TIDMCAM
RNS Number : 1597Q
Camellia PLC
28 August 2014
Camellia Plc
Half yearly report for period ended 30 June
2014
Highlights from the
results
Six months Six months
ended ended
30 June 30 June
2014 2013
GBP'000 GBP'000
Revenue 101,537 113,753
Trading (loss)/profit (6,400) 8,741
(Loss)/profit before
tax (6,893) 11,930
Headline (loss)/profit
before tax (3,398) 12,466
(Loss)/profit for
the period (6,010) 6,565
Earnings per share (214.8) p 156.9 p
Interim dividend 34 p 34 p
Chairman's statement
The headline loss before tax was GBP3,398,000 for the six months
to 30 June 2014 compared with a profit of GBP12,466,000 in the same
period last year. Headline profit or loss is a measure of
underlying performance which is not impacted by exceptional and
other items. After taking account of exceptional items the loss
before tax for the six month period to 30 June 2014 amounted to
GBP6,893,000 (2013: GBP11,930,000 profit).
The disappointing results are, as previously advised, primarily
due to adverse climatic conditions, continued difficulties in our
engineering division and higher costs at Duncan Lawrie Private
Bank.
The board has declared an interim dividend of 34p per ordinary
share payable on 3 October 2014 to shareholders registered on 5
September 2014.
Tea
India
There were periods of sustained drought during the first part of
the year. This resulted in a substantial crop loss, particularly in
Assam, and encouraged the proliferation of pests and disease which
further reduced the crop.
While tea prices in Assam have been stable those in the Dooars
have increased over the same period last year.
Bangladesh
As in India, Bangladesh suffered extensively from drought in
April and May which has reduced its production. Tea prices have
recovered from low points last year due to an increase in the rate
of import tax, but still remain significantly below those prices
achieved in the first part of 2013.
Africa
Production in both Kenya and Malawi has been good due to the
beneficial pattern of rainfall for a large part of the six month
period. Our operation in Kenya has, on occasion been selling its
tea at below cost of production. Although remaining volatile,
prices have shown an improving trend over the last few weeks, but
remain below the average price achieved during 2013.
Tea prices in Malawi are significantly below those achieved in
the same period last year.
As previously announced, a substantial loss has been incurred in
Africa 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 dollar during the period to 30 June 2014.
Edible nuts
The macadamia nut production in Malawi is marginally ahead of
the same period last year, while the harvest in South Africa had
only just commenced within the period under review. Prices for
macadamia nuts are holding firm in the international markets.
A new colour sorter has been installed in our processing factory
in South Africa which should make a meaningful contribution to
increasing the throughput and reducing the cost of production.
The macadamia planted by Kakuzi in Kenya is showing encouraging
signs of development and a reasonable crop will probably be
harvested in 2016.
A large pistachio crop has set on our pistachio orchard in
California. The unknown factor is what proportion of that crop will
be 'blanks' and this will, of course, not be known until the
harvest in September.
Other horticulture
The avocado crop presently being harvested at Kakuzi in Kenya is
substantially ahead of the same period last year, as is the crop
packed from outgrowers. Sale prices in the market have been
affected by fruit arriving from other origins and are generally
expected to be lower than last year.
California experienced a major freeze in the early part of the
year and this affected both the quality and quantity of our citrus
production.
The soya crop in Brazil is approximately the same as the
previous year although selling prices are higher.
The grape harvest on our wine estate in South Africa increased
substantially over the previous year and some progress is being
made in increasing the number of higher value bottles of wine
sold.
Food storage and distribution
The substantial competition in the cold storage industry
continues and margins are constantly under pressure. The results
for the year to date are below those of the previous year but some
initiatives have been taken to develop the spread of work
undertaken by our operations.
The Netherlands have been moving slowly out of recession and
this, together with a favourable Yen exchange rate, has contributed
to improved results for our food distribution business.
Engineering
Our engineering division based in Scotland and centred on AJT
Engineering at Aberdeen has continued to perform well.
The operations at British Metal Treatments, GU Cutting and
Grinding and Loddon Engineering are showing improved results over
the previous year.
Less satisfactory are the continuing losses at Abbey Metal where
the regaining of contracts lost subsequent to the fire is proving
more difficult than anticipated. In addition, there are supplier
programme delays at Abbey Metal's operation in Germany resulting in
the start-up costs having to be absorbed over a longer period.
AKD Engineering continues to suffer from the run-off costs
associated with a large contract which remains the subject of a
legal dispute.
