Interim Results
Camellia PLC
11 September 2003
Camellia Plc
Interim results for the period ended 30th June 2003
Chairman's Statement
Pre-tax profits of £2,169,000 for the six months to 30th June 2003 compared with
£2,221,000 for the same period last year.
The Board has declared an interim dividend of 20p per ordinary share payable on
7th November 2003 to shareholders on the register on 17th October 2003.
Tea and Coffee
India
Crops are slightly ahead of last year, but prices are very disappointing. This
is partly due to an increasing amount of product coming from the smallholder
sector. Instant tea is having a good year and has received orders for production
well into 2004.
Bangladesh
Prices are higher than for the same period last year and crops are also ahead.
Bangladesh has the advantage of an enlarging domestic market and good export
orders to Pakistan.
Africa
Tea production is comparable to the previous year, but prices have been
disappointing. A drought in South Africa resulted in a reduced tea crop and some
gardens were closed during the period. Coffee prices continue at levels
substantially below cost of production. The very strong South African Rand and
relatively strong Kenya Shilling have resulted in a significant reduction in
income, whilst costs continue to increase in local currency terms.
Citrus
We have encountered adverse weather conditions in Australia, where drought has
led to a reduction in crop. Severe water restrictions are already in place and
this must inevitably impact on future production levels.
Edible Nuts
Production of macadamia in Malawi and South Africa has been satisfactory and
prices have been relatively strong in dollar terms. Pistachio production in
California will be reduced on account of the alternate bearing cycle.
Other Horticulture
Climatic conditions in South Africa and Chile led to poor table grape production
although wine grape production was satisfactory in Australia and South Africa.
The wine market, however, continues to be over supplied and prices are under
pressure. The recent improvement in the Brazilian operations has continued into
2003 and the prospects for the year are satisfactory assuming stable currency
rates. Rubber production in Bangladesh continues to meet its budget and prices
are satisfactory.
Food Storage and Distribution
Profits are considerably below expectation from Associated Cold Stores &
Transport as pressure on margins continues. W. G. White is suffering from a
decline in caviar sales.
Engineering
Our engineering activities have experienced mixed fortunes during the period
with some reasonable results being countered by a continued shortage of activity
in the aerospace and North Sea oil exploration sectors.
Banking
The reorganisation of Duncan Lawrie has continued during 2003. The business
support and processing functions have been relocated to group premises at
Wrotham thereby offering the opportunity of better utilisation of space.
Increased investment activity and a reduction in costs has resulted in the bank
making a welcome return to profitability.
Pharmaceutical
Our associated company, Siegfried AG, produced very satisfactory half-year
results, which included a large one-off licence fee for its generics business.
For the second half of 2003, Siegfried has expressed caution regarding its
trading prospects and expects lower sales due to exchange rate movements and the
discontinuation of two important products. The downturn in the market for
Siegfried products will be more pronounced in 2004, but action to reduce costs
has already been implemented.
Other Associated Undertakings
The United Leasing Company Limited and the United Insurance Company Limited in
Bangladesh have both enjoyed a reasonable first half to the year and the
prospects of these companies for the full year remain encouraging.
Prospects
Linton Park has experienced very difficult conditions in a number of its trading
activities and at present there appears to be little prospect of any
alleviation. Tea operations in India are also facing an uncertain future. It is
difficult to make any definitive prediction of the outcome for the full year,
but the prospects are not encouraging.
