Final Results

Camellia PLC 26 April 2007 Camellia Plc Preliminary Results For Year Ended 31 December 2006 Highlights from the results:- Year ended Year ended 31 December 31 December 2006 2005 £'000 £'000 Revenue - continuing operations 160,552 152,743 Profit before tax 19,982 22,275 Profit for the period 15,174 23,569 Earnings per share 464.2 p 793.2 p Dividends 90 p 89 p Chairman's statement The profit before tax for 2006 amounted to £19.98 million and compares with the previous year of £22.28 million. This latter figure included exceptional profits of £6.32 million and the increase in profits from our continuing operations in 2006 can therefore be viewed as satisfactory. Profits after tax attributable to shareholders amounted to £12.90 million compared to £20.33 million in 2005 and earnings per share reduced to 464.2p compared to 793.2p. Dividend The board is recommending a final dividend of 70p per share which, together with the interim dividend already paid of 20p per share, brings the total distribution for the year to 90p per share compared with 89p per share in respect of 2005. Agriculture and horticulture Tea India Tea production in India increased to 30.70 million kilos. The previous year suffered from reduced production due to labour unrest in the Dooars. The year started slowly with dry weather but production gradually increased when the rains arrived. Prices improved on the previous year but softened towards the end of the year. The market for orthodox tea recovered and results from our Assam gardens were much improved although the security situation in Assam has deteriorated and is a continuing cause for concern. Orders for our Instant Tea Plant have been hard to secure in a very competitive marketplace. We continue to concentrate on producing a quality tea in India and to this end a programme of up-grading some of our factories has been initiated. Bangladesh Bangladesh endured a major drought at the beginning of the year and production suffered accordingly, resulting in an overall reduction of 11% for the year. The market responded to the shortage with higher prices and our tea gardens showed a satisfactory profit. However there remains much to be done in Bangladesh to improve both production levels and quality. A general election scheduled for earlier this year was postponed and it seemed for a time that the security situation might be a major cause of concern. However, the appointment of a new interim government, satisfactory to most political parties, has reduced the tension and it is hoped that peaceful elections will be held as soon as possible. Africa The year started with a serious drought in Kenya. This had a major adverse impact on production levels and resulted in increased international tea prices. The rains eventually arrived and it is pleasing to report that our own production finished only marginally below that of the previous year. This, together with prices remaining at levels above those before the drought, resulted in a substantially increased profit for the year. Tea prices have tended to reduce recently and considerable effort is being put into cost control in an attempt to maintain a satisfactory margin in a country that has a high underlying cost of production compared with some of its competitors. Kakuzi Limited, 50.7% owned by the group, has recently announced that it is negotiating the phased sale of the Siret Tea Company Limited to an empowerment company owned principally by tea smallholders located in the Nandi Hills district. Malawi also recovered from the drought of the previous year and benefited from the increased price levels resulting in higher profits. Malawi is a land-locked country and the export of tea is subject to logistical problems due to the inefficiency of the port of Beira in Mozambique and capacity problems in Durban. Nepal The political difficulties in Nepal in 2006 adversely affected the results of Himalaya Goodricke. We are continuing our discussions on the future of this company with the other shareholders. Citrus The citrus orchards in California performed very well in 2006. Recent very cold weather will affect production in the current year but it is too early to quantify the potential losses. Chile again experienced adverse weather conditions which affected the quality required for the export market, resulting in poor prices from an overcrowded domestic market. The citrus operations in South Africa have been sold as it was not considered appropriate