R.E.A. HOLDINGS PLC

Interim Report • Sep 17, 2025

Half yearly report

2025

R.E.A. Holdings plc (REA or the company) is a UK public listed company of which the shares are admitted to the Official List and to trading on thes main market of the London Stock Exchange.

The REA group (the company and its subsidiaries) is principally engaged in the cultivation of oil palms in the province of East Kalimantan in Indonesia and in the production and sale of crude palm oil and crude palm kernel oil.

Key statistics Contents

30 June 2025	30 June
	2024
92,410	80,945
	21,632
	8,060
(6,839)	(2,599)
20,600	6,587
(15.6)	(5.9)
–	–
	302,853
110,010	97,054
425,061	399,907
6,189	22,098
5,446	3,743
11,635	25,841
	33,393 5,857 Continuing group (excluding CDM) 315,051

Production (tonnes)

Total FFB processed	428,108	407,309
FFB sold	7,980	17,839
CPO	94,441	90,363
Palm kernels	22,183	20,772
CPKO	8,684	8,518
Extraction rates (%)
CPO	22.1	22.2
Palm kernels	5.2	5.1
CPKO	39.8	40.9
Average exchange rates
Indonesian rupiah to dollar	16,426	15,952

Dollar to sterling 1.31 1.27

* See note 5 ** See note 22

All terms in this report are listed in the Glossary.

Highlights	2
Map	3
Interim management report	4
Principal risks and uncertainties	9
Going concern	10
Directors' responsibilities	11
Consolidated income statement	12
Consolidated statement of comprehensive income	13
Consolidated balance sheet	14
Consolidated statement of changes in equity	15
Consolidated cash flow statement	16
Notes to the condensed consolidated financial statements	17
Glossary	30

Highlights

Strategic

• Maturity profile of group debt improved
• Sale of outlying subsidiary CDM completed in June 2025

Financial

• Revenue increased by 14 per cent to \$92.4 million (2024: \$80.9 million) benefitting from continuing firm prices for both CPO and CPKO
• Average selling prices (including premia for certified oil but net of export duty and levy) for CPO some 13 per cent above 2024 at \$856 per tonne (2024: \$755 per tonne) and for CPKO some 96 per cent above 2024 at \$1,657 per tonne (2024: \$847 per tonne)
• EBITDA for the period of \$33.4 million (2024: \$21.6 million), a 55 per cent increase
• Profit before tax of \$11.6 million (2024: \$8.1 million) before \$5.7 million loss on disposal of CDM notwithstanding \$8.9 million adverse swing in exchange movements
• Group net indebtedness at \$159.1 million (31 December 2024: \$159.3 million) after temporary increase in working capital of \$15.0 million
• Indonesian bank loans repackaged in March 2025
• £21.4 million nominal of sterling notes redeemed at 104 per cent on 31 August 2025
• In September 2025, repayment date of at least \$17.6 million nominal of dollar notes postponed to 31 December 2028

Agricultural operations

• FFB production for the continuing group (excluding CDM) of 425,061 tonnes (2024: 399,907 tonnes) despite reduced hectarage due to the replanting programme and exceptionally heavy rainfall in the early months
• Extraction rates maintained above 22 per cent
• Replanting and extension planting on target

Stone and sand operations

• Production and sales of ATP stone now accelerating
• ATP sale contracts signed with three substantial purchasers of stone
• Sand washing plant being enhanced with scale production projected in 2026
• Both ATP and MCU now under direct control of the group

Sustainability and climate

• 100 per cent of the group's own plantations are now RSPO certified
• Projects to promote sustainable development and climate action, including smallholders, continuing apace

Outlook

• Firm CPO prices projected for the immediate future
• Group FFB production expected to increase from 2026 as immature areas start to substitute for mature areas taken out of production for replanting with additional FFB expected from Enggang areas now managed by the group
• Cash flows to progressively reap the benefits of capital investments in replanting, new planting and scaling up of the stone and sand operations
• Group's financial position continuing to strengthen with an increasingly encouraging outlook

Map

The map provides a plan of the operational areas and of the river and road system by which access is obtained to the main areas.

Key	Companies
Methane capture plant	Agricultural operations
New capital city (IKN) under construction M	CDM	PT Cipta Davia Mandiri (sold 12 June 2025)
Oil mill	KMS	PT Kutai Mitra Sejahtera
Road ▼	PU	PT Prasetia Utama
Tank storage ■	REA Kaltim	PT REA Kaltim Plantations
■	SYB	PT Sasana Yudha Bhakti
■ ■	Stone operations
■	ATP	PT Aragon Tambang Pratama
■ ■	Sand operations
■	MCU	PT Millenia Coalindo Utama

• M
• ▼

■ ■ ■ ■ ■ ■

■ ■

Interim management report

Cautionary statement

This interim management report has been prepared solely to provide additional information to shareholders to assess the group's strategies and the potential for those strategies to succeed. The interim management report should not be relied on by any other party or for any other purpose.

The interim management report contains certain forwardlooking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report, but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

This interim management report has been prepared for the group as a whole and therefore gives emphasis to those matters which are significant to the company and its subsidiary undertakings when viewed as a whole.

Proposed reduction of the capital of R.E.A. Holdings plc

Concurrently with the issue of this half yearly report, REA is today publishing a circular to ordinary shareholders containing proposals for a reduction of the capital of REA by way of cancellation of \$20.0 million of the amount standing to the credit of the company's share premium account and release of the same to the retained earnings account, which constitutes a distributable reserve.

Results

Earnings before interest, tax, depreciation and amortisation amounted to \$33.4 million (2024: \$21.6 million).

Higher revenues (\$92.4 million against \$80.9 million in 2024) contributed to an operating profit of \$19.2 million (2024: \$8.6 million). A negative swing in exchange differences of \$8.9 million (\$2.4 million loss against a \$6.5 million gain), together with a loss on disposal of the company's former subsidiary, CDM, of \$5.7 million, resulted in a profit before tax of \$5.9 million (2024: \$8.1 million).

Average prices realised and volumes sold were:

	6 months to	6 months to	Year to 31
	30 June	30 June	December
	2025	2024	2024
	\$	\$	\$
Average price per tonne*:
CPO	856	755	819
CPKO	1,657	847	1,094

* Including premia for certified oil but net of export levy and duty, adjusted to FOB Samarinda

	6 months	6 months	Year to 31
	to 30 June	to 30 June	December
	2025	2024	2024
Tonnes sold:
CPO	89,061	92,076	192,212
CPKO	7,502	8,501	19,006

Specific components of the results for the six months to 30 June 2025

The increase in revenues was principally the result of higher average CPO and CPKO prices. There were also stone revenues of \$0.7 million in the period (2024: nil, as the stone operation was not consolidated until 1 July 2024).

Cost of sales, with comparative figures for 2024, was made up as follows:

	6 months to 6 months to		Year to 31
	30 June	30 June	December
	2025	2024	2024
	\$'m	\$'m	\$'m
Estate operating costs	32.5	35.7	72.1
Purchase of external FFB	21.5	15.4	36.9
Depreciation and amortisation	14.1	13.0	26.6
Stock movements	(5.5)	(0.5)	0.3
Mining costs	0.4	0	0.6
	63.0	63.6	136.5

Estate operating costs were \$3.2 million lower than in 2024, in part reflecting reduced overtime working but also due to the heavy rainfall which resulted in delays in fertiliser application. External FFB purchases increased by \$6.1 million with increases in both volumes purchased and prices paid, the latter reflecting the stronger CPO and CPKO markets. The \$5.0 million increase in stock movement credit was principally caused by a 4,000 tonne CPO sale scheduled for the end of June not being fulfilled until July with a consequent increase in produce stock levels at 30 June 2025.

Total administrative costs of \$13.0 million, before deduction of amounts capitalised, were \$2.8 million higher than in 2024. Of this increase, plantations accounted for \$1.6 million and the inclusion for the first time of mining administrative costs, for \$1.1 million. The increase in plantation costs included \$1.0 million of legal and other expenses incurred in renewing and resolving disputes in relation to land titles. Administrative costs capitalised in the period were \$2.8 million (2024: \$2.1 million), reflecting a higher proportion of immature plantings than in 2024.

Interest income amounted to \$0.7 million (2024: \$1.2 million) mainly due to interest from the stone operation now being eliminated on consolidation (in 2024 \$0.8 million of such interest was treated as third party interest income).

Foreign exchange movements principally arose on the revaluation of sterling and rupiah monetary items and reflected the strengthening (2024: weakening) of sterling and the rupiah against the dollar.