M C Perkins
Chairman Linton Park
Linton
Near Maidstone
11th September 2003 Kent ME17 4AB
Consolidated Profit and Loss Account
for the six months ended 30th June 2003
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
Notes £'000 £'000 £'000
Turnover
- continuing operations 80,502 77,706 169,511
- discontinued operations - 3,577 7,012
-------- -------- ---------
1 80,502 81,283 176,523
-------- -------- ---------
Operating (loss)/profit
- continuing operations 1 (4,030) (1,847) 5,853
- discontinued operations - (67) 136
-------- -------- ---------
(4,030) (1,914) 5,989
Share of results of
associates 6,692 5,447 11,670
-------- -------- ---------
1 2,662 3,533 17,659
Investment income 713 792 1,431
Profit on disposal of
fixed asset investments 3 558 182 170
Profit on disposal of
fixed assets 325 - 195
Profit/(provision for loss)
on disposal of a
subsidiary and a business 4 98 - 255
--------- -------- ---------
Profit on ordinary
activities before interest 4,356 4,507 19,710
Net interest payable and
similar charges 5 2,187 2,286 4,281
--------- -------- ---------
Profit on ordinary
activities before taxation 2,169 2,221 15,429
Taxation on profit on
ordinary activities 6 1,292 2,505 4,827
--------- -------- ---------
Profit/(loss) on ordinary
activities after taxation 877 (284) 10,602
Interest of minority
shareholders 154 1,045 3,453
--------- --------- ----------
Attributable profit/(loss)
for the period 723 (1,329) 7,149
---------- ---------- -----------
Dividends 7 519 532 2,270
Earnings per share 8 27.75p (49.95)p 269.57p
Consolidated Balance Sheet
at 30th June 2003
30th June 30th June 31st December
2003 2002 2002
£'000 £'000 £'000
Fixed assets
Intangible assets
Goodwill
Positive 1,218 1,183 1,265
Negative (3,422) (3,874) (3,648)
-------- -------- ---------
(2,204) (2,691) (2,383)
Tangible assets 168,841 167,544 166,232
Investments 81,457 76,725 79,387
-------- -------- ---------
248,094 241,578 243,236
-------- -------- ---------
Current assets
Stocks 28,894 31,203 31,467
Debtors 60,645 55,305 56,650
Cash at banks and in hand (note 9) 162,352 172,178 154,738
-------- -------- ---------
251,891 258,686 242,855
Creditors: amounts falling due
within one year (224,423) (223,553) (210,650)
-------- -------- ---------
Net current assets 27,468 35,133 32,205
-------- -------- ---------
Total assets less current
liabilities 275,562 276,711 275,441
Creditors: amounts falling due
after more than one year (38,428) (41,357) (38,047)
Provisions for liabilities and
charges (6,070) (7,122) (7,240)
-------- -------- ---------
231,064 228,232 230,154
-------- -------- ---------
Capital and reserves
Called up share capital 260 266 264
Reserves 170,439 168,134 170,135
-------- -------- ---------
Equity shareholders' funds 170,699 168,400 170,399
Minority shareholders' interest 60,365 59,832 59,755
-------- -------- ---------
231,064 228,232 230,154
-------- -------- ---------
Consolidated Cash Flow Statement
for the six months ended 30th June 2003
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
Notes £'000 £'000 £'000
Net cash flow from
operating activities 10 1,372 3,243 12,810
Dividends received/capital
distribution from associates 2,114 158 1,031
Returns on investments
and servicing of finance (1,951) (2,953) (4,020)
Taxation paid (645) (1,330) (2,736)
Capital expenditure and
financial investment (3,569) (4,742) (10,635)
Acquisitions and disposals 971 412 3,699
Equity dividends paid - - (2,287)
-------- -------- ---------
Cash outflow before
financing (1,708) (5,212) (2,138)
Financing
New loans 4,916 5,873 5,242
Loan and finance lease
payments (3,917) (3,155) (6,264)
Purchase of own shares (1,259) (1,514) (2,079)
-------- -------- ---------
Decrease in cash in the
period 11 (1,968) (4,008) (5,239)
-------- -------- ---------
Statement of Total Recognised Gains and Losses
for the six months ended 30th June 2003
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
£'000 £'000 £'000
Attributable profit/(loss)
for the period 723 (1,329) 7,149
Exchange differences 1,355 (2,738) (6,914)
-------- -------- ---------
Total recognised gains and
losses for the period 2,078 (4,067) 235
Prior period adjustment - (4,515) (4,515)
-------- -------- ---------
2,078 (8,582) (4,280)
-------- -------- ---------
The prior period adjustment is the additional deferred tax provision
attributable to equity shareholders arising from the adoption of FRS 19 -
'Deferred Tax'.
