Ladies and gentlemen, it is now 12 noon, the time appointed for the annual general meeting. I have much pleasure in welcoming you. I see there are just enough seats. A quorum of two members is required, and I confirm that more than this number is present. I'm pleased to inform you that the meeting today is being live streamed and recorded so that shareholders and other stakeholders who cannot be present can view it live or watch it on the company's website in due course.
I'm also pleased to confirm that I'm joined today by my colleagues on the board. As you may be aware, the company released a trading update this morning covering the first five months of 2026. Copies of the report have been distributed in the room, should you wish to review it. I might just pick out Sorry?
Have you got any more?
Are there any more? I think there were 50 or 60. Sorry if you don't have quite enough. Anyway, I might, in the meantime, just pick out one or two of the highlights from the report. Pleasingly, total crop harvested in the Group- managed areas, that's those areas owned by ourselves and our associated smallholder farmers, was up by 10% to 575,100 tons.
Oil- extraction rates in Group mills increased to an average of 24.2%, which is extremely high by industry standards. Was already high for the same period of last year at 23.5%. This is a staggering increase of a further 0.7%. Every 0.1% goes straight to the bottom line.
It's a real credit to the team with field, the agronomic team, and the engineering team working more and more closely together in harmony to produce these excellent extraction rates, and they strive to improve on these further. Crude palm oil production up by 8% to 157,600 tons, with 82% now certified sustainable.
Pricing has remained strong with mill- gate CPO prices at $880 per ton, which is similar to the price for the same period last year, and palm kernel prices at $824, which is actually some 7% up on last year. Palm kernel competes with coconut oil, which has been in some short supply, which has helped to boost palm kernel prices. Production costs have been stable, with input increases mitigated by generation of our own energy, and also the weaker Indonesian rupiah.
As you will have noted, I'm sure, that in the last two, three weeks, the share buyback program was restarted. Of course, there is a resolution to authorize the renewal of the program for the following year coming up shortly. The proposed final dividend of GBP 0.42 per share is in line with the Board's progressive approach on dividends. There is also, in the statement, an update on the palm oil export position in Indonesia, of which I know Matthew will say a little more shortly. In fact, I think on that note, I will pass on to Matthew, our Chief Executive, who will now make a short presentation.
Thank you very much, Peter. I note the point about a short presentation. I shall certainly try and keep it brief for everybody here. I think it's probably worth just saying a few words. First of all, actually, just to recap on last year, for shareholders. Firstly, a quick reminder, not that we probably need to dwell on that either, but some important facts about how the group has continued to develop.
Last year, we were very pleased to hit a milestone for the group of now having 70,000 hectares under cultivation across Indonesia. As you know, our estates are spread widely across Indonesia from the very northern part of North Sumatra all the way through to the eastern tip of East Kalimantan. We grew in 2025 by both planting more hectares at our estates, but also acquiring more hectares.
We acquired further hectares at our Bumi Mas estate in East Kalimantan. We achieved that milestone of now being more than 70,000 hectares under cultivation. Very pleasingly, we continue to increase the proportion of our output that qualifies as certified sustainable oil. More than three-quarters of our output now qualifies as certified sustainable.
Actually, if you measure that output by output from our own mills, it's now up to 80%. As you just heard from the trading statement, it continues to grow in 2026. 2025 was a record year for the group in many ways. We benefited from strong pricing during the course of the year, but the growth was a big factor in terms of our output as well. We ended the year with a very robust financial position.
We paid off all debt during the course of the year and ended the year with a significant net cash position. In terms of financial and operational highlights during the course of the year, I won't go through all of these, but a couple to highlight. Earnings per share were up by almost a quarter in 2025, so up to over GBP 1.60 per share.
We benefited there, as Peter said, from a very strong oil extraction rate in 2025. It's growing in 2026, which is great, but it was very good in 2025 as well. We also benefit from an increasing yield from every mature hectare that the group cultivates, so 21.5 tons from every mature hectare that the group is cultivating.