Banking
In the first six months Duncan Lawrie Private Bank suffered from
one-off costs associated with specific regulatory compliance
matters and a change in the senior management in the company.
Lending also reduced due to a more competitive market, although
there are signs this business may gradually increase over the next
few months.
Prospects
In my chairman's statement which accompanied the 2013 report and
accounts I warned shareholders that the group's success was partly
dependent on benign climatic conditions. We experienced a number of
adverse climatic conditions in the first half of the year which
have affected our results. We are still in periods of major
harvesting and the impact of climatic conditions in the second half
of the year will, of course, have a significant part to play in our
results for that period. For these reasons, it remains difficult to
give any indication of the likely outcome for the full year but the
board nonetheless expects the second half to be more favourable
than the first.
M C Perkins
Chairman
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
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 2014 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 2013 (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 Conduct
Authority.
The directors of Camellia Plc are listed in the Camellia Plc
statutory financial statements for the year ended 31 December 2013.
Mr C P T Vaughan-Johnson 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
28 August 2014
Consolidated income statement
for the six months ended 30 June 2014
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Notes GBP'000 GBP'000 GBP'000
Revenue 4 101,537 113,753 251,267
Cost of sales (81,389) (79,367) (162,665)
---------- ---------- -----------
Gross profit 20,148 34,386 88,602
Other operating income 1,076 1,134 2,129
Distribution costs (4,411) (4,980) (12,264)
Administrative expenses (23,213) (21,799) (47,284)
---------- ---------- -----------
Trading (loss)/profit 4 (6,400) 8,741 31,183
Share of associates' results 6 466 445 980
Profit on non-current assets 7 - - 542
Profit on disposal of available-for-sale investments 294 57 1,349
(Loss)/gain arising from changes in fair value of biological
assets:
---------- ---------- -----------
Gain/(loss) excluding Malawi Kwacha exceptional (loss)/gain 128 (23) 10,061
Malawi Kwacha (loss)/gain (3,548) - 11,032
---------- ---------- -----------
8 (3,420) (23) 21,093
---------- ---------- -----------
(Loss)/profit from operations (9,060) 9,220 55,147
Investment income 1,113 1,159 2,417
---------- ---------- -----------
Finance income 1,527 1,937 3,417
Finance costs (206) (424) (878)
Net exchange gain 102 608 1,031
Employee benefit expense (369) (570) (1,486)
---------- ---------- -----------
Net finance income 9 1,054 1,551 2,084
---------- ---------- -----------
(Loss)/profit before tax (6,893) 11,930 59,648
-------------------------------------------------------------- ----- ---------- ---------- -----------
Comprising
* headline (loss)/profit before tax 5 (3,398) 12,466 38,150
* exceptional items, (loss)/gain arising from changes
in fair value of biological assets and other
financing gains and losses 5 (3,495) (536) 21,498
---------- ---------- -----------
(6,893) 11,930 59,648
-------------------------------------------------------------- ----- ---------- ---------- -----------
Taxation 10 883 (5,365) (22,105)
---------- ---------- -----------
(Loss)/profit for the period (6,010) 6,565 37,543
---------- ---------- -----------
(Loss)/profit attributable to:
Owners of the parent (5,934) 4,359 28,297
Non-controlling interests (76) 2,206 9,246
---------- ---------- -----------
(6,010) 6,565 37,543
---------- ---------- -----------
Earnings per share - basic and diluted 12 (214.8) p 156.9p 1,020.2p
Statement of comprehensive income
for the six months ended 30 June 2014
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (6,010) 6,565 37,543
---------- ---------- -----------
Other comprehensive (expense)/income:
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of post employment benefit obligations (note 16) (3,460) 12,287 11,611
Deferred tax movement in relation to post employment benefit obligations - - 14
---------- ---------- -----------
(3,460) 12,287 11,625
---------- ---------- -----------
Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation differences (3,782) 14,227 (23,888)
Available-for-sale investments:
Valuation (losses)/gains taken to equity (6) 2,277 3,367
Transferred to income statement on sale (4) (31) (873)
Tax relating to components of other comprehensive income - - (142)
---------- ---------- -----------
(3,792) 16,473 (21,536)
---------- ---------- -----------