Reconciliation of Movement in Shareholders' Funds
for the six months ended 30th June 2003
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
£'000 £'000 £'000
Attributable profit/(loss)
for the period 723 (1,329) 7,149
Dividends (519) (532) (2,270)
Exchange differences 1,355 (2,738) (6,914)
Purchase of own shares (1,259) (1,514) (2,079)
-------- -------- ---------
Net movement to shareholders' funds 300 (6,113) (4,114)
Opening equity shareholders' funds 170,399 174,513 174,513
-------- -------- ---------
Closing equity shareholders' funds 170,699 168,400 170,399
-------- -------- ---------
Notes to the Accounts
1 Segmental analysis of turnover and operating profit/(loss)
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
£'000 £'000 £'000
Turnover
By activity
Agriculture and horticulture 50,967 48,496 111,327
Trading and agency 205 174 133
Food storage and distribution 20,452 21,200 42,791
Engineering 7,899 6,743 13,122
Property leasing 970 972 2,068
Central management and miscellaneous 9 121 70
-------- -------- ---------
80,502 77,706 169,511
Discontinued - Trading and agency - 3,447 6,761
Discontinued - Fine art trading - 130 251
-------- -------- ---------
80,502 81,283 176,523
-------- -------- ---------
By country of origin
United Kingdom 24,497 23,822 47,168
Continental Europe 4,797 4,959 10,290
India 12,110 11,092 32,112
Kenya 9,825 10,025 20,787
Malawi 7,291 7,232 9,634
Bangladesh 3,104 3,648 8,966
North America 244 146 1,439
South America and Bermuda 1,750 1,471 1,422
Australia 9,399 7,869 22,858
South Africa 7,485 7,442 14,835
-------- -------- ---------
80,502 77,706 169,511
Discontinued - United Kingdom - 3,577 7,012
-------- -------- ---------
80,502 81,283 176,523
-------- -------- ---------
Operating Profit
By activity
Agriculture and horticulture (2,595) (714) 8,842
Trading and agency 724 690 501
Food storage and distribution (441) 282 576
Engineering 453 478 421
Property leasing 951 942 1,993
Banking 187 (287) (83)
Central management and miscellaneous (3,312) (3,241) (5,595)
-------- -------- ---------
(4,033) (1,850) 6,655
Discontinued - Trading and agency - 35 (3)
Discontinued - Fine art trading - (102) 139
-------- -------- ---------
(4,033) (1,917) 6,791
Profit on sale of investments
to group company included in
banking results - - (795)
Net interest received/(paid) by
banking operations from/to
group companies 3 3 (7)
-------- -------- ---------
(4,030) (1,914) 5,989
Associated undertakings
Agriculture and horticulture (85) (116) (44)
Pharmaceutical 6,242 5,108 10,504
Insurance and leasing 535 455 1,210
-------- -------- ---------
2,662 3,533 17,659
-------- -------- ---------
Operating Profit
By country of origin
United Kingdom (1,251) (933) (2,657)
Continental Europe (2) 2 120
India (3,234) (4,070) (51)
Kenya 114 1,043 3,209
Malawi 2,384 2,303 1,563
Bangladesh (272) (943) 1,053
North America (36) (160) 460
South America and Bermuda 447 (81) (542)
Australia (589) 89 1,452
South Africa (1,591) 903 1,246
-------- -------- ---------
(4,030) (1,847) 5,853
Discontinued - United Kingdom - (67) 136
-------- -------- ---------
(4,030) (1,914) 5,989
-------- -------- ---------
2 Business interruption insurance proceeds of £268,000 (2002 six months:
£415,000 - year: £829,000) have been credited to operating profit.
3 The profit on disposal of £558,000 in the six months to 30th June 2003,
relates to the disposal of an unlisted investment in The Tay Salmon Fisheries
Company Limited in which the Group had a 13.0 per cent. holding. The minority
interest relating to this profit on disposal is £116,000.