A chart that we show all the time, and we're very proud to show this chart all the time, our progressive approach to dividends for shareholders. This shows the track record over the last 10 years. As shareholders know, we can trace this chart back many, many more years than this of progressive dividends for shareholders. 35 years + is now our track record of a one-way street of returns for shareholders.
You can see the acceleration in recent years. Dividends in respect of 2025, now GBP 0.60 per share. No presentation is complete without a slide on sustainability. As you know, I'm very tempted always to do many, many slides about sustainability, but I've managed to restrict myself to just the one. This one focuses on one of the aspects of a zero-waste approach we have in our mills.
Apologies if you've heard this before, but this is very important to us. As part of our zero-waste approach in our mills, we make sure that the wastewater from our mills goes into covered ponds from which we capture the methane that's emitted from that wastewater.
We turn something that would otherwise be a problem, and a liability for us in terms of greenhouse gases, into an asset and a real benefit for us because we use that methane to generate a huge amount of renewable electricity. We estimate that by using that renewable electricity last year, we saved over $4 million in alternative costs for alternative fuel sources. That estimate was based on last year's fuel prices.
When we do the estimate for this year, as we continue to generate more renewable electricity this year, it'll be very interesting using this year's fuel prices to see how much we're saving. It's going to be a bigger number. Peter's already touched on some of the key numbers coming out of the trading update for the first part, the first five months of 2026.
I hope you're getting a very clear impression that we are continuing to grow and we are continuing to develop with our own harvest up by 10%. We continue deliberately to reduce, therefore, the amount that we're buying in from outside suppliers. Our extraction rates are up. We are processing still more crop, and our output is up because of the benefit of that increasing oil extraction rate. Absolutely, we are supported by a very strong price environment.
Whilst this is a five-month analysis, therefore does not really reflect any price impact from announcements recently out of Indonesia to do with changes to export arrangements, I think it is worth just dwelling on that for a moment. Whilst, as I say, five-month prices are not impacted by any of that, as we look forward into pricing into June, we see a very stable price environment, actually. Prices as I apologize if you can't read all the detail in the bottom of the slide.
The point is that prices in June continue to be at a very, very similar level, even after the announcements that have come out of Indonesia in the last couple of weeks. As it says in the detail of the trading statement, any changes to export arrangements in Indonesia will not come into force until the start of 2027.
Our understanding at the moment is that the primary purpose of any of those export changes is really about recognizing that there needs to be proper recording and proper accounting for exports coming out of Indonesia.
As I'm sure you all know, we are not exporters, any effect of any of these changes will be very much second degree to us, and the indication is, at the moment, of any effect of that being very, very limited. The clear indication of that is the way in which prices have remained very stable since those announcements have been made. I hope I've successfully kept that brief, and at this stage, I'll hand back, Peter.
Thank you very much, Matthew. My colleagues and I shall now be pleased to deal with any general questions or particular points on the report and financial statements which shareholders present at the meeting would like to raise. Do please raise your hand and wait until the microphone reaches you before speaking. Any questions? Yes, please.
Thank you, Chairman. My name's Phil Clark. I'm a long-term shareholder. It's a pleasure to be here. Thank you so much for another excellent year. You've come forward by leaps and bounds. It's very impressive. Congratulations to you and all your staff.
Fabulous. Thank you. Can I raise just two questions, please? First of all, on page 25 of the accounts, you talk about the incident frequency rate, which is the rate at which accidents occur, and it's increased dramatically from 7.1 in 2024 to 11.1 in 2025. What's gone wrong there, and what are you going to do to fix it? Let me give you my second question as well. Yes, it's completely fabulous. You're sat on this cash mountain of $87 million at the balance sheet date, and presumably one heck of a lot more by now.
Can you give us some indication of what you're going to do with that? I know you've been buying back shares because they're cheap, which is marvelous, and I must admit, we bought some more as well. Can you give us any clue as to what you'll do with that? Thank you.