Other comprehensive (expense)/income for the period, net of tax (7,252) 28,760 (9,911)
---------- ---------- -----------
Total comprehensive (expense)/income for the period (13,262) 35,325 27,632
---------- ---------- -----------
Total comprehensive (expense)/income attributable to:
Owners of the parent (12,718) 30,957 23,143
Non-controlling interests (544) 4,368 4,489
---------- ---------- -----------
(13,262) 35,325 27,632
---------- ---------- -----------
Consolidated balance sheet
at 30 June 2014
30 June 30 June 31 December
2014 2013 2013
Notes GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 7,367 7,300 7,349
Property, plant and equipment 13 98,381 97,865 95,840
Biological assets 124,184 128,246 127,215
Prepaid operating leases 848 977 890
Investments in associates 7,339 7,448 7,343
Deferred tax assets 203 332 212
Financial assets 57,589 56,768 60,001
Other investments 8,780 8,700 8,745
Retirement benefit surplus 16 636 740 653
Trade and other receivables 6,623 17,303 4,113
-------- -------- -----------
Total non-current assets 311,950 325,679 312,361
-------- -------- -----------
Current assets
Inventories 36,427 40,471 38,820
Trade and other receivables 63,509 74,840 69,754
Other investments 1,749 1,004 1,000
Current income tax assets 2,969 1,452 433
Cash and cash equivalents 14 263,199 266,688 289,623
-------- -------- -----------
Total current assets 367,853 384,455 399,630
-------- -------- -----------
Current liabilities
Borrowings 15 (7,361) (11,740) (3,051)
Trade and other payables (244,905) (238,097) (265,117)
Current income tax liabilities (3,421) (8,248) (5,965)
Employee benefit obligations 16 (422) (1,187) (448)
Provisions (360) (458) (360)
-------- -------- -----------
Total current liabilities (256,469) (259,730) (274,941)
-------- -------- -----------
Net current assets 111,384 124,725 124,689
-------- -------- -----------
Total assets less current liabilities 423,334 450,404 437,050
-------- -------- -----------
Non-current liabilities
Borrowings 15 (53) (102) (78)
Trade and other payables (6,928) (9,787) (2,451)
Deferred tax liabilities (37,173) (36,923) (39,318)
Employee benefit obligations 16 (24,652) (19,626) (21,546)
Other non-current liabilities (104) (105) (103)
Provisions (225) (375) (300)
-------- -------- -----------
Total non-current liabilities (69,135) (66,918) (63,796)
-------- -------- -----------
Net assets 354,199 383,486 373,254
-------- -------- -----------
Equity
Called up share capital 17 282 283 283
Share premium 15,298 15,298 15,298
Reserves 301,232 325,823 316,885
-------- -------- -----------
Equity attributable to owners of the parent 316,812 341,404 332,466
Non-controlling interests 37,387 42,082 40,788
-------- -------- -----------
Total equity 354,199 383,486 373,254
-------- -------- -----------
Consolidated cash flow statement
for the six months ended 30 June 2014
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Notes GBP'000 GBP'000 GBP'000
Cash generated from operations
Cash flows from operating activities 18 (6,659) (171) 34,247
Interest paid (272) (423) (1,189)
Income taxes paid (6,257) (5,526) (12,653)
Interest received 1,655 1,814 3,393
Dividends received from associates 241 206 203
---------- ---------- -----------
Net cash flow from operating activities (11,292) (4,100) 24,001
Cash flows from investing activities
Purchase of intangible assets (232) (88) (399)
Purchase of property, plant and equipment (7,782) (7,618) (17,290)
Insurance proceeds for non-current assets - - 542
Proceeds from sale of non-current assets 109 352 577
Biological assets - new planting (2,879) (1,585) (4,817)
Part disposal of a subsidiary 141 49 76
Non-controlling interest subscription - - 21
Purchase of own shares (471) (925) (1,107)
Proceeds from sale of investments 4,028 5,272 9,583
Purchase of investments (3,178) (2,864) (14,032)
Income from investments 1,113 1,159 2,417
---------- ---------- -----------
Net cash flow from investing activities (9,151) (6,248) (24,429)
Cash flows from financing activities
Equity dividends paid - - (3,388)
Dividends paid to non-controlling interests (2,950) (2,017) (3,480)
New loans - 39 78
Loans repaid (103) (55) (56)
Finance lease payments (9) (27) (38)
---------- ---------- -----------
Net cash flow from financing activities (3,062) (2,060) (6,884)
---------- ---------- -----------
Net decrease in cash and cash equivalents (23,505) (12,408) (7,312)
Cash and cash equivalents at beginning of period 72,900 81,373 81,373
Exchange (losses)/gains on cash (782) 2,976 (1,161)
---------- ---------- -----------
Cash and cash equivalents at end of period 48,613 71,941 72,900
---------- ---------- -----------
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 263,199 266,688 289,623