to invest in further plantings to achieve economies of scale. Edible nuts Good production coupled with high prices resulted in very good profits from our pistachio orchard in California. The present indications are that the pistachio trees will be unaffected by the recent cold weather. Macadamia production in both Malawi and South Africa was, as expected, considerably lower than the previous year due to drought at the time of flowering. Prices have also fallen from the very high levels of 2005. The prospects for the current crop are however better but prices being offered for our South African production are at a level which does not give a reasonable profit margin. New areas of macadamia are to be planted in Kenya in 2007. Other horticulture The avocado harvest in Kenya improved over the previous year and although prices were lower, a good result was achieved. The new packhouse was opened in time to process the 2006 crop and the first season was a success with 3,067 tonnes of fruit exported in the year. Rubber production in Bangladesh was reduced because of the drought but increased prices more than compensated for this shortfall and good profits were earned. Maize and soya production increased in Brazil but market prices reduced. There are indications that prices are set to increase over the next few months. The wine grape harvest in South Africa reduced from that of the previous year but export sales of bottled wine improved in what remains a very competitive market. Production of wine grapes in Chile increased but prices were considerably lower. We disposed of our remaining table grape operation in South Africa during the year and have plans to reduce the scale of our table grape plantings in Chile. We have concluded that the growing of table grapes is subject to so many influences that we cannot control and that the achievement of consistent operating margins on relatively small-scale operations is difficult to secure. The majority of our agricultural and horticultural exports are priced in US dollars. The continuing weakness of this currency is a significant problem for our operations. Food storage and distribution Although still loss-making, the results of our cold storage and distribution business improved in 2006. The market is still very competitive and further action is being taken to reduce costs and increase efficiencies. It is no consolation that many of our competitors are also suffering from poor trading results but it is hoped that general rates in the storage sector will start to harden in the current year. The ever increasing cost of energy and high insurance premiums continue to make life difficult for the industry and we are not immune from these problems. Affish and Wylax in The Netherlands increased sales and profits for the year. It is evident that some improvement has occurred in the fish distribution sector and restaurants appear to be busier than last year. Margins however remain small particularly for Affish's wholesale business. Engineering Our engineering operations produced good results for 2006 with continuing demand from the oil and aerospace sectors. Abbey Metal Finishing was very busy during the year and has invested in further processes to increase its market penetration. AJT Engineering also enjoyed another good year. However it continues to be difficult to attract suitably qualified personnel and the local cost of labour is increasing above national levels. A management reorganisation was carried out at AKD Engineering in Lowestoft and operating profits have improved. General Utilities enjoyed another good year despite the escalating cost of steel. A new water jet cutting machine has recently been installed for which the prospects look to be encouraging. Local authority planning considerations have resulted in the proposed expansion of the galvanising division at Great Yarmouth being delayed but it is hoped that this will proceed during 2007. Banking and financial services Duncan Lawrie increased their profits again in 2006 partially as a result of the contribution received from Douglas Deakin Young which was acquired in 2005. The Hill Martin Group was purchased towards the end of 2006 and Duncan Lawrie can now offer a very personalised service in wealth management encompassing private banking, investment management, trust management and financial planning. The prospects for this now enlarged business are encouraging. Pharmaceuticals The Siegfried Group reported consolidated