Final Results

Camellia PLC
25 April 2002

Preliminary Announcement - Year Ended 31st December 2001

Consolidated Profit and Loss Account
for the year ended 31st December 2001
                                                                          2001                       2000
                                                                            £'000         £'000        £'000       £'000
Turnover    - continuing operations                                                     174,375                  173,450
            - acquisitions                                                                5,797                        -
                                                                                        180,172                  173,450
- discontinued operations                                                                23,175                   79,925
                                                                                        203,347                  253,375
Cost of sales                                                                           156,851                  202,036
Gross profit                                                                             46,496                   51,339
Net operating expenses                                                                   34,592                   34,372
Operating profit - continuing operations                                   11,721                     16,671
- acquisitions                                                               (65)                          -
                                                                           11,656                     16,671
- discontinued operations                                                     248                        296

                                                                                         11,904                   16,967

Share of results of associates                                                            5,349                    2,996

                                                                                         17,253                   19,963

Investment income                                                                         1,453                    1,087
Profit on disposal of fixed assets                                                           24                    1,164
Profit on disposal of fixed asset
investments                                                                                 573                      376
Profit on disposal of subsidiary
undertaking                                                                                 424                        -
Goodwill transferred upon part disposal
of a subsidiary                                                                             704                        -
Share of associates profit on disposal of
Subsidiaries                                                                              2,065                        -
Loss on disposal of associated
Undertaking                                                                                   -                  (1,701)
                                                                                         22,496                   20,889
Net interest payable and similar charges                                                  4,940                    5,675
Profit on ordinary activities before
                                                                                       17,556                   15,214
taxation
Taxation on profit on ordinary activities                                                 6,322                    5,722
Profit on ordinary activities after taxation                                             11,234                    9,492
Interest of minority shareholders                                                         2,283                    2,538
Profit for the year                                                                       8,951                    6,954
Dividends                                                                                 2,303                    2,335
Retained profit for the year                                                              6,648                    4,619
Earnings per share                                                                      327.75p                  247.71p


Consolidated Balance Sheet
as at 31st December 2001
                                                                      2001                        2000
                                                                         £'000         £'000         £'000         £'000
Fixed Assets
Goodwill:
Positive                                                                 1,219                       1,290
Negative                                                               (4,074)                     (2,529)
                                                                                     (2,855)                     (1,239)
Tangible assets                                                                      172,574                     168,835
Investments                                                                           72,219                      64,053
                                                                                     241,938                     231,649
Current assets
Stocks                                                                  34,100                      32,319
Debtors                                                                 55,514                      66,291
Cash at banks and in hand                                              164,493                     162,052
                                                                       254,107                     260,662
Creditors: amounts falling due
within one year                                                        212,562                     222,444
Net current assets                                                                    41,545                      38,218
Total assets less current liabilities                                                283,483                     269,867
Creditors: amounts falling due after
more than one year                                                                    39,587                      36,513
Provisions for liabilities and charges                                                 1,624                       1,734
Net assets                                                                           242,272                     231,620
Capital and reserves
Called up share capital                                                                  271                         277
Share premium account                                                                    423                         423
Revaluation reserve                                                                   38,280                      38,901
Profit and loss account                                                              139,812                     137,248
Merger reserve                                                                           242                         242
Equity shareholders' funds                                                           179,028                     177,091
Minority shareholders' interest                                                       63,244                      54,529
                                                                                     242,272                     231,620

Consolidated Cash Flow Statement
for the year ended 31st December 2001
                                                                   2001                         2000
                                                                      £'000         £'000          £'000         £'000
Net cash flow from operating activities                                            22,033                       22,346
Dividends received from associates                                                    629                          869
Returns on investments and servicing of
finance
Interest received                                                       955                          828
Interest paid                                                       (5,065)                      (6,028)
Income from investments                                               1,662                        1,039
Dividends paid to minority interests                                (1,632)                      (2,043)
                                                                                  (4,080)                      (6,204)
Taxation
UK corporation tax paid                                             (1,548)                        (274)
Overseas tax paid                                                   (3,368)                      (4,636)
                                                                                  (4,916)                      (4,910)
Capital expenditure and financial investment
Purchase of tangible fixed assets                                  (10,869)                     (11,813)
Sale of tangible fixed assets                                           936                        3,790
Purchase of investments                                             (4,338)                      (2,374)
Sale of investments                                                   1,751                        1,078
                                                                                 (12,520)                      (9,319)
Acquisitions and disposals
Acquisition of business                                               (557)                            -
Disposal of business                                                  2,846                            -
Purchase of additional Siegfried AG shares                          (1,439)                        (705)
Purchase of minority interests                                        (542)                        (473)
Disposal of associated undertaking                                        -                        6,227
                                                                                      308                        5,049
Equity dividends paid                                                             (2,267)                      (2,237)
Cash (outflow)/inflow before financing                                              (813)                        5,594
Financing
Loan repayments                                                     (7,614)                      (7,109)
New loans                                                             9,862                        5,081
Capital element of finance lease rental payments                      (279)                        (312)
                                                                                    1,969                      (2,340)
Purchase of own shares                                                            (1,693)                      (1,244)
(Decrease)/increase in cash in the period                                           (537)                        2,010


