majority held 900 ha
minority held 580 ha
majority held 46000 ha
minority held 25000 ha
majority held 31000 ha
minority held 6000000 ha
oilpalm plantations
and property development
in malaysia
oilpalm plantations
in indonesia
beefcattle farming
in australia
location of the group’s properties
and those of its associates as at 30 april 2008


Summary:
 6
overall results
i am pleased to report a record result for a
second consecutive year profit for the year rose
to us46630000 compared with us26102000
in 2006 earnings per share continuing and discontinued
operations increased to 8232 cents from 4975 cents
the increase was largely attributable to the robust
palmoil price to the increase in value of the biological
assets in accordance with international financial
reporting standards “ifrs” to exceptional gains
related to property disposals and to increases in
associatedcompany profits
the plantation associates benefited from the high palm
oil prices with regard to the other associates there was
a significant nonrecurring gain from the sale of some
sizeable parcels of land owned by the 40held
bertam properties sdn berhad “bertam properties”
and a sharplyimproved result by the 2964held
the north australian pastoral company pty limited
“napco” offsetting these gains were a decline in
the group’s ffb crop a small loss recorded on the
group’s australian property woodlands and net
exchange losses arising primarily in indonesia where
the rupiah has weakened against the us dollar
the accounts have this year been drawn up in a
different way from previous years with the comparative
figures for 2006 restated accordingly as explained in
more detail on pages 8 and 9 ifrs has been adopted
and in addition the accounts are now presented
in us dollars the currency in which the majority
of the group’s earnings and a significant proportion
of costs are denominated
dividend
the board is pleased to recommend a final dividend
of 500p per share which together with the interim
dividend of 200p paid in november 2007 makes 700p
for the year compared with 650p in respect of 2006
the dividend will continue to be paid in sterling
strategic progress
it remains the board’s target to achieve a total area
under oil palms in indonesia of some 70000 hectares
and to continue to add value to and expand the
australian beefcattle portfolio in order to fund these
expansionary objectives the group will continue to
raise cash by disposing of its remaining malaysian
plantation and property investments as well as by
securing additional bank finance
in indonesia the group now owns some 10000
hectares of mature oilpalm plantations together with
a minority holding in 25000 hectares  equivalent to
8000 hectares  in sumatra in addition a land bank of
12000 hectares on bangka island and 24000 hectares in
east kalimantan has been secured of this new land over
2000 hectares on bangka and over 2500 hectares in
east kalimantan have been planted to date some delays
in the planting programme have been experienced
either for weatherrelated reasons or in the case of
bangka as a result of protracted negotiations relating
to smallholder landcompensation issues the group’s
aim is to clear and plant in an environmentally and
socially responsible manner the balance of the land
bank as quickly as possible the aim is also to acquire
additional land of 15000  20000 hectares preferably
also in east kalimantan thereby achieving the target of
70000 hectares and ultimately enabling some 400000
tonnes of crude palm oil per annum to be produced
in australia the group’s acquisition of springmount
a 7581hectare beefcattle and arable property
for a total of a930 million us816 million was
completed in march 2007 springmount adjoins the
group’s existing properties known as the woodlands
aggregation the addition of springmount has increased
the size of the aggregation to 31000 hectares and has
enabled further economies of scale to be achieved
both in the fattening of cattle and in the cultivation
of grain crops for commercial sale greater emphasis
than hitherto is being placed on the latter option in
chairman ’s
statement
a record result for
a second consecutive year
the increase was largely
attributable to the robust
palmoil price to the increase
in value of the biological
assets to exceptional gains
related to property disposals
and to increases in associated
company profits 7
annual report 2007
view of the current high world price for grain – up to
8000 hectares can be utilised for grain production i am
pleased to report not only a sharp increase in the group’s
share of napco’s posttax earnings to us284 million
from last year’s loss of us041 million but also a
significant increase in australian rural property values
this has impacted favourably on napco’s net asset
value which increased to us1510 per share from
us1047 per share at the end of 2006