Finance costs, before deduction of amounts capitalised, amounted to \$8.9 million (2024: \$8.7 million). Higher interest on bank loans (\$1.9 million), was offset by lower interest on the sterling notes (\$0.4 million) following the purchase for cancellation of £9.2 million nominal of sterling notes during the second half of 2024, lower interest on other loans (\$0.5 million) reflecting the loan repayments to the non-controlling shareholder, and lower other finance charges (\$0.8 million). As with administrative costs, increased capitalisation of finance costs (\$2.5 million) reflected a higher proportion of immature plantings than in 2024 and resulted in finance costs after deduction of amounts capitalised being \$2.3 million lower than in 2024.

Taxation for the period was a charge of \$8.4 million (2024: \$4.5 million), with the overall increase of \$3.9 million comprising a \$1.3 million reduction in current tax, mainly due to the effect of the loss on the disposal of CDM, and a \$5.2 million increase in deferred tax related principally to group adjustments to non-current assets and exchange differences arising on the retranslation of opening deferred tax balances.

Dividends

The fixed semi-annual dividend of 4.5p on the company's preference shares that fell due on 30 June 2025 was duly paid.

The directors intend that the dividend arising on the preference shares on 31 December 2025 will also be paid on the due date, subject to no material adverse change occurring during the coming months in the financial performance of the group.

Taking account of the continuing level of group debt and the extent to which internally generated cash flow for the year will be required to fund capital expenditure and preference dividends, the directors do not believe that it will be appropriate for them to declare or recommend the payment of any dividend on the ordinary shares in respect of 2025. Looking further forward, the directors consider that, in years when internally generated cash flows are sufficient to effect a material reduction in net debt, it may be reasonable to accept a modestly lower reduction in such net debt than those cash flows would allow and to apply the cash thereby released in payment of an ordinary dividend.

Agricultural operations

Key agricultural statistics were as follows:

	2024
315,051	302,853
110,010	97,054
425,061	399,907
6,189	22,098
5,446	3,743
11,635	25,841
	407,309
	17,839
	90,363
	20,772
8,684	8,518
	22.2
	5.1
	40.9
	1,418
	2025 Continuing group (excluding CDM) 428,108 7,980 94,441 22,183 22.1 5.2 39.8 2,138

* Based on kernels processed

Overall production achieved in the first six months of the year from the continuing group estates was ahead of that for the corresponding period in 2024, notwithstanding that the current year crop is coming from a mature area reduced by the continuing replanting programme and despite exceptionally high levels of rain during the period. Rainfall to the end of June 2025 was some 51 per cent higher than in 2024 and 22 per cent above the 10 year historic average.

Although such high rainfall created challenges for timely evacuation, recent investment in road stoning has meant that the group is better able to cope with these challenges than in the past. Nevertheless, there was some impact on fruit quality with consequent pressure on extraction rates. The group's three mills, however, continue to perform satisfactorily, and oil losses remain comfortably below industry standards.

The wet weather also delayed some of the replanting and extension planting programme during the early months of the year, but the pace of development has subsequently picked up as a drier period ensued. It is expected that the 2025

Interim management report

continued

targets of, respectively, 1,500 and 1,000 hectares of oil palm replanting and extension planting will be achieved.

Agricultural selling prices

Both CPO and CPKO prices were firm throughout the first six months of 2025. CPO remained consistently above \$1,000 per tonne, CIF Rotterdam, trading between a high of \$1,365 at the start of the year and a low of \$1,060 in May, while CPKO, CIF Rotterdam, traded between \$2,020 and \$1,540 per tonne. The CIF Rotterdam prices currently stand at \$1,220 per tonne for CPO and \$2,135 for CPKO.

As previously reported, the Indonesian government applies duties and tariffs on exports of CPO and CPKO. These tariffs are calculated on a sliding scale by reference to prices that are set periodically by the Indonesian government on the basis of CIF Rotterdam and other recognised benchmark prices.

The group sells CPO and CPKO into the local Indonesian market which is not subject to export levy or export duty. However, arbitrage between the Indonesian and international markets normally results in local prices that are broadly in line with prevailing international prices after adjustment of the latter for delivery costs and export tariffs and restrictions. Export tariffs and restrictions therefore have an indirect effect on the prices that the group achieves on sales of its CPO and CPKO.

The average price realised from sales of CPO by the group during the period January to June 2025, including premia for certified oil but net of export levy and duty, adjusted to FOB Samarinda, was \$856 per tonne (2024: \$755 per tonne). The average selling price for the group's CPKO, on the same basis, was \$1,657 per tonne (2024: \$847 per tonne).

Sustainability and climate

Following the sale of CDM, 100 per cent of the group's own plantations are now RSPO certified. The group continues to press ahead with its commitments to sustainable development, forest protection, climate action, and empowering local livelihoods. In particular, the group is expanding projects with smallholders to improve the sustainable component of the group's supply chain and promote sustainable palm oil production.

Progress reports as regards the group's sustainability and climate change commitments are updated throughout the year on the group's website at www.rea.co.uk/sustainability.

Stone and sand operations

Production and sale of stone by ATP during the six months to 30 June 2025 were hampered by the very high levels of rainfall referred to earlier. Crushed stone production for the period totalled some 100,000 tonnes of which 60,000 tonnes were sold and delivered and the balance of 43,000 tonnes was utilised in hardening the road running east from the stone quarry. Following such hardening and with rainfall now reducing, this road, which is currently the principal artery for stone deliveries to customers, is now able to support a good

volume of deliveries in heavier trucks. Production has been increasing each month since June and, with blasting having commenced at the start of September, the group is working towards, and is confident of achieving within a few months, production and delivery of at least 100,000 tonnes of stone per month.

ATP has confirmed contracts with three substantial purchasers for volumes totalling in excess of 1 million tonnes over the next 18 months, with further potential contracts in the pipeline. Sales prices vary in accordance with the respective quality specifications and volumes contracted but are at levels that should achieve respectable margins.

Following installation of the sand washing plant in the first half of the year, MCU's first potential customer conducted sample testing in preparation for an initial trial shipment of silica sand. This confirmed the high quality of the sand deposit but resulted in a decision to enhance the capabilities of the washing plant. MCU is currently in the process of appointing a contractor to undertake the agreed enhancements. The domestic and international markets for silica sand have over the past eighteen months or so been relatively weak, principally due to an oversupply of solar panels which use large volumes of high quality silica sand. There are now signs that demand may be improving and, if this is confirmed, MCU will aim to complete the agreed changes to the washing plant and to start scale production in early 2026.

The group now has direct management control of both ATP and MCU and is currently progressing formalisation of 95 per cent economic ownership of each company. This has long been agreed in relation to ATP but, as respects MCU, reflects an agreement to increase the previously agreed 49 per cent participation to 95 per cent for a consideration of \$2.0 million.

Financing

Total group equity less non-controlling interests at 30 June 2025 amounted to \$218.1 million (31 December 2024: \$224.5 million) and non-controlling interests to \$70.4 million (31 December 2024: \$70.5 million).

During March 2025 Bank Mandiri agreed to repackage its existing loans to REA Kaltim and SYB resulting in further loans being extended to those companies amounting to the equivalent of, respectively, \$28.8 million and \$8.8 million, with such loans repayable by increasing monthly instalments over periods of between seven and nine years. The existing working capital facilities were also increased by \$1.2 million. Additionally, Bank Mandiri provided a new term loan facility to PU amounting to the equivalent of \$15.0 million, with amounts drawn repayable by increasing monthly instalments over nine years. These new loans all bear interest at a rate of 8.5 per cent per annum and are guaranteed by the company. At 30 June 2025, the further loans and working capital facilities to REA Kaltim and SYB were drawn down in full and the new loan to PU to the extent of \$8.8 million, providing the group with additional cash resources equivalent to \$47.6 million.

On 13 June 2025, the group completed the sale of REA Kaltim's wholly owned subsidiary, CDM, to PT Teladan Prima Agro Tbk. The consideration for the sale amounted to \$8.7 million which was received in cash. As a term of the sale, the group was released from guarantees that it had given in respect of an outstanding loan from Bank Mandiri to CDM equivalent to \$15.2 million.