sales for 2006 of CHF 359.8 million, representing a 13% increase over the previous year. Consolidated net income after tax decreased to CHF 32.4 million from CHF 36.5 million in 2005. The decline is due to exceptional earnings from a real estate sale in 2005. All of the business segments in which the Siegfried Group is active made a positive contribution to sales growth. For 2007, the Siegfried Group plans to continue strengthening its position in two core businesses, namely 'Development and production of active pharmaceutical ingredients (APIs)' and 'Development and production of demanding generics' by expanding the product portfolio of APIs and introducing new technology in the field of generics. The Siegfried division's product pipeline was successfully expanded by new projects in the field of custom synthesis for exclusives customers in the pharmaceutical industry. The renovation of existing plant required for chemical production in Zofingen continued. In its generics business, Siegfried is adding patentable technologies to its existing production and service model. In this respect, Siegfried launched a large project for inhalation applicators and related active pharmaceutical substances for which patent rights were acquired at the beginning of 2007. The first construction stage of the new pharmaceutical production plant in Malta was successfully completed in the year under review, and commercial production commenced at the beginning of 2007. The Sidroga division reported improved sales and operating income for the 2006 financial year. On 12 April 2007 Siegfried announced the sale of this division for an undisclosed price. Siegfried will henceforth concentrate on its core businesses in the pharmaceutical sector. Other associated undertakings and investments The United Leasing Company Limited in Bangladesh again suffered from a competitive marketplace and profits before tax for the year declined to £1.41 million from £2.30 million in 2005. The United Insurance Company Limited produced similar results to the previous year, including the results of its wholly owned subsidiary The Surmah Valley Tea Company. The implications of a recent Bangladesh government requirement for insurance companies to increase their paid up capital are being considered. Our investments in Bermuda enjoyed another good year. Bermuda continues to benefit from international investment particularly in the re-insurance sector and some of the companies in which we invest are prospering both from the related increase in business from that source and from their own expansion overseas. A recent offer for all the shares of Getaz Romang Holding SA has been successful. The disposal of our shareholding in this company will give rise to a profit of approximately £4.90 million in 2007. Development We continue to develop our tea interests in the field and factory. The business review outlines our commitment to employee welfare, and initiatives in this respect will continue. Duncan Lawrie has made two acquisitions in the last two years and a period of consolidation is now appropriate. We will seek to develop our engineering operations when prospects and market conditions for the individual companies are favourable. The development of our management information systems is also on-going. Pensions I referred at length to the unsatisfactory circumstances surrounding our pension schemes in my statement last year. The improvement in the equity markets and an increase in interest rates have resulted in a reduction in some of the scheme deficits. However, after an exhaustive appraisal, all our UK final salary schemes have been closed to new members and one scheme is to be closed completely. This is most unfortunate but new defined contribution schemes have been put in place with what we believe to be generous company contributions rates. Staff Tom Lupton and Krupa David resigned from the executive committee in 2006. I am pleased to welcome to this committee Greg Haycock from Bermuda, Arun Singh from India and Imran Ahmed from Bangladesh. On behalf of the board I would like to thank all our staff both in the UK and overseas for their very positive contribution to what has been a successful year. M C Perkins Chairman 26 April 2007 Consolidated income statement for the year ended 31 December 2006 2006 2005 Notes £'000 £'000 Continuing operations Revenue 2 160,552 152,743 Cost of sales (106,239) (107,968) --------- --------- Gross profit 54,313 44,775 Other operating