3, , ,585 Assets (all located in Kenya) Segment assets 614,958 1,158,439 1,073, ,885 1,109, ,478 2,798,409 2,989,802 Assets classified as held for sale 675, ,303-1,290,261 1,158,439 1,073, ,885 1,109, ,478 3,473,712 2,989,802 Unallocated assets 306, ,977 3,780,692 3,341,779 Liabilities Segment liabilities 46, ,184 23,946 17,759 6,937 36,070 76, ,013 Liabilities classified as held for sale 283, , , ,184 23,946 17,759 6,937 36, , ,013 Unallocated liabilities 111,912 99, , ,849 Additions continuing operations Property, plant and equipment 768 1,514 3,617 4,677 24,708 12,842 29,093 19,033 Biological assets ,131 74,351 44,702 22, ,833 96, ,514 78,748 79,028 69,410 35, , ,552 Additions discontinuing operation Property, plant and equipment 1,897 10, ,897 10,421 Biological assets ,313 11, ,313 11,089 11

13 Notes (continued) 4. OTHER INCOME 30 June June 2011 Net foreign exchange loss, other than on cash and cash equivalents (179) (413) Gain on disposal of property, plant and equipment 1, Rental income 2,535 3,675 Sundry ,042 3, FINANCE INCOME Interest income on short term bank deposits 51,590 2,777 Net foreign exchange gain on cash and cash equivalents 2,684 1,523 54,274 4, INCOME TAX Current income tax 33,012 18,125 Deferred income tax 12,291 3,452 Income tax expense 45,303 21, BASIC AND DILUTED EARNINGS PER STOCK UNIT Basic and diluted earnings per stock unit are calculated on the profit attributable to the members of Kakuzi Limited and on the 19,599,999 stock units in issue at 30 June 2012 and 30 June The company had no potentially dilutive stock units outstanding at 30 June 2012 or 30 June DIVIDEND The directors do not recommend the payment of an interim dividend. 9. CAPITAL EXPENDITURE Group Company 30 June June June June 2011 Property, plant and equipment Opening net book amount 630, , , ,292 Net book value of assets classified as held for sale as at December 2011 (92,620) Capital expenditure - additions 29,093 29,456 29,093 19,033 Disposals (357) (1,195) (357) (1,195) Depreciation (27,067) (28,474) (27,067) (23,590) Closing net book amount 539, , , ,540 12

14 Notes (continued) 10. BIOLOGICAL ASSETS Changes in carrying amounts of biological assets comprise :- Group Company Permanent Permanent Livestock plantings Total Livestock plantings Total Period ended 30 June 2011 At 1 January ,527 1,657,909 1,779, ,527 1,381,909 1,503,436 Increase due to purchases and development 1,379 95,808 97,187 1,379 95,140 96,519 Gains/(loss) arising from changes in fair value less costs to sell 12,912 (3,487 ) 9,425 12,912 (3,487) 9,425 Decrease due to harvest and sales (32,472) (10,693 ) (43,165) (32,472) (10,693) (43,165) At 30 June ,346 1,739,537 1,842, ,346 1,462,869 1,566,215 Period ended 30 June 2012 At 1 January ,988 1,863,460 1,977, ,988 1,533,459 1,647,447 Asset classified as held for sale as at December (330,001) (330,001) Increase due to purchases and development , , , ,833 Gains/(loss) arising from changes in fair value less costs to sell 20,186 (2,161 ) 18,025 20,186 (2,161) 18,025 Decrease due to harvest and sales (19,950) (12,959 ) (32,909) (19,950) (12,959) (32,909) At 30 June ,129 1,637,267 1,752, ,129 1,637,267 1,752,396 13

15 Notes (continued) 10. BIOLOGICAL ASSETS (continued) Biological assets are carried at fair value less costs to sell. Plantations comprise tea, timber, avocado, pineapple and macadamia plantings. The fair value of avocado plantation is determined based on discounted expected net cash flow using a current market determined pre-tax rate of 17.5% per annum. The key assumptions made concerning the future are as follows: avocado projected lifespan of 25 years climatic condition will remain the same the market price will remain constant based on recent market prices no account has been taken of inflation The fair value of macadamia plantation is based on cost because insignificant biological transformation has taken place. The fair value of other plantations is determined by external independent valuation based on recent market transaction prices. The decrease due to harvest and sales under plantations is applicable to timber and pineapple plantations only. The fair value of livestock is determined based on market prices of livestock of similar age, breed and genetic merit. 11. CHANGE IN OWNERSHIP INTERESTS IN SUBSIDIARY The non-controlling interest shareholding in Siret Tea Company Ltd as at 30 June 2012 stands at 49.5% (30 June 2011: 49.5%). No shareholding sale transaction during the period. Sireet Outgrowers Empowerment and Producer Co Ltd (formerly EPK Outgrowers Project Company Ltd) wrote to Kakuzi Ltd on 18 May 2012 giving it s intention to purchase the remaining 50.5% shareholding in Siret Tea Company Ltd in accordance with the framework agreement signed in As a result of this, the asset and liabilities of Siret Tea Company Ltd have been classified as held for sale at the reporting date. That is the income and expenses of Siret Tea Company Ltd are reported separately from the continuing operations of the Kakuzi Group. The table below provides further detail of the amount shown on the income statement. The income statement for prior periods have been represented to conform to this style of presentation. 30 June June 2011 Discontinuing operation Sale 287, ,842 Gains arising from changes in fair value less cost to sell of biological assets , ,842 Cost of production (239,492) (391,732) Gross profit 47, ,110 Other income 6,826 10,842 Distribution costs (19,010) (37,182) Operating profit 35, ,770 Finance income 12,489 7,135 48, ,905 Profit before income tax Income tax expense (15,922) (40,372) Profit for the period from discontinuing operation 32,147 93,533 14