Following the above, net indebtedness at 30 June 2025 amounted to \$159.1 million against \$159.3 million at 31 December 2024. As noted under Group cash flow below, net indebtedness at 30 June 2025 was inflated to an extent by working capital movements that are expected to reverse by 31 December 2025. The overall composition of the net indebtedness at 30 June 2025 was as follows:

	\$'m
Dollar notes (\$27.0 million nominal)*	26.8
Sterling notes (£21.4 million nominal)**	30.4
Indonesian term bank loans	153.1
Drawings under short term facilities	4.0
	214.3
Cash and cash equivalents	(55.2)
Net indebtedness	159.1

* Net of issue costs

** Net of issue costs plus \$1.1 million present value of premium on sale

Since 30 June 2025, all of the £21,366,000 nominal of outstanding sterling notes have been redeemed at 104 per cent of par in accordance with their terms and all of the sterling notes have been cancelled.

Further, on 4 September 2025, a proposal to extend the repayment date for the dollar notes from 30 June 2026 to 31 December 2028 was approved at a meeting of the noteholders. As a term of the proposal, the company has undertaken to procure that REAS purchases at par, on 30 June 2026, the dollar notes held by any noteholder who has indicated that they do not wish to retain their notes beyond that date and for which the company's brokers have been unable to arrange buyers. Holders of dollar notes who do not elect to take advantage of this undertaking will be paid a rollover fee of 1 per cent plus a possible additional amount to reflect any increase in interest rates between now and June 2026. There are currently \$27.0 million nominal of dollar notes in issue. An existing holder of \$17.6 million nominal of the notes has agreed that it will retain that holding.

Group cash flow

Operating cash flows before movements in working capital during the six months to 30 June 2025 amounted to \$35.6 million. An increase in working capital of \$15.0 million, and taxes and interest paid totalling \$14.8 million, resulted in net cash from operating activities of \$5.8 million (2024: net cash used in operating activities of \$4.7 million). The significant components of the increase in working capital were an \$8.2 million increase in inventory, due in part to the late fulfilment of a sale mentioned above, and a \$6.8 million increase in trade

and other receivables, mainly due to increases in prepayments for fertiliser. It is expected that these additions to working capital will substantially reverse over the balance of 2025.

Capital expenditure during the period totalled \$16.7 million and there was an investment of \$3.1 million in the sand interest, including the \$2.0 million expended in respect of the agreement to increase the group's economic interest in MCU from 49 per cent to 95 per cent as referred to above. Net proceeds on disposal of CDM (after staff termination costs of \$0.3 million) were \$8.4 million and interest received was \$0.7 million. Overall cash used in investing activities was \$11.1 million.

Net borrowings of \$37.8 million were drawn in the period from Bank Mandiri while an outstanding loan of \$8.7 million from DSN was repaid in the period. Preference dividends of \$4.4 million were paid and \$1.5 million of leases were repaid. Overall, there was an increase of \$16.4 million in cash and cash equivalents in the period.

Management and board changes

As stated in the group's annual report published in April 2025, executive management of the group will transfer to a younger generation in January 2026. Carol Gysin will step down as group managing director and will be succeeded in that position by Luke Robinow. The latter will retain his existing overall responsibility for managing the group's Indonesian operations and will remain resident in Indonesia. Carol will continue on the board as a part time executive director with responsibility for day to day oversight of the group's London office.

In conjunction with these changes, three of the company's longest standing non-executive directors, John Oakley, Michael St Clair George and Richard Robinow, will retire at the annual general meeting of the company to be held in 2026. Going forward, the company may operate with a slightly smaller board but intends to replace the retiring directors with at least one new non-executive director to be appointed in due course. The retiring directors have indicated their availability to assist in the board and management transition following their retirements.

With the further transfer to Indonesia of group executive responsibilities, the directors intend to put in place new arrangements to facilitate continued liaison with UK based investors.

Outlook

There are some indications that East Kalimantan FFB crops for the remainder of 2025 may be less buoyant than usual following a slowdown in ripening due to a period of drier weather from June onwards. Should this prove the case, crops may be less heavily weighted than usual to the second half of the year. This, combined with the withdrawal of mature areas for replanting (which is expected to result in the loss of some 18,000 tonnes of FFB), may mean that the continuing group's FFB crop for 2025 is not materially different from its 2024 crop.

Interim management report

continued

Crops are, however, projected to start increasing again in 2026 as FFB harvested from currently immature areas begin to more than substitute for FFB lost in older areas taken out of production for replanting. Moreover, CPO production going forward can be expected to benefit from improving extraction rates as an increasing proportion of the group's crop is harvested from younger areas where the oil content of the FFB should be higher than that of FFB harvested from the group's older areas.

An offsetting benefit to generally tighter supplies of CPO, supported by the Indonesian government's continuing push for increased use of biodiesel in transport fuel, has been firm CPO prices. Despite geopolitical uncertainties, international tariffs and the increase in May 2025 in the Indonesian export levy from 7.5 per cent to 10 per cent, there is a good prospect that domestic prices for CPO will be sustained at remunerative levels for the rest of 2025 and into 2026. The outlook for CPKO prices is also positive.

The group's commitments to replanting its oldest planted areas, to expanding the core planted area by extension planting available land reserves and to realising the potential of the group's investment in stone and sand deposits has entailed, and continues to require, significant capital investment. The group can now look forward to enjoying the benefit of that investment through increasing crops, healthy extraction rates and profitable stone and sand production.

Increased cash generation from the group's operations should not only permit further reductions in net debt but also better cash flow coverage for debt service. This will further strengthen the group's financial position, which has already been significantly improved by the actions taken in 2024 and 2025 to-date (as previously reported or as detailed above), and will curtail reliance on borrowings and customer credit (which latter is expected to be fully repaid by 31 December 2025) and improve the maturity profile of the remaining debt.

With the prospect of CPO and CPKO prices remaining at good levels, stone production and sales fast materialising and sand operations likely to start contributing in 2026, the outlook for the group is more encouraging than it has been for some time.

Approved by the board on 16 September 2025 and signed on its behalf by

DAVID J BLACKETT

Chairman

Principal risks and uncertainties

The principal risks and uncertainties, as well as mitigating and other relevant considerations, affecting the business activities of the group as at the date of publication of the 2024 annual report were set out on pages 30 to 36 of that report, under the heading Principal risks and uncertainties. A copy of the report may be downloaded from www.rea.co.uk/investors/financialreports. As respects risks arising from climate change, the report also sets out opportunities arising from such risks (on pages 35 and 36) and risks and opportunities arising from climate change are further described on the company's website at www.rea.co.uk/sustainability.

Such principal risks and uncertainties in summary comprise:

Agricultural operations
Climatic risks	Loss of crop and adverse logistical impacts
Cultivation risks	Failure to achieve optimal upkeep standards, impact of pests and diseases
Other operational factors	Disruptions to the production cycle, including excessively high or low levels of rainfall, transportation and input shortages, cost increases or the occurrence of an uninsured or inadequately insured adverse event
Produce prices	Lower realisations from sales of CPO and CPKO
Expansion	Failure to secure, or delays in securing, land, permits or funding for extension planting
Sustainable practices	Failure to meet expected standards
ESG practices	Failure to meet expected standards
Community relations	Disruptions arising from issues with local stakeholders
Stone and sand operations
Production	Failure by external contractors to achieve agreed targets; external factors affecting delivery; or inaccurate geological assessments
Sales	Inadequate demand reducing sales volumes; transport constraints delaying deliveries; local competition reducing prices; and imposition of additional royalties or duties or of export restrictions
Sustainability practices	Failure to meet expected standards
General
IT Security	IT related fraud and losses as a result of disruption of control systems and theft
Currency	Adverse exchange movements between sterling or the rupiah against the dollar
Cost inflation	Increased costs as a result of worldwide economic factors or shortages of required inputs
Funding	Inability to meet liabilities as they fall due
Counterparty risk	Default by suppliers, customers or financial institutions
Regulatory and country exposure	Breach of conditions attaching to land rights; failure to meet or comply with expected standards or applicable regulations; and adverse political, economic, or legislative changes in Indonesia
Miscellaneous relationships	Disruption of operations and consequent loss of revenues as a result of issues with local stakeholders

Where risks are reasonably capable of mitigation, the group seeks to mitigate them. Beyond that, the directors endeavour to manage the group's finances on a basis that leaves the group with some capacity to withstand adverse impacts from both identified and unidentified areas of risk, but such management cannot provide insurance against every possible eventuality.

At the date of the annual report, risks assessed by the directors as being of particular significance were those as detailed under: Agricultural operations (Produce prices, and Other operational factors); Stone and sand operations (Sales); and General (Funding).