income 1,657 2,373 Distribution costs (8,987) (7,969) Administrative expenses (36,141) (35,978) --------- --------- Trading profit 2 10,842 3,201 Share of associates' results 4,932 5,842 Profit on disposal of non-current assets 3 929 874 Profit on disposal of non-current assets held for sale 4 952 - Profit on disposal of 'available-for-sale' investments 364 2,488 Profit on part disposal of a subsidiary - 795 Gain arising from changes in fair value of biological assets 1,176 4,147 Gain on group restructuring - 5,523 --------- --------- Profit from operations 19,195 22,870 Investment income 1,606 1,313 Finance income 5 709 707 Finance costs 5 (2,544) (2,353) Pension schemes net financing income/(cost) 5 1,016 (262) --------- --------- Net finance costs 5 (819) (1,908) --------- --------- Profit before tax 19,982 22,275 Taxation 6 (4,808) (1,764) --------- --------- Profit for the period from continuing operations 15,174 20,511 Discontinued operations Profit for the period from discontinued operations - 3,058 --------- --------- Profit for the period 15,174 23,569 ========= ========= Profit attributable to minority interests 2,271 3,243 Profit attributable to equity shareholders 12,903 20,326 --------- --------- 15,174 23,569 ========= ========= Earnings per share - basic and diluted 8 464.2 p 793.2 p Earnings per share from continuing operations - basic and diluted 8 464.2 p 692.2 p Consolidated balance sheet at 31 December 2006 2006 2005 £'000 £'000 Non-current assets Intangible assets 7,865 4,588 Property, plant and equipment 76,257 82,069 Biological assets 75,553 86,679 Prepaid operating leases 969 1,062 Investments in associates 63,672 65,672 Deferred tax assets 1,344 1,330 Financial assets 55,466 61,831 Retirement benefit surplus 3,585 2,634 Trade and other receivables 526 583 --------- --------- Total non-current assets 285,237 306,448 --------- --------- Current assets Inventories 19,067 18,204 Trade and other receivables 52,416 50,699 Current income tax assets 1,786 1,820 Cash and cash equivalents (note 9) 210,560 170,940 --------- --------- 283,829 241,663 Non-current assets classified as held for sale 167 1,036 --------- --------- Total current assets 283,996 242,699 --------- --------- Current liabilities Borrowings (16,688) (21,234) Trade and other payables (235,008) (201,779) Current income tax liabilities (2,488) (1,888) Other employee benefit obligations (142) (190) Provisions (58) (88) --------- --------- Total current liabilities (254,384) (225,179) --------- --------- Net current assets 29,612 17,520 --------- --------- Total assets less current liabilities 314,849 323,968 --------- --------- Non-current liabilities Borrowings (14,951) (10,959) Deferred tax liabilities (25,161) (27,061) Retirement benefit obligations (17,781) (21,284) Other employee benefit obligations (1,163) (1,399) Other non-current liabilities (417) (353) Provisions (112) (70) --------- --------- Total non-current liabilities (59,585) (61,126) --------- --------- Net assets 255,264 262,842 ========= ========= Equity Called up share capital 284 284 Reserves 235,677 241,632 --------- --------- Shareholders' funds 235,961 241,916 Minority interests 19,303 20,926 --------- --------- Total equity 255,264 262,842 ========= ========= Consolidated cash flow statement for the year ended 31 December 2006 2006 2005 Notes £'000 £'000 Cash generated from operations Cash flows from operating activities 10 9,235 20,753 Interest paid (2,857) (2,551) Income taxes paid (3,416) (3,435) Interest received 665 635 Dividends received from associates 1,835 1,564 -------- -------- Net cash flow from continuing operating activities 5,462 16,966 Net cash flow from discontinued operating activities - 1,730 -------- -------- Net cash flow from operating activities 5,462 18,696 Cash flows from investing activities Purchase of intangible assets (237) (105) Purchase of property, plant and equipment (8,657) (6,844) Proceeds from sale of non-current assets 2,564 2,418 Proceeds from sale of non-current assets held for sale 1,634 - Disposal of subsidiaries (net of cash disposed) 12 - 12,883 Part disposal of a subsidiary - 1,673 Acquisition of subsidiary (net of cash acquired) 12 (3,670) (4,393) Purchase of minority interests - (3,027) Minority share subscription 541 - Purchase of shares in associate (23) (16) Proceeds from sale of investments 9,596 3,200 Purchase of investments (4,378) (7,141) Income from investments 1,606 1,313 Net cash flow from discontinued