Less banking operation funds (207,248) (183,087) (213,785)
Overdrafts repayable on demand (included in current liabilities - borrowings) (7,338) (11,660) (2,938)
-------- -------- --------
48,613 71,941 72,900
-------- -------- --------
Statement of changes in equity
for the six months ended 30 June 2014
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 2013 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)
Non-controlling
interest
subscription - - - 8 - 8 40 48
Purchase of own
shares (1) - - (925) 1 (925) - (925)
------- ------- -------- -------- -------- ------- ----------- -------
At 30 June 2013 283 15,298 (400) 301,615 24,608 341,404 42,082 383,486
------- ------- -------- -------- -------- ------- ----------- -------
At 1 January 2013 284 15,298 (400) 288,362 10,266 313,810 39,691 353,501
Total
comprehensive
income/(expense)
for the period - - - 39,805 (16,662) 23,143 4,489 27,632
Dividends - - - (3,388) - (3,388) (3,480) (6,868)
Non-controlling
interest
subscription - - - 8 - 8 88 96
Purchase of own
shares (1) - - (1,107) 1 (1,107) - (1,107)
------- ------- -------- -------- -------- ------- ----------- -------
At 31 December
2013 283 15,298 (400) 323,680 (6,395) 332,466 40,788 373,254
Total
comprehensive
(expense)/income
for the period - - - (9,394) (3,324) (12,718) (544) (13,262)
Dividends - - - (2,513) - (2,513) (2,950) (5,463)
Non-controlling
interest
subscription - - - 48 - 48 93 141
Purchase of own
shares (1) - - (471) 1 (471) - (471)
------- ------- -------- -------- -------- ------- ----------- -------
At 30 June 2014 282 15,298 (400) 311,350 (9,718) 316,812 37,387 354,199
------- ------- -------- -------- -------- ------- ----------- -------
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 2014 (the "Interim Report"). They
should be read in conjunction with the Report and Accounts (the
"Annual Report") for the year ended 31 December 2013.
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 2013 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.
The preparation of the condensed interim financial report
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amount of assets and liabilities, income and expense.
In preparing this condensed interim financial report, the
significant judgements made by management in applying the group's
accounting policies and the key sources of estimation uncertainty
were the same as those applied to the consolidated financial
statements for the year ended 31 December 2013 with the exception
of changes in estimates that are required in determining the
provision for income taxes.
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 28 August 2014. 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 2013.
Amendments to IFRSs effective for the financial year ending 31
December 2014 are not expected to have a material impact on the
group.
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 and citrus in California 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
2014 2013 2013
Trading Trading Trading
Revenue (loss)/profit Revenue profit/(loss) Revenue profit/(loss )
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Agriculture and horticulture 61,494 (1,327) 75,851 11,827 175,116 41,383
Engineering 17,900 (1,675) 14,568 (976) 29,587 (5,599)
Food storage and distribution 14,996 330 15,264 365 30,785 772
Banking and financial services 6,098 (960) 7,026 (24) 13,568 121
Other operations 1,049 (39) 1,044 32 2,211 179
------- ------------- ------- ------------- ------- ------------
101,537 (3,671) 113,753 11,224 251,267 36,856
------- ------- -------
Unallocated corporate expenses* (2,729) (2,483) (5,673)
------------- ------------- ------------
Trading (loss)/profit (6,400) 8,741 31,183
Share of associates' results 466 445 980
Profit on non-current assets - - 542
Profit on disposal of
available-for-sale investments 294 57 1,349
(Loss)/gain arising from changes in
fair value of biological assets (3,420) (23) 21,093
Investment income 1,113 1,159 2,417
Net finance income 1,054 1,551 2,084
------------- ------------- ------------
(Loss)/profit before tax (6,893) 11,930 59,648
Taxation 883 (5,365) (22,105)
------------- ------------- ------------
(Loss)/profit after tax (6,010) 6,565 37,543
------------- ------------- ------------
* Unallocated corporate expenses include group marketing
expenses of GBPnil (2013: half year GBP487,000 - year GBP881,000)
incurred on behalf of banking and financial services and
agriculture and horticulture segments.
5 Headline (loss)/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 (loss)/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.
- Financing income and expense relating to retirement
benefits.
