Malcolm Perkins, Chairman, stated:
“2018 was a very good year for the Group. We made significant financial and strategic progress as our agricultural crops benefited from generally good weather conditions and selling prices. We also continued to develop our business portfolio, with substantial investment continuing in agriculture whilst disposing of a number of peripheral businesses.
After the year end we acquired two tea estates in Assam which we believe now makes us the largest private tea producer in the world.
Looking at 2019, it is too early to predict outcomes as most of our trading takes place in the second half of the year. However, early tea auction prices have been weak, with those in Kenya below the cost of production and there is a risk that other tea markets could be impacted as their seasons begin. We continue to monitor and prepare for Brexit and whilst we expect there to be some impact on our UK businesses, we are confident that the majority of our operations will be largely unaffected.“
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FINANCIAL HIGHLIGHTS |
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Year ended |
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Year ended |
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31 December 2018 |
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31 December 2017 |
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£'m
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£'m Restated |
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Revenue – continuing operations |
309.8 |
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298.3 |
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Underlying profit before tax* |
38.1 |
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27.6 |
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Significant provision releases |
14.4 |
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– |
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(Loss)/profit from discontinued operation |
(0.2) |
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14.8 |
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Profit after tax for the year |
32.3 |
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30.2 |
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Earnings per share |
912.4 |
p |
861.7 |
p |
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Earnings per share – continuing operations |
919.6 |
p |
325.9 |
p |
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Total dividend for the year |
142 |
p |
135 |
p |
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* Underlying profit before tax is profit before tax from continuing operations excluding separately disclosed significant provision releases
Financial highlights
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§ Underlying profit before tax from continuing operations up 38% reflecting the implementation of our strategy, benign weather and good tea prices § Significant provision releases contribute an additional £14.4m of profit before tax § Dividend increased by 5.2%, maintaining over 40 years of dividend growth § Net cash resources of £109.6m
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Strategic highlights
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§ Continuing investment in agricultural assets including two new trials for avocados and blueberries § Significant steps to continue our geographic diversification § Now the world's largest private tea grower § Successful disposals of five small non-agricultural businesses |