TIDMCAM
RNS Number : 2165X
Camellia PLC
27 August 2015
Camellia Plc
Half yearly report for period ended 30 June 2015
Highlights from the results
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Revenue 102,488 101,537 238,868
Trading (loss)/profit (12,047) (6,400) 11,112
(Loss)/profit before tax (8,446) (6,893) 21,983
Headline (loss)/profit
before tax (8,771) (3,398) 17,228
(Loss)/profit for the
period (7,886) (6,010) 8,310
Earnings per share (288.1) p (214.8) p 102.7 p
Interim dividend 34 p 34 p
Total dividend paid in 125 p
year
Chairman's statement
The headline loss before tax was GBP8,771,000 for the six months
to 30 June 2015 compared with a loss of GBP3,398,000 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 2015 amounted to
GBP8,446,000 (2014: GBP6,893,000 loss).
The board has declared an interim dividend of 34p per ordinary
share payable on 2 October 2015 to shareholders registered on 11
September 2015.
Tea
India
Yet again there were periods of sustained drought during the
first part of the year, the effect of which was mitigated to some
extent by our irrigation facilities. Nonetheless, our crop,
although in line with the same period of last year, was still below
expectations.
Tea prices are similar to the same period last year. Margins
have been severely adversely affected by higher input costs,
particularly labour costs.
Bangladesh
As in India, Bangladesh suffered extensively from drought in the
early months of the year which has restricted its production to
similar levels to those of last year.
Tea prices are significantly above those of the first part of
2014, which were suffering from the effect of the relaxation of
import duty at that time.
Africa
Production in both Kenya and Malawi has been reasonable but not
as good as the previous year. Tea prices in Kenya have shown an
improved trend and are significantly ahead of the same period last
year.
Tea prices in Malawi are at a similar level to those achieved in
the same period last year.
Edible Nuts
The macadamia nut production in Malawi is similar to that 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 continue to hold firm in international markets.
The new colour sorter installed in our processing factory in
South Africa is proving to be very beneficial to the packing
process.
The macadamia planted by Kakuzi in Kenya continues to develop
and a new cracking facility is now being constructed in time to
process the 2016 production.
2015 is an 'off-year' in the production cycle on our pistachio
orchard in California and the crop will be minimal. A meaningful
maiden crop of almonds is presently being harvested on our
orchard.
Other horticulture
The avocado crop presently being harvested at Kakuzi in Kenya is
expected to be marginally ahead of last year and sale prices in the
market are presently firm.
California continues to experience a major drought which is
causing considerable concern for the future of its agricultural
industry. Horizon's citrus crop was lower than last year but prices
have held firm.
The maize and soya crops in Brazil are close to expectations, as
are the sale prices.
The grape harvest on our wine estate in South Africa was not as
large as the previous year but progress is being made in increasing
the number of higher value bottles of wine sold.
Biological assets
It had been hoped that 2014 would have been the last year in
which IAS 41 would have been relevant to the majority of our
agricultural operations. Unfortunately, the proposed amendments to
IAS 16 and IAS 41 have not yet been ratified by the EU. Therefore,
it is looking increasingly likely that it will be 2016 before our
permanent plantings can be classified under IAS 16 as property,
plant and equipment.
Food storage and distribution
The substantial competition in the cold storage industry
continues and margins are constantly under pressure, but the
results for the year to date are ahead of those of the previous
year.
Trading conditions in the Netherlands remain difficult.
Engineering
Our engineering division suffered a loss in the first six months
of the year, the majority of which was due to costs associated with
the regrettable closure of AKD Engineering. This closure has now
been virtually completed and negotiations are at an advanced stage
for the disposal of the property, plant and equipment at
Lowestoft.
The low price of oil continues to impact on the profitability of
our Scottish operations. There seems little immediate prospect of
the market returning to a level that would encourage the major
operators to restart both capital and operational spending.
It is pleasing to report that losses being incurred at Abbey
Metal are reducing faster than was anticipated at the start of the
year and prospects for this operation are more encouraging.
The majority of the approvals have now been obtained from our
expected major customer and new customers have been identified for
Atfin, our joint venture in Germany. However, sales continue to be
significantly behind expectations.
