TIDMCAM
RNS Number : 6608M
Camellia PLC
29 August 2013
Camellia Plc
Half yearly report for period ended 30 June
2013
Highlights from the
results
Six months Six months
ended ended
30 June 30 June
2013 2012
GBP'000 GBP'000
restated
- see note
2
Revenue 113,753 110,389
Trading profit 8,741 6,694
Profit before tax 11,930 28,555
Headline profit before
tax 12,466 11,739
Profit for the period 6,565 19,782
Earnings per share 156.9 p 514.5 p
Interim dividend 34 p 32 p
Chairman's statement
The headline profit before tax was GBP12,466,000 for the six
months to 30 June 2013 compared with GBP11,739,000 in the same
period last year. Headline profit is a measure of underlying
performance which is not impacted by exceptional and other items.
In the comparative period for the six months to 30 June 2012,
biological asset gains were GBP16,079,000 of which GBP15,751,000
were attributable to our Malawi operations following the
devaluation of the Malawian Kwacha in that period. After taking
account of this and exceptional items the profit before tax for the
six month period to 30 June 2013 amounted to GBP11,930,000 (2012:
GBP28,555,000).
The board has declared an interim dividend of 34p per ordinary
share payable on 4 October 2013 to shareholders registered on 6
September 2013.
Tea
India
Weather in Assam has been erratic with periods of drought mixed
with prolonged wet spells in different gardens. The impact on the
crop has been mixed. Overall it is behind budget despite being
ahead of the same period last year in some gardens. Tea prices in
Assam have been higher than in the same period last year.
Growing conditions in the Dooars and Darjeeling have been more
favourable with crops to date ahead of last year but tea prices
have been similar to the same period last year.
Bangladesh
Crops recovered from the drought conditions earlier in the year
following a period of plentiful rainfall. Prices have remained high
throughout the period but have recently softened following the
withdrawal of the supplemental import tax on tea of 20% leaving the
import duty on black tea at 62%.
Africa
Production in Kenya has continued to be well ahead of the same
period last year following the high levels of rainfall earlier in
the year. Prices have declined at auction but the higher volumes
have reduced the cost of production resulting in profits similar to
the previous period.
Yields in Malawi have recovered significantly following recent
rainfall and production is slightly ahead of budget and ahead of
the same period last year. The rebuilding of the Makwasa factory,
following the fire in August 2011, has been completed two months
ahead of schedule and good quality tea is now being produced.
Edible nuts
The production of macadamia nuts in Malawi is down on budget
following the dry period at the time of flowering. However, the
quality of the nuts at cracking has been good. In South Africa the
macadamia harvest is underway with volumes expected to be down on
budget following poor climatic conditions at the end of last year.
Prices remain firm.
In California, 2013 is an "off" year for pistachio production
and the volume of crop will be minimal.
Other horticulture
The avocado harvest in Kenya has commenced but volumes are
expected to be lower than last year and prices have also been lower
following the high volumes of fruit from Peru and South Africa
available in Europe.
Citrus production in California is well ahead of budget and
prices remain higher than last year.
The arable harvest to date in Brazil has been ahead of
expectations. The costs of production and sale prices have both
increased over those of 2012.
The volume of wine sales from South Africa has started to
increase following a sustained marketing campaign.
Food storage and distribution
Storage levels at ACS&T have continued to improve but
pressures on margins remain with sustained competition in the
industry.
Our operations in the Netherlands have seen an increase in
demand but there is a shortage of supply for certain products.
Conditions remain challenging.
Engineering
The UK businesses of AJT Engineering servicing the oil and the
gas sector have seen an increase in demand and profits are in line
with budget.
Production at the new factory in Hinkley for Abbey Metal has
started to increase with strong performance in the civil aviation
sector. Earlier in the year, Atfin GmbH was incorporated, 51% owned
by Abbey Metal and 49% by Aerotech. This company will operate an
etching line in Peissenberg, Germany and will service their major
German aviation customers. The company is expected to be
operational by the beginning of next year.
Our other engineering companies have had mixed results but the
level of orders has recently started to increase.
Banking
The Duncan Lawrie marketing campaign has resulted in an increase
in new accounts but the lack of any realistic margin on depositors'
funds continues to adversely affect the results. A newly
refurbished office has been opened in Bristol which provides
services to targeted niche clients in the West Country. Lending
opportunities are increasing and further capital has been made
available to increase our share of the lending market. The asset
management operation has performed well during the period,
particularly with the increase in the equity market.
