TIDMCAM
RNS Number : 2173P
Camellia PLC
04 June 2015
Camellia Plc
("Camellia" or the "Group")
AGM Statement 2015
I would now like to take this opportunity to bring shareholders
up to date with events in the current year.
Agriculture - Tea
In Bangladesh, the early tea crop is ahead of last year
reflecting higher rainfall. The average price achieved at the new
season's auction has so far been ahead of the previous year. The
partial reversal of the decrease in the import tax implemented in
2013 has helped to increase demand for local teas.
In India, the weather remains a concern as the rainfall has been
sporadic. Production in the Assam and the Cachar gardens is well
down on last year but yields have increased in the Dooars and
Darjeeling. Average prices at auction have increased with the
arrival of the new season teas.
In Kenya, the tea crop has been well below that of last year due
to drought conditions in the first quarter of the year. However,
volumes have started to increase with the recent rainfall. Prices
had initially softened with the arrival of the rains but have now
started to increase and are ahead of last year.
In Malawi, tea production has recently started to recover from
the poor weather conditions earlier in the year but sales volumes
are significantly down on last year due to poor climactic
conditions at the end of 2014. Demand is improving and prices have
started to increase, although they remain below those of the same
period last year.
Agriculture - Other
Other horticulture crops are largely producing in line with
expectations. The demand for rubber from Bangladesh has been
affected by the decrease in the price of synthetic rubber as a
result of the low oil price.
A new cracking facility is to be built during the year in Kenya
as increasing volumes of the macadamia nuts being grown at Kakuzi
come into commercial production. Prices for edible nuts continue to
be attractive.
There has been very little recent rainfall at Horizon Farms in
California. The investment in irrigation has helped to protect this
season's crop but the continued drought in the region remains a
significant concern.
Banking and financial services
The impact of low interest rates and increasing compliance costs
continues to impact trading at Duncan Lawrie Limited. The review of
the Group's options for the bank announced at the time of our
results statement in April is continuing and we shall update
shareholders once we have concluded our review.
Engineering
As announced on 7 April, AKD Engineering Limited is being wound
down in an orderly manner and will cease all operations at the end
of June. A further substantial trading loss is expected to be
reported for this business in 2015 reflecting the low order levels
at the start of the year and costs associated with the run off of
the contracts and the closure.
The low oil price is affecting the order book at AJT Engineering
Limited and both sales and profits in the year to date are
significantly lower than last year.
Trading is improving at Abbey Metal Finishing in Hinckley as
factory utilisation increases and quality improves. The business is
expected to report a substantially reduced operating loss in
2015.
Food storage and distribution
Competition remains fierce in the food storage and distribution
businesses in the UK and the Netherlands.
4 June 2015
Camellia Plc 01622 746655
Malcolm Perkins, Chairman
Tom Franks, Deputy Chief Executive
Julia Morton, Company Secretary
Charles Stanley Securities 020 7149 6000
Nominated Adviser & Broker
Russell Cook
James Greenwood
Company description:
Camellia Plc (CAM.L) is a global agriculture and horticulture
group, whose activities also extend to engineering, food storage
and distribution, banking and financial services. The Group employs
approximately 75,000 people globally.
The agriculture and horticulture division is engaged in the
growing and production of tea, edible nuts (macadamias, pistachios
and almonds), citrus fruits, avocados, rubber, forestry,
viticulture, cattle, other horticultural produce and general
farming (maize and soya). The Group is one of the largest private
tea producers world-wide with a total of 65 tea estates and 60 tea
factories. The Group's main operations are in India, Bangladesh,
Malawi and Kenya, where the tea is grown and produced. It also has
notable agricultural operations, other than tea, in Brazil,
California, Kenya, South Africa and Malawi.
The engineering division is engaged in precision engineering,
cutting and grinding, heat treatment, galvanising, powder coating,
and metal finishing, etch inspection, the manufacture of stables,
and the development of catalysts. These businesses are
predominantly UK based and serve customers in a number of sectors
including the offshore oil and gas and aerospace sectors.
The food storage and distribution division is involved in
frozen, chilled and ambient temperature food supply chain
management providing cold storage, refrigerated transport and
production support to several leading UK food manufacturers. It
also specialises in frozen imports and distributes seafood products
in Europe and supplies food service customers in the Netherlands
with fish products.
The banking and financial services division comprises Duncan
Lawrie, which provides an integrated suite of banking services,
financial planning, investment management and trust and estate
advice.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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