operations - (1,430) -------- -------- Net cash flow from investing activities (1,024) (1,469) Cash flows from financing activities Equity dividends paid (2,474) (2,284) Dividends paid to minority interests (1,055) (1,306) Net increase in/(repayment of) debt 4,971 (9,213) Purchase of own shares (31) - -------- -------- Net cash flow from financing activities 1,411 (12,803) -------- -------- Net increase in cash and cash equivalents 5,849 4,424 Cash and cash equivalents at beginning of period 9 (6,435) (10,637) Exchange gains/(losses) on cash 44 (222) -------- -------- Cash and cash equivalents at end of period 9 (542) (6,435) ======== ======== For the purposes of the cash flow statement, cash and cash equivalents are included net of overdrafts repayable on demand. These overdrafts are excluded from the definition of cash and cash equivalents disclosed on the balance sheet. Statement of recognised income and expense for the year ended 31 December 2006 2006 2005 £'000 £'000 Foreign exchange translation differences (26,348) 12,725 Actuarial movement on defined benefit pension schemes 3,540 4,310 Movement on deferred tax relating to defined benefit pension schemes (1,185) 1,204 Available-for-sale investments: Valuation gains taken to equity 4,401 7,124 Transferred to profit or loss on sale (124) (1,562) Other fair value adjustment 69 135 Share of associate's net movement in defined benefit pension schemes 257 - Share of associates' fair value adjustments (73) (45) Share of associate's profit/(loss) on cash flow hedges 378 (585) Share of associate's income taxes on items recorded in equity (27) - -------- -------- Net (expense)/income recognised directly in equity (19,112) 23,306 Profit for the period 15,174 23,569 -------- -------- Total recognised income and expense for the period (3,938) 46,875 ======== ======== Attributable to: Minority interests (1,109) 5,767 Equity shareholders (2,829) 41,108 -------- -------- (3,938) 46,875 ======== ======== 1 General information The consolidated income statement, consolidated balance sheet, consolidated cash flow statement, consolidated statement of recognised income and expense and extracts from the notes to the accounts for 31 December 2006 and 31 December 2005 do not constitute the group's Annual Report and Accounts. The auditors have reported on the group's statutory accounts for each of the years 2006 and 2005 under Section 235 of the Companies Act 1985, which do not contain statements under Sections 237 (2) or (3) of the Companies Act and are unqualified. The statutory accounts for 2005, which were prepared under International Financial Reporting Standards adopted for use in the EU, have been delivered to the Registrar of Companies. The statutory accounts for 2006, prepared under International Financial Reporting Standards adopted for use in the EU, will be filed with the Registrar in due course. Copies of the Annual Report and Accounts will be posted to shareholders on 3 May 2007. From that date copies will be available from the registered office, Linton Park, Linton, Near Maidstone, Kent ME17 4AB. 2 Business and geographical segments The principal activities of the group are as follows: Agriculture and horticulture Engineering Food storage and distribution Banking and financial services For management reporting purposes these activities form the basis on which the group reports its primary divisions. Segment information about these businesses is presented below: 2006 Agriculture Engineering Food storage Banking and Other Consolidated and and financial operations horticulture distribution services £'000 £'000 £'000 £'000 £'000 £'000 Revenue External sales 88,549 20,255 39,266 11,096 1,386 160,552 -------- -------- -------- -------- -------- --------- Trading profit Segment profit 12,682 1,744 (512) 1,766 (9) 15,671 -------- -------- -------- -------- -------- Unallocated corporate expenses (4,829) --------- Trading profit 10,842 Share of associates'results 18 395 4,519 4,932 Profit on disposal of non-current assets 929 Profit on disposal of assets held for resale 952 Profit on disposal of 'available-for-sale' investments 364 Gain arising from changes in fair value of biological assets 1,176 1,176 Investment income 1,606 Net finance costs (819) --------- Profit before tax 19,982 Taxation (4,808) --------- Profit after tax 15,174 ========= Other information Segment assets 144,721 14,347 29,622 241,774 2,686 433,150 Investment in associates 920 2,566 60,186 63,672 Unallocated