Prospects
Our agricultural operations are continuing to make a positive
contribution to profits. The increasing costs of production remain
a concern for the future. The continuation of this contribution is
of course dependent on benign climatic conditions, reasonable sale
prices and the continued political stability in the countries in
which we operate, none of which can be guaranteed. The group has no
net debt and remains in a strong financial position but, as usual,
it is not possible to give any indication of the likely outcome for
the full year.
M C Perkins
Chairman
29 August 2013
Interim management report
The chairman's statement forms part of this report and includes
important events that have occurred during the six months ended 30
June 2013 and their impact on the financial statements set out
herein.
Principal risks and uncertainties
The directors' report in the statutory financial statements for
the year ended 31 December 2012 (the accounts are available on the
company's website: www.camellia.plc.uk) highlighted risks and
uncertainties that could have an impact on the group's businesses.
As these businesses are widely spread both in terms of activity and
location, it is unlikely that any one single factor could have a
material impact on the group's performance. These risks and
uncertainties continue to be relevant for the remainder of the
year. In addition, the chairman's statement included in this report
refers to certain specific risks and uncertainties that the group
is presently facing.
Statement of directors' responsibilities
The directors confirm that these condensed financial statements
have been prepared in accordance with IAS 34 'Interim Financial
Reporting' as adopted by the European Union, and that the interim
management report herein includes a fair review of the information
required by sections 4.2.7 and 4.2.8 of the Disclosure and
Transparency Rules of the United Kingdom's Financial Services
Authority.
The directors of Camellia Plc are listed in the Camellia Plc
statutory financial statements for the year ended 31 December 2012.
Mr D A Reeves did not seek re-election at the annual general
meeting. There have been no other subsequent changes of directors
and a list of current directors is maintained on the group's
website at www.camellia.plc.uk.
By order of the board
M C Perkins
Chairman
29 August 2013
Consolidated income statement
for the six months ended 30 June 2013
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
Notes GBP'000 GBP'000 GBP'000
restated - see note 2 restated - see note 2
Revenue 4 113,753 110,389 261,529
Cost of sales (79,367) (78,753) (166,859)
---------- --------------------- ---------------------
Gross profit 34,386 31,636 94,670
Other operating income 1,134 1,059 1,699
Distribution costs (4,980) (4,314) (12,201)
Administrative expenses (21,799) (21,687) (44,370)
---------- --------------------- ---------------------
Trading profit 4 8,741 6,694 39,798
Share of associates' results 6 445 2,229 4,269
Profit on non-current assets 7 - 994 1,538
Profit on disposal of available-for-sale investments 57 246 271
Profit on disposal of a subsidiary - - 396
Loss on transfer of an associate 6 - - (10,045)
(Loss)/gain arising from changes in fair value of
biological assets:
---------- --------------------- ---------------------
Excluding Malawi Kwacha exceptional gain 8 (23) 328 8,690
Malawi Kwacha exceptional gain 8 - 15,751 21,353
(23) 16,079 30,043
---------- --------------------- ---------------------
Profit from operations 9,220 26,242 66,270
Investment income 1,159 578 1,186
Finance income 1,937 1,984 3,517
Finance costs (424) (304) (825)
Net exchange gain 608 558 1,030
Net interest expense on employee benefit obligations (570) (503) (1,468)
Net finance income 9 1,551 1,735 2,254
---------- --------------------- ---------------------
Profit before tax 11,930 28,555 69,710
Comprising
- headline profit before tax 5 12,466 11,739 48,975
- exceptional items, (loss)/gain arising from
changes in
fair value of biological assets and other
financing gains and losses 5 (536) 16,816 20,735
---------- --------------------- ---------------------
11,930 28,555 69,710
Taxation 10 (5,365) (8,773) (25,662)
---------- --------------------- ---------------------
Profit for the period 6,565 19,782 44,048
---------- --------------------- ---------------------
Profit attributable to:
Owners of the parent 4,359 14,300 31,210
Non-controlling interests 2,206 5,482 12,838
---------- --------------------- ---------------------
6,565 19,782 44,048
---------- --------------------- ---------------------
Earnings per share - basic and diluted 12 156.9p 514.5p 1,122.9p
