Final results for the year ended 31 December 2025

Note

$000

 31.12.2024

$000

The accompanying notes are an integral part of this consolidated statement of financial position.

The accompanying notes are an integral part of this consolidated statement of cash flows.

Notes

AEP is a company incorporated in the UK under the Companies Act 2006 and is listed on the London Stock Exchange. The registered office of AEP is located at Quadrant House, 6th Floor, 4 Thomas More Square, London E1W 1YW, UK. The principal activity of the Group is plantation agriculture, mainly in the cultivation of oil palm in Indonesia and Malaysia, of which Indonesia is the principal place of business.

The financial information does not constitute the company's statutory accounts for the years ended 31 December 2025 or 2024. Statutory accounts for the years ended 31 December 2025 and 31 December 2024 have been reported on by the Independent Auditor. The Independent Auditor's Reports on the Annual Report and Financial Statements for the years ended 31 December 2025 and 31 December 2024 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Statutory accounts for the year ended 31 December 2024 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2025 will be delivered to the Registrar in due course.

The material accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented.

Basis of preparation

The consolidated financial statements have been prepared in accordance with UK adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.

The consolidated financial statements have been prepared on a historical cost basis, except for the following items:

• Biological assets (note 18)

• Retirement benefits (note 23)

• Investments (note 14)

Going Concern

The Directors have carried out stress tests, factoring in the identified uncertainties and risks such as commodity prices, together with the current economic environment to ensure that the Group has adequate resources in a worst-case scenario to remain as a going concern for at least twelve months from the date of this report.

The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has sufficient cash resources to cover the Group's operating expenses for a period of at least twelve months from the date of approval of these financial statements. For these reasons, the Directors adopted a going concern basis in the preparation of the financial statements. The Directors have made this assessment after consideration of the Group's budgeted cash flows and related assumptions including stress testing of identified uncertainties, as well as the impact of a 50% decrease in the demand for palm oil. Stress testing of other identified uncertainties and risks such as commodity prices was also undertaken.

Changes in accounting standards

(a) New standards, interpretations and amendments effective for the first time for the accounting periods beginning on or after 1 January 2025 in these financial statements in the current year

• IAS 21 The Effects of Changes in Foreign Exchange Rates, amendment related to Lack of Exchangeability

(b) New standards, interpretations and amendments not yet effective.

The following new standards, interpretations and amendments are effective for future periods (as indicated) and have not been applied in these financial statements:

• Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures: Classification and Measurement of Financial Instruments (1 January 2026, not yet adopted)

• IFRS 18 Presentation and Disclosure in Financial Statements (1 January 2027, not yet adopted)

• IFRS 19 Subsidiaries without Public Accountability: Disclosures (1 January 2027, not yet adopted).

• Annual Improvements to IFRS Accounting Standards - Volume 11 (1 January 2026, not yet adopted)

• Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7 (1 January 2026, not yet adopted)

IFRS 18 Presentation and Disclosure in Financial Statements, issued in April 2024, will replace IAS 1 and is effective for annual periods beginning on or after 1 January 2027.

The standard introduces new requirements for the presentation of the statement of profit or loss, including defined categories and additional subtotals, as well as enhanced disclosure requirements.

The Group is currently assessing the impact of IFRS 18 and expects changes in presentation

and disclosures, with no material impact on profit, financial position or cash flows.

None of the above new standards, interpretations and amendments are expected to have a material effect on the Group's future financial statements.

(a) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year. The Company controls a subsidiary if all three of the following elements are present; power over the subsidiary, exposure to variable returns from the subsidiary, and the ability of the Company to use its power to affect those variable returns. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date control ceases. In respect of cooperatives under the Plasma scheme, the Group has not consolidated these entities, as it neither has control nor significant influence. All key decisions are made independently by the cooperatives, and the Group holds no voting rights or representation on governing bodies. The Group has assessed the relationship with the cooperatives based on the criteria set out in IFRS, specifically evaluating control and significant influence. Despite the Group's involvement in the scheme, it does not exercise control, joint control or significant influence over the cooperatives' decision-making processes. Accordingly, the cooperatives do not meet the criteria for consolidation or equity accounting under IFRS.

