Malcolm Perkins, Chairman of Camellia, stated:
“Profits for our continuing operations for the first half of the year were better than anticipated reflecting the generally benign weather conditions and favourable markets experienced across our agricultural operations. We have also made significant progress with our strategic initiatives to refine our portfolio. We remain financially strong, with the resources to advance our development plans.”
Financial highlights
|
|
Six months ended 30 June 2018 |
Six months ended 30 June 2017 |
Year ended 31 December 2017 |
|
|
£'m |
£'m |
£'m |
|
Revenue – continuing operations |
127.6 |
123.6 |
298.3 |
|
Profit before tax from continuing operations |
6.1 |
1.9 |
27.6 |
|
(Loss)/profit from discontinued operation |
(0.3) |
15.8 |
14.8 |
|
Profit for the period |
3.7 |
16.3 |
28.6 |
|
Earnings per share |
18.1p |
532.2p |
803.8p |
|
Earnings/(loss) per share – continuing operations |
29.0p |
(39.8)p |
268p |
|
Dividend per share |
40p |
37p |
135p |
Highlights
|
· |
1st half tea production 39.2m kg, up 7% on same period of 2017 |
|
· |
Record shipments in 1st half of early avocado crop from Kenya |
|
· |
Strong progress from Engineering North with revenues up 30% on the same period in 2017 |
|
· |
Macadamia production expected to be substantially up on 2017; Kenya tea prices now experiencing significant downward pressure; avocado selling prices now significantly reduced |
|
· |
Closure of Duncan Lawrie now complete with a small additional provision of £0.3 million |
|
· |
Portfolio refinement continues |
|
· |
Interim dividend increased by 8.1% |
|
· |
Cash and cash equivalents at 30 June 2018 were £90.8 million (30 June 2017: £98.7 million) |
CHAIRMAN'S STATEMENT
Our results for the first half show a profit before tax from continuing operations of £6.1 million which compares with a profit of £1.9 million for the first half of 2017. Further details are set out in the Operating review.
Dividend
The Board has declared an interim dividend of 40p (2017: 37p) payable on 5 October 2018 to shareholders registered at the close of business on 7 September 2018.
Strategic objectives
We continue to pursue our strategic objectives in line with the statements made in the 2017 Annual report. We have made a small number of acquisitions and disposals, some of which were anticipated in the Annual report, in order to refine our portfolio of operations. In addition, we are making a number of medium and long term investments in Agriculture in order to leverage our expertise and diversify our supply base in certain crops and countries. Additional information is included in the Operating review.
Outlook
Given that the majority of trading takes place in the second half of the year, it is not easy to give guidance for the full year but we are optimistic following the encouraging first half result.
Malcolm Perkins
Chairman
23 August 2018