assets 72,411 --------- Consolidated total assets 569,233 ========= Segment liabilities (23,284) (2,813) (7,683) (212,355) (151) (246,286) Unallocated liabilities (67,683) --------- Consolidated total liabilities (313,969) ========= Capital expenditure 3,809 904 1,981 137 102 Depreciation (3,161) (830) (2,997) (214) (16) Amortisation (16) (6) (243) Impairment (117) 2005 Agriculture Engineering Food storage Banking and Other Consolidated and and financial operations horticulture distribution services £'000 £'000 £'000 £'000 £'000 £'000 Revenue External sales 83,861 19,441 38,734 9,350 1,357 152,743 --------- --------- --------- --------- --------- --------- Trading profit Segment profit 6,506 223 (1,004) 1,303 339 7,367 --------- --------- --------- --------- --------- Unallocated corporate expenses (4,166) --------- Trading profit 3,201 Share of associates' results 68 560 5,214 5,842 Profit on disposal of non-current assets 874 Profit on disposal of 'available-for-sale' investments 2,488 Profit on part disposal of a subsidiary 795 Gain arising from changes in fair value of biological assets 4,147 4,147 Gain on group restructuring 5,523 Investment income 1,313 Net finance costs (1,908) --------- Profit before tax 22,275 Taxation (1,764) Profit for the period from discontinued operations 3,058 --------- Profit after tax and discontinued operations 23,569 ========= Other information Segment assets 164,534 14,406 29,850 205,047 3,875 417,712 Investment in associates 1,052 2,781 61,839 65,672 Unallocated assets 65,763 --------- Consolidated total assets 549,147 ========= Segment liabilities (28,105) (4,016) (7,406) (177,361) (103) (216,991) Unallocated liabilities (69,314) --------- Consolidated total liabilities (286,305) ========= Capital expenditure 4,423 461 1,338 366 44 Depreciation (2,956) (837) (2,910) (234) (12) Amortisation (15) (11) (78) Impairment (111) (179) Segment assets consist primarily of intangible assets, property, plant and equipment, biological assets, prepaid operating leases, inventories, trade and other receivables and cash and cash equivalents. Receivables for tax have been excluded. Investment in associates, valued using the equity method, have been shown separately in the segment information. Segment liabilities are primarily those relating to the operating activities and generally exclude liabilities for taxes, short-term loans, finance leases and non-current liabilities. Geographical segments The group operations are based in nine main geographical areas. The United Kingdom is the home country of the parent. The principal territories in which the group operates are as follows: United Kingdom Continental Europe India Kenya Malawi Bangladesh North America and Bermuda South Africa South America The following table provides an analysis of the group's sales by geographical market, irrespective of the origin of the goods/services: 2006 2005 £'000 £'000 United Kingdom 66,908 65,242 Continental Europe 19,055 17,799 India 35,241 32,451 Kenya 12,908 11,361 Malawi 4,485 3,118 Bangladesh 7,944 8,375 North America 3,390 4,115 South Africa 2,512 1,987 South America 3,184 3,112 Other 4,925 5,183 --------- --------- 160,552 152,743 ========= ========= The following is an analysis of the carrying amount of segment assets, and additions to property, plant and equipment, analysed by the geographical area in which the assets are located: Carrying amount of Additions to property, segment assets plant and equipment 2006 2005 2006 2005 £'000 £'000 £'000 £'000 United Kingdom 280,918 246,800 2,815 1,965 Continental Europe 4,179 3,493 192 58 India 40,495 48,192 825 1,548 Kenya 37,603 36,723 699 947 Malawi 24,955 27,962 659 841 Bangladesh 19,743 23,587 826 550 North America 4,148 3,109 305 82 South Africa 9,495 14,721 273 254 South America 11,614 13,125 339 387 ---------- ---------- ---------- ---------- 433,150 417,712 6,933 6,632 ========== ========== ========== ========== 3 Profit on disposal of non-current assets 2006 2005 £'000 £'000 Profit on disposal of property, plant and equipment associated with the production of tea in South Africa - 525 Profit on disposal of other land and property 929 349 --------- -------- 929 874 ========= ======== 4 Profit on disposal of non-current assets held for sale A profit of £952,000 was realised in relation to property, plant and equipment of Eastern Produce South Africa (Pty) Limited (formerly Sapekoe (Pty) Limited) which had previously been used in the group's production of tea in South Africa and were reclassified as being held for sale in 2005. 