28/05/2008 By: Niraj Shah
Atlas South Sea Pearl Limited (ATP) has reaffirmed its 2008 net profit forecast of $5.7 million, down from $8 million in 2007. The pearl farmer said cash earnings excluding any fair market adjustments for the Agriculture assets were $3.6 million compared to a profit of $3.3 million in the previous financial year. The increase in profit in 2008 was mainly attributed to a one off adjustment relating to the fair market value of its pearls and oysters, resulting from a change in the adoption of AASB 141, the company said.In addition, Atlas said revenue from retail operations had increased substantially in 2007 and was expected to grow strongly again in 2008 to around $1 million.
However, the 2008 forecasts did not take into consideration any gains or losses which may flow from the revaluation of pearls and oysters under AASB141.
At its AGM today, Atlas said it had continued the expansion of the retail outlets in Bali through the company�s own stores and through exposure in hotel retail facilities, which had increased the profile of its brand.
�Two new stores will be opened in the Bali tourist precincts of Seminyak and Nusa due by the end of 2008,� it said.
�A new site has been identified and local approval granted for the development of a backup juvenile nursery for an expanding oyster population in the event that existing juvenile oyster farm sites shows signs of degradation,� it said.
The company also said it planned to start a program of seeding oysters in Bali and transferring them to sites where faster oyster growth occurs.
Shares in Atlas South Sea Pearl picked up 0.5c to 44.0c .
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sources: source: http://news.smh.com.au
Atlas South Sea Pearl profit to fall
May 29, 2008 - 1:04PMPearl farmer Atlas South Sea Pearl Ltd has reiterated that its profit this financial year will be down by about 30 per cent but says a one-off accounting adjustment the previous year explains the fall.
The Indonesia-focused pearl group said its 2008 net profit is forecast at $5.7 million, down from $8 million in 2007.
However, it said the 2007 net profit was attributed mainly to a one-off adjustment relating to the fair market value of the company's pearls and oysters resulting from a change in the accounting standard.
The company said the projected forecast of $5.7 million was therefore an increase on a like-for-like basis from the previous year when fair market adjustments from a change in accounting policy were excluded from the profit result.
"Today, we presented the expected result for the year as we normally accounted it for in terms of the cash-profit position, or underlying profit," managing director Joseph Taylor told AAP after the company's annual general meeting.
"The accounting process and bringing in the agricultural assets, will increase that profit in a reporting sense quite significantly, but because of the way that (accounting standard) system works," Mr Taylor said.
"We don't really want to announce anything on that until a bit later in the year."
Revenue from retail operations increased in 2007 to about $700,000 and is expected to grow in 2008 to just under $1 million.
"The company's retail operations have continued to grow with an increase in revenue from the two showrooms and numerous hotel presentation cabinets in various Bali tourist hot-spots," the company said in a statement.
"The number of retail outlets will be increased to four by the end of the year."
The Perth-headquartered company, which produces pearls primarily at Alyui Bay in West Papua, is diversifying geographically.
It has identified a new juvenile nursery site in North Bali and plans a new hatchery at its existing site in East Bali, to be commissioned in October.
"The establishment of geographically diverse hatchery and farms sites has resulted in significantly higher productivity and survival rates of oysters," the company said.
"Increased seeding activities have commenced in Bali where it is cheaper to farm the oysters."
© 2008 AAP
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