Statement of comprehensive income
for the six months ended 30 June 2013
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
restated - see note 2 restated - see note 2
Profit for the period 6,565 19,782 44,048
---------- --------------------- ---------------------
Other comprehensive income/(expense):
Items that will not be reclassified subsequently to profit
or
loss:
Remeasurements of post employment benefit obligations (note
17) 12,287 (4,390) (6,085)
---------- --------------------- ---------------------
12,287 (4,390) (6,085)
---------- --------------------- ---------------------
Items that may be reclassified subsequently to profit or
loss:
Foreign exchange translation differences 14,227 (21,320) (36,155)
Release of exchange translation difference on transfer of
associate - - (3,998)
Release of other reserve movements on transfer of associate - - 2,817
Release of exchange translation difference on disposal of
subsidiary - - 5
Available-for-sale investments:
Valuation gains/(losses) taken to equity 2,277 (13) 674
Transferred to income statement on sale (31) (5) (4)
Share of other comprehensive expense of associates - (811) (769)
Tax relating to components of other comprehensive income - - (48)
---------- --------------------- ---------------------
16,473 (22,149) (37,478)
---------- --------------------- ---------------------
Other comprehensive income/(expense) for the period, net
of tax 28,760 (26,539) (43,563)
---------- --------------------- ---------------------
Total comprehensive income/(expense) for the period 35,325 (6,757) 485
---------- --------------------- ---------------------
Total comprehensive income/(expense) attributable to:
Owners of the parent 30,957 (7,413) (4,356)
Non-controlling interests 4,368 656 4,841
---------- --------------------- ---------------------
35,325 (6,757) 485
---------- --------------------- ---------------------
Consolidated balance sheet
at 30 June 2013
30 June 30 June 31 December
2013 2012 2012
Notes GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 7,300 7,549 7,413
Property, plant and equipment 13 97,865 93,438 93,483
Biological assets 128,246 115,767 119,693
Prepaid operating leases 977 965 910
Investments in associates 6 7,448 38,392 6,549
Deferred tax assets 332 154 314
Financial assets 6 56,768 29,716 50,501
Other investments 8,700 8,548 8,598
Retirement benefit surplus 740 427 678
Trade and other receivables 17,303 9,231 15,174
--------- --------- -----------
Total non-current assets 325,679 304,187 303,313
--------- --------- -----------
Current assets
Inventories 40,471 36,485 37,575
Trade and other receivables 74,840 69,867 72,257
Other investments 1,004 4,001 3,993
Current income tax assets 1,452 2,946 822
Cash and cash equivalents 14 266,688 273,903 262,174
--------- --------- -----------
384,455 387,202 376,821
Assets classified as held
for sale 15 - 5,037 -
--------- --------- -----------
Total current assets 384,455 392,239 376,821
--------- --------- -----------
Current liabilities
Borrowings 16 (11,740) (11,059) (5,590)
Trade and other payables (238,097) (257,638) (235,636)
Current income tax liabilities (8,248) (5,455) (5,542)
Employee benefit obligations 17 (1,187) (335) (409)
Provisions (458) (214) (456)
--------- --------- -----------
(259,730) (274,701) (247,633)
Liabilities classified
as held for sale 15 - (2,110) -
--------- --------- -----------
Total current liabilities (259,730) (276,811) (247,633)
--------- --------- -----------
Net current assets 124,725 115,428 129,188
--------- --------- -----------
Total assets less current
liabilities 450,404 419,615 432,501
--------- --------- -----------
Non-current liabilities
Borrowings 16 (102) (133) (116)
Trade and other payables (9,787) (6,001) (9,015)
Deferred tax liabilities (36,923) (32,723) (36,225)
Employee benefit obligations 17 (19,626) (30,476) (32,866)
Other non-current liabilities (105) (108) (107)
Provisions (375) (525) (671)
--------- --------- -----------
Total non-current liabilities (66,918) (69,966) (79,000)
--------- --------- -----------
Net assets 383,486 349,649 353,501
--------- --------- -----------
Equity
Called up share capital 18 283 284 284
Share premium 15,298 15,298 15,298
Reserves 325,823 296,110 298,228
--------- --------- -----------
Total shareholders' funds 341,404 311,692 313,810
Non-controlling interests 42,082 37,957 39,691
--------- --------- -----------
Total equity 383,486 349,649 353,501
--------- --------- -----------
Consolidated cash flow statement
for the six months ended 30 June 2013
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
Notes GBP'000 GBP'000 GBP'000
Cash generated from operations