Reconciliation of Movement in Shareholders' Funds
for the year ended 31st December 2001
                                                                                                 2001           2000
                                                                                                £'000          £'000
Profit for the year                                                                             8,951          6,954
Dividends                                                                                     (2,303)        (2,335)
Retained profit for the year                                                                    6,648          4,619
Currency translation differences on foreign currency net investments                          (2,817)          3,791
Purchase of own shares                                                                        (1,860)        (1,551)
Release of goodwill on disposal of subsidiary undertaking                                         515              -
Release of goodwill on part disposal of subsidiary undertaking                                  (704)              -
Impairment on previously revalued tangible assets                                               (384)              -
Share of associates fixed asset revaluation                                                       539              -
Net addition in shareholders' funds                                                             1,937          6,859
Opening shareholders' funds                                                                   177,091        170,232
Closing shareholders' funds                                                                   179,028        177,091


Analysis of turnover, profit and net operating assets
                                                                                                Net operating
                                     Turnover                       Operating profit         assets
                                           2001          2000          2001         2000         2001          2000
                                          £'000         £'000         £'000        £'000        £'000         £'000
By activity
Parent and subsidiary
undertakings
Agriculture and horticulture            108,955       101,654         9,557       10,377      141,826       135,954
Trading and agency                       29,684        86,053           821          810        3,971         5,956
Food storage and distribution            45,215        46,723         3,076        4,513       30,398        31,930
Engineering                              14,478        12,175         1,287        1,095       12,521        11,696
Fine art trading and philately            2,812         4,784           411        2,299        2,288         3,017
Property leasing                          2,177         1,959         2,088        1,869        4,204         3,750
Central management and
miscellaneous                                26            27       (5,501)      (5,032)        8,658         8,699
                                        203,347       253,375        11,739       15,931      203,866       201,002
Banking                                                                 152        1,026       21,120        20,971
Net interest from group companies                                        13           10            -             -
                                                                     11,904       16,967      224,986       221,973
Associated undertakings
Agriculture and horticulture                                           (34)           13
Pharmaceutical                                                        4,218        1,903
Insurance and leasing                                                 1,165          987
Textile and other manufacturing                                           -           93
Operating profit                                                     17,253       19,963


                              Chairman's Statement


Pre-tax profit for the year ended 31st December 2001 was £17.56 million compared
with £15.21million in 2000. Profit attributable to shareholders was £8.95
million compared with £6.95 million in 2000 and earnings increased from 247.71p
to 327.75p per share.


The major influences on the profit for the year 2001 were the substantially
improved results from our associate company, Siegfried AG, offset by lower tea
prices and continuing very low coffee prices. On balance climatic conditions
were reasonable, although there are indications that we may be moving into an
'El Nino' cycle which, if substantiated, will have a far reaching impact for all
our overseas agricultural operations.


Dividend

The Board is recommending a final dividend of 65p per share which, together with
the interim dividend already paid of 20p per share, brings the total
distribution for the year to 85p per share compared with 84p per share in 2000.