Matthew, are you happy to go on the accidents?
Yes.
Do you want to go again?
Yep. Thank you for your question, Phil, particularly in relation to the incident frequency rate. You're right to highlight that in 2025, it went up. I think it's important to note that it remains a relatively low figure overall in the figure we report is the number of incidents per 200,000 hours worked.
Whilst it's moved up from seven to 11, that is still within the context of 11 for every 200,000 hours worked across all of our operations. Nonetheless, we're not complacent. Absolutely, we're not complacent. There are two areas that contribute most to incidents in relation to our operations. One is the harvesting task, and one is very simply traveling on estate roads on motorbikes.
In both cases, our operational health and safety team are very focused on increasing training in both of those areas to ensure that people are very focused on maintaining and deploying all of the appropriate safety conditions associated with minimizing risk in both of those activities on our estates. Thank you for highlighting this. It is an area we're aware of and something that our team are very, very focused on. Thank you.
First of all, I notice there are one or two people at the back. There are actually three or four seats in the front. If you'd like to come, by all means do come forward. Just on the second part of your question regarding the nice problem, if you like, to put in those terms of having the extent of cash that we have on our balance sheet.
Really, as before, we will deploy the excess capital in a number of ways. Matthew has already touched on the program of progressive dividends. We would like to continue to give money back to shareholders. You've all been patient in watching the company grow. Many of you are long-term shareholders, and it's good to be able to give back increasingly high returns by way of dividends.
Also, as you've mentioned, we've started, particularly as prices have come off from the higher levels we saw, to take the opportunity to buy back some of our own shares. Thirdly, there are still areas where we would like to grow, particularly around our existing mills, because we do have some spare capacity at most, if not all of our mills, to a greater or lesser extent.
If you consider that on average, say a hectare that one might buy could be at least, if it's planted, $10,000 per hectare. We have room around our mills for what? 10,000 to 12,000? I mean, that alone, if we were successful in acquiring suitable areas close to our estates in each instance, then that would take up a lot more of that cash. Of course, it's not always possible to do that.
Nonetheless, we keep an open mind on all three aspects of that. It is something which is debated by the board, but that really is consistent with how we've approached things and how we will continue to approach things. Thank you for the question. Yes
Hello, thank you for your very helpful report. My name is Richard Snelling. I'm a long-term shareholder, as is all my family. You mentioned the Indonesian president's proposed alterations. From what I understand, you're not primarily an exporter, and your accounting is in excellent condition. What do you envisage the worst that can happen to the company? Privatized, or what?
It's me to do.
What is the worst that can happen?
Yeah. Sorry, what is the worst-
Well, I was wondering whether the Board had made any projections of the worst possible outcome as a result of the president of Indonesia's deliberations.
Well, I've been involved with the company for, well, probably, in a sense, all my life, because my father was involved with the company. He probably saw things at about their worst when all of our plantations were expropriated, so we had nothing left in Indonesia for a period of three years. Those estates, that was back in the 1960s, were offered back, no longer on a freehold, but on a leasehold basis.
Which, in a sense, is a good thing because it means that there's no sort of emotive issue about foreign companies owning Indonesian soil, as it were. That's not the case. The government owns the estates. There's nothing to expropriate because they own the land. We lease it from them.
I would like to think that we have been very good custodians of that land through the leases, which incidentally have been renewed without any problem whenever the leases over that period of time, since the time that we were offered the land back in the late 1960s, there's never been an issue. One says never, but touching wood, but nonetheless, there's not been an issue in having those leases renewed. I would feel reasonably optimistic that there won't be anything as dramatic as that.
If anything, as Matthew says, maybe there was a bit of almost an undue negative reaction to the announcement that was made the other day, based really on very little. It seems unlikely that we will be affected or affected to any significant extent. We can't say for sure, but that would seem unlikely.