in malaysia two important sales were agreed during
the year first the balance of perhentian tinggi estate
745 hectares was sold for rm6627 million
approximately us2100 million completion has
recently occurred and the whole transaction will therefore
be accounted for in 2008 second the sale of sungei
kruit estate 828 hectares was agreed for a total of
rm7228 million approximately us2290 million
completion is expected to occur in mid2008 and
should consequently be brought into the 2008 accounts
thereafter there will only be two remaining assets of
significant value in the group’s malaysian portfolio
the 40 share of bertam properties and the remaining
74 hectares of bertam estate the board believes
that these assets command a combined value of
us55 million and it is planned for these two to be sold
in due course to contribute to the funding of the group’s
continued expansion into indonesia and australia
palmoil activities and market
the palmoil industry enjoyed a very successful year
in 2007 with the average rotterdam cif price increasing
to us781 per tonne compared with us475 in 2006
continuing strong demand from the emerging asian
economies combined with competition for land
use arising out of the increase in the production 
of biofuels have resulted in low vegetableoil stocks
and upward pressure on prices
the group’s crops of oil palm ffb were lower than
in 2006 this arose from the loss of crop from the
malaysian estates which had been sold in 2006 from
the damage caused by the unusually severe flooding
on simpang kiri estate in sumatra at the end of 2006
and from the effects of the labour strike on the estates
in north sumatra since settled
beefcattle activities and market
as has been the case in recent years in australia
beefcattle prices in 2007 were predominantly
influenced by seasonal and currency fluctuations
given the volatility of these two factors the cattle
market fluctuated accordingly but prices ended the
year around the middle of the year’s range
woodlands benefited from substantially better rainfall
in 2007 than in 2006 and as a consequence was able
to grow a wheat crop this together with similar cattle
fattening profits to 2006 resulted in a reduced loss this
year good progress was also achieved on the farm’s
pasturedevelopment programme which will enable
considerably more cattle to be grazed in future years
napco recorded a pleasingly sharp increase in its profit
resulting from an increase in the value of the company’s
herd by some us1005 million which is a product
of higher cattle prices heavier cattle and the 76
growth of the company’s herd to a record 198000
head one of the company’s growingout properties
was also profitably disposed of during the year
current trading and prospects
palmoil prices continued to strengthen into 2008
reaching a high of around us1395 per tonne in march
before retreating to the current level of around us1200
which is nevertheless somewhat higher than the
yearend level of us1000 a progressive exporttax
has been imposed by the indonesian government but
despite this the fundamentals in the palmoil market
remain strong helped by the recent abolition of the
previously high import tax imposed by india
ffb crops on the majorityowned estates have started
the year strongly and are ahead of the same period
last year and in line with budget crops on the
associatedcompany estates have been ahead of both
the same period last year and budget it is too early
to make accurate predictions as to the outturn for the
whole year but it is hoped that the full year’s crop will
be in excess of that for 2007
conditions on woodlands have continued favourably
following beneficial rainfall and napco’s backgrounding
properties in central queensland have been enjoying
a similarly good season however napco’s breeding
and growingout properties in the northern territory
and more northerly parts of queensland have been
suffering from a severe drought which means that a
significant number of young cattle will have to be sold
before time cattle prices – in particular for grassfed
“prefeedlot” cattle such as are produced by woodlands
– have continued to be as volatile as in 2007 largely
in response to seasonal fluctuations whilst the market
for grainfed cattle – as produced by napco – has on
average traded at historicallyhigh levels
the board is of the view that in the light of the ever
growing global demand for vegetable oils biofuels
food and protein the prospects for both the palmoil
and beefcattle markets remain favourable and that
2008 will prove to be another excellent year
acknowledgements
on behalf of the board i should like to express our
appreciation to the managers staffs and workforces in
all of the group’s areas of operation for their dedication
and hard work often in trying circumstances
richard robinow
chairman
2 may 2008