16 Notes (continued) 11. CHANGE IN OWNERSHIP INTERESTS IN SUBSIDIARY (continued) Various assets and liabilities of Siret Tea Company Ltd as a result of the notice to buy out the 50.5%, shareholding have been presented as held for sale in the Group statement of financial position at the reporting date. The carrying amount of the assets is Ksh million, with associated liabilities of Ksh million. Included within these amounts are the following items: 30 June 2012 Assets classified as held for sale Property, plant and equipment 87,868 Biological assets 330,416 Prepaid operating lease rentals 3,680 Non-current receivables 2, ,279 Inventories 145,241 Receivables and prepayments 51,312 Cash and cash equivalents 54, , ,303 Liabilities classified as held for sale Payables and accrued expenses 131,916 Current income tax payable 8,913 Post-employment benefit obligations 6, ,748 Deferred income tax 110,684 Post-employment benefit obligations 24, , ,315 In the cash flow statement, the cash provided by the operating activities of Siret Tea Company Ltd has been separated from that of the rest of the group by and reported as a single line item. See note 15 for further information. 12. EVENTS AFTER THE BALANCE SHEET DATE Sireet Outgrowers Empowerment and Producer Co. Ltd has given notice that it will exercise the option of purchasing the remaining 50.5% shareholding in STCL on 31 August 2012, following approval of this transaction by the Competition Authority of Kenya. The gross proceeds are expected to be in the region of Ksh. 233 million. This will realise a profit on sale of shares in subsidiary of around Ksh. 51 million. The proceeds will add to the company s strong cash reserves which is necessary to continue to develop the potential of Kakuzi Limited. In accordance with IFRS, STCL has been classified as a discontinued operation in these financial statements. The results of STCL are included as discontinued operation in the consolidated income statement and the assets and liabilities are classified as held for sale in the consolidated statement of financial position as described in Note

17 Notes (continued) 13. CASH AND CASH EQUIVALENTS Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise the following: - Group Company 30 June June June June 2011 Continuing operations Cash at bank and in hand 33,403 21,542 33,403 21,542 Short term deposits 493, , , , , , , ,542 Discontinuing operation Cash at bank and in hand 14,471 24,710 Short term deposits 40, ,000 54, ,710 Total 580, , CAPITAL COMMITMENTS Capital expenditure contracted for at the statement of financial position date but not recognized in the consolidated interim financial statements is as follows:- 30 June June 2011 Continuing operations Property, plant and equipment 5,156 7,343 Discontinuing operation Property, plant and equipment 8,899 11,729 16

18 Notes (continued) 15. CASH GENERATED FROM OPERATIONS GROUP Reconciliation of profit before income tax to cash (outflow)/generated from operations: 30 June June 2011 Notes Continuing operations Profit before income tax 116,546 59,629 Adjustments for: Interest income 5 (51,590) (2,777) Depreciation 9 27,067 23,590 Amortisation of prepaid operating lease rentals 5 5 Profit on sale of property, plant and equipment (1,166) (177) Gains arising from changes in fair value less estimated point-of-sale costs of biological assets 10 (18,025) (9,425) Decrease in fair value of biological assets due to sales and harvest and disposal 10 32,909 43,165 Changes in working capital - inventories (66,164) (55,097) - receivables and prepayments (81,079) (52,149) - payables and accrued expenses 78,585 (6) - retirement benefit obligations 6,121 3,227 Cash generated from continuing operations 43,209 9,985 Discontinuing operation Profit before income tax 48, ,905 Adjustments for: Interest income (17,383) (5,739) Depreciation 6,274 4,884 Amortisation of prepaid operating lease rentals 5 - Profit on sale of property, plant and equipment (2,699) - Changes in working capital - inventories (23,255) 12,048 - receivables and prepayments (6,928) 27,361 - payables and accrued expenses (74,828) 6,118 - retirement benefit obligations 5,304 1,144 Cash (outflow)/generated from discontinuing operation (65,441) 179,721 Cash (outflow)/generated from operations (22,232) 189,706 17