There has also, as one or two of you may have noticed, the Indonesian government has taken back some land from companies whose titles are not properly in order or where there's been illegal deforestation, the government has taken that land back or imposed fines. We have been assessed, and we have been found to have clean titles, all in clean, good apple pie order. We have not been affected by that. No investment is without risk, but I personally am a great believer in Indonesia, and proud of what we've achieved and what we can still look forward to. Any other questions? Yes.
I'd like to ask a question which has nothing to do with M.P. Evans at all. When the accommodation we build for our workers, they turn on the taps, water comes out of them. In Tunbridge Wells I need say no more. No water comes out.
I think it's just absolutely ridiculous that this situation goes on. Perhaps we ought to try and do something about it. I don't know what we can do. Perhaps close our accounts with NatWest Bank, whose pension fund seems to own most of this rotten water company. Certainly, something ought to be done, and it's quite ridiculous. Perhaps you could try and do something.
Right.
You can have a bath.
We'll use our best efforts, thank you. Yes, it was annoying, particularly as we were affected for almost a week by that. The office was somewhat inconvenienced by that. Anyway, hopefully, they will get their act together and make the system rather better than it is. As you say, it works better in Indonesia. Other questions? Yes. There's one.
Davies, ordinary Shareholder.
Sorry, we've got Yes. Hello.
Well, how do you feel about the dire warnings from the United Nations and climate change experts in the Met Office about the coming weather in the Pacific from the Humboldt Current and all that?
Yeah. Okay. Do you want to talk about, this is presumably a reference to the recent reports about a bigger El Niño possibly coming. Would you like to talk about that, Matthew?
Me?
Yeah.
Absolutely. I suspect, given the amount of coverage it's recently been receiving, everybody has heard of the likelihood of an El Niño event beginning in the Pacific, but affecting weather patterns in the latter part of this year. We've obviously been keeping in very close contact with our team in Indonesia on this. Thus far, we see no impact of that in terms of our operational locations. If indeed it does emerge in the latter part of this year, we will feel this in an extended period of drier conditions in Indonesia. We will wait and see exactly what emerges and how this may or may not affect our crop.
If there is that extended period of drier conditions in Indonesia, then the way it tends to affect not just us, but other producers in Indonesia is actually somewhat delayed because of the way in which crop forms and the impact on overall harvest.
We may not actually see an impact on this until, in terms of cropping levels, until 2027 or even the latter part of 2027. We will see what happens. When I talk about a lower cropping level, it tends to be a relatively minor impact because of just how robust and hardy the oil palm is.
If we do see that, as I say, it will be a wider phenomenon across the largest producing part of palm in the world. If there's a restriction on availability, you tend to get a corresponding impact in terms of pricing. The pricing goes up. We will see, but it may be the case that if there is an effect, it will be a delayed effect, and we may well see a corresponding pickup in terms of pricing, which would negate any impact in terms of cropping levels. The short answer is we don't know. We will wait and see, may be delayed, and we would get a corresponding benefit in terms of higher pricing. More on that to follow.
Thank you. Any more questions? Okay. Yes. One more. Yeah.
Thank you very much. It's Richard Snelling again. Not a very profound question, this covered pond, I know how you get rid of the methane. What do you do with the water? Surely the pond's going to get bigger and bigger and bigger. Can you grow carp or something in it or what?
Do you want me to talk about that?
Yes.
The answer to that is then the treated water is then actually used for actually land application, and actually forms part of, again, in the spirit of zero-waste and everything having a benefit, it actually is applied back in land application as part of returning to the soil and getting a benefit there. It's a bit like what we do with the empty fruit bunches, where the empty fruit bunches go into a composting facility and are returned as compost to the soil. That applies in terms of land application with the water.
Sorry, there was, yes. One.
Mr. Chairman, my name is Derek Calrow. I've been a shareholder, as you know, for many, many years, from the days of Padang Sanang, Baradin, Bertam, Rowe Evans, and Lendu. I think that was the big six. This isn't a question, it's more of a comment.