The directors consider that the principal risks and uncertainties for the second six months of 2025 continue to be those set out in the 2024 annual report and as summarised above.

Going concern

In the statements regarding viability and going concern on pages 44 and 45 of the 2024 annual report, the directors set out considerations with respect to the group's capital structure and their assessment of liquidity and financing adequacy.

At 30 June 2025, the group had cash and cash equivalents of \$55.2 million and borrowings of \$214.3 million. The total borrowings repayable by the group in the period to 17 September 2026 amount to the equivalent of \$85.4 million and comprise bank loans, working capital facilities, the sterling notes and the dollar notes. In addition to the cash required for debt repayments, the group also requires cash in the period to fund capital expenditure, dividends on the company's preference shares and repayment of contract liabilities.

Since 30 June 2025, the group has drawn down the undrawn balance of the recently agreed PU loan facility amounting to \$6.5 million and has redeemed and cancelled all of the outstanding £21.4 million nominal of sterling notes. Additionally, the dollar noteholders have agreed to extend the repayment date for the dollar notes from 30 June 2026 to 31 December 2028. Whilst noteholders may elect to have their notes repurchased on 30 June 2026, the largest dollar noteholder (holding through two subsidiaries \$17.6 million nominal of dollar notes) has agreed not to exercise its right to elect to have those notes repurchased on 30 June 2026. As a result, the total borrowings repayable by the group in the period to 17 September 2026 now amount to \$37.4 million and cash and cash equivalents to \$31.3 million.

The group believes that it will have sufficient cash to meet the balance of \$37.4 million of debt repayments falling due in the period to 17 September 2026, with funding provided from existing cash resources, positive cash flows from the oil palm operations and cash flow from the stone operations.

Accordingly, and based on the foregoing, the directors have a reasonable expectation that the company will be able to continue its operations and meet its liabilities as they fall due over the period of twelve months from the date of approval of the accompanying condensed consolidated financial statements and they continue to adopt the going concern basis of accounting in preparing these statements.

Directors' responsibilities

The directors are responsible for the preparation of this half yearly report.

The directors confirm that to the best of their knowledge:

• the accompanying set of condensed consolidated financial statements has been prepared in accordance with UK adopted IAS 34: Interim Financial Reporting;
• the Interim management report and Principal risks and uncertainties sections of this half yearly report include a fair review of the information required by rule 4.2.7R of the Disclosure Guidance and Transparency Rules (DTRs) of the UK FCA, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of condensed consolidated financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and
• note 25 in the notes to the condensed consolidated financial statements includes a fair review of the information required by rule 4.2.8R of the DTRs, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the group during that period, and any changes in the related party transactions described in the 2024 annual report that could do so.

The current directors of the company are as listed on page 43 of the 2024 annual report.

Approved by the board on 16 September 2025 and signed on its behalf by

DAVID J BLACKETT Chairman

Consolidated income statement

for the six months ended 30 June 2025

		6 months to	6 months to	Year to
		30 June	30 June	31 December
		2025	2024	2024
	Note	\$'000	\$'000	\$'000
Revenue	2	92,410	80,945	187,943
Net gain / (loss) arising from changes in fair value of biological assets	4	478	(169)	9
Cost of sales		(63,012)	(63,580)	(136,495)
Gross profit		29,876	17,196	51,457
Distribution costs		(507)	(576)	(1,281)
Administrative expenses	5	(10,151)	(7,993)	(15,208)
Operating profit		19,218	8,627	34,968
Interest income	6	701	1,167	3,369
Reversal of provision		–	–	6,622
(Losses) / gains on disposal of subsidiaries and similar charges	7	(5,723)	–	3,051
Other (losses) / gains	8	(2,428)	6,499	7,317
Finance costs	9	(5,911)	(8,233)	(16,430)
Profit before tax	5	5,857	8,060	38,897
Tax	10	(8,444)	(4,520)	(8,434)
(Loss) / profit for the period		(2,587)	3,540	30,463
Attributable to:
Equity shareholders		(2,425)	1,530	26,447
Non-controlling interests		(162)	2,010	4,016
		(2,587)	3,540	30,463
(Loss) / profit per 25p ordinary share (US cents)
Basic	12	(15.6)	(5.9)	41.6
Diluted	12	(15.6)	(5.9)	41.6

All operations in all periods are continuing.

Consolidated statement of comprehensive income

for the six months ended 30 June 2025

	6 months to	6 months to	Year to
	30 June	30 June	31 December
	2025 \$'000	2024	2024
(Loss) / profit for the period	(2,587)	\$'000 3,540	\$'000 30,463
Other comprehensive income
Items that may be reclassified to profit or loss:
Foreign exchange on new subsidiary		–	(712)
Foreign exchange differences on translation of foreign operations	170	–	–
Foreign exchange differences on disposal of group company	338	–	(1,204)
Loss arising on sale of non-controlling interests taken to equity	–	(581)	(580)
Loss arising on purchase of non-controlling interests taken to equity	–	(1,870)	(668)
	508	(2,451)	(3,164)
Items that will not be reclassified to profit or loss:
Actuarial loss	(35)	–	(113)
Deferred tax on actuarial loss	8	–	22
	(27)	–	(91)
Total other comprehensive income / (losses) for the period	481	(2,451)	(3,255)
Total comprehensive (loss) / income for the period	(2,106)	1,089	27,208
Attributable to:
Equity shareholders	(1,944)	(921)	23,219
Non-controlling interests	(162)	2,010	3,989
	(2,106)	1,089	27,208

Consolidated balance sheet

as at 30 June 2025

		30 June	30 June	31 December
	Note	2025 \$'000	2024 \$'000	2024 \$'000
Non-current assets
Goodwill		11,144	11,144	11,144
Intangible assets	13	2,331	1,401	2,684
Property, plant and equipment	14	372,280	310,198	386,997
Land	15	54,295	51,166	58,098
Financial assets	17	24,902	77,578	26,735
Deferred tax assets		16,364	14,126	21,278
Total non-current assets		481,316	465,613	506,936
Current assets
Inventories		25,403	20,956	18,393
Biological assets		3,816	3,160	3,338
Trade and other receivables		39,996	34,885	31,312
Current tax asset		1,243	1,058	228
Cash and cash equivalents		55,208	15,942	38,837
Total current assets		125,666	76,001	92,108
Total assets		606,982	541,614	599,044
Current liabilities
Trade and other payables		(33,552)	(30,032)	(44,715)
Bank loans	19	(24,068)	(23,145)	(20,012)
Sterling notes	20	(30,429)	–	(28,167)
Dollar notes	21	(26,829)	–	–
Other loans and payables		(8,649)	(6,928)	(2,707)
Total current liabilities		(123,527)	(60,105)	(95,601)
Non-current liabilities
Trade and other payables		–	(4,252)	–
Bank loans	19	(132,944)	(81,330)	(114,417)
Sterling notes	20	–	(40,316)	–
Dollar notes	21	–	(26,658)	(26,746)
Deferred tax liabilities		(50,923)	(34,654)	(47,404)
Other loans and payables		(11,129)	(21,373)	(19,897)
Total non-current liabilities		(194,996)	(208,583)	(208,464)
Total liabilities		(318,523)	(268,688)	(304,065)
Net assets		288,459	272,926	294,979
Equity
Share capital		133,590	133,590	133,590
Share premium account		47,374	47,374	47,374
Translation reserve		(25,824)	(24,416)	(26,332)
Retained earnings		62,960	47,836	69,826
		218,100	204,384	224,458
Non-controlling interests		70,359	68,542	70,521
Total equity		288,459	272,926	294,979

Consolidated statement of changes in equity

for the six months ended 30 June 2025

						Non
	Share	Share	Translation	Retained		controlling	Total
	capital	premium	reserve	earnings	Subtotal	interests	equity
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
At 1 January 2024	133,590	47,374	(24,416)	63,267	219,815	14,304	234,119
Profit for the period	–	–	–	1,530	1,530	2,010	3,540
Other comprehensive loss for the period	–	–	–	(2,451)	(2,451)	–	(2,451)
Total comprehensive (loss) / income for the period	–	–	–	(921)	(921)	2,010	1,089
Reorganisation of subsidiaries	–	–	–	–	–	(854)	(854)
Capital from non-controlling interest	–	–	–	–	–	53,082	53,082
Dividends to preference shareholders	–	–	–	(14,510)	(14,510)	–	(14,510)
At 30 June 2024	133,590	47,374	(24,416)	47,836	204,384	68,542	272,926
Profit for the period	–	–	–	24,917	24,917	2,006	26,923
Other comprehensive (loss) / income for the period	–	–	(1,916)	1,139	(777)	(27)	(804)
Total comprehensive (loss) / income for the period	–	–	(1,916)	26,056	24,140	1,979	26,119
Dividends to preference shareholders	–	–	–	(4,066)	(4,066)	–	(4,066)
At 31 December 2024	133,590	47,374	(26,332)	69,826	224,458	70,521	294,979
Loss for the period	–	–	–	(2,425)	(2,425)	(162)	(2,587)
Other comprehensive income / (loss) for the period	–	–	508	(27)	481	–	481
Total comprehensive income / (loss) for the period	–	–	508	(2,452)	(1,944)	(162)	(2,106)
Dividends to preference shareholders	–	–	–	(4,414)	(4,414)	–	(4,414)
At 30 June 2025	133,590	47,374	(25,824)	62,960	218,100	70,359	288,459

