I have been a shareholder in MP Evans for more than forty years.
It was called Rowe Evans back then and had five associated companies, all with full listings on the London Stock Exchange. Today it has one listing on AIM (Alternative Investment Market) in London. It is a small company; about 54 million shares at about £8.50 a pop so valued at about £460 million. But I am a recent investor. The company celebrates its 150th birthday this year. Originally a merchant in London importing tea from Ceylon, before diversifying into plantations (rubber and palm oil) in Malaysia and other things, the company is now almost entirely producing palm oil in Indonesia.
Its business model is exemplary and, in more than one respect, it is unique among its larger competitors growing palm oil in Malaysia and Indonesia. A lot of companies these days are top-heavy with layers of management suffocating (financially) the business they are supposed to be fostering. MPE has fewer than ten staff in its head office and more than 11,000 workers on the ground. Its plantations are often in remote locations on Sumatra and Kalimantan and infrastructure has to be built to cater for the needs of families and to protect flora and fauna.
In what two respects is MPE unique? It provides summarised disclosures based on the Taskforce for Climate-related Financial Disclosures (TCFD) in its report, on a voluntary basis. Later this year it will publish a more detailed analysis in a stand-alone report. All companies will be required to provide this information but MPE is leading the way.
As you know, palm oil only grows well in a band 5 degrees either side of the equator – in effect this is mostly in Malaysia and Indonesia.
“Oil palm trees thrive in tropical climates with temperatures between 30–32°C. Ideally, the plantation should be in an area that has plenty of sunlight and high levels of humidity. These plants require plenty of precipitation in order to keep the soil moist all year round.” (fao.org)
In the 104 page report there is a photograph of Board members outside the head office (Tunbridge Wells) in December last year. They are standing in the snow, surely a first for a palm oil company? Congratulations!