Banking
A review has been conducted into the future opportunities for
Duncan Lawrie, our UK private banking business. Our conclusion is
that this business is worthy of continuing support, investment and
development. The business has been busy adjusting to the new
regulatory environment and the low interest rates that emerged
following the 2008 financial crisis. With some investment over the
coming 2-3 years, and some relaxation of the current restriction on
lending, we are confident that the bank can become a successful and
profitable part of the group. Duncan Lawrie has built a reputation
for excellent client service as a private bank and wealth manager
and, with our support, can complete its transition to a business
that is well equipped to meet the demands of the private banking
marketplace.
Prospects
Weather conditions continue to be a major consideration for the
profitability of the group. It is however encouraging that the
crops we grow are still in demand to the extent that prices have
recovered from the levels that were unsustainable in some of our
operations in 2014. Whilst it is too early to give any predication
of the likely outcome of the full year, we expect the second half
of the year to be more favourable than the first.
M C Perkins
Chairman
26 August 2015
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 2015 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 2014 (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 2014.
Mr A K Mathur did not seek re-election at the annual general
meeting and Mr C J Ames resigned as a director with effect from 2
July 2015. 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
26 August 2015
Consolidated income statement
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for the six months ended 30 June 2015
Six months Six months Year
ended ended ended
31
30 June 30 June December
2015 2014 2014
Notes GBP'000 GBP'000 GBP'000
Revenue 4 102,488 101,537 238,868
Cost of sales (83,561) (79,665) (163,728)
---------- ---------- ---------
Gross profit 18,927 21,872 75,140
Other operating income 850 1,076 2,179
Distribution costs (3,477) (4,411) (12,700)
Administrative expenses (28,347) (24,937) (53,507)
---------- ---------- ---------
Trading (loss)/profit 4 (12,047) (6,400) 11,112
Share of associates' results 6 510 466 1,092
Profit on non-current assets 7 879 - -
Profit on disposal of available-for-sale
investments 217 294 447
Impairment of available-for-sale
financial assets 8 - - (2,334)
Impairment of property, plant and
equipment and provisions 9 - - (1,134)
(Loss)/gain arising from changes
in fair value of biological assets:
---------- ---------- ---------
(Loss)/gain excluding Malawi Kwacha
exceptional (loss)/gain (175) 128 7,842
Malawi Kwacha exceptional (loss)/gain - (3,548) 978
---------- ---------- ---------
(175) (3,420) 8,820
---------- ---------- ---------
(Loss)/profit from operations (10,616) (9,060) 18,003
Investment income 1,166 1,113 2,161
---------- ---------- ---------
Finance income 1,432 1,527 2,864
Finance costs (312) (206) (608)
Net exchange gain 480 102 607
Employee benefit expense (596) (369) (1,044)
---------- ---------- ---------
Net finance income 10 1,004 1,054 1,819
---------- ---------- ---------
(Loss)/profit before tax (8,446) (6,893) 21,983
----------------------------------------------------- ----- ---------- ---------- ---------
Comprising
* headline (loss)/profit before tax 5 (8,771) (3,398) 17,228
* exceptional items, (loss)/gain arising from
changes
in fair value of biological assets and other
financing gains and losses 5 325 (3,495) 4,755
---------- ---------- ---------
(8,446) (6,893) 21,983
----------------------------------------------------- ----- ---------- ---------- ---------
Taxation 11 560 883 (13,673)
---------- ---------- ---------
(Loss)/profit for the period (7,886) (6,010) 8,310
---------- ---------- ---------
(Loss)/profit attributable to:
Owners of the parent (7,956) (5,934) 2,836
Non-controlling interests 70 (76) 5,474
---------- ---------- ---------
(7,886) (6,010) 8,310
---------- ---------- ---------
Earnings per share - basic and
diluted 13 (288.1 )p (214.8 )p 102.7p
Statement of comprehensive income
for the six months ended 30 June 2015 Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (7,886) (6,010) 8,310
---------- ---------- -----------
Other comprehensive income/(expense):
Items that will not be reclassified
subsequently to profit or loss:
Remeasurements of post employment benefit
obligations (note 18) 7,244 (3,460) (20,341)
Deferred tax movement in relation to
post employment benefit obligations - - 698
---------- ---------- -----------
7,244 (3,460) (19,643)
---------- ---------- -----------
Items that may be reclassified subsequently
to profit or loss:
Foreign exchange translation differences (5,520) (3,782) 7,533
