Camellia PLC Trading update (4170I)
April 01 2020 - 7:00AM
UK Regulatory
TIDMCAM
RNS Number : 4170I
Camellia PLC
01 April 2020
1 April 2020
Camellia Plc (the "Company")
Trading update
As a result of the current and rapidly changing developments
relating to the COVID-19 virus outbreak, Camellia Plc is issuing an
update on trading.
People
First, we would like to thank all of our staff around the world
for their continuing support. Many of our businesses are in the
food sector and deemed essential by national governments and
therefore it is important that they continue operations wherever
possible, whilst complying with local safety and hygiene
protocols.
Trading
Agriculture
As of today, all of our agricultural operations have been
working close to normal with the exception of India. On 24 March,
the Indian Government announced a national shut down which included
all tea estates. Were this shut down to continue for another two
weeks, it is likely to lead to a hiatus of a minimum of five weeks
before plucking can recommence, which will result in the loss of
the majority of the lucrative 'first flush' season.
Our agricultural operations outside India continue to operate
broadly as usual, although working practices have been changed,
sometimes substantially, to ensure social distancing and access to
sanitation equipment. Many restrictions have been put in place on
non-essential workers, internal travel, international borders, etc.
in almost every country, the implications of which have yet to
manifest themselves fully but are likely to cause further
disruption in the weeks and months ahead.
Engineering
Our engineering businesses are also operating at close to
normal. However, the possibility of increasing sickness and more
stringent restrictions on working means we expect that some or all
plants may be forced to close.
Food Service
ACS&T continues to operate its cold stores although the
refrigerated transport business has seen reduced volumes. Given its
position in the food supply chain, we will ensure that operations
are maintained for as long as possible.
Jing Tea (2019 Revenue GBP4.2 million) has been severely
impacted by the downturn in tourism and retail globally.
Financial Position
The Group has a strong balance sheet with substantial cash
liquidity which amounted to GBP86.7m in cash and money market
deposits net of borrowings as at 31 December 2019. Notwithstanding
this, all of our businesses have put in place contingency plans
both against the impacts of the virus and also to conserve cash
wherever possible by delaying or cancelling non-critical
expenditure. Your Board has therefore decided that it would be
inappropriate to recommend any additional dividends until we get
clarity on the situation. Once we have this clarity and if
circumstances so justify, we will declare a special dividend
alongside the interim dividend.
The results for the year ended 31 December 2019 along with the
Annual Report were due to be published on 8 April. However, given
the additional audit requirements resulting from the virus
outbreak, and the practical difficulties that some of our overseas
subsidiaries are having in providing data, they will now be
delayed. We will update shareholders about this and the timing and
format of the AGM in due course.
The situation is developing rapidly and the Company will make
further announcements when appropriate on the matters above when
their impact is more certain.
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
Tom Franks, CEO
Susan Walker, CFO
Panmure Gordon
020 7886 2500
Nominated Adviser and Broker
Emma Earl
Erik Anderson
Maitland/amo
PR
William Clutterbuck
07785 292617
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END
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