AGM Statement

AGM Statement

R.E.A.Hldgs PLC

R.E.A.Hldgs PLC 05 June 2007 Annual General Meeting of R.E.A. Holdings plc ("REA") Trading update The crop of oil palm fresh fruit bunches to end May 2007 amounted to 132,400 tonnes against a budget of 132,600 tonnes. Extraction rates are also running in line with budget. Current cropping levels suggest that the operations have now recovered from the cyclic crop depression that commenced in the second half of 2006. Rainfall to end May amounted to an average 2,380 mm across the operations. This was materially higher than the 1,720 mm recorded in the corresponding period of 2006. Heavy flooding occurred in the month of May but, with the group's second factory now operational, the disruptions to harvesting and crop transport that such flooding has caused in the past were avoided. Revenues are running ahead of budget as a result of the increasing world market price of crude palm oil ("CPO"). This has risen from slightly over US$ 600 per tonne, CIF Rotterdam, at the start of the year to a current level of over US$ 800 per tonne. Some Indonesian government ministers have recently expressed concern over the effect that the current high world price of CPO is having on the price of cooking oil in the Indonesian domestic market. This has led to speculation that the rate at which export tax is levied on Indonesian exports of CPO may be materially increased. Indonesian CPO producers have proposed that, in lieu of an export tax, the producers should volunteer to sell a proportion of their production in the domestic market at a price agreed with the Government. If agreed, it is thought that this would result in the group selling in the region of 500 tonnes per month at an FOB price equivalent (at current exchange rates) to some $630 per tonne. The directors will comment on their expectations as regards dividends in respect of 2007 when the interim results for the year are announced. Whilst the current level of revenues is encouraging, the group remains committed to a major programme of capital expenditure and this continues to make substantial demands on the group's cash resources. Resolutions passed at the REA annual general meeting All of the resolutions set out in the notice of the REA annual general meeting dated 2 May 2007 were duly passed. Copies of the three resolutions passed as special business (which have provided replacement authorities for the allotment of relevant securities and a fresh authority under section 95 of the Companies Act 1995 regarding the issue of ordinary shares for cash) have been submitted to, and will shortly be available for inspection at, the UK Listing Authority's Document Viewing Facility at: Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS Telephone: (0)20 7676 1000 A total of 32,573,856 ordinary shares of REA were eligible to vote at the annual general meeting with each ordinary share carrying one vote on a poll. Proxies were received for use in connection with the annual general meeting with the following instructions (treating proxies giving discretion to the chairman as a "for" instruction): Resolution (number and subject matter) For Against Abstain 1 Annual report 20,142,021 13,719 49,350 2 Directors' remuneration report 17,836,221 - 2,368,869 3 Re-election of R M Robinow 19,833,512 87,719 283,859 4 Re-election of J M Green-Armytage 20,112,121 74,000 18,969 5 Re-election of J R M Keatley 19,225,348 956,496 23,246 6 Re-election of D H R Killick 20,142,021 44,100 18,969 7 Re-election of L E C Letts 20,107,844 74,000 23,246 8 Auditors 20,186,121 13,719 5,250 9 Allotment of ordinary shares 20,198,669 - 6,421 10 Allotment of preference shares 20,198,669 - 6,421 11 Cash issues of ordinary shares 20,198,669 - 6,421 This information is provided by RNS The company news service from the London Stock Exchange
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