Agriculture and Horticulture


Tea

India

In 2001 the tea industry suffered one of its least profitable years for several
decades. Prices, which had started to drop in mid 2000, continued to erode and
by year's end were some 10% behind the previous levels. The main reasons for
this were lower domestic demand coupled with higher production, lower exports
and the effect of cheap product from an ever increasing number of small bought
leaf factories in North Bengal and Assam. Darjeeling experienced a difficult
market with strong competition from the increasing amount of tea produced in
Nepal at a considerably lower cost of production. The Group's profitability has
been adversely affected in spite of a continuing emphasis on quality and
stringent cost control. Pre-tax profit amounted to £0.8 million compared with
£1.26 million the previous year. The Group estates produced 27.18 million kgs
compared with 25.45 million kgs in 2000, an increase of 6.8%. Packet tea sales
were reasonable although there was growing competition. The instant tea plant
continues to operate below capacity and the trial storage facilities in the USA
have been discontinued. However, recent developments indicate fresh interest in
the instant product. Welfare facilities on all gardens are carefully monitored
and improvements continue to be made within budgetary constraints. The law and
order situation in all tea districts remains unsettled but fortunately the Group
suffered no major problems.


Bangladesh

The ten Longbourne tea estates produced 11.18 million kgs, which was almost a
record crop and 4.6% above the previous year. Market prices remained at similar
levels to last year, but even after higher interest charges and expenses,
pre-tax profit amounted to £150,000. In August 2001 Longbourne acquired a
controlling interest in Eastland Camellia Limited, which owns Chaklapunji
Estate. Whilst this estate is small, with a crop of only 300,000 kgs, it
produces high quality tea and is adjacent to the Group's other Luskerpore Valley
properties.

In Chittagong, the tea warehouse operated satisfactorily and extension work is
in progress. The newly elected Government, which has a large majority, is now in
a position to commence beneficial economic development.


Africa

Tea production by subsidiary undertakings amounted to 33.6 million kgs,
including 3.8 million kgs from our new operations in South Africa. This latter
figure is not representative of a full year's production and takes account of
only that tea harvested during the eight-month 'off' season. Climatic conditions
in Kenya, Malawi and South Africa were reasonable, resulting in production
consistent with our expectations. However, prices throughout the year were
disappointing and in Kenya were some 23% below the previous year. Economic
conditions in Kenya and Malawi remain difficult, with high interest rates and
strong local currency. In the case of South Africa, the substantial decline in
the value of the rand towards the end of the year resulted in significant
exchange losses being charged to reserves. The rand has subsequently
strengthened by about 20% from its low point in December. Despite the difficult
conditions, the policy of replanting of old seedling tea and improving the
welfare of our employees has continued.


Nepal

Crop from Himalaya Goodricke Private Limited totalled 278,000 kgs compared with
289,000 kgs in 2000. This reduction was due to an early drought and an
increasing emphasis on quality, which involved the discontinuance of shear
plucking. In line with India, prices were poor and the company recorded a loss
of £92,000 as compared with a loss of £46,000 in 2000. The factory has now been
partially re-equipped to allow for the manufacture of bought leaf and this extra
production should lead to a reduction in overall costs and increased
profitability.



Coffee

Our coffee operations experienced another difficult year with prices continuing
to be below cost of production. Whilst prices on the world coffee markets
continue at very low levels, it is pleasing to report that there has been a
steady increase in the prices paid for the higher quality Kenya arabica coffee
and these are now some 40% above the comparable prices at this time last year.
Whilst this only takes us to a breakeven position, it nonetheless represents a
substantial improvement. We continue to examine further ways of reducing the
cost of production without prejudicing the health and vigour of the bushes.


The Malawi crop has however not benefited from a similar rise in price and the
future of our coffee operations in Malawi must be subject to some considerable
doubt. Unless prices improve quickly this operation will be phased out and the
land put to alternative use.


Citrus

Yandilla Park enjoyed a record year with good production combining with
reasonable market prices, particularly in the North American market. Our packing
operations have attracted significant new business from outside growers as a
result of our good reputation and competitive packing charges. To accommodate
increasing demand we are upgrading our packing line in Renmark and during the
year we acquired a packing operation in the Sunraysia district to pack our own
and outside growers' fruit from that area.


The citrus operations in Chile are performing well and those in California and
South Africa are proceeding towards maturity. The prospects for these operations
remain encouraging.



Edible Nuts

Our new macadamia processing factory in Malawi is performing well and the
production from our estates is such that expansion of processing facilities is
required. The marketing of this produce continued to be most satisfactory and
our macadamia operations on the newly acquired estates in South Africa have also
performed well. In California our edible nut operations experienced a poor year,
with production of pistachios considerably reduced due to the alternate bearing
cycle of this crop. Although almond production was reasonable, prices for both
pistachios and almonds were poor, resulting in a loss.