I'd just like to say, the progress of the companies coming together, where there are cross-holdings, the companies coming together, the movement from Malaysia to Indonesia, and the foresight in acquiring the palm oil estates in Indonesia has been quite remarkable, and it's thanks to you, and I would also mention the name of Philip Fletcher. I think a round of applause for what has been done by yourself and Philip in particular. That's not to exclude current directors, new directors. Thank you very much.
Well, thank you. Perhaps Philip, you should stand up for a moment just to there we are. No, I think my late father would be very proud of what's been achieved as well, thanks to our amazing team. Of course, Chandra helped us to develop, well, to see through our vision and we now have a wonderful board and a fantastic team in Indonesia. They really are the best, and I couldn't be prouder of them all. Thank you very much for your kind words, Derek. Well, perhaps we might Oh, sorry, there is one more. Yes. Yep. Yes.
Thanks. Andrew Girven, Shareholder. I was just reading this thing in the "Investors Chronicle" the other day. You talk about this change likely to start in 2027, Agrinas, which is a government company within Indonesia, they currently have 1.7 million hectares. Can you help us a little bit explain what their intention is? Are they a grower? Are they a refiner? I mean, how does it mix in with your business, please?
Do you want to have a crack at that or
Sure.
Yeah. Peter mentioned the fact that certain companies have had land taken from them where they may not have appropriate title, they may have developed in areas they shouldn't have developed in because of concerns regarding deforestation or whatever it may be. Those areas of land have now been handed over to a relatively new company called PT Agrinas, which is a government-owned company.
That company, PT Agrinas, because of all of those areas that have been identified, now, as you say, has a very large hectarage. That company is now running that hectarage as a grower, as a public company to manage that hectarage that has been transferred across to it. It's as simple as that.
Right. Okay, well, thank you very much. By all means, do continue to ask questions of any of us more informally in a short while in the courtyard afterwards. We might now continue with the formal part of the meeting. As the notice of meeting has been in the hands of members for the statutory period, may I please take it as read? Thank you.
The independent auditor's report to the members of M.P. Evans Group PLC is set out on pages 64 to 70 in the annual report and accounts. The report is on the group financial statements, including the parent company financial statements. May I take it as read? Thank you. Voting today will be conducted on a show of hands.
May I remind you that shareholders who are present here in person or by corporate representative are entitled to one vote on a show of hands. A proxy who is present and has been duly appointed by a shareholder entitled to vote also has one vote on a show of hands. Please do not raise your hand if you're not a shareholder or a formally appointed representative or proxy.
Resolutions One to 11 are proposed as ordinary resolutions and require a simple majority to be passed. Resolution 12 is proposed as a special resolution, which requires a majority of 75% to pass. We have received proxies in respect of 26,902,990 shares. Copies of a schedule detailing proxy voting instructions for, against, or withheld, received in relation to each resolution, have been distributed in the room.
A vote withheld is not a vote in law and is not counted in the calculation of the proportion of the votes for and against. With that in mind, I am pleased to confirm that of the votes cast, not fewer than 93% are in favor of all resolutions. The reports and financial statements have been sent or made available by digital means to all members.
I hope they provide shareholders with a clear explanation of the group's strategy, its activities, and its profit and financial position as at the December 31st 2025. I now propose as Resolution One that the report of the directors and the audited financial statements for the year ended December 31st 2025 now laid before the meeting be received. I put the resolution to the meeting. Those in favor? Those against? I declare the resolution carried.
I now propose as Resolution Two that the directors' remuneration report, as set out in the annual report and audited financial statements for the year ended December 31st 2025, now laid before the meeting, be received. I put the resolution to the meeting. Those in favor? Those against? I declare the resolution carried. I have pleasure in proposing as Resolution Two that Kate Coppinger be elected director of the company.