Consolidated cash flow statement

for the six months ended 30 June 2025

	Note	6 months to 30 June 2025 \$'000	6 months to 30 June 2024 \$'000	Year to 31 December 2024 \$'000
Net cash from / (used in) operating activities	22	5,770	(4,712)	31,751
Investing activities
Interest received		701	1,167	1,069
Proceeds on disposal of PPE		–	13	4,179
Purchases of intangible assets and PPE		(16,040)	(9,773)	(34,621)
Expenditure on land		(664)	(684)	(4,530)
Net investment stone and coal interests		–	(4,227)	(3,610)
Net investment sand interest		(3,070)	–	(4,413)
Cash received from non-current receivables		–	1,298	1,258
Cash acquired with new subsidiary		–	–	259
Cash divested on disposal of group company		(372)	–	–
Cash reclassified from assets held for sale		–	9	9
Net proceeds on disposal of group company		8,365	–	–
Net cash used in investing activities		(11,080)	(12,197)	(40,400)
Financing activities
Preference dividends paid	11	(4,414)	(14,510)	(18,576)
Repayment of bank borrowings		(9,804)	(7,540)	(36,862)
New bank borrowings drawn		47,570	6,494	64,342
Purchase of sterling notes for cancellation		(381)	–	(11,606)
Repayment of borrowings from non-controlling shareholder		(8,750)	(11,747)	(12,234)
New equity from non-controlling interests		–	50,000	53,580
Cost of non-controlling interest transaction		–	(1,078)	(1,078)
Purchase of non-controlling interest		–	(2,726)	(2,726)
Repayment of lease liabilities		(1,500)	(1,271)	(2,724)
Net cash from financing activities		22,721	17,622	32,116
Cash and cash equivalents
Net increase in cash and cash equivalents		17,411	713	23,467
Cash and cash equivalents at beginning of period		38,837	14,195	14,195
Effect of exchange rate changes		(1,040)	1,034	1,175
Cash and cash equivalents at end of period		55,208	15,942	38,837

1. Basis of accounting

The condensed consolidated financial statements for the six months ended 30 June 2025 comprise the unaudited financial statements for the six months ended 30 June 2025 and 30 June 2024, neither of which has been reviewed by the company's auditor, together with audited financial information for the year ended 31 December 2024.

The information shown for the year ended 31 December 2024 does not constitute statutory accounts within the meaning of section 434 of the CA 2006, and is an abridged version of R.E.A. Holdings plc's published group financial statements for that year which have been filed with the Registrar of Companies. The auditor's report on those statements was unqualified, did not draw attention to any matters by way of emphasis and did not contain any statements under section 498(2) or (3) of the CA 2006.

The annual financial statements of the group will be prepared in accordance with UK adopted IFRS. The condensed consolidated financial statements included in this half yearly report have been prepared in accordance with UK adopted IAS 34: Interim Financial Reporting.

Going concern

The directors are satisfied that the group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed consolidated financial statements.

Adoption of new and revised standards

New standards and amendments to IFRSs issued by the IASB that are mandatorily effective for an accounting period beginning on 1 January 2025 have no impact on the disclosures or on the amounts reported in these condensed consolidated financial statements.

Accounting policies

The accounting policies and methods of computation adopted in the preparation of the condensed consolidated financial statements for the six months ended 30 June 2025 are the same as those set out in the group's annual report for 2024. The condensed consolidated financial statements for the six months ended 30 June 2025 were approved by the board of directors on 16 September 2025.

2. Revenue

	6 months to	6 months to	Year to
	30 June	30 June	31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
Sales of palm products	91,300	80,661	185,919
Revenue from management services	415	284	941
Sales of stone	695	–	1,083
	92,410	80,945	187,943

continued

3. Segment information

		Segment revenue	Segment profit
	6 months 6 months		6 months	6 months
	to	to	to	to
	30 June	30 June	30 June	30 June
	2025	2024	2025	2024
	\$'m	\$'m	\$'m	\$'m
Plantations	91.3	80.6	24.2	9.2
Stone operation and sand interest	1.1	0.3	(1.1)	(0.0)
Other	–	–	(3.9)	(0.5)
	92.4	80.9	19.2	8.6
Interest income			0.7	1.2
Losses on disposal of subsidiaries and similar charges			(5.7)	–
Other (losses) / gains			(2.4)	6.5
Finance costs			(5.9)	(8.2)
Profit before tax			5.9	8.1

4. Changes in fair value of biological assets

Net gain / (loss) arising from changes in fair value of biological assets represents the movement in the fair value of growing produce (FFB) on oil palms arising on the revaluation of the estimated oil content of such produce at the balance sheet date and determined using a formulaic methodology.

5. Profit before tax

	6 months to 30 June 2025 \$'000	6 months to 30 June 2024 \$'000	Year to 31 December 2024 \$'000
Administrative expenses
Loss on disposal of PPE	24	73	310
Indonesian operations – plantations	9,865	8,292	15,965
Indonesian operations – mining	1,107	–	65
Head office	1,955	1,744	3,204
	12,951	10,109	19,544
Amount included as additions to PPE	(2,800)	(2,116)	(4,336)
	10,151	7,993	15,208
Earnings before interest, tax, depreciation and amortisation
Operating profit	19,218	8,627	34,968
Depreciation and amortisation	14,175	13,005	26,612
	33,393	21,632	61,580

6. Interest income and reversal of provision

	6 months to	6 months to	Year to
	30 June	30 June	31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
Interest on bank deposits	371	119	281
Other interest income	330	1,048	3,088
Interest income	701	1,167	3,369
Reversal of provision in respect of interest on stone loan	–	–	6,622

Other interest income includes \$0.3 million interest receivable in respect of sand loans (31 December 2024: interest receivable of \$2.3 million in respect of stone, sand and coal loans; 30 June 2024: interest receivable in respect of stone, sand and coal loans of \$2.8 million net of a provision of \$1.7 million).

The provision of \$6.6 million reversed in 2024 was in respect of past interest due from the stone concession holding company which has commenced commercial production and sales.

7. (Losses) / gains on disposals of subsidiaries and similar charges

	6 months to	6 months to	Year to
	30 June 2025	30 June	31 December
		2024	2024
	\$'000	\$'000	\$'000
Loss on disposal of subsidiary	(5,723)	–	–
Release of impairment provision on sale of non-current assets	–	–	3,051
	(5,723)	–	3,051

During the period REA Kaltim sold its wholly owned subsidiary CDM, generating a loss on disposal of \$5.7 million. See note 24 for further details.

The \$3.1 million release of impairment provision on the sale of non-current assets in 2024 was the amount receivable for the transfer of hectarage to plasma schemes by CDM, the carrying value of which had been fully impaired.

8. Other (losses) / gains

	6 months to 30 June 2025	6 months to 30 June 2024	Year to 31 December 2024
	\$'000	\$'000	\$'000
Change in value of sterling notes arising from exchange fluctuations	(2,592)	334	265
Change in value of other monetary assets and liabilities arising from exchange
fluctuations	171	6,165	6,350
(Loss) / gain on acquisition of sterling notes for cancellation	(7)	–	702
	(2,428)	6,499	7,317

continued

9. Finance costs

	6 months to 30 June	6 months to 30 June	Year to 31 December
	2025 \$'000	2024 \$'000	2024 \$'000
Interest on bank loans and overdrafts	6,149	4,231	9,240
Interest on dollar notes	1,014	1,014	2,028
Interest on sterling notes	1,282	1,706	3,231
Interest on other loans	144	648	1,086
Interest on lease liabilities	228	206	374
Other finance charges	106	909	3,136
	8,923	8,714	19,095
Amount included as additions to PPE	(3,012)	(481)	(2,665)
	5,911	8,233	16,430

Amounts included as additions to PPE arose on borrowings applicable to the Indonesian operations and reflected a capitalisation rate of 16.0 per cent (2024: 10.5 per cent); there is no directly related tax relief.