Cash flows from operating activities 19 (171) 6,251 41,162
Interest paid (423) (337) (822)
Income taxes paid (5,526) (4,369) (12,407)
Interest received 1,814 2,039 3,411
Dividends received from associates 206 750 1,275
---------- ---------- -----------
Net cash flow from operating activities (4,100) 4,334 32,619
Cash flows from investing activities
Purchase of intangible assets (88) (116) (180)
Purchase of property, plant and equipment (7,618) (9,059) (16,557)
Insurance proceeds for non-current assets - 994 1,538
Proceeds from sale of non-current assets 352 400 429
Biological assets - new planting (1,585) (1,507) (2,499)
Part disposal of a subsidiary 49 123 262
Disposal of a subsidiary - - 1,264
Purchase of non-controlling interests - (215) (223)
Purchase of own shares (925) - -
Proceeds from sale of investments 5,272 7,623 7,863
Purchase of investments (2,864) (7,213) (8,339)
Income from investments 1,159 578 1,186
---------- ---------- -----------
Net cash flow from investing activities (6,248) (8,392) (15,256)
Cash flows from financing activities
Equity dividends paid - - (3,224)
Dividends paid to non-controlling interests (2,017) (2,855) (4,106)
New loans 39 370 154
Loans repaid (55) (282) (230)
Finance lease payments (27) (114) (190)
---------- ---------- -----------
Net cash flow from financing activities (2,060) (2,881) (7,596)
---------- ---------- -----------
Net (decrease)/increase in cash and cash equivalents (12,408) (6,939) 9,767
Cash and cash equivalents at beginning of period 81,373 72,626 72,626
Exchange gains/(losses) on cash 2,976 236 (1,020)
---------- ---------- -----------
Cash and cash equivalents at end of period 71,941 65,923 81,373
---------- ---------- -----------
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.
For the purposes of the cash flow statement cash and cash equivalents comprise:
Cash and cash equivalents 266,688 273,903 262,174
Less banking operation funds (183,087) (197,651) (175,302)
Overdrafts repayable on demand (included in current
liabilities - borrowings) (11,660) (10,741) (5,499)
Cash and cash equivalents included in assets held for sale - 412 -
--------- --------- ---------
71,941 65,923 81,373
--------- --------- ---------
Statement of changes in equity
for the six months ended 30 June 2013
Non-
Share Share Treasury Retained Other controlling Total
capital premium shares earnings reserves Total interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2012 284 15,298 (400) 264,659 41,751 321,592 40,115 361,707
Total comprehensive income/(expense)
for
the period - - - 9,094 (16,507) (7,413) 656 (6,757)
Dividends - - - (2,335) - (2,335) (2,855) (5,190)
Non-controlling interest subscription - - - 29 - 29 93 122
Acquisition of non-controlling interest - - - (162) - (162) (52) (214)
Share of associates' other equity
movements - - - 21 - 21 - 21
Loss on dilution of interest in
associate - - - (40) - (40) - (40)
------- ------- -------- -------- -------- ------- ----------- -------
At 30 June 2012 284 15,298 (400) 271,266 25,244 311,692 37,957 349,649
------- ------- -------- -------- -------- ------- ----------- -------
At 1 January 2012 284 15,298 (400) 264,659 41,751 321,592 40,115 361,707
Total comprehensive income/(expense)
for
the period - - - 27,129 (31,485) (4,356) 4,841 485
Dividends - - - (3,224) - (3,224) (4,106) (7,330)
Disposal of subsidiary - - - - - - (1,333) (1,333)
Non-controlling interest subscription - - - 71 - 71 226 297
Acquisition of non-controlling interest - - - (171) - (171) (52) (223)
Share of associates' other equity
movements - - - 221 - 221 - 221
Loss on dilution of interest in
associate - - - (323) - (323) - (323)
------- ------- -------- -------- -------- ------- ----------- -------
At 31 December 2012 284 15,298 (400) 288,362 10,266 313,810 39,691 353,501
Total comprehensive income/(expense)
for
the period - - - 16,616 14,341 30,957 4,368 35,325
Dividends - - - (2,446) - (2,446) (2,017) (4,463)
Own shares acquired in the period (1) - - (925) 1 (925) - (925)
Non-controlling interest subscription - - - 8 - 8 40 48
------- ------- -------- -------- -------- ------- ----------- -------
At 30 June 2013 283 15,298 (400) 301,615 24,608 341,404 42,082 383,486
------- ------- -------- -------- -------- ------- ----------- -------
Notes to the accounts
1 Basis of preparation
These financial statements are the interim condensed
consolidated financial statements of Camellia Plc, a company
registered in England, and its subsidiaries (the "group") for the
six month period ended 30 June 2013 (the "Interim Report"). They
should be read in conjunction with the Report and Accounts (the
"Annual Report") for the year ended 31 December 2012.