Other Horticulture

The pineapple joint venture with Del Monte was again profitable, but canned
pineapples experienced another difficult year in world markets. The comparative
strength of the Kenya shilling is a difficult factor as far as the Kenyan
industry is concerned. Passion fruit remains disappointing, but the newly
planted avocado areas are beginning to make a good contribution to
profitability.


Wine grape production in Australia was reasonable, although below that of the
previous year. Prices are under pressure with wineries demanding higher quality
at lower prices. There appears to be continuing over-production of most
varieties in Australia, although this operation makes a very worthwhile
contribution towards profits. A substantial amount of our production in South
Africa has been sold as bulk rather than as bottled wine. It is difficult to
compete with large scale producers at the lower end of the market and we
continue to concentrate our efforts on the premium sector. It is encouraging to
report that our Linton Park '99 vintage Chardonnay was one of only two South
African Chardonnays to be awarded five stars by the prestigious 'Decanter'
magazine. Table grape production in South Africa was encouraging, although
prices were again disappointing. There are still large areas of immature
plantings on our properties in South Africa and Chile.


Rubber production in Bangladesh continues to progress and reached budgeted
targets, contributing to estate profits.


It is pleasing to report that our farm in Brazil produced a modest profit in
2001. Considerable operational changes have been implemented over the last two
years and prospects are now much improved.



Trading and Agency

Duncan Products Limited had a poor year due to increased competition for bottled
water and packet tea. A reorganisation of the marketing operations is in hand
and new personnel are being recruited.


In May, Highland Fuels was sold to its management, who were backed by
institutional investors and a European fuel distribution company. The company
had performed well in the period of Group ownership in 2001, but was not in a
strong strategic position and should benefit from an association with a business
operating within the same sector.


British Traders and Shippers increased sales but only broke even in the year.
Redundancy costs were incurred as a result of the decision to subcontract the
physical distribution of the company's chemical products. Significant training
costs were committed to improve communication with Japan.



Food Storage and Distribution

Associated Cold Stores and Transport had a disappointing year, reporting profits
18% below 2000, largely due to reductions in transport revenues at the
Gloucester and Wolverhampton sites. Reduced demand for storage was experienced
towards the end of the year at Wolverhampton. The food service consolidation and
case picking business in Grimsby performed well, as did the transport operation
at Scarborough. The senior management of the company has been reorganised from a
functional to a

geographic basis at the beginning of 2002. A major project has been instigated
to enhance information technology systems in the business in order to improve
customer service via the internet and to centralise administration. Associated
Cold Stores and Transport faces a substantial increase in insurance premiums for
2002 as a result of the insurance industry's decision to impose penal rates on
buildings constructed from composite panels.


W.G.White had an extremely disappointing year as a result of a substantial
reduction in sales of caviar to airlines and due to the costs of the wine sales
team formed to take the company into a new market. An increase in the cost of
caviar and the reduction of passenger traffic following September 11th led to
reduced servings of the product on a number of airlines. The smaller number of
tourists in London also had a negative impact on the market. Although sales of
wine improved by 50% in 2001, they were insufficient to cover the costs of the
sales team. A wider range of wines has been selected for sales to commence in
2002.


Affish, one of the Group's two companies in the Netherlands, improved
profitability despite a reduction in sales of prawns during a period of poor
commodity prices. Wylax improved sales particularly to institutional caterers,
but higher labour costs offset an otherwise improved margin.

Engineering

Following the fire in 2000, Abbey Metal Finishing returned to full production
capability in May 2001 and has continued to rebuild its business. The company
has regained important customer approvals and turnover in 2001 exceeded budget.


AJT Engineering, AKD Engineering and the divisions of British Metal Treatments
involved in oil and gas engineering support all improved turnover and
profitability in a buoyant market for repair and new manufacture for the North
Sea and other international offshore and onshore installations. The British
Metal Treatments' divisions at East Kilbride and Great Yarmouth both improved
their results as a consequence of investment in improved plant towards the end
of the previous year and at the beginning of 2001. General Utilities did not
match the results achieved in 2000 due to the quiet general engineering market
for profile cutting and precision grinding.


British Metal Treatments' division at Hove was closed in December and the full
costs of this have been included in results for 2001. The sale of the site is
proceeding satisfactorily and is expected to be completed in 2002.


