Ongoing operations booming at Camellia

Camellia announced its interim results for the six months ended 30 June on Friday, with first half tea production of 39.2 million kilograms, up 7% on same period of 2017.

The AIM-traded firm reported record shipments in the period from an early avocado crop in Kenya, as well as “strong” progress from its Engineering North division, with revenues there up 30% on the same time last year.

Macadamia production was expected to be “substantially up” on 2017, although Kenya tea prices were now experiencing significant downward pressure, and avocado selling prices were being significantly reduced, the board said.

It did confirm that the closure of Duncan Lawrie was now complete, with a small additional provision of £0.3m.

On the financial front, revenue from continuing operations was up to £127.6m from £123.6m a year ago, with the profit from those operations rising to £6.1m from £1.9m.

Earnings per share from continuing operations were 29p, swinging from losses of 39.8p per share at the same time last year, though on a statutory basis earnings per share slid to 18.1p from 532.2p.

The board did declare a 1.8% increase in the interim dividend to 40p per share, with cash and cash equivalents at 30 June standing at £90.8m, compared to £98.7m a year ago.

“Profits for our continuing operations for the first half of the year were better than anticipated reflecting the generally benign weather conditions and favourable markets experienced across our agricultural operations,” said Camellia chairman Malcolm Perkins.

“We have also made significant progress with our strategic initiatives to refine our portfolio.

“We remain financially strong, with the resources to advance our development plans.”