5 Finance income and costs 2006 2005 £'000 £'000 Interest payable on loans and bank overdrafts (2,341) (2,445) Interest payable on obligations under finance leases (144) (121) -------- -------- Total borrowing costs (2,485) (2,566) Net exchange (loss)/gain on foreign currency borrowings (59) 213 -------- -------- Finance costs (2,544) (2,353) Finance income - interest income on short-term bank deposits 709 707 Pension schemes net financing income/(cost) 1,016 (262) -------- -------- Net finance costs (819) (1,908) ======== ======== The above figures do not include any amounts relating to the banking subsidiaries. 6 Taxation on profit on ordinary activities Analysis of charge in the year 2006 2005 £'000 £'000 £'000 Current tax UK corporation tax UK corporation tax at 30.0 per cent. (2005: 30.0 per cent.) 2,004 3,853 Adjustment in respect of prior years (152) (115) Double tax relief (1,709) (3,670) -------- -------- 143 68 Foreign tax Corporation tax 3,789 1,980 Adjustment in respect of prior years 263 10 -------- -------- 4,052 1,990 -------- -------- Total current tax 4,195 2,058 Deferred tax Origination and reversal of timing differences United Kingdom (486) (1,855) Overseas 1,099 1,561 -------- -------- Total deferred tax 613 (294) -------- -------- Tax on profit on ordinary activities 4,808 1,764 ======== ======== Factors affecting tax charge for the year Profit on ordinary activities before tax 19,982 22,275 Less: share of associated undertakings profit 4,932 5,842 -------- -------- Group profit on ordinary activities before tax 15,050 16,433 -------- -------- Tax on ordinary activities at the standard rate of corporation tax in the UK of 30.0 per cent. (2005:30.0 per cent.) 4,515 4,930 Effects of: Adjustment to tax in respect of prior years 111 (105) Expenses not deductible for tax purposes 256 415 Adjustment in respect of foreign tax rates 460 (243) Additional tax arising on dividends from overseas companies 353 121 Profit on disposal of non taxable assets (702) (1,247) Other income not charged to tax (246) (69) Increase in tax losses carried forward 635 - Decrease in tax losses carried forward (462) (148) Gain on group restructuring - (1,945) Movement in other timing differences (112) 55 -------- -------- Current tax charge for the year 4,808 1,764 ======== ======== 7 Equity dividends 2006 2005 £'000 £'000 Amounts recognised as distributions to equity holders in the period: Final dividend for the year ended 31 December 2005 of 69.00p (2004:68.00p) per share 1,918 1,765 Interim dividend for the year ended 31 December 2006 of 20.00p (2005:20.00p) per share 556 519 -------- -------- 2,474 2,284 ======== ======== Dividends amounting to £56,000 (2005: £55,000) have not been included as group companies hold 62,500 issued shares in the company. These are classified as treasury shares. Proposed final dividend for the year ended 31 December 2006 of 70.00p (2005:69.00p)per share 1,989 1,961 ======== ======== The proposed final dividend is subject to approval by the shareholders at the annual general meeting and has not been included as a liability in these financial statements and will be payable on 4 July 2007 to shareholders on the register of members at the close of business on 15 June 2007. 8 Earnings per share (EPS) 2006 2005 Weighted Weighted average average number of number of Earnings shares EPS Earnings shares EPS £'000 Number Pence £'000 Number Pence Basic and diluted EPS Continuing and discontinued operations Attributable to ordinary shareholders 12,903 2,779,784 464.2 20,326 2,562,401 793.2 -------- ----------- ------- -------- ----------- ------- Continuing operations Attributable to ordinary shareholders 12,903 2,779,784 464.2 17,737 2,562,401 692.2 -------- ----------- ------- -------- ----------- ------- Discontinued operations Attributable to ordinary shareholders - - - 2,589 2,562,401 101.0 -------- ----------- ------- -------- ----------- ------- Basic and diluted earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period, excluding those held by the group as treasury shares (62,500). 