(b)  Business combinations

The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the consolidated statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. Acquisitions of entities that comprise principally land with no active plantation business do not represent business combinations, in such cases, the amount paid for each acquisition is allocated between the identifiable assets/liabilities at the acquisition date.

(c) Foreign currency

Critical judgement on functional currency

The individual financial statements of each subsidiary are presented in the currency of the primary economic environment in which it operates (its functional currency). The Group's Indonesian subsidiaries have determined Indonesian Rupiah as their functional currency, as their transactions, cash flows and costs are predominantly denominated in IDR. The Company and its UK subsidiaries have US Dollar as their functional currency. The consolidated financial statements are presented in US Dollar, reflecting the Group's economic environment and the influence of internationally traded commodity prices, which are denominated in US Dollar.

On consolidation, the results of overseas operations are translated into US Dollar at average exchange rates for the year unless exchange rates fluctuate significantly in which case the actual rate is used. All assets and liabilities of overseas operations are translated at the rate ruling at the balance sheet date. Exchange differences arising on re-translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised directly in equity (the "exchange reserves"). Exchange differences recognised in the income statement of Group entities' separate financial statements on the translation of long-term monetary items forming part of the Group's net investment in the overseas operation concerned are reclassified to the exchange reserves if the item is denominated in the presentational currency of the Group or of the overseas operation concerned.

On disposal of a foreign operation, the cumulative exchange differences recognised in the exchange reserves relating to that operation up to the date of disposal are transferred to the income statement as part of the profit or loss on disposal.

All other exchange profits or losses are credited or charged to the income statement.

(d) Revenue recognition

The Group derives its revenue from the sale of CPO, palm kernel, FFB, shell nut, biogas products and rubber slab. Revenue is recognised at a point in time when control of the goods or services is transferred to the customer. Revenue from CPO, palm kernel, FFB and shell nut is recognised upon delivery, when the customer obtains physical possession, legal title passes, significant risks and rewards are transferred, and the Group has a right to payment. Delivery is generally made only upon receipt of payment. Revenue from rubber slab is recognised at the point in time when control transfers to the customer, in accordance with the terms of the sales contract. Revenue from biogas products is recognised upon generation of electricity, when control is transferred to the buyer.

The transacted price for each product is based on the market price or predetermined monthly contract value. There is no right of return nor warranty provided to the customers on the sale of products and services rendered. The payment terms for CPO, palm kernel, and shell nut are mainly based on advance payments from customers, whereby payments are typically received prior to or upon delivery. This arrangement helps mitigate credit risk and ensures timely cash flow for the Group's operations.

Contract liabilities represent the Group's obligation to transfer goods or services to customers for which consideration has been received from customers, but the related goods have not yet been delivered or collected.

(e) Tax

Tax is recognised in the consolidated income statement, except to the extent that it relates to items recognised in other comprehensive income, or directly in equity. In this case, tax is also recognised in other comprehensive income or directly in equity accordingly.

UK and foreign corporation tax are provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

The directors consider that the carrying amount of tax receivables approximates its fair value.

Uncertainty Over Income Tax Treatments - IFRIC 23

The Group applies IFRIC 23 - Uncertainty over Income Tax Treatments, which clarifies the accounting for uncertainties in income taxes under IAS 12.

Where there is uncertainty over the income tax treatment of an item, the Group assesses whether it is probable that the taxation authority will accept the uncertain tax treatment. This involves:

• Considering uncertain tax treatments either individually or collectively, depending on which approach better predicts the resolution of the uncertainty;

• Assuming full examination by the relevant tax authorities with complete knowledge of all related facts and circumstances;

• If it is probable that the tax authority will accept the treatment, the entity determines taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates consistently with that treatment;

• If it is not probable, the Group reflects the uncertainty using either the most likely amount or the expected value method, depending on which is the most predictive.

Judgements and estimates under IFRIC 23 are applied consistently to both current and deferred tax. The Group reassesses these judgements and estimates whenever there is a change in facts and circumstances that might affect the outcome of the tax treatment.

(f) Dividends

Equity dividends are recognised when they become legally payable. The Company may pay an interim dividend each year. The final dividend becomes legally payable when approved by the shareholders at the next annual general meeting.