Available-for-sale investments:
Valuation (losses)/gains taken to equity (1,111) (6) 2,822
Transferred to income statement on sale (5) (4) (364)
Tax relating to components of other
comprehensive income - - 72
---------- ---------- -----------
(6,636) (3,792) 10,063
---------- ---------- -----------
Other comprehensive income/(expense)
for the period, net of tax 608 (7,252) (9,580)
---------- ---------- -----------
Total comprehensive expense for the
period (7,278) (13,262) (1,270)
---------- ---------- -----------
Total comprehensive expense attributable
to:
Owners of the parent (6,070) (12,718) (6,801)
Non-controlling interests (1,208) (544) 5,531
---------- ---------- -----------
(7,278) (13,262) (1,270)
---------- ---------- -----------
Consolidated balance sheet
at 30 June 2015
30 June 30 June 31 December
2015 2014 2014
Notes GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 7,608 7,367 7,072
Property, plant and equipment 14 100,125 98,381 104,923
Investment properties 15 10,739 - -
Biological assets 140,055 124,184 139,999
Prepaid operating leases 820 848 900
Investments in associates 8,907 7,339 8,664
Deferred tax assets 168 203 184
Financial assets 63,044 57,589 63,488
Other investments 8,940 8,780 8,864
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Retirement benefit surplus 18 802 636 805
Trade and other receivables 7,742 6,623 23,303
---------- ---------- -----------
Total non-current assets 348,950 311,950 358,202
---------- ---------- -----------
Current assets
Inventories 38,799 36,427 41,841
Trade and other receivables 79,907 63,509 63,292
Other investments - 1,749 -
Current income tax assets 1,192 2,969 548
Cash and cash equivalents 16 241,827 263,199 257,164
---------- ---------- -----------
Total current assets 361,725 367,853 362,845
---------- ---------- -----------
Current liabilities
Borrowings 17 (4,148) (7,361) (2,855)
Trade and other payables (266,808) (244,905) (258,292)
Current income tax liabilities (2,690) (3,421) (5,609)
Employee benefit obligations 18 (462) (422) (527)
Provisions (361) (360) (636)
---------- ---------- -----------
Total current liabilities (274,469) (256,469) (267,919)
---------- ---------- -----------
Net current assets 87,256 111,384 94,926
---------- ---------- -----------
Total assets less current liabilities 436,206 423,334 453,128
---------- ---------- -----------
Non-current liabilities
Borrowings 17 (5,434) (53) (42)
Trade and other payables (3,679) (6,928) (5,130)
Deferred tax liabilities (39,075) (37,173) (41,618)
Employee benefit obligations 18 (34,354) (24,652) (41,885)
Other non-current liabilities (99) (104) (98)
Provisions - (225) -
---------- ---------- -----------
Total non-current liabilities (82,641) (69,135) (88,773)
---------- ---------- -----------
Net assets 353,565 354,199 364,355
---------- ---------- -----------
Equity
Called up share capital 19 282 282 282
Share premium 15,298 15,298 15,298
Reserves 297,514 301,232 306,124
---------- ---------- -----------
Equity attributable to owners of the parent 313,094 316,812 321,704
Non-controlling interests 40,471 37,387 42,651
---------- ---------- -----------
Total equity 353,565 354,199 364,355
---------- ---------- -----------
Consolidated cash flow statement
for the six months ended 30 June 2015 Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
Notes GBP'000 GBP'000 GBP'000
Cash generated from operations
Cash flows from operating activities 20 1,708 (6,659) 17,080
Interest paid (313) (272) (655)
Income taxes paid (5,091) (6,257) (11,595)
Interest received 1,649 1,655 2,871
Dividends received from associates 279 241 244
---------- ---------- -----------
Net cash flow from operating activities (1,768) (11,292) 7,945
Cash flows from investing activities
Purchase of intangible assets (776) (232) (66)
Purchase of property, plant and equipment (5,203) (7,782) (19,019)
Purchase of investment properties (8,605) - -
Proceeds from sale of non-current assets 1,811 109 264
Biological assets - new plantings (2,353) (2,879) (5,072)
Part disposal of a subsidiary 104 141 251
Non-controlling interest subscription - - 88
Purchase of own shares - (471) (471)
Proceeds from sale of investments 1,032 4,028 1,940
Purchase of investments (2,157) (3,178) (434)
Income from investments 1,166 1,113 2,161
---------- ---------- -----------
Net cash flow from investing activities (14,981) (9,151) (20,358)
Cash flows from financing activities
Equity dividends paid - - (3,452)
Dividends paid to non-controlling interests (1,051) (2,950) (3,990)
New loans 6,000 - 157
Loans repaid (86) (103) (202)
Finance lease payments (3) (9) (15)
---------- ---------- -----------
Net cash flow from financing activities 4,860 (3,062) (7,502)
---------- ---------- -----------