The financial information contained in this interim report has
not been audited and does not constitute statutory accounts within
the meaning of Section 435 of the Companies Act 2006. A copy of the
statutory accounts for the year ended 31 December 2012 has been
delivered to the Registrar of Companies. The auditors' opinion on
these accounts was unqualified and does not contain an emphasis of
matter paragraph or a statement made under Section 498(2) and
Section 498(3) of the Companies Act 2006.
The interim condensed financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRS") including IAS 34 "Interim Financial Reporting". For these
purposes, IFRS comprise the Standards issued by the International
Accounting Standards Board ("IASB") and Interpretations issued by
the International Financial Reporting Interpretations Committee
("IFRIC") that have been adopted by the European Union.
Where necessary, the comparatives have been reclassified from
the previously reported interim results to take into account any
presentational changes made in the Annual Report.
These interim condensed financial statements were approved by
the board of directors on 29 August 2013. At the time of approving
these financial statements, the directors have a reasonable
expectation that the company and the group have adequate resources
to continue to operate for the foreseeable future. They therefore
continue to adopt the going concern basis of accounting in
preparing the financial statements.
2 Accounting policies
These interim condensed financial statements have been prepared
on the basis of accounting policies consistent with those applied
in the financial statements for the year ended 31 December 2012. In
addition, the group has implemented the following new and revised
standards and interpretations:
IAS 1 (amendment) Financial statement presentation
IAS 19 (revised) Employee benefits
IFRS 13 Fair value measurement
A summary of each of the above standards and interpretations was
provided on page 35 of the 2012 Annual Report. The adoption of IAS
1 and IFRS 13 has had no material impact on the group's results,
assets and liabilities.
IAS 19 (revised) amends the accounting for employment benefits.
The group has applied the standard retrospectively in accordance
with the transition provisions of the standard and the comparative
figures have been restated. The impact on the group has been in the
following areas:
The standard requires that only administrative costs relating to
the cost of managing plan assets can be deducted from the actual
return on assets. This has no effect on total comprehensive income
as the increased charge in profit or loss is offset by a credit in
other comprehensive income. The effect has been that the income
statement charge for the period to 30 June 2012 has increased by
GBP91,000 and for the year to 31 December 2012 has increased by
GBP171,000.
The standard replaces the interest cost on the defined benefit
obligation and the expected return on plan assets with a net
interest cost based on the net defined benefit asset or liability
and the discount rate, measured at the beginning of the year. There
is no change to determining the discount rate, this continues to
reflect the yield on high-quality corporate bonds. This has
increased the income statement charge as the discount rate applied
to assets is lower than the expected return on assets. This has no
effect on total comprehensive income as the increased charge in the
income statement is offset by a credit in other comprehensive
income. The effect has been that the income statement charge for
the period to 30 June 2012 has increased by GBP429,000 and for the
year to 31 December 2012 has increased by GBP853,000.
The effect of the change in accounting policy is to decrease
earnings per share from 533.2p to 514.5p for the period 30 June
2012 and from 1,190.4p to 1,122.9p for the year to 31 December
2012, the effect on the cash flow statement is immaterial.
3 Cyclical and seasonal factors
Due to climatic conditions the group's tea operations in India
and Bangladesh produce most of their crop during the second half of
the year. Tea production in Kenya remains at consistent levels
throughout the year but in Malawi the majority of tea is produced
in the first six months.
Soya and maize in Brazil are generally harvested in the first
half of the year. In California the pistachio crop occurs in the
second half of the year and has 'on' and 'off' years. Avocados in
Kenya are mostly harvested in the second half of the year.
There are no other cyclical or seasonal factors which have a
material impact on the trading results.