(g) Property, plant and equipment

Plantations comprise of the cost of planting and development of oil palm and other plantation crops. Costs of new planting and development of plantation crops are capitalised from the stage of land clearing up to the stage of maturity. The costs of immature plantations consist mainly of the accumulated cost of land clearing, planting, fertilising and maintaining the plantation and other indirect overhead costs up to the time the trees are harvestable and to the extent appropriate. Oil palm plantations are considered mature within three to four years after planting and generating average annual CPO of four to six metric tons per hectare. Immature plantations are not depreciated as they are not yet available for use.

The Indonesian authorities have granted certain land exploitation rights and operating permits for the estates. The land rights are usually renewed without significant cost subject to compliance with the laws and regulations of Indonesia therefore, the Group has classified the land rights as leasehold land. The leasehold land is recognised at cost initially and is not depreciated except the leasehold land in Malaysia which is depreciated over the term of the lease as its renewal cannot be guaranteed. Costs include the initial cost of obtaining the location permits and subsequent payments to compensate existing land owners plus any legal costs incurred to acquire the necessary land exploitation rights.

Construction in progress is stated at cost. The accumulated costs will be reclassified to the appropriate class of assets when construction is completed and the asset is ready for its intended use. Construction in progress is also not depreciated until such time when the asset is available for use.

Social infrastructure assets, including public-benefit facilities such as schools and other public buildings, are classified as part of the buildings category.

Plantations, buildings and oil mills are depreciated using the straight-line method. The yearly rates of depreciation are as follows:

Leasehold land in Malaysia - over the term of the lease Plantations: 5% per annum

Buildings: 5% to 10% per annum Oil Mill: 5% per annum

Estate plant, equipment & vehicles: 12.5% to 50% per annum Office plant, equipment & vehicles: 25% to 50% per annum

Although fruit yield varies annually, the straight-line method for plantations is considered appropriate as it reflects a consistent pattern of economic benefits over the productive life of the trees and provides a systematic allocation of cost in accordance with IAS 16.

Plantation development costs are capitalised and depreciated over a 20-year useful life, commencing from maturity. As of the reporting date, some plantations have reached the end of their depreciable lives and are fully depreciated, yet remain in use as replanting has not commenced. These plantations continue to generate economic benefits but are carried at nil net book value in accordance with IAS 16 Property, Plant and Equipment, until replanting or disposal.

(h)  Intangible assets

 Intangible assets (other than goodwill) are stated at historical cost less accumulated amortisation and any impairment losses. Intangible assets are capitalized and amortized using the straight-line method over their useful life. Estimated useful lives are reviewed at each balance-sheet date. Amortisation on intangible assets under development commences when the assets are ready for their intended use.

(i) Leases

Land rights are recognised at historical cost without depreciation at the balance sheet date except for leasehold land in Malaysia where it is recognised at historical cost and depreciated over the term of the lease.

The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, mainly for office premises in Malaysia and Indonesia, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

Lease Liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the lessee uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable.

The lease liability is presented as a separate line in the consolidated statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

Right-of-Use Assets

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life, whichever is shorter. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are presented together in property, plant and equipment in the consolidated statement of financial position.

Lease Income - Lessor

PT United Kingdom Indonesia Plantations, a subsidiary of the Group, acts as a lessor under various operating lease arrangements, including those related to the use of biogas facilities. Lease income from these operating leases is recognised as part of "Other Income" on a straight- line basis over the lease term, in accordance with IFRS 16.

Due to the immaterial nature of the income generated from these leases, it is not presented separately in the consolidated statement of profit or loss.

In addition, PT Tasik Raja and PT Bina Pitri Jaya, subsidiaries of the Group, have entered into operating lease arrangements for the use of certain biogas-related facilities. These contracts do not include any minimum lease payments and consist entirely of variable lease payments, which are determined based on output or usage metrics. Accordingly, no fixed lease receivables are recognised. Lease income from these arrangements is recognised in the period in which the related output or usage occurs.

(j) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost of CPO and PK is determined on a weighted average basis and comprises the fair value of FFB at the point of harvest and the related processing costs incurred at the mills.

FFB harvested from the Group's biological assets are measured at fair value less costs to sell at the point of harvest, which becomes the cost of inventories in accordance with IAS 2 Inventories. Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale.