10. Tax

	6 months to	6 months to	Year to
	30 June	30 June	31 December 2024 \$'000
	2025	2024
	\$'000	\$'000
Current tax:
UK corporation tax	–	–	–
Overseas withholding tax	154	563	696
Foreign tax	795	1,614	6,883
Foreign tax – prior year	38	107	(536)
Total current tax	987	2,285	7,043
Deferred tax:
Current period charge	7,457	2,235	3,079
Prior period	–	–	(1,688)
Total deferred tax charge	7,457	2,235	1,391
Total tax charge	8,444	4,520	8,434

Taxation is provided at the rates prevailing for the relevant jurisdiction. For Indonesia, the current and deferred taxation provision is based on a tax rate of 22 per cent (2024: 22 per cent) and for the United Kingdom, the taxation provision reflects a corporation tax rate of 25 per cent (2024: 25 per cent) and a deferred tax rate of 25 per cent (2024: 25 per cent).

11. Dividends

	6 months to 30 June 2025 \$'000	6 months to	Year to
		30 June	31 December
		2024 \$'000	2024 \$'000
Amounts recognised as distributions to equity holders:
Dividends on 9 per cent cumulative preference shares	4,414	14,510	18,576

All arrears of dividend outstanding on the company's preference shares (amounting in aggregate to 11.5p per preference share as at 31 December 2023) were discharged in April 2024 and the fixed semi-annual dividends that fell due on the preference shares in June 2024, December 2024 and June 2025 were paid on their due dates.

12. (Loss) / profit per share

	6 months to	6 months to	Year to
	30 June	30 June	31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
(Loss) / profit attributable to equity shareholders	(2,425)	1,530	26,447
Preference dividends paid relating to current year	(4,414)	(4,129)	(8,172)
(Loss) / profit for the purpose of calculating loss per share*	(6,839)	(2,599)	18,275
* Being net (loss) / profit attributable to ordinary shareholders
	'000	'000	'000
Weighted average number of ordinary shares for the purpose of calculating
basic (loss) / profit per share	43,964	43,964	43,964

13. Intangible assets – development expenditure

	30 June 2025	30 June 2024	31 December 2024
	\$'000	\$'000	\$'000
Beginning of period	8,601	7,124	7,124
Additions	11	–	1,477
End of period	8,612	7,124	8,601
Amortisation:
Beginning of period	5,917	5,531	5,531
Charge for period	364	192	386
End of period	6,281	5,723	5,917
Carrying amount:
End of period	2,331	1,401	2,684
Beginning of period	2,684	1,593	1,593

Development expenditure on computer software that is not integral to an item of PPE is recognised separately as an intangible asset.

continued

14. Property, plant and equipment

	Plantings	Mining assets	Buildings and structures	Plant, equipment and vehicles	Construction in progress	Total
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Cost:
At 1 January 2024	157,911	–	229,282	141,534	2,887	531,614
Additions	2,570	–	4,510	1,015	1,678	9,773
Reclassifications and adjustments	–	–	332	23	(355)	–
Disposals	(8)	–	–	(2,846)	–	(2,854)
Transferred from assets held for sale	3,714	–	17,157	1,099	88	22,058
At 30 June 2024	164,187	–	251,281	140,825	4,298	560,591
Additions	4,745	1,059	10,580	1,051	6,123	23,558
Reclassifications and adjustments	–	1,330	1,888	101	(3,319)	–
Disposals	(6,898)	–	(7,740)	(699)	–	(15,337)
Acquired with new subsidiary	–	66,841	–	1,602	153	68,596
Transferred from assets held for sale	14,378	–	18,278	–	–	32,656
At 31 December 2024	176,412	69,230	274,287	142,880	7,255	670,064
Additions	4,480	134	8,028	1,509	1,878	16,029
Reclassifications and adjustments	–	–	1,106	137	(1,243)	–
Disposals	(1,611)	–	(15)	(963)	–	(2,589)
Divested on sale of subsidiary	(14,111)	–	(29,333)	(984)	–	(44,428)
At 30 June 2025	165,170	69,364	254,073	142,579	7,890	639,076
Accumulated depreciation:
At 1 January 2024	79,180	–	67,972	87,207	–	234,359
Charge for period	4,111	–	3,531	5,171	–	12,813
Disposals	–	–	–	(1,176)	–	(1,176)
Transferred from assets held for sale	–	–	3,592	805	–	4,397
At 30 June 2024	83,291	–	75,095	92,007	–	250,393
Charge for period	4,399	–	3,772	5,242	–	13,413
Disposals	(5,248)	–	(5,012)	(674)	–	(10,934)
Release of impairment	(1,007)	–	(2,044)	–	–	(3,051)
Acquired with new subsidiary	–	–	–	164	–	164
Transferred from assets held for sale	13,946	–	19,136	–	–	33,082
At 31 December 2024	95,381	–	90,947	96,739	–	283,067
Charge for period	4,252	174	3,910	5,475	–	13,811
Disposals	(1,661)	–	(14)	(799)	–	(2,474)
Divested on sale of subsidiary	(10,393)	–	(16,425)	(790)	–	(27,608)
At 30 June 2025	87,579	174	78,418	100,625	–	266,796
Carrying amount:
At 30 June 2025	77,591	69,190	175,655	41,954	7,890	372,280
At 31 December 2024	81,031	69,230	183,340	46,141	7,255	386,997
At 30 June 2024	80,896	–	176,186	48,818	4,298	310,198

15. Land

	30 June	30 June	31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
Cost:
Beginning of period	60,915	48,832	48,832
Additions	664	684	4,530
Acquired with new subsidiary	–	–	3,086
Divested on sale of subsidiary	(4,467)	–	–
Transferred from assets held for sale	–	4,467	4,467
End of period	57,112	53,983	60,915
Accumulated amortisation:
Beginning and end of period	2,817	2,817	2,817
Carrying amount:
End of period	54,295	51,166	58,098
Beginning of period	58,098	46,015	46,015

16. Contractual commitments

At the balance sheet date, the group had entered into contractual commitments of \$6.1 million (31 December 2024: nil, 30 June 2024: \$1.9 million).

17. Financial assets

	30 June	30 June	31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
Stone interest	–	46,760	–
Sand interest	11,475	5,716	8,405
Coal interests	871	11,900	3,478
Provision against loan to coal interests	–	(2,550)	(2,550)
	12,346	61,826	9,333
Plasma advances	10,560	13,797	15,406
Other non-current receivables	1,996	1,955	1,996
	12,556	15,752	17,402
Total financial assets	24,902	77,578	26,735

Stone interest at 30 June 2024 comprised monies owed to group companies by ATP which holds a stone concession in East Kalimantan. Following agreement that the group would acquire a 95 per cent economic interest in ATP, and the assumption by the group of management and control of ATP's operations with effect from 1 July 2024, ATP has been consolidated as a group company with effect from that date with balances owed by ATP to group companies thereafter treated as intercompany balances and eliminated on consolidation.

continued

17. Financial assets – continued

Sand interest comprises monies owed to group companies by MCU which holds a silica sand concession in East Kalimantan. It was agreed in 2022 that, once all licences required for mining had been secured, the group would subscribe for new shares in MCU so as to provide it with a 49 per cent participation in MCU. This agreement was amended on 27 March 2025 to provide for the group's economic interest in MCU to be increased by 46 per cent to 95 per cent for a consideration of \$2.0 million. The monies owed to group companies by MCU comprise loans to finance pre-production costs together, at 30 June 2025, with \$2.0 million to be applied in settling the consideration for the additional 46 per cent interest to be acquired. On 1 August 2025, the group assumed management and control of MCU's operations and MCU will be consolidated as a group company with effect from that date.

Coal interests comprise monies owed to group companies by IPA and connected persons, and at 31 December 2024 and 30 June 2024 also monies owed to group companies by PSS. Both IPA and PSS hold coal concessions in East Kalimantan. Concurrently with the agreement to acquire the 95 per cent economic interest in ATP, the group relinquished its interest in PSS on terms that ATP would meet the repayment of the monies owed to group companies by PSS (which ATP had guaranteed). Accordingly, since 1 July 2024 \$9.7 million of the group loans to PSS have been reconstituted as intercompany balances owed by ATP. Since 1 January 2025 the balance of monies owed by PSS has been written off against the provision against loans to coal interests.