4 Segment reporting
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
Revenue Trading profit Revenue Trading profit Revenue Trading profit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
restated restated
Agriculture and horticulture 75,851 11,827 73,620 8,616 187,538 45,495
Engineering 14,568 (976) 13,990 (165) 27,675 (6)
Food storage and distribution 15,264 365 15,806 203 32,195 127
Banking and financial services 7,026 (24) 6,216 249 12,551 253
Other operations 1,044 32 757 (12) 1,570 62
------- -------------- ------- -------------- ------- --------------
113,753 11,224 110,389 8,891 261,529 45,931
------- ------- ------- --------------
Unallocated corporate
expenses* (2,483) (2,197) (6,133)
-------------- -------------- --------------
Trading profit 8,741 6,694 39,798
Share of associates' results 445 2,229 4,269
Profit on non-current assets - 994 1,538
Profit on disposal of available
for-sale investments 57 246 271
Profit on disposal of a
subsidiary - - 396
Loss on transfer of an
associate - - (10,045)
(Loss)/gain arising from
changes in fair value of
biological assets (23) 16,079 30,043
Investment income 1,159 578 1,186
Net finance income 1,551 1,735 2,254
-------------- -------------- --------------
Profit before tax 11,930 28,555 69,710
Taxation (5,365) (8,773) (25,662)
-------------- -------------- --------------
Profit after tax 6,565 19,782 44,048
-------------- -------------- --------------
Agriculture and horticulture trading profit includes exchange
gains of GBPnil (2012: six months GBP1,756,000 - year GBP2,289,000)
following the devaluation of the Malawian Kwacha.
*Unallocated corporate expenses include group marketing expenses
of GBP487,000 (2012: six months GBP303,000 - year GBP1,162,000)
incurred on behalf of the banking and financial services and
agriculture and horticulture segments.
5 Headline profit
The group seeks to present an indication of the underlying
performance which is not impacted by exceptional items or items
considered non-operational in nature. This measure of profit is
described as 'headline' and is used by management to measure and
monitor performance.
The following items have been excluded from the headline
measure:
- Exceptional items, including profit and losses from disposal
of non-current assets and available-for-sale investments.
- Gains and losses arising from changes in fair value of
biological assets, which are a non-cash item, and the
directors believe should be excluded to give a better
understanding of the group's underlying performance.
- Net interest expense on employee benefit obligations.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
restated restated restated restated
Trading profit 8,741 6,694 39,798
Share of associates' results 445 2,229 4,269
Investment income 1,159 578 1,186
Net finance income 1,551 1,735 2,254
Exclude
- Net interest expense on employee
benefit obligations 570 503 1,468
------- -------- --------
Headline finance costs 2,121 2,238 3,722
------- -------- --------
Headline profit before tax 12,466 11,739 48,975
------- -------- --------
Non-headline items in profit before
tax comprise:
Exceptional items
Profit on non-current assets - 994 1,538
Profit on disposal of available-for-sale
investments 57 246 271
Profit on disposal of a subsidiary - - 396
Loss on transfer of an associate - - (10,045)
------- -------- --------
57 1,240 (7,840)
(Loss)/gain arising from changes in
fair value of biological assets (23) 16,079 30,043
Net interest expense on employee
benefit obligations (570) (503) (1,468)
------- -------- --------
Non-headline items in profit before
tax (536) 16,816 20,735
------- -------- --------
6 Share of associates' results
The group's share of the results of associates is analysed
below:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
Operating profit 793 2,622 4,857
Net finance costs - (25) (114)
---------- ---------- -----------
Profit before tax 793 2,597 4,743
Taxation (348) (368) (474)
---------- ---------- -----------
Profit after tax 445 2,229 4,269
---------- ---------- -----------
At 31 December 2012, the group re-evaluated its relationship
with BF&M Limited. Although the group's holding is in excess of
20%, the directors concluded that the group is no longer able to
exercise significant influence due to the cumulative result of,
inter alia, the composition of the board of BF&M and the
inability of the group to be a party to important strategic
decisions concerning the operations and development of BF&M.
Accordingly the group's holding has been accounted for as an
available-for-sale financial asset with effect from 1 January 2013.
In conjunction with the reclassification the investment was written
down to current market value at 31 December 2012 giving rise to an
exceptional charge in the Income Statement for the year ended 31
December 2012 of GBP10,045,000.