Kate, who joined the Board one minute after the conclusion of last year's AGM, so is now being elected for the first time, has proved already an extremely valuable Member of the Board. Also a very effective Chair of the Remuneration Committee, and we're very grateful to have your contribution. If I may put to the meeting. Those in favor? Those against? I declare the resolution carried.
I'm pleased to propose as Resolution Four that Mr. Michael Sherwin, who is also, as you will know, Chair of our Audit Committee and our Senior Independent Director, be reelected director of the company. I put the resolution to the meeting. Those in favor? Those against? I declare the resolution carried.
I'm pleased to propose as Resolution Five that Ms. Tanya Ashton be reelected a director of the company. Tanya, who brings a lot of experience in terms of sustainability and many other valuable skills to the board. I have pleasure in putting the resolution to the meeting. Those in favor? Those against? I declare the resolution carried. I'm pleased to propose as Resolution Six that Mr. Lee Yuan Zhang be reelected director of the company.
Yuan, who also brings with us, is a member of KLK, our biggest shareholder, but brings huge knowledge and experience in terms of plantation matters, in terms of the Southeast Asian general cultural, economic background, and we're extremely grateful for your contribution to the Board, Yuan. I put the resolution to the meeting. Those in favor? Those against? I declare that resolution carried. I nominate Michael to put Resolution Seven to the vote.
Thank you, Peter. I have pleasure in proposing as Resolution Seven that Mr. Peter Hadsley-Chaplin be reelected as a director of the company. I put the resolution to the meeting. Those in favor? That was a big show. Those against? Those abstaining? I declare that resolution carried, I hand the Chair back to Peter.
Thank you very much. Thank you very much, Michael. I propose as Resolution Eight that a final dividend of GBP 0.42 per share be declared payable on or after the J une 18th 2026 in respect of the year ended December 31st 2025 to all holders of shares on the register of members of the company at the close of business on April 24th 2026.
I put the resolution to the meeting. Those in favor? Those against? I declare that resolution carried. I propose as Resolution Nine that the total amount of fees payable to all of the non-executive directors, excluding any remuneration for special or additional services paid pursuant to the company's Article 102, be increased from $250,000 to $500,000.
Just lest there be any misunderstanding on that, this is the maximum amount that is payable given that we would shortly go through the threshold which has been in place for some time of $250,000. By going to the new level of $500,000, it's anticipated that we won't be seeking permission for that to be reviewed for quite some years yet. Just in case there was any misunderstanding on that. I put the resolution to the meeting. Those in favor? Those against? I declare the resolution carried.
I now propose as Resolution 10 that BDO LLP, chartered accountants and registered auditors, be appointed auditors of the company to hold office from the conclusion of the meeting until the conclusion of the next general meeting at which financial statements are laid before the company in accordance with Section 437, Companies Act 2006, at a fee to be determined by the directors. I put the resolution to the meeting. Those in favor? Those against? I declare that resolution carried. I now propose Sorry, are we onto that one?
Yes.
Sorry, yes. I now propose as Resolution 11 that the directors of the company be authorized to determine the remuneration of the auditors. I put the resolution to the meeting. Those in favor? Those against? I declare that resolution carried. I now move on to the special business of the meeting and propose as a special resolution, the resolution as set out in the notice of meeting number 12.
This resolution gives authority for the company to purchase up to 10% of its own shares during the coming year, a maximum of 5,225,629 shares, as and when the directors consider it appropriate. I put the resolution to the meeting. Those in favor? Those against? I declare that resolution carried.
Now, before concluding the formal business for the meeting, it's always been customary for a vote of thanks to be proposed by a shareholder to our fantastic staff and workforces throughout the world who continue to play such a vital role in the activities of our group and in the furtherance of our strategy. Chris, thank you very much. Thank you.
I have pleasure in inviting all of you to join us for some light refreshments. I gather it's believed it's going to be sunny and dry enough to venture into the courtyard. My colleagues and I, as well as our advisors, will be very happy to answer any further questions that you may have on a more informal basis. Thank you very much