Regulations governing foreign ownership of mining rights in Indonesia are complex. The group had planned to take legal ownership of its interests in ATP and MCU and for legal ownership of 95 per cent of IPA to be acquired by MCU (since the concessions held by MCU and IPA overlap). This plan is now under review following legal advice that it may not provide the optimal legal structure for the group's mining interests. Pending conclusion of such review, the group is confident that agreements already in place are effective in securing the group's financial interests in ATP, MCU and IPA.

Other non-current receivables is a participation advance to a third party formerly holding a five per cent non-controlling interests in a group subsidiary. \$1.2 million was repaid in 2024 on the purchase of the non-controlling interest in the applicable subsidiary.

18. Fair value of financial instruments

The table below provides an analysis of the book values and fair values of financial instruments, excluding receivables and trade payables and Indonesian sand and coal interests, as at the balance sheet date. Cash and deposits, dollar notes and sterling notes are classified as level 1 in the fair value hierarchy prescribed by IFRS 13: Fair value measurement (level 1 includes instruments where inputs to the fair value measurements are quoted prices in active markets). No reclassifications between levels in the fair value hierarchy were made during 2025 (2024: none).

	30 June	30 June	30 June	30 June	31 December	31 December
	2025	2025	2024	2024	2024	2024
	Book value	Fair value	Book value	Fair value	Book value	Fair value
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Cash and deposits*	55,208	55,208	15,942	15,942	38,837	38,837
Bank debt within one year*	(24,068)	(24,068)	(23,145)	(23,145)	(20,012)	(20,012)
Bank debt after more than one year*	(132,944)	(132,944)	(81,330)	(81,330)	(114,417)	(114,417)
Loan from non-controlling shareholder within one year**	–	–	(1,626)	(1,626)	–	–
Loan from non-controlling shareholder after more than one year**	–	–	(3,252)	(3,252)	(8,750)	(8,750)
Loan from non-controlling shareholder after more than one year*	–	–	(7,500)	(7,500)	–	–
Dollar notes within one year - repayable 2026**	(26,829)	(24,264)	–	–	–	–
Dollar notes after one year - repayable 2026**	–	–	(26,658)	(25,683)	(26,746)	(25,683)
Sterling notes within one year - repayable 2025**	(30,429)	(29,569)	–	–	(28,167)	(26,237)
Sterling notes after one year - repayable 2025**	–	–	(40,316)	(35,932)	–	–
	(159,062)	(155,637)	(167,885)	(162,526)	(159,255)	(156,262)

* Bearing interest at floating rates

** Bearing interest at fixed rates

The fair values of cash and deposits, loans from non-controlling shareholder and bank debt approximate their carrying values since these carry interest at current market rates. The fair values of the dollar notes and sterling notes are based on the latest prices at which those notes were traded prior to the balance sheet dates.

continued

19. Bank loans

	6 months to	6 months to
	30 June	30 June	31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
Bank loans	157,012	104,475	134,429
The bank loans are repayable as follows:
On demand or within one year	24,068	23,145	20,012
Between one and two years	21,034	16,748
Between two and five years	60,898	53,442
After five years	51,012 11,140	38,580
	157,012	104,475	134,429
Amount due for settlement within 12 months	24,068	23,145	20,012
Amount due for settlement after 12 months	132,944	81,330	114,417
	157,012	104,475	134,429

All bank loans are denominated in rupiah and are stated above net of unamortised issuance costs of \$2.9 million (31 December 2024: \$2.3 million, 30 June 2024: \$3.1 million). The bank loans repayable within one year include \$4.0 million drawings under working capital facilities (31 December 2024: \$2.8 million, 30 June 2024: \$2.7 million and \$5.7 million short term revolving borrowings). The weighted average interest rate at 30 June 2025 was 8.4 per cent (2024: 7.7 per cent).

The gross bank loans of \$159.9 million are secured on certain land titles, PPE, biological assets and cash assets held by REA Kaltim, SYB, KMS and PU and are the subject of an unsecured guarantee by the company. The banks are entitled to have recourse to their security on usual banking terms.

Under the terms of their bank facilities, certain plantation subsidiaries are restricted to an extent in the payment of interest on borrowings from, and on the payment of dividends to, other group companies. The directors do not believe that the applicable covenants will affect the ability of the company to meet its cash obligations.

At the balance sheet date the group had no undrawn rupiah denominated facilities (31 December 2024: \$5.5 million, 30 June 2024: nil).

20. Sterling notes

The sterling notes at 30 June 2025 comprise £21.4 million nominal of 8.75 per cent guaranteed 2025 sterling notes (31 December 2024: \$21.7 million, 30 June 2024: \$30.9 million) issued by the company's subsidiary, REA Finance B.V.. The movement during the period resulted from the purchase in January 2025 of £0.3 million nominal of notes for cancellation. The repayment obligation in respect of the sterling notes of £21.4 million (\$29.3 million) is carried on the balance sheet at \$30.4 million (31 December 2024: \$28.2 million, 30 June 2024: \$40.3 million) which includes the amortised premium to date. The sterling notes are guaranteed by the company and another wholly owned subsidiary of the company, REAS, and are secured principally on unsecured loans made by REAS to an Indonesian plantation operating subsidiary of the company.

With effect from 31 August 2025 all of the £21.4 million nominal outstanding sterling notes were redeemed at 104 per cent of their principal amount (that is, at a premium of £0.04 per £1 nominal of sterling notes) in accordance with the terms of the Trust Deed constituting the sterling notes. All of the sterling notes have now been cancelled.

21. Dollar notes

	30 June 30 June		31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
Dollar notes – repayable 2026	26,829	26,658	26,746

The dollar notes comprise \$27.0 million nominal of 7.5 per cent dollar notes 2026 (31 December and 30 June 2024: \$27.0 million nominal of 7.5 per cent dollar notes 2026) and are stated net of the unamortised balance of the note issuance costs.

On 4 September 2025 the proposal to extend the repayment date for the dollar notes from 30 June 2026 to 31 December 2028 was approved at a meeting of the noteholders. The dollar notes are thus now due for repayment on 31 December 2028.

In conjunction with the proposal to extend the redemption date for the dollar notes, the company has put in place arrangements whereby any noteholder who wishes to realise their holding of dollar notes by the current redemption date of 30 June 2026 is offered the opportunity to do so. The company has undertaken to procure that REAS purchases at par, on 30 June 2026, the dollar notes held by any noteholder who has indicated by no later than 29 May 2026 that they do not wish to retain their notes beyond 30 June 2026 and for which the company's brokers have been unable to arrange buyers on terms acceptable to such noteholder. REAS may seek to re-sell, over time, any dollar notes so acquired by it.

There are currently \$27.0 million nominal of dollar notes in issue. An existing holder of \$17.6 million nominal of the notes has agreed that it will retain that holding.

The company will pay on 30 June 2026 to those noteholders who have not elected to take advantage of the sale facility a rollover fee in an amount equal to:

(1% + 2A) x B

where A is the percentage amount (if any) by which the 180 day Average Secured Overnight Financing Rate published by the Federal Reserve Bank of New York on 23 June 2026 exceeds 4.5 per cent (and nil if such rate does not exceed 4.5 per cent); and B is the nominal amount of dollar notes held by the qualifying noteholder at 6.00 pm on 3 September 2025.