7 Profit on non-current assets
In 2012 a profit of GBP1,538,000 (six months to 30 June 2012:
GBP944,000) was realised following part recovery of insurance
claims received in relation to the property, plant and equipment
destroyed by the fire in 2011 at one of the tea processing
factories owned by Eastern Produce Malawi Limited.
8 Gain arising from changes in fair value of biological assets
In 2012 the Malawian kwacha depreciated in value from 254.49 to
the pound sterling at 1 January 2012 to 544.05 to the pound
sterling at 31 December 2012 (30 June 2012: 423.39). The functional
currency of our Malawian subsidiaries is the kwacha. Our principal
assets in Malawi are our agricultural assets. As they generate
revenues in currencies other than the kwacha their value in hard
currency has not fallen in the year. Accordingly, the revaluation
of the agricultural assets in kwacha under IAS 41 at 31 December
2012 generated a credit of GBP21,353,000 (six months to 30 June
2012: GBP15,751,000) due to the currency devaluation which is
included in the overall gain of GBP30,043,000 (six months to 30
June 2012: GBP16,079,000) credited to the income statement. This
has been largely offset by a foreign exchange translation loss
charged to reserves. No such amounts occurred in the period ending
30 June 2013.
9 Finance income and costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
restated restated
Interest payable on loans and bank overdrafts (424) (292) (808)
Interest payable on obligations under finance leases - (12) (17)
---------- ---------- -----------
Finance costs (424) (304) (825)
Finance income - interest income on short-term bank deposits 1,937 1,984 3,517
Net exchange gain on foreign currency balances 608 558 1,030
Net interest expense on employee benefit obligations (570) (503) (1,468)
---------- ---------- -----------
Net finance income 1,551 1,735 2,254
---------- ---------- -----------
The above figures do not include any amounts relating to the
banking subsidiaries.
10 Taxation on profit on ordinary activities
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
Current tax
Overseas corporation tax 7,005 5,104 15,505
Deferred tax
Origination and reversal of timing differences
Overseas deferred tax (1,640) 3,669 10,157
---------- ---------- -----------
Tax on profit on ordinary activities 5,365 8,773 25,662
---------- ---------- -----------
Tax on profit on ordinary activities for the six months to 30
June 2013 has been calculated on the basis of the estimated annual
effective rate for the year ending 31 December 2013.
11 Equity dividends
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
Amounts recognised as distributions to equity holders in the
period:
Final dividend for the year ended 31 December 2012 of
88.00p (2011: 84.00p) per share 2,446 2,335 2,335
---------- ----------
Interim dividend for the year ended 31 December 2012 of
32.00p per share 889
-----------
3,224
-----------
Dividends amounting to GBP55,000 (2012: six months GBP52,000 - year GBP73,000) have not been
included as group companies hold 62,500 issued shares in the company. These are classified
as treasury shares.
Proposed interim dividend for the year ended 31 December
2013 of 34.00p (2012: 32.00p) per share 942 889
---------- ----------
The proposed interim dividend was approved by the board of
directors on 29 August 2013 and has not been included as a
liability in these financial statements.
12 Earnings per share (EPS)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
Earnings EPS Earnings EPS Earnings EPS
GBP'000 Pence GBP'000 Pence GBP'000 Pence
restated restated restated restated
Basic and diluted EPS
Attributable to ordinary shareholders 4,359 156.9 14,300 514.5 31,210 1,122.9
-------- ----- -------- -------- -------- --------
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 of 2,778,775 (2012: six
months 2,779,500 - year 2,779,500), which excludes 62,500 (2012:
six months 62,500 - year 62,500) shares held by the group as
treasury shares.
13 Property plant and equipment
During the six months ended 30 June 2013 the group acquired
assets with a cost of GBP7,618,000 (2012: six months GBP9,059,000 -
year GBP16,557,000). Assets with a carrying amount of GBP212,000
were disposed of during the six months ended 30 June 2013 (2012:
six months GBP66,000 - year GBP182,000).
14 Cash and cash equivalents
Included in cash and cash equivalents of GBP266,688,000 (2012:
six months GBP273,903,000 - year GBP262,174,000) are cash and
short-term funds, time deposits with banks and building societies
and certificates of deposit amounting to GBP183,087,000 (2012: six
months GBP197,651,000 - year GBP175,302,000), which are held by
banking subsidiaries and which are an integral part of the banking
operations of the group.