Net decrease in cash and cash equivalents (11,889) (23,505) (19,915)
Cash and cash equivalents at beginning of period 54,122 72,900 72,900
Exchange (losses)/gains on cash (1,719) (782) 1,137
---------- ---------- -----------
Cash and cash equivalents at end of period 40,514 48,613 54,122
---------- ---------- -----------
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 241,827 263,199 257,164
Less banking operations funds (197,783) (207,248) (200,285)
Overdrafts repayable on demand (included in current liabilities - borrowings) (3,530) (7,338) (2,757)
-------- -------- --------
40,514 48,613 54,122
-------- -------- --------
Statement of changes in equity
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for the six months ended 30 June 2015
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 2014 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
------- ------- -------- -------- -------- ------- ----------- -------
At 1 January 2014 283 15,298 (400) 323,680 (6,395) 332,466 40,788 373,254
Total
comprehensive
(expense)/income
for the period - - - (16,458) 9,657 (6,801) 5,531 (1,270)
Dividends - - - (3,452) - (3,452) (3,990) (7,442)
Non-controlling
interest
subscription - - - (38) - (38) 322 284
Purchase of own
shares (1) - - (471) 1 (471) - (471)
------- ------- -------- -------- -------- ------- ----------- -------
At 31 December
2014 282 15,298 (400) 303,261 3,263 321,704 42,651 364,355
Total
comprehensive
(expense)/income
for the period - - - (713) (5,357) (6,070) (1,208) (7,278)
Dividends - - - (2,541) - (2,541) (1,051) (3,592)
Non-controlling
interest
subscription - - - - - - 79 79
Purchase of own
shares - - - - 1 1 - 1
------- ------- -------- -------- -------- ------- ----------- -------
At 30 June 2015 282 15,298 (400) 300,007 (2,093) 313,094 40,471 353,565
------- ------- -------- -------- -------- ------- ----------- -------
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 2015 (the "Interim Report"). They should be read in conjunction
with the Report and Accounts (the "Annual Report") for the year
ended 31 December 2014.
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 2014 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 Standards Interpretations Committee ("IFRS
IC") 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 26 August 2015. 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 2014.
Amendments to IFRSs effective for the financial year ending 31
December 2015 are not expected to have a material impact on the
group.
Following the acquisition of investment properties during the period
the following accounting policy has been applied.
Investment properties
Properties held to earn rental income rather than for the purpose
of the group's principal activities are classified as Investment
properties. Investment properties are recorded at cost less accumulated
depreciation and any recognised impairment loss. The depreciation
policy is consistent with those described for other group properties.
Income from investment properties is disclosed in 'Other operating
income'. The related operating costs are immaterial and are included
within administrative expenses.
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. The majority of the macadamia crop in Malawi and South Africa
is harvested in the second half of the year. 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
2015 2014 2014
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 65,047 (3,556) 61,494 (1,327) 164,247 27,204
Engineering 14,296 (3,431) 17,900 (1,675) 28,872 (8,387)
Food storage and distribution 15,230 384 14,996 330 30,941 943
Banking and financial services 6,683 (1,153) 6,098 (960) 12,373 (2,496)
Other operations 1,232 (84) 1,049 (39) 2,435 131
------- ------------- ------- ------------ ------- ------------
102,488 (7,840) 101,537 (3,671) 238,868 17,395
------- ------- -------
Unallocated corporate expenses (4,207) (2,729) (6,283)
------------- ------------ ------------
Trading (loss)/profit (12,047) (6,400) 11,112
Share of associates' results 510 466 1,092
Profit on non-current assets 879 - -
Profit on disposal of
available-for-sale investments 217 294 447
Impairment of
available-for-sale financial
assets - - (2,334)
Impairment of property, plant
and equipment and provisions - - (1,134)
(Loss)/gain arising from
changes in fair value of
biological assets (175) (3,420) 8,820
Investment income 1,166 1,113 2,161
Net finance income 1,004 1,054 1,819
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------------- ------------ ------------
(Loss)/profit before tax (8,446) (6,893) 21,983
Taxation 560 883 (13,673)
------------- ------------ ------------
(Loss)/profit after tax (7,886) (6,010) 8,310
------------- ------------ ------------
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 and
impairments of non-current assets.