22. Reconciliation of operating profit to operating cash flows

	6 months to	6 months to	Year to 31 December
	30 June	30 June
	2025	2024	2024
	\$'000	\$'000	\$'000
Operating profit	19,218	8,627	34,968
Amortisation of intangible assets	364	192	386
Depreciation of PPE	13,811	12,813	26,226
(Increase) / decrease in fair value of growing produce	(478)	18	(9)
Loss on disposal of PPE	115	73	310
Movement in assets held for sale	–	–	(1,559)
Exchange translation differences	2,557	(2,128)	(1,686)
Operating cash flows before movements in working capital	35,587	19,595	58,636
Increase in inventories (excluding fair value movements)	(8,160)	(3,611)	(887)
(Increase) / decrease in receivables	(6,812)	(723)	4,675
Decrease in payables	(15)	(8,674)	(13,338)
Cash generated by operations	20,600	6,587	49,086
Taxes paid	(9,172)	(3,840)	(3,621)
Interest paid	(5,658)	(7,459)	(13,714)
Net cash from / (used in) operating activities	5,770	(4,712)	31,751

continued

23. Movements in net borrowings

	6 months to 6 months to 30 June 30 June		Year to
			31 December
	2025	2024	2024
	\$'000	\$'000	\$'000
Change in net borrowings resulting from cash flows:
Increase in cash and cash equivalents, after exchange rate effects	16,371	1,747	24,641
Net (increase) / decrease in bank borrowings	(37,766)	1,046	(27,480)
Purchase of sterling notes for cancellation	381	–	11,606
Borrowings divested with disposal of subsidiary	15,178	–	–
Decrease in borrowings from non-controlling shareholder	8,750	11,747	12,234
Transfer of borrowings from assets held for sale	–	(10,641)	(7,401)
	2,914	3,899	13,600
Amortisation of sterling note issue expenses and premium	(51)	(101)	566
Amortisation of dollar note issue expenses	(82)	(85)	(174)
Amortisation of bank loan expenses	158	(588)	(1,884)
	2,939	3,125	12,108
Currency translation differences	(2,746)	7,174	6,821
Net borrowings at beginning of year	(159,255)	(178,184)	(178,184)
Net borrowings at end of period	(159,062)	(167,885)	(159,255)

24. Disposal of subsidiary

On 13 June 2025 the group completed the sale of CDM to TPA, all conditions pursuant to the sale agreement dated 22 April 2025 having been satisfied. The disposal of CDM's assets and liabilities has generated a loss of \$5.7 million, calculated as follows.

	At
	13 June
	2025
	\$'000
PPE	16,820
Land	4,467
Deferred tax	952
Inventories	1,098
Plasma advances	4,785
Trade and other receivables	714
Cash and bank balances	372
	29,208
Trade payables	(280)
Other loans and payables	(15,178)
Net assets	13,750
Translation reserve	338
Total net assets disposed	14,088
Net consideration received	8,365
Loss on disposal (see note 7)	(5,723)

25. Related party transactions

Transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

26. Rates of exchange

	30 June 2025		30 June 2024		31 December 2024
	Closing	Average	Closing	Average	Closing	Average
Indonesian rupiah to US dollar	16,233	16,426	16,421	15,952	16,162	15,906
US dollar to pounds sterling	1.3702	1.3093	1.2642	1.2666	1.2529	1.2783

27. Events after the reporting period

There have been no material post balance sheet events that would require disclosure in, or adjustment to, these condensed consolidated financial statements.

Glossary

General

AGM	Annual General Meeting
ATP	PT Aragon Tambang Pratama
Bank BPD	Bank Pembangunan Daerah Kalimantan Timur
Bank Mandiri	PT Bank Mandiri Tbk
BOD	Biological Oxygen Demand
BPJS	Indonesian national insurance scheme
CA 2006	The Companies Act 2006
CDM	PT Cipta Davia Mandiri
CGU	Cash Generating Unit
CIF	Cost, Insurance and Freight
COD	Chemical Oxygen Demand
Code	UK Corporate Governance Code 2018
COM	Cakra Oil Mill
Continuing group	The group excluding CDM
CPKO	Crude Palm Kernel Oil
CPO	Crude Palm Oil
CR	Critically endangered
CSR	Corporate and Social Responsibility
CWE	Chandra Widya Edukasi, a specialist palm oil polytechnic
DEI	Diversity, Equality and Inclusion
DGTR	Disclosure Guidance and Transparency Rules
Dollar notes	7.5 per cent dollar notes 2026
Dollars, \$	The lawful currency of the United States of America
DSN	PT Dharma Satya Nusantara Tbk
EBITDA	Earnings Before Interest, Tax, Depreciation and Amortisation
EFB	Empty Fruit Bunches
Emba	Emba Holdings Limited
EN	Endangered
Enggang	PT Enggang Alam Sawita

EUDR	EU Deforestation Regulation
EU RED	European Union Renewable Energy Directive
FCA	Financial Conduct Authority
FFB	Fresh Fruit Bunches
FOB	Free On Board
FPIC	Free Prior and Informed Consent
FRC	Financial Reporting Council
FRS 101	Financial Reporting Standard 101 Reduced Disclosure Framework
FTE	Full Time Equivalent
GHG	Greenhouse Gas
GHG Corporate Standard	GHG Protocol Corporate Accounting and Reporting Standard
GREAT	Grievance Action Team
HCS	High Carbon Stocks
HCV	High Conservation Value
HGU	Hak Guna Usaha; Indonesian land title for agricultural purposes
IAS	International Accounting Standard
IASB	International Accounting Standards Board
IFRS(s)	International Financial Reporting Standard(s)
IKN	Ibu Kota Nusantara, new Indonesian capital city under construction
IPA	PT Indo Pancadasa Agrotama
IPPKH	Izin Pinjam Pakai Kawasan Hutan; permits granted to mining IUP holders operating in forest areas
ISCC	International Sustainability and Carbon Certification
ISPO	Indonesian Sustainable Palm Oil
IUCN	International Union for Conservation of Nature
IUP	Izin Usaha Pertambangan; mining licence
Izin Lokasi	Indonesian land allocation, subject to completion of titling

KCC	KCC Resources Limited
KCCRI	PT KCC Resources Indonesia
KCP	Kernel Crushing Plant
KMS	PT Kutai Mitra Sejahtera
KPI	Key Performance Indicator
LSE	London Stock Exchange
MIL	Makassar Investments Limited
MCU	PT Millenia Coalindo Utama
MHA	MHA Audit Services LLP; the company's independent auditor
NDPE	No Deforestation, No Peat, No Exploitation
Notice	Notice of AGM
OHS	Occupational Health and Safety
PalmGHG	RSPO calculator for estimating and monitoring GHG emissions
Pension Scheme	REA Pension Scheme
Plasma	Smallholder plantation scheme
PLN	Perusahaan Listrik Negara
POM	Perdana Oil Mill
POME	Palm Oil Mill Effluent
PPE	Property, Plant and Equipment
PPMD	Program Pemberdayaan Masyarakyat Desa (smallholder scheme)
PROPER	Pollution Control, Evaluation and Rating
PSS	PT Selatan Selabara
PU	PT Prasetia Utama
PUH	PU Holdings Limited
REAF	REA Finance B.V.
REA Kaltim	PT REA Kaltim Plantations
REA Kon	The group's conservation department
REAS	R.E.A. Services Limited
ROU	Right-of-use
RPI	Retail Prices Index

RSPO	Roundtable on Sustainable Palm Oil
RTE	Rare, Threatened and Endangered
Rupiah, Rp	The lawful currency of Indonesia
SBTi	Science Based Targets initiative
SEARRP	South East Asian Rainforest Research Partnership
SECR	Streamlined Energy and Carbon Reporting
SEnSOR	Socially and Environmentally Sustainable Oil palm Research
SHINES	SmallHolder INclusion for Ethical Sourcing
SIA	Social Impact Assessment
SOFRA	Secured Overnight Financing Rate
SOM	Satria Oil Mill
SPA	Share Purchase Agreement
SPOTT	Sustainable Palm Oil Transparency Toolkit
Sterling, pounds sterling, £	The lawful currency of the United Kingdom
Sterling notes	8.75 per cent sterling notes 2025
SYB	PT Sasana Yudha Bhakti
TCFD	Taskforce on Climate-related Financial Disclosures
TNFD	Taskforce on Nature-related Financial Disclosures
TPA	PT Teladan Prima Agro Tbk
UK GDPR	UK General Data Protection Regulation
UKLR	UK Listing Rules
Website	www.rea.co.uk
WHO	World Health Organisation
ZSL	Zoological Society of London

This report has been managed by Perivan Financial Limited (271966) using an environmental management system that complies with the internationally recognised ISO 14001 certification and is FSC® certified.

100% of the inks used are vegetable oil based, 95% of the press chemicals are recycled for further use, and on average 100% of any waste associated with this production will be recycled.

This publication has been printed by a CarbonNeutral® Company on Revive Silk 100, made from FSC® Recycled certified post-consumer waste pulp from responsible sources. This ensures that there is an audited chain of custody from the tree in the well-managed forest through to the finished document in the printing factory. The paper is Carbon Balanced with the World Land Trust, an international conservation charity, who offset carbon emissions through the purchase and preservation of high conservation value land.

Printed by: perivan.com

R.E.A. HOLDINGS PLC

R.E.A. Holdings plc 5th Floor North, Tennyson House 159-165 Great Portland Street London W1W 5PA

www.rea.co.uk

Registered number 00671099 (England and Wales)