Camellia PLC Trading Update (2742O)
August 05 2014 - 5:16AM
UK Regulatory
TIDMCAM
RNS Number : 2742O
Camellia PLC
05 August 2014
5 August 2014
Camellia Plc
(the "Company")
Trading update
The Company wishes to make the following update on trading. As
previously indicated, climactic conditions have affected a number
of our agricultural operations for example in India and Bangladesh,
where droughts have resulted in lost tea production and in
California where our citrus crop was severely damaged by frost
resulting in significantly reduced production. The lost production
in these operations is unlikely to be recovered this year.
Our Indian tea sale prices have been satisfactory, but those in
Bangladesh, as a result of cheaper imports, have been substantially
lower than in 2013. Sale prices achieved recently in Bangladesh are
showing some signs of recovery following an increase in import
duties, but remain at materially lower levels than last year.
The performance of our African tea businesses remains very
disappointing due to substantially reduced tea sale prices in both
Kenya and Malawi, although crops are ahead of budget.
It is disappointing to report that a substantial loss has arisen
from changes in the fair value of Biological Assets, primarily as a
result of an 8 per cent. revaluation of the Malawi kwacha against
the US$ during the period to 30 June 2014.
As previously announced, trading at our Engineering division and
at Duncan Lawrie are challenging, with problems remaining at AKD as
a result of a protracted and ongoing legal dispute. At Duncan
Lawrie income is lower than in the previous period due to
reductions in banking and investment management income and
additional costs that have been incurred as a consequence of
certain changes to management.
The cumulative effect of these items is that the results for the
six months to 30 June 2014 are expected to be significantly below
those achieved for the same period last year and are likely to show
a loss. The profits lost in the first half are unlikely to be fully
recouped in the second half of the year, though as is usual, the
Company expects the results of the remainder of the year to show an
improvement on the first half due to the cyclical nature of the
business which is normally second half weighted.
The interim results will be announced on 28 August 2014.
Camellia Plc 01622 746655
Malcolm Perkins, Chairman
Anil Mathur, Finance Director
Julia Morton, Company Secretary
Charles Stanley Securities 020 7149 6000
Russell Cook
Carl Holmes
This information is provided by RNS
The company news service from the London Stock Exchange
END
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