- 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
2015 2014 2014
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Trading (loss)/profit (12,047) (6,400) 11,112
Share of associates' results 510 466 1,092
Investment income 1,166 1,113 2,161
Net finance income 1,004 1,054 1,819
Exclude
* Employee benefit expense 596 369 1,044
--------- -------- ---------
Headline finance income 1,600 1,423 2,863
--------- -------- --------
Headline (loss)/profit before tax (8,771) (3,398) 17,228
--------- -------- --------
Non-headline items in (loss)/profit
before tax comprise:
Exceptional items
Impairment of available-for-sale
financial assets - - (2,334)
Impairment of property, plant and
equipment and provisions - - (1,134)
Profit on disposal of non-current
assets 879 - -
Profit on disposal of
available-for-sale investments 217 294 447
--------- -------- ---------
1,096 294 (3,021)
(Loss)/gain arising from changes in
fair value of biological assets (175) (3,420) 8,820
Employee benefit expense (596) (369) (1,044)
--------- -------- --------
Non-headline items in (loss)/profit
before tax 325 (3,495) 4,755
--------- -------- --------
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
2015 2014 2014
GBP'000 GBP'000 GBP'000
Profit before tax 824 826 1,814
Taxation (314) (360) (722)
---------- ---------- -----------
Profit after tax 510 466 1,092
---------- ---------- -----------
7 Profit on non-current assets
A profit of GBP879,000 has been realised following the disposal
by GU Cutting and Grinding Services Limited of its former site.
8 Impairment of available-for sale financial assets
In 2014 an impairment provision of GBP2,334,000 was made against
the group's investment in Ascendant Group, a Bermudian power company,
following a significant long-term decline in the value of this
investment.
9 Impairment of property, plant and equipment and provisions
At 31 December 2014 following the continuing losses at AKD Engineering
Limited, a wholly owned subsidiary, a review of carrying values
was undertaken and a charge of GBP1,134,000 was made as a result.
This charge included a GBP824,000 impairment provision against
property, plant and equipment and GBP310,000 of provisions including
GBP267,000 in relation to an onerous lease. The continued poor
performance resulted in the decision by AKD Engineering Limited
to close with effect from the end of June 2015.
10 Finance income and costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Interest payable on loans and bank overdrafts (312) (205) (607)
Interest payable on obligations under finance leases - (1) (1)
---------- ---------- -----------
Finance costs (312) (206) (608)
Finance income - interest income on short-term bank deposits 1,432 1,527 2,864
Net exchange gain on foreign currency balances 480 102 607
Employee benefit expense (596) (369) (1,044)
---------- ---------- -----------
Net finance income 1,004 1,054 1,819
---------- ---------- -----------
The above figures do not include any amounts relating to the banking
subsidiaries.
11 Taxation on profit on ordinary activities
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Current tax
Overseas corporation tax 1,564 1,205 10,999
Deferred tax
Origination and reversal of timing differences
Overseas deferred tax (2,124) (2,088) 2,674
---------- ---------- -----------
Tax on profit on ordinary activities (560) (883) 13,673
---------- ---------- -----------
Tax on profit on ordinary activities for the six months to 30 June
2015 has been calculated on the basis of the estimated annual effective
rate for the year ending 31 December 2015.
12 Equity dividends
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2014 of 92.00p (2013:
91.00p) per share 2,541 2,513 2,513
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---------- ----------
Interim dividend for the year ended 31 December 2014 of 34.00p per share 939
-----------
3,452
-----------
Dividends amounting to GBP58,000 (2014: six months GBP57,000 - 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 2015 of 34.00p
(2014: 34.00p) per
share 939 939
---------- ----------
The proposed interim dividend was approved by the board of directors
on 26 August 2015 and has not been included as a liability in these
financial statements.
13 Earnings per share (EPS)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
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 (7,956) (288.1) (5,934) (214.8) 2,836 102.7
-------- ------ -------- -------- ----------- -----------
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 2,762,000 (2014: six
months 2,762,531 - year 2,762,264), which excludes 62,500 (2014:
six months 62,500 - year 62,500) shares held by the group as
treasury shares.