Headline (loss)/profit before tax comprises:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Trading (loss)/profit (6,400) 8,741 31,183
Share of associates' results 466 445 980
Investment income 1,113 1,159 2,417
Net finance income 1,054 1,551 2,084
Exclude
* Employee benefit expense 369 570 1,486
------- ------- -------
Headline finance income 1,423 2,121 3,570
------- ------- -------
Headline (loss)/profit before tax (3,398) 12,466 38,150
------- ------- -------
Non-headline items in (loss)/ profit before tax
comprise:
Exceptional items
Profit on disposal of non-current assets - - 542
Profit on disposal of available-for-sale investments 294 57 1,349
------- ------- -------
294 57 1,891
(Loss)/gain arising from changes in fair value of
biological assets (3,420) (23) 21,093
Employee benefit expense (369) (570) (1,486)
------- ------- -------
Non-headline items in (loss)/profit before tax (3,495) (536) 21,498
------- ------- -------
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
2014 2013 2013
GBP'000 GBP'000 GBP'000
Profit before tax 826 793 1,643
Taxation (360) (348) (663)
---------- ---------- -----------
Profit after tax 466 445 980
---------- ---------- -----------
7 Profit on non-current assets
In 2013 a profit of GBP542,000 (Six months to 30 June 2014:
GBPnil - to 30 June 2013: GBPnil) 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 (Loss)/gain arising from changes in fair
value of biological assets
During the period to 30 June 2014 the Malawian Kwacha
appreciated in value from 712.19 to the pound sterling at 1 January
2014 to 676.73 to the pound sterling at 30 June 2014. 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 risen in the period. Accordingly, the
revaluation of the agricultural assets in kwacha under IAS 41 at 30
June 2014 generated a loss of GBP3,548,000 (Six months to 30 June
2013: GBPnil) due to the currency revaluation which is included in
the overall loss arising from changes in fair value of biological
assets of GBP3,420,000 (Six months to 30 June 2013: GBP23,000)
charged to the income statement. This has been largely offset by a
foreign exchange translation gain credited to reserves.
In the year to 31 December 2013 the Malawian kwacha depreciated
in value from 544.05 to the pound sterling at 1 January 2013 to
712.19 to the pound sterling at 31 December 2013. Accordingly, the
revaluation of the agricultural assets in kwacha under IAS 41 at 31
December 2013 generated a credit of GBP18,631,000 including a gain
of GBP11,032,000 due to the currency devaluation which was included
in the overall gain of GBP21,093,000 credited to the income
statement. This was largely offset by a foreign exchange
translation loss charged to reserves.
9 Finance income and costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Interest payable on loans and bank overdrafts (205) (424) (874)
Interest payable on obligations under finance leases (1) - (4)
---------- ---------- -----------
Finance costs (206) (424) (878)
Finance income - interest income on short-term bank deposits 1,527 1,937 3,417
Net exchange gain on foreign currency balances 102 608 1,031
Employee benefit expense (369) (570) (1,486)
---------- ---------- -----------
Net finance income 1,054 1,551 2,084
---------- ---------- -----------
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
2014 2013 2013
GBP'000 GBP'000 GBP'000
Current tax
Overseas corporation tax 1,205 7,005 13,941
Deferred tax
Origination and reversal of timing differences
Overseas deferred tax (2,088) (1,640) 8,164
---------- ---------- -----------
Tax on profit on ordinary activities (883) 5,365 22,105
---------- ---------- -----------
Tax on profit on ordinary activities for the six months to 30
June 2014 has been calculated on the basis of the estimated annual
effective rate for the year ending 31 December 2014.
11 Equity dividends
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2013 of
91.00p (2012: 88.00p) per share 2,513 2,446 2,446
---------- ----------
Interim dividend for the year ended 31 December 2013 of
34.00p per share 942
-----------
3,388
-----------
Dividends amounting to GBP57,000 (2013: six months GBP55,000 -
year GBP78,000) 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 2014 of
34.00p (2013: 34.00p) per share 939 942
------ ------
The proposed interim dividend was approved by the board of
directors on 28 August 2014 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
2014 2013 2013
Earnings EPS Earnings EPS Earnings EPS
GBP'000 Pence GBP'000 Pence GBP'000 Pence
Basic and diluted EPS
Attributable to ordinary shareholders (5,934) (214.8) 4,359 156.9 28,297 1,020.2
-------- ------ -------- ----- -------- -------
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 2,762,531 (2013: six
months 2,778,775 - year 2,773,762), which excludes 62,500 (2013:
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 2014 the group acquired
assets with a cost of GBP7,782,000 (2013: six months GBP7,618,000 -
year GBP17,290,000). Assets with a carrying amount of GBP37,000
were disposed of during the six months ended 30 June 2014 (2013:
six months GBP212,000 - year GBP327,000).