9 Cash and cash equivalents 2006 2005 £'000 £'000 Cash at bank and in hand 179,318 151,383 Short-term bank deposits 6,696 6,206 Short-term liquid investments 24,546 13,351 --------- --------- 210,560 170,940 ========= ========= Included in the amounts above are cash and short-term funds, time deposits with banks and building societies and certificates of deposit amounting to £198,422,000 (2005: £159,757,000) which are held by the group's banking subsidiaries and which are an integral part of the banking operations. Cash, cash equivalents and bank overdrafts include the following for the purposes of the cash flow statement: 2006 2005 £'000 £'000 Cash and cash equivalents (excluding banking operations) 12,138 11,183 Bank overdrafts (12,680) (17,618) --------- --------- (542) (6,435) ========= ========= 10 Reconciliation of profit from operations to cash flow 2006 2005 £'000 £'000 Profit from operations 19,195 22,870 Share of associates' results (4,932) (5,842) Depreciation and amortisation 7,673 7,249 Impairment of non-current assets 117 336 Gain arising from changes in fair value of biological assets (1,176) (4,147) Loss on disposal of investment - 25 Profit on disposal of non-current assets (929) (874) Profit on disposal of non-current assets held for sale (952) - Profit on part disposal of a subsidiary - (795) Profit on disposal of investments (364) (2,488) Gain on group restructuring - (5,523) (Increase)/decrease in working capital (2,743) 31,521 Net increase in funds of banking subsidiaries (6,654) (21,579) --------- --------- 9,235 20,753 ========= ========= 11 Reconciliation of net cash flow to movement in net debt 2006 2005 £'000 £'000 Increase in cash and cash equivalents in the period 5,849 4,424 Cash (inflow)/outflow from (increase)/decrease in debt (3,486) 11,771 -------- -------- Decrease in net debt resulting from cash flows 2,363 16,195 Net cash balances of subsidiaries sold - (1,434) Loans of subsidiaries sold - 2,002 New finance leases (1,734) (1,124) Exchange rate movements 881 (504) -------- -------- Decrease in net debt in the period 1,510 15,135 Net debt at beginning of period (21,010) (36,145) -------- -------- Net debt at end of period (19,500) (21,010) ======== ======== 12 Acquisition and disposal of businesses Acquisition Acquisition Disposal 2006 2005 2005 £'000 £'000 £'000 Book value of assets and liabilities: Property, plant and equipment 86 124 3,252 Biological assets - - 4,292 Financial assets - - 75 Deferred tax asset - - 31 Cash and cash equivalents 529 1,252 1,435 Inventories - - 1,386 Trade and other receivables 875 626 1,936 Current income tax assets - - 1,101 Non-current assets classified as held for sale - - 11,157 Trade and other payables (359) (577) (9,135) Current income tax liabilities (18) - - Borrowings - - (2,002) Other non-current liabilities - - (43) -------- -------- -------- 1,113 1,425 13,485 Fair value adjustments: Intangible assets - customer relationships 1,847 2,967 - Trade and other receivables 7 - - -------- -------- -------- 2,967 4,392 13,485 Goodwill 1,481 1,253 - Minority interest - - (4,334) Profit on disposal - - 5,167 -------- -------- -------- 4,448 5,645 14,318 ======== ======== ======== Satisfied by: Cash consideration and costs 4,199 5,645 14,318 Loan notes 249 - - -------- -------- -------- 4,448 5,645 14,318 ======== ======== ======== Net (outflow)/inflow of cash in respect of acquisition and disposal of businesses: Cash consideration and costs (4,199) (5,645) 14,318 Net cash balances of business acquired/(sold) 529 1,252 (1,435) -------- -------- -------- (3,670) (4,393) 12,883 ======== ======== ======== On 27 September 2006, the group acquired 100 per cent. of the issued share capital of Hill Martin Holdings Limited and Hill Martin Limited (together 'Hill Martin') for initial consideration of £4,448,000. Further consideration is payable, dependent upon revenues in Hill Martin Limited for the three years ending 30 June 2008. Hill Martin contributed £852,000 operating income and £166,000 to the group's profit before tax for the period between the date of acquisition and the balance sheet date. Shareholders in Hill Martin Limited, were offered a choice of cash or loan notes for their shares, the latter carrying interest at a floating rate of 0.25 per cent. over the base rate of Duncan Lawrie Limited. The loan notes are repayable on or before 31 December 2008. In 2005, the group acquired 100 per cent. of the issued share capital of Douglas Deakin Young Limited and disposed of its 70.5 per cent. interest in East African Coffee Plantations Limited. Press Enquiries: Malcolm Perkins, Chairman Tel: 01622 746655 This information is provided by RNS The company news service from the London Stock Exchange BZBBQ

Companies

Camellia (CAM)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today