Camelia Plc – Interim Results

Interim results

Camellia Plc (AIM:CAM) announces its interim results for the six months ended 30 June 2016.

Malcolm Perkins, Chairman of Camellia Plc, stated:

“Profits for the first six months of the year are substantially higher than the same period last year, once again demonstrating the strength in the diversity of the group.”

“Underlying progress was made by all of our businesses, however a number have faced truly challenging conditions either due to weather or markets and the outlook for the group continues to be mixed.  In addition, unpredictable weather makes crop volumes hard to predict and has a consequential effect on prices.  In the short term the depreciation in sterling against most of our operating currencies in the agricultural division is likely to have a positive impact on our full year results.  In the UK, the lowering of the interest rate will inevitably have a detrimental impact on our banking operations and the continuing uncertainty following the EU referendum vote has triggered a slowdown in our engineering businesses. It is too early, and there remain too many uncertainties, to make any prediction for the full year.”

Financial highlights

 

 

 

 

 

 

 

 Year ended

 

 Year ended

 

 Year ended

 

 

 Six months ended

30 June 2016

 

 Six months ended

30 June 2015

 

 31 December 2015

 

 

 £'m

 

 £'m

 

 £'m

 

 

 

 

Restated1

 

Restated1

 

Revenue

                106.1

 

102.5

 

257.8

 

Headline profit/(loss) before tax*

                  4.9

 

                  (3.1)

 

26.5

 

Profit/(loss) for the period

                  2.4

 

(4.3)

 

7.2

 

Earnings per share

                29.0

p

                (188.3)

p

50.7

p

Proposed interim dividend

                    35

p

                    34

p

 

 

Total dividend for the year

 

 

 

 

129

p

 

1 Restated to include bearer crops as property, plant and equipment: to include growing crop of green leaf tea at fair value and to 

include the green leaf element of made tea inventories at fair value in accordance with IAS 16 and IAS41 (amended).  The effect of the inclusion of fair values for green leaf growing crop and for green leaf in inventory as required by IAS41 is to accelerate the recognition of an element of profit which would historically have been recognised in future periods 

* Headline profit is a measure of the underlying performance of the group which is not impacted by exceptional items or items considered non-operational in nature

Highlights

·     

Agriculture benefitted from strong tea production volumes in the first half of the year in India, Kenya and Bangladesh and strong prices in India, offset in part by lower prices for our tea in all other jurisdictions and reduced profits from macadamia primarily due to drought 

·     

Duncan Lawrie made progress in implementing its growth plan however, as for all banks, the decision by the Bank of England to reduce interest rates and the uncertainties surrounding the property market, make the environment more challenging

·     

Abbey Metal Finishing continues to trade ahead of expectations following its turnaround last year

·     

AJT Engineering continues to be adversely impacted by conditions in the oil and gas market and the situation remains under close review

·     

Cash and cash equivalents at 30 June 2016 were £53.0 million (30 June 2015 – £40.5 million)


The Interim Report will be available to download from the investor relations section on the Company's website www.camellia.plc.uk

Enquiries

Camellia Plc                                                           

01622 746655

Tom Franks, CEO                                                     

Susan Walker CFO

 

Panmure Gordon                                                  

0207 886 2500

Nominated Advisor and Broker                                          

Andrew Godber

Erik Anderson

 

Chairman's statement

The divisional results are discussed in more detail in the operating review, but once again demonstrate the strength in the diversity of the group. Weather patterns continue to be erratic with benign conditions in Kenya leading to record crops but no end in sight to the drought in South Africa. There is no question that the uncertainty both before and after the EU referendum vote has had an impact on the UK economy, and on our UK businesses, but with most of our earnings coming from outside the UK the depreciation of sterling following the vote will help our reported result.

Underlying progress was made by all of our businesses in the first half of the year, however a number have faced truly challenging conditions either due to weather or markets. In the 2015 Annual Report we set out the strategy for each of our divisions; strategies which are designed to provide long term value to shareholders in line with the group's ethos. However, markets and economic conditions continue to change rapidly and these strategies will remain under review by the Board and Executive Committees.

Dividend

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