14 Cash and cash equivalents
Included in cash and cash equivalents of GBP263,199,000 (2013:
six months GBP266,688,000 - year GBP289,623,000) are cash and
short-term funds, time deposits with banks and building societies
and certificates of deposit amounting to GBP207,248,000 (2013: six
months GBP183,087,000 - year GBP213,785,000), which are held by
banking subsidiaries and which are an integral part of the banking
operations of the group.
15 Borrowings
Borrowings (current and non-current) include loans and finance
leases of GBP76,000 (2013: six months GBP182,000 - year GBP191,000)
and bank overdrafts of GBP7,338,000 (2013: six months GBP11,660,000
- year GBP2,938,000). The following loans and finance leases were
repaid during the six months ended 30 June 2014:
GBP'000
Balance at 1 January 2014 191
Exchange differences (3)
Repayments
Loans (103)
Finance lease liabilities (9)
--------
Balance at 30 June 2014 76
--------
16 Retirement benefit schemes
The UK defined benefit pension scheme for the purpose of IAS 19
has been updated to 30 June 2014 from the valuation as at 31
December 2013 by the actuary and the movements have been reflected
in this interim statement. Overseas schemes have not been updated
from 31 December 2013 valuations as it is considered that there
have been no significant changes.
An actuarial loss of GBP3,460,000 was realised in the period, of
which a gain of GBP599,000 was realised in relation to the scheme
assets and a loss of GBP4,059,000 was realised in relation to
changes in the underlying actuarial assumptions. The assumed
discount rate has decreased to 4.25% (31 December 2013: 4.50%), the
assumed rate of inflation (CPI) has decreased to 2.35% (31 December
2013: 2.50%) and the assumed rate of increases for salaries to
2.35% (31 December 2013: 2.50%). There has been no change in the
mortality assumptions used.
17 Share Capital
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Authorised: 2,842,000 (2013: 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 - 2,829,700 (2013: 2,842,000) shares 283 284 284
Purchase of own shares - 5,200 (2013: 30 June 10,192
* 31 December 12,300) shares (1) (1) (1)
------- ------- -----------
At 30 June - 2,824,500 (2013: 30 June 2,831,808
* 31 December 2,829,700) shares 282 283 283
------- ------- -----------
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 5,200
shares were purchased. Upon cancellation of the shares purchased, a
capital redemption reserve is created representing the nominal
value of the shares cancelled.
18 Reconciliation of (loss)/profit from operations to cash
flow
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
(Loss)/profit from operations (9,060) 9,220 55,147
Share of associates' results (466) (445) (980)
Depreciation and amortisation 4,810 4,890 9,527
Impairment of non-current assets - - 22
Loss/(gain) arising from changes in fair value of biological assets 3,420 23 (21,093)
Profit on disposal of non-current assets (72) (141) (792)
Profit on disposal of investments (294) (57) (1,348)
Pensions and similar provisions less payments (599) (871) (392)
Biological assets capitalised cultivation costs (2,356) (4,378) (5,444)
Biological assets decreases due to harvesting 4,287 4,682 7,977
(Increase)/decrease in working capital (1,471) 502 (671)
Net increase in funds of banking subsidiaries (4,858) (13,596) (7,706)
---------- ---------- -----------
(6,659) (171) 34,247
---------- ---------- -----------
19 Reconciliation of net cash flow to movement in net cash
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Decrease in cash and cash equivalents in the period (23,403) (12,408) (7,312)
Net cash outflow from decrease in debt 112 43 16
---------- ---------- -----------
Decrease in net cash resulting from cash flows (23,291) (12,365) (7,296)
Exchange rate movements (881) 2,958 (1,161)
---------- ---------- -----------
Decrease in net cash in the period (24,172) (9,407) (8,457)
Net cash at beginning of period 72,709 81,166 81,166
---------- ---------- -----------
Net cash at end of period 48,537 71,759 72,709
---------- ---------- -----------
20 Contingencies
During 2013, one of the group's trading subsidiaries made a
legal claim against one of its customers. The customer has
subsequently raised a counter claim. Neither the contingent asset
arising from the claim nor a provision for the counter claim have
been recognised.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PRMATMBBTBBI
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