(k) Biological assets

Biological assets comprise an estimation of the fair value less costs to sell of unharvested FFB. The fair value of biological assets is classified as Level 3 in the fair value hierarchy. Net movement in the fair value of biological assets is recognised in the income statement as changes in fair value of biological assets.

(l) Financial assets

The Group classifies its financial assets into one of the categories discussed below, depending on the purpose for which the asset was acquired. The Group's accounting policy for each category is as follows:

Fair value through profit or loss

Investments which are held for strategic gain are carried in the statement of financial position at fair value with changes in fair value recognised in the consolidated statement of income statement in gain or loss arising from fair value. This includes quoted bonds and treasury bills managed under a trading business model, where performance is evaluated on a fair value basis.

Amortised cost

The Group's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. All the Group's receivables and loans are non-derivative financial assets with cash flows that are solely payments of principal and interest. They are recognised at fair value at inception and subsequently at amortised cost as this is what the Group considers to be most representative of the business model for these assets.

Cash and cash equivalents consist of cash in hand and short-term deposits at banks with an original maturity not exceeding three months.

The Group considers a trade receivable or other receivable as credit impaired when one or more events that have a detrimental impact on the estimated cash flow have occurred. Trade and other receivables are written off when there is no expectation of recovery based on the assessment performed. If the receivables are subsequently recovered, these are recognised in the income statement.

The Group use three categories for those receivables which reflect their credit risk and how the loss provision is determined for those categories. These include trade receivables using the simplified approach and debt instruments at amortised costs other than trade receivables and financial guarantee contracts using the three-stage approach.

(m)  Financial liabilities

All the Group's financial liabilities are non-derivative financial liabilities.

Trade and other payables are shown at fair value at recognition and subsequently at amortised cost.

(n) Deferred tax

Deferred tax is the expected tax payable or recoverable on temporary differences which arise between the carrying amount of assets and liabilities in the financial statements, and the corresponding tax bases used in the computation of taxable profit and is provided for using the liability method.

Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the tax profit nor the accounting profit. The Group recognises deferred tax liabilities arising from taxable temporary differences on investments in subsidiaries, except where the Group is able to control the reversal of the temporary differences, and it is probable that the temporary difference will not reverse in the foreseeable future.

Recognition of deferred tax assets is restricted to those instances where it is possible that taxable profit will be available against which the difference can be utilised. Deferred tax assets arising from unused tax losses are recognised only when it is probable that future taxable profits will be available to utilise those losses, with the critical judgment applied as described in note 2(q).

(o) Retirement benefits

Defined contribution schemes

Contributions to defined contribution pension schemes are charged to the consolidated income statement in the year to which they relate.

Defined benefit schemes

The Group operates a number of defined benefit schemes which include other long-term employee benefits in respect of its Indonesian operations. The schemes' surpluses and deficits are measured at:

• The fair value of plan assets at the reporting date; less

• Plan liabilities calculated using the projected unit credit method discounted to its present value using yields available on Indonesian Government bonds that have maturity dates approximating to the terms of the liabilities; plus

• Past service costs; less

• The effect of minimum funding requirements agreed with scheme trustees.

Remeasurements of the net defined benefit obligation are recognised in other comprehensive income. The remeasurements include:

• Actuarial gains and losses;

• Return on plan assets (interest exclusive); and

• Any asset ceiling effects (interest inclusive).

Service costs are recognised in the income statement and include current and past service costs as well as gains and losses on curtailments.

Net interest expense/(income) is recognised in the income statement, and is calculated by applying the discount rate used to measure the defined benefit obligation/(asset) at the beginning of the annual period to the balance of the net defined benefit obligation/(asset), considering the effects of contributions and benefit payments during the period.

Gains or losses arising from changes to scheme benefits or scheme curtailment are recognised immediately in the income statement. Settlements of defined benefit schemes are recognised in the period in which the settlement occurs.

The Group has agreed funding arrangements with the trustees to address the defined benefit scheme deficit, primarily through cash contributions, and actuarial valuations are conducted annually, with the most recent valuation performed as of 31 December 2025.

(p) Financial guarantee contracts

Where the Company and its subsidiaries enter into financial guarantee contracts and guarantee the indebtedness of other companies within the Group and/or third-party entities, these are accounted for under IFRS 9. The details of financial guarantee contracts are disclosed in note 28.