15 Assets/liabilities held for sale
The assets and liabilities held for sale at 30 June 2012 related
to the assets and liabilities of Siret Tea Company Limited, which
was disposed of by the group on 31 August 2012.
16 Borrowings
Borrowings (current and non-current) include loans and finance
leases of GBP182,000 (2012: six months GBP451,000 - year
GBP207,000) and bank overdrafts of GBP11,660,000 (2012: six months
GBP10,741,000 - year GBP5,499,000). The following loans and finance
leases were issued and repaid during the six months ended 30 June
2013:
GBP'000
Balance at 1 January 2013 207
Exchange differences 18
New issues
Loans 39
Repayments
Loans (55)
Finance lease liabilities (27)
-------
Balance at 30 June 2013 182
-------
17 Retirement benefit schemes
The UK defined benefit pension scheme for the purpose of IAS 19
has been updated to 30 June 2013 from the valuation as at 31
December 2012 by the actuary and the movements have been reflected
in this interim statement. Overseas schemes have not been updated
from 31 December 2012 valuations as it is considered that there
have been no significant changes.
An actuarial gain of GBP12,287,000 was realised in the period,
of which a gain of GBP7,205,000 was realised in relation to the
scheme assets and a gain of GBP5,082,000 was realised in relation
to changes in the underlying actuarial assumptions. The assumed
discount rate has increased to 4.60% (31 December 2012: 4.20%), the
assumed rate of inflation (CPI) has increased to 2.30% (31 December
2012: 2.00%) and the assumed rate of increases for salaries to
2.30% (31 December 2012: 2.00%). There has been no change in the
mortality assumptions used.
18 Share Capital
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
Authorised: 2,842,000 (2012: 30 June 2,842,000
- 31 December 2,842,000) ordinary shares of 10p each 284 284 284
------- ------- -----------
Allotted, called up and fully paid: ordinary shares of 10p each:
At 1 January - 2,842,000 (2012: 2,842,000) shares 284 284 284
Purchase of own shares - 10,192 (2012: nil) shares (1) - -
------- ------- -----------
At 30 June - 2,831,808 (2012: 30 June 2,842,000
- 31 December 2,842,000) shares 283 284 284
------- ------- -----------
Group companies hold 62,500 issued shares in the company. These
are classified as treasury shares.
On 6 June 2013 the directors were authorised to purchase up to a
maximum of 277,950 ordinary shares and during the period 10,192
shares were purchased. Upon cancellation of the shares purchased, a
capital redemption reserve is created representing the nominal
value of the shares cancelled.
19 Reconciliation of profit from operations to cash flow
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
restated restated
Profit from operations 9,220 26,242 66,270
Share of associates' results (445) (2,229) (4,269)
Depreciation and amortisation 4,890 4,951 9,646
Impairment of non-current assets - - 440
Loss/(gain) arising from changes in fair value of biological
assets 23 (16,079) (30,043)
Profit on non-current assets (141) (1,124) (1,786)
Loss on transfer of an associate - - 10,045
Profit on disposal of a subsidiary - - (396)
Profit on disposal of investments (57) (246) (271)
Pensions and similar provisions less payments (871) (981) (1,294)
Biological assets capitalised cultivation costs (4,378) (4,131) (6,917)
Biological assets decreases due to harvesting 4,682 5,032 9,158
Decrease/(increase) in working capital 502 (2,071) (10,336)
Net (increase)/decrease in funds of banking subsidiaries (13,596) (3,113) 915
---------- ---------- -----------
(171) 6,251 41,162
---------- ---------- -----------
20 Reconciliation of net cash flow to movement in net cash
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
(Decrease)/increase in cash and cash equivalents in the period (12,408) (6,939) 9,767
Net cash outflow from decrease in debt 43 26 266
---------- ---------- -----------
(Decrease)/increase in net cash resulting from cash flows (12,365) (6,913) 10,033
Exchange rate movements 2,958 238 (1,014)
---------- ---------- -----------
(Decrease)/increase in net cash in the period (9,407) (6,675) 9,019
Net cash at beginning of period 81,166 72,147 72,147
---------- ---------- -----------
Net cash at end of period 71,759 65,472 81,166
---------- ---------- -----------
21 Related party transactions
There have been no related party transactions that had a
material effect on the financial position or performance of the
group in the first six months of the financial year.
Further enquiries please contact Camellia Plc
Malcolm Perkins
01622 746655
29 August 2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PPMJTMBBTBTJ
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