4 Profit/(provision for loss) on disposal of a subsidiary and a business
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2003 2002 2002
£000 £000 £000
Profit on disposal of subsidiaries 280 - 255
Provision for loss on disposal
of a business (182) - -
-------- -------- ---------
98 - 255
-------- -------- ---------
In the six months to 30th June 2003, the Group realised a profit of £280,000
on the disposal of its interest in British Traders & Shippers Limited. In
addition, the Group also made a provision of £182,000 which relates to SWF
Citrus Inc.'s citrus estates in Florida which are in the course of
disposal.
5 Net interest payable includes £273,000 (2002 six months: £363,000 - year:
£537,000) in respect of the Group's share of associated undertakings' net
interest.
6 Taxation includes overseas taxation of £275,000 (2002 six months:
£1,339,000 - year: £3,199,000) and share of associated undertakings' taxation
charge of £1,682,000 (2002 six months: £1,306,000 - year: £2,747,000).
7 Dividends
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
£'000 £'000 £'000
Interim of 20p per share (2002: 20p) 519 532 528
Final for 2002 of 66p per share - - 1,742
-------- -------- ---------
519 532 2,270
-------- -------- ---------
8 The calculation of earnings per share is based on attributable profit/
(loss) divided by the weighted average number of ordinary shares in issue
which was 2,605,450 (2002 six months: 2,660,540 - year: 2,652,023).
9 Included in cash at banks and in hand of £162,352,000 (2002 six months:
£172,178,000 - year: £154,738,000) are cash and short-term funds, time
deposits with banks and building societies and certificates of deposit
amounting to £153,637,000 (2002 six months: £160,033,000 - year:
£144,439,000), which are held by banking subsidiaries and which are an
integral part of the banking operations of the Group.
10 Reconciliation of operating (loss)/profit to net cash flow from operating
activities
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
£'000 £'000 £'000
Operating (loss)/profit (4,030) (1,914) 5,989
Depreciation 4,346 4,372 8,539
Amortisation of goodwill (179) (190) (375)
Profit on sale of fixed assets (93) (95) (250)
Decrease/(increase) in working
capital 9,503 12,203 (3,871)
Net (increase)/decrease in funds
of banking subsidiaries (9,198) (12,344) 3,250
Currency adjustment 1,023 1,211 (472)
-------- -------- ---------
Net cash flow from operating
activities 1,372 3,243 12,810
-------- -------- ---------
11 Reconciliation of net cash flow to movements in net debt
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
£'000 £'000 £'000
Decrease in cash in the period (1,968) (4,008) (5,239)
Cash (inflow)/outflow from
changes in debt and financing (999) (2,718) 1,022
-------- -------- ---------
Change in net debt resulting
from cash flows (2,967) (6,726) (4,217)
Businesses sold 136 666 (3,557)
New finance leases - - (824)
Translation differences (923) (944) 219
-------- -------- ---------
Increase in net debt in the period (3,754) (7,004) (8,379)
Net debt at beginning of period (57,417) (49,038) (49,038)
-------- -------- ---------
Net debt at end of period (61,171) (56,042) (57,417)
-------- -------- ---------
12 The accounts to 30th June 2003 have been prepared on the basis of the
accounting policies set out in the financial statements for the year ended
31st December 2002. The six months figures are unaudited and have not been
reviewed by the company's auditors. The figures for the year ended 31st
December 2002 are an abridged statement from the Group's accounts at that
date which have been delivered to the Registrar of Companies. The Auditors'
Report on these accounts was unqualified.
13 The interim dividend of 20p per share is payable on 7 November 2003 to
shareholders on the register on 17 October 2003.
14 The interim report will be posted to shareholders and will be available to
the public this afternoon, 11 September 2003.
Press enquiries
Malcolm Perkins, Chairman
01622 746655
This information is provided by RNS
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Tuesday, 14th May 2024
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