Fine Art Trading

Lumley Cazalet Limited produced a good result although not up to the levels
enjoyed in the previous year. The gallery closed in early February 2002 and the
remaining stock is now being disposed of in an orderly fashion. It is expected
that the operations of Lumley Cazalet will be finally wound up during this year.



Property Leasing

Further rent reviews were carried out in 2001 leading to increased profits.



Banking

Duncan Lawrie Limited experienced a difficult year in 2001. Lower interest rates
prevailing throughout the year resulted in decreased margins on the Bank's
lending business and the fall in the Stock Markets and lack of new investment
resulted in lower fees being earned on the Bank's investment management
operations. During the year the Bank invested heavily in new computer systems
which will enable it to improve the services offered to customers. Since the end
of the year Duncan Lawrie Unit Management Limited, which managed the Duncan
Lawrie Smaller Companies Fund unit trust, has been sold to Exeter Investment
Group plc.



Pharmaceutical

The Siegfried Group increased its earnings after tax to 31 million Swiss Francs
from 9.3 million in the previous year. Our share of these profits amounted to
£4,145,000. The pharmaceutical operations increased their sales, particularly as
a result of increased investment in Switzerland leading to higher output. The
plant in Pennsville, USA, successfully completed its inspection by the US Food
and Drug Administration and performed above expectations in the second half of
the year. The medicinal and herbal tea division has been restructured and the
packing of these teas has been contracted to a specialised German company,
resulting in the closure of their operation in Bremen.



Other Associated Undertakings and Investments

The United Leasing Company Limited, in spite of difficult economic
circumstances, produced a record profit of £2.24 million. The United Insurance
Company Limited had a reasonable year with a profit of £311,000 compared with
£328,000 in 2000. The Surmah Valley Tea Company Limited, which has three estates
and is owned by United Insurance, reported a profit of £59,000.


Our investments in Bermuda have fared well during the year and continue to make
a positive contribution to Group profits.



Development

The Group continues to carry out the capital developments necessary to enable
its operations to remain competitive. Specific capital projects are presently
being undertaken in Yandilla's citrus packing shed, the Malawian nut processing
facility and at AKD Engineering. Development of our immature planting continues
in all the countries in which we operate.



Prospects for 2002

It is as usual too early to give any reliable forecast of the outcome of the
current year, however as stated at the beginning of this report, there are
indications that we may be moving into an 'El Nino' cycle and there are
indications of drought in Australia, East and South Africa. The price of tea has
shown some indications of rising as a result of lower production anticipated in
producing countries, but there is little indication of any further improvement
in the price of coffee.



Staff

On behalf of the Board I would like to extend my thanks to all employees
throughout the Group in contributing to satisfactory results in a very difficult
year.

Notes

 1. The directors have decided to recommend a final dividend of 65p per ordinary
    share payable on 3rd July 2002 to shareholders registered at the close of
    business on 14th June 2002.

    The total dividend for the year of 85p per ordinary share compares with 84p
    per ordinary share paid in the previous year.

 2. Earnings per share have been calculated by dividing profit after tax and
    minority interests of £8,951,000 (2000 - £6,954,000) by the weighted average
    number of shares in issue at 31st December 2001 of 2,731,019 (2000 -
    2,807,325).

 3. Taxation on profits on ordinary activities includes overseas taxation of
    £3.44 million (2000 - £3.73 million), U.K. corporation tax of £2.39 million
    (2000 - £2.77 million) and share of associated undertakings tax of £2.35
    million (2000 - £0.82 million).

 4. The Annual General Meeting is to be held on Thursday, 30th May 2002.

 5. The above figures are an abridged statement from the Group's accounts for the
    year ended 31st December 2001. The audit report on these accounts was
    unqualified.

    The statutory accounts for the year ended 31st December 2000 have been
    delivered to the Registrar of Companies and those for the year ended 31st
    December 2001 will be delivered after the Annual General Meeting.

 6. The Directors Report and Statement of Accounts will be posted to shareholders
    on 30th April 2002 on which date copies can be obtained from the company's
    registrars:-

          Capita IRG Plc,
          Balfour House,
          390/398 High Road,
          Ilford,
          Essex IG1 1NQ

     or from the company's registered office:-

          Wrotham Place,
          Wrotham,
          Sevenoaks,
          Kent TN15 7AE


Press enquiries to:-

Mr. M.C. Perkins

Telephone No. 01622 746655


P.E. Hill
Company Secretary




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