TIDMCAM
RNS Number : 5283K
Camellia PLC
06 May 2022
Friday 6 May 2022
Camellia Plc
Director Changes and Trading Update
Resignation of CEO
Camellia Plc announces that Tom Franks, having substantially
achieved the objective of focusing the group's investments into the
core activities of agriculture and food and beverage distribution,
has indicated his wish not to stand for re-election at the
forthcoming Annual General Meeting ("AGM") which is expected to be
held in late June.
The Board is initiating a search process to identify a new Chief
Executive Officer ("CEO") and will update the market in due course.
Malcolm Perkins will take on the CEO duties in the interim, after
the AGM.
Malcolm Perkins, Chairman, commented:
"I would like to thank Tom for his contribution to the business
as CEO since 2015, including through a very challenging few years.
We wish him well for the future."
Appointment of independent non-executive Director
Camellia is pleased to announce the appointment of Rachel
English, a Fellow of the Institute of Chartered Accountants, as an
independent non-executive director of the Company with effect from
Friday 6 May 2022.
Rachel has extensive international and general management
experience, having served on the board of several significant
businesses including as set out below under additional disclosures.
She has a particular focus on ESG matters.
Resignation of Independent non-executive Directors
Camellia also announces that William Gibson and Gautam Dalal
have indicated that they will not be standing for re-election at
the forthcoming Annual General Meeting. The Company thanks them
both for their contribution to the Board and wishes them well in
the future.
Further appointment of new non-executive Directors to the Board
will be announced in due course. The Company remains committed to
complying with the principles set out in the Quoted Companies
Alliance Corporate Governance Code.
Trading Update
2021 Results
Full year results in respect of the year to 31 December 2021,
which are in line with the guidance issued in December 2021, are
expected to be announced in late May.
Outlook for 2022
Revenues and profits for the year to date are ahead of the same
period of 2021 and for the full year are expected to be
significantly ahead of that of 2021 and ahead of market
expectations. This reflects improved trading conditions in all
markets for tea, higher production of macadamia, significantly
improved soya prices and our expectation that 2022 will be an "on
year" for Hass avocado.
Tea
In India the last of the limited tea stocks left over from 2021
have now been sold and the first auction of the new season opened
in March 2022 with strong pricing. In Bangladesh prices remained
under pressure for prior season teas due to the high volumes of
inventory carried forward. However, the market for new season teas
has started firm and is expected to remain relatively stable as
stocks are now depleted and the new season production has yet to
gain momentum.
The indications in both India and Bangladesh are that markets
will remain firm for the early part of the new season, and
thereafter as is normal, pricing will be determined by regional
production volumes.
In Kenya, our average selling prices in the period to the end of
April 2022 were significantly higher than the same period of 2021
although this was partially offset by significantly lower
production. Pricing levels looking forward will depend on country
wide production volumes and the impact of the reserve pricing
policy for KTDA teas (KTDA manages the production and wholesaling
of smallholder-produced teas).
While selling prices in Malawi have firmed, they are below those
of the same period of 2021. The market is expected to be volatile
for a period due to uncertainty relating to logistics (as detailed
below) and will also be influenced by the general direction of the
Kenya market. Our production volumes in Malawi are also lower than
that of last year.
Macadamia
Harvesting of the 2022 crop is underway and the indications are
that volumes will be ahead of 2021 levels. However, we expect net
selling prices to be lower than in 2021.
Avocado
The Pinkerton harvest is well advanced with volumes ahead of
2021, however we expect prices to be lower. The Hass season has now
started with volumes expected to be significantly ahead of 2021
reflecting the fact that it is an "'on year' for Hass".
Apples and pears
Bardsley England, a significant apple grower in the UK, was
acquired in August 2021. The last of the 2021 season stock is being
sold at prices in line with our expectations. It is too early to
predict the crop profile for 2022.
Logistics and input costs
Durban (South Africa) port is currently experiencing significant
disruption which is creating logistical challenges for our tea
exports from Malawi and may impact the timing of macadamia sales
from both Malawi and South Africa.
Wage negotiations for 2022 are ongoing in all our key operating
jurisdictions. In the UK, Bardsley England is experiencing wage
inflation of 13%. In common with others in the agriculture sector,
we are experiencing significant cost inflation on key inputs such
as fertiliser, fuel and energy costs across all our operations.
Additional Disclosures
Further information, as required pursuant to Schedule 2(g) of
the AIM Rules for Companies, is set out below:-
Rachel English (aged 60)
Current directorships
-- Mishcon De Reya Group plc
-- Helios Foundation For Sustainable Development
-- Helios Social Enterprise
Past directorships within the last 5 years
-- Interswitch Holdings Limited
-- Acacia Mining plc (subsequently Barrick Tz Limited)
-- Adam Smith International Ltd; The Amphion Group Limited; Adam
Smith Advisory Group Limited; Adam Smith Services Limited
-- The Private Infrastructure Development Group Limited
-- Kuwait Energy plc
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
Enquiries
Camellia Plc 01622 746655
Malcolm Perkins, Chairman
Susan Walker, Chief Financial Officer
Panmure Gordon 020 7886 2500
Nominated Adviser and Broker
Emma Earl
Erik Anderson
Maitland/AMO
PR
William Clutterbuck 07785 292617
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