(q) Critical accounting estimates and judgements

The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Judgements

• Assessment of de-facto control of cooperatives under Plasma scheme (see note 2(a) and note 15).

• Determination of functional currency (see note 2(c)).

• Classification of land as leasehold with no depreciation charged (see note 11).

• Carrying value of income tax receivables - determination of historic recovery rates (see note 8).

• Measurement of plasma receivables (see note 15).

• Income taxes and deferred tax - provisions for income taxes in various jurisdictions (see note 8 and note 16).

• Recognition of deferred tax on losses - estimate of future profitability of respective entities (see note 16).

Estimates and assumptions

• Impairment of plantation assets - market value of the assets (see note 11).

• Retirement benefits - actuarial assumptions (see note 23).

(r) Fair value measurement

Fair value measurement - a number of assets and liabilities included in the Group's financial statements require measurement at, and/or disclosure of, fair value. The fair value measurement of the Group's financial and non-financial assets and liabilities utilises market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are (the 'fair value hierarchy'):

- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

- Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

- Level 3 - unobservable inputs for the asset or liability.

The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur.

The Group measures the following assets at fair value:

- Biological assets (note 18).

- Investment (note 14).

Disaggregation of Revenue

The Group has disaggregated revenue into various categories in the following table which is intended to:

• depict how the nature, amount and uncertainty of revenue and cash flows are affected by timing of revenue recognition; and

•

Timing of transfer of goods

Delivery to customer

Timing of transfer of goods

Delivery to customer

The Group recognised contract liabilities of $4,637,000 as disclosed in Note 21 at the beginning of the period. These contract liabilities primarily relate to advance payments received from customers for goods and services to be delivered in future periods.

During the period, these contract liabilities were subsequently recognised as revenue as the Group satisfied the related performance obligations. The Group applies the practical expedient under IFRS 15 and does not disclose remaining performance obligations as contracts are short-term.

Finance income Interest receivable on:

$000

2024

$000

Credit bank balances and time deposits 7,997 5,365

Finance expense Interest payable on:

Interest expense in lease liabilities (note 22) (44) (65) Net finance income recognised in income statement 7,953 5,300

Description of the types of products and services from which each reportable segment derives its revenues

In the opinion of the Directors, the operations of the Group comprise one class of business which is the cultivation of plantations in Indonesia and Malaysia. From the cultivation of plantations, the Group produced the crude palm oil and associated products such as palm kernel, biogas products and rubber.

Factors that management used to identify reportable segments in the Group

The reportable segments in the Group are strategic business units based on the geographical spread. Operating segments are consistent with the internal reporting provided to the Board of Directors. The Board of Directors is responsible for allocating resources and assessing the performance of the operating segments. The Board's decisions are implemented by both Executive and Management Committee. The Executive Committee consists of the Chairman, the Executive Director, and the Group CEO. The Management Committee includes the Group CEO, the Chief Corporate Planning & ESG Officer, the Group Finance Manager, Group Legal Counsel in Malaysia, and senior management in Indonesia. The Indonesian senior management team comprises the CEO, Plantation Director, Finance Director, and Head of Mill & Engineering.

The Management Committee functions as the main executive body responsible for implementing the Board's strategic directives. It also provides the Board with operational reports segmented by geographical regions, which serve as the basis for resource allocation and performance evaluation.

Measurement of operating segment profit or loss, assets and liabilities

The Group evaluates segmental performance on the basis of profit or loss before tax calculated in accordance with IFRS.

Inter-segment transactions are made based on terms mutually agreed by the parties to maximise the utilisation of Group's resources at a rate acceptable to local tax authorities. This policy was applied consistently throughout the current and prior period.

The Group's assets are allocated to segments based on geographical location. Inter-segment revenue and transactions are eliminated at the segment level and are not included in the total segment revenue presented above. Accordingly, the segment revenue disclosed represents external revenue and reconciles directly to the consolidated revenue in the financial statements. There are no material reconciling items.

Inter-segment revenues of $35,086,000 (2024: $39,200,000) are eliminated at the segment level and are excluded from segment revenue totals above. There are no other reconciling items between segment totals and the consolidated financial statements.