14 Property, plant and equipment
During the six months ended 30 June 2015 the group acquired assets
with a cost of GBP5,203,000 (2014: six months GBP7,782,000 - year
GBP19,019,000). Assets with a carrying amount of GBP906,000 were
disposed of during the six months ended 30 June 2015 (2014: six
months GBP37,000 - year GBP139,000) and assets with a net book
value of GBP2,090,000 were reclassified as investment properties.
15 Investment properties
During the six months ended 30 June 2015 the group acquired investment
properties with a cost of GBP8,605,000 and following a review of
property, plant and equipment, assets with a net book value of
GBP2,090,000 were reclassified as investment properties.
16 Cash and cash equivalents
Included in cash and cash equivalents of GBP241,827,000 (2014:
six months GBP263,199,000 - year GBP257,164,000) are cash and short-term
funds, time deposits with banks and building societies and certificates
of deposit amounting to GBP197,783,000 (2014: six months GBP207,248,000
- year GBP200,285,000), which are held by banking subsidiaries
and which are an integral part of the banking operations of the
group.
17 Borrowings
Borrowings (current and non-current) include loans and finance
leases of GBP6,052,000 (2014: six months GBP76,000 - year GBP140,000)
and bank overdrafts of GBP3,530,000 (2014: six months GBP7,338,000
- year GBP2,757,000). The following loans and finance leases were
taken out and repaid during the six months ended 30 June 2015:
GBP'000
Balance at 1 January 2015 140
Exchange differences 1
New Loans 6,000
Repayments
Loans (86 )
Finance lease liabilities (3 )
-------
Balance at 30 June 2015 6,052
-------
18 Retirement benefit schemes
The UK defined benefit pension scheme for the purpose of IAS 19
has been updated to 30 June 2015 from the valuation as at 31 December
2014 by the actuary and the movements have been reflected in this
interim statement. Overseas schemes have not been updated from
31 December 2014 valuations as it is considered that there have
been no significant changes.
An actuarial gain of GBP7,244,000 was realised in the period, of
which a gain of GBP2,282,000 was realised in relation to the scheme
assets, GBP1,584,000 was realised in relation to experience gains
on scheme liabilities and a gain of GBP3,378,000 was realised in
relation to changes in the underlying actuarial assumptions. The
assumed discount rate has increased to 3.75% (31 December 2014:
3.50%), the assumed rate of inflation (CPI) has increased to 2.25%
(31 December 2014: 2.00%) and the assumed rate of increases for
salaries to 2.25% (31 December 2014: 2.00%). The mortality tables
have been updated to use the S2PA mortality assumption with the
CMI_2013 projection and a long-term rate of improvement of 1.25%
per annum.
19 Share Capital
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Authorised: 2,842,000 (2014: 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 - 2,824,500 (2014: 2,829,700) shares 282 283 283
Purchase of own shares - Nil (2014: 30 June 5,200 - 31 December 5,200) shares - (1) (1)
------- ------- -----------
At 30 June - 2,824,500 (2014: 30 June 2,824,500 - 31 December 2,824,500)
shares 282 282 282
------- ------- -----------
Group companies hold 62,500 issued shares in the company. These
are classified as treasury shares.
20 Reconciliation of (loss)/profit from operations to cash flow
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
(Loss)/profit from operations (10,616) (9,060) 18,003
Share of associates' results (510) (466) (1,092)
Depreciation and amortisation 5,272 4,810 10,165
Impairment of non-current assets - - 3,494
Loss/(gain) arising from changes in fair value of biological assets 175 3,420 (8,820)
Profit on disposal of non-current assets (905) (72) (125)
Profit on disposal of investments (217) (294) (447)
Profit on part disposal of subsidiary (25) - (56)
Pensions and similar provisions less payments (592) (599) (1,235)
Biological assets capitalised cultivation costs (4,246) (2,356) (5,636)
Biological assets decreases due to harvesting 4,797 4,287 8,604
Decrease/(increase) in working capital 8,380 (1,471) (6,326)
Net decrease/(increase) in funds of banking subsidiaries 195 (4,858) 551
---------- ---------- -----------
1,708 (6,659) 17,080
---------- ---------- -----------
21 Reconciliation of net cash flow to movement in net cash
Six months Six months Year
ended ended ended
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