Camellia PLC – CAM – Half-year Report

Camellia PLC – CAM – Half-year Report

Camellia Plc (AIM:CAM) announces its interim results for the six months ended 30 June 2020.

 

Malcolm Perkins, Chairman of Camellia, stated:

 

“As anticipated, the first half of 2020 has been exceptionally challenging operationally.  Oversupply of tea in Kenya and disruption due to Covid-19 has impacted prices and hence the profitability of our tea operations.  The pandemic has also had a direct impact on our engineering and food services businesses in the UK.

 

Notwithstanding these challenges, we have made good strategic progress with plans for our first significant investment in Tanzania advancing well and the disposal of the Horizon Farm property announced in August.

 

The Group is set up in a way that reflects our long-term approach, with financial stability and sustainability being at the heart of our philosophy.  We remain financially strong, with significant net cash, and have the resources to withstand both the current trading environment and a period of disruption from Covid-19, whilst continuing to invest for the future.  I am therefore pleased to confirm a special dividend of 102p per share, equivalent to the 2019 postponed dividend. Given the continuing uncertainty, dividends in respect of 2020 will be considered when the year is complete.

 

Once again I should like to thank all our staff across the world for their continuing contributions both to the business and their local communities in extremely difficult circumstances.”

 

Financial highlights

 

Six months ended

30 June 2020

Six months

ended

30 June 2019

Year ended

31 December 2019

£’m

£’m

£’m

Revenue – continuing operations

114.9

117.3

291.5

Underlying (loss)/profit before tax*

(6.0)

(4.1)

17.4

Significant separately disclosed items and provision releases

 

(6.9)

 

8.0

4.9

(Loss)/profit after tax for the period

(12.1)

3.6

15.1

Net cash and cash equivalents net of borrowings

72.8

80.6

82.5

(Loss)/earnings per share

(456.2)p

50.7p

300.5p

Dividend per share for the period

102p

42p

42p

* Underlying profit before tax is profit before tax from continuing operations excluding separately disclosed significant items (eg provision releases, impairments, costs relating to legal claims, profit on disposal of property)

 

§ 

Underlying loss before tax from continuing operations reflects the poor tea prices in Bangladesh, Kenya and Malawi, the direct impact of Covid-19 on the engineering and food services operations and lower macadamia yields and prices

§ 

Impairments of £3.4m recognised on the Jing Tea brand and plant and equipment at Abbey Metal Finishing and £3.5m of costs related to legal claims were incurred in the period

§ 

The Group now expects to record an Underlying profit before tax for the year

§ 

Group remains financially strong with net cash resources less borrowings of £72.8 million and an investment portfolio with a market value of £45.8 million at 30 June 2020

§ 

Payment of a special dividend of 102p per share on 7 November 2020 to shareholders registered at the close of business on 9 October 2020. Given the continuing uncertainty, the 2020 interim dividend has been deferred and the overall dividend in respect of 2020 will be considered when the year is complete

 

Strategic highlights

§ 

Sustained focus on production efficiencies and expense management has helped contain costs

§ 

Sale of the Horizon Farm property, subject to conditions precedent, for a gross cash consideration of $31m (Group share of proceeds net of taxes estimated at $18.2 million (approximately £14.0 million) is expected to complete during Q4 2020.  Estimated pre tax gain on sale of $18.3 million (approximately £14.2 million) will be reflected in 2020 full year results

§ 

Further progress made on geographic and crop diversification and to secure water resources continues to mitigate climate impacts and exposure to tea price

§ 

Continued commitment to ESG principles which remain core to Camellia ethos

No Comments

Post a Comment