Half Yearly Report

RNS Number : 6777R

Camellia PLC

26 August 2010

 



Camellia Plc

 

Half-yearly report 2010

 

Highlights from the results
	Six months ended		Six months ended
	30 June 2010		30 June 2009
	£'000		£'000
Revenue	102,557		96,948
Trading profit	11,728		4,774
Profit before tax	16,136		4,995
Profit for the period	10,973		3,114
Earnings per share	270.2	p	63.4	p
Interim dividend	30	p	20	p

Chairman's statement

The profit before tax of £16,136,000 for the six months to 30 June 2010 compares with a profit of £4,995,000 for the same period last year.

In recognition of these positive results the board has declared an interim dividend of 30p per ordinary share payable on 4 November 2010 to shareholders registered on 15 October 2010.

Tea

India

Production has again been below expectation due to initial drought being followed by excessively wet and cold conditions. It is expected that some of the current shortfall in production will be recovered in the second half of the year. Sale prices have again increased over the previous year. The political situation in West Bengal and particularly in Darjeeling continues to be a cause for concern.

Bangladesh

Bangladesh also suffered a drought early in the year but production is now improving and sale prices remain beneficial.

Africa

Production is well ahead of last year as a result of good climatic conditions. This, combined with higher sale prices, has led to improved results particularly in Kenya. Prices have however declined from the high levels achieved earlier in the year.

Edible nuts

Macadamia production in Malawi and South Africa, whilst ahead of last year, is below expectations as a result of dry conditions at the time of flowering. Sale prices are above those of the previous year.

The pistachio harvest in California takes place in the second half of the year but prospects are in accordance with a normal 'on' year for production.

Other horticulture

The citrus crop at Horizon Farms in California is ahead of last year with sale prices expected to be on a par with those for 2009.

Although avocado production at Kakuzi in Kenya is higher than the previous year there has not been as much outgrower fruit processed through the packing facility. Sale prices are also expected to be lower than last year due to greater availability of fruit from South Africa and South America.

Rubber production in Bangladesh is similar to last year but sale prices are at a higher level.

Adverse climatic conditions reduced the maize harvest at CC Lawrie in Brazil. The soya harvest should increase over the previous year but sale prices for both crops remain disappointing due to reduced demand and increased production in the USA.

The wine harvest in South Africa was similar to the previous year.

Food storage and distribution

The highly competitive market for cold storage continues and has impacted adversely on the results of Associated Cold Stores and Transport. The prospects for the cold storage industry remain uncertain.

Engineering

It is difficult to establish any consistent pattern from our engineering group. Whilst de-stocking may now have run its course, orders are only being placed on a hand to mouth basis and there remains widespread caution in the engineering sector in respect of a potential double dip recession. Plans continue for the re-establishment of the Abbey Metal Finishing facility following the disastrous fire in April 2010.

Banking

It continues to be very difficult for Duncan Lawrie to make any margin on its deposit-taking business with interest rates remaining at historically low levels. The asset management division of the business continues to make a positive contribution to Duncan Lawrie's results.

Pharmaceutical

As previously announced, the group disposed of its interest in Siegfried Holding AG in April 2010.

Prospects

Our agricultural operations are making a positive contribution to profits, the maintenance of which is of course dependent on benign climatic conditions and reasonable sale prices, neither of which can be guaranteed, to cover the ever-increasing costs of production. The group has no net debt and remains in a strong financial position but, as usual, it is not possible to give any indication of the likely outcome for the full year.

M C Perkins

Chairman

26 August 2010

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 2010 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 2009 (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 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 Services Authority.

The directors of Camellia Plc are listed in the Camellia Plc statutory financial statements for the year ended 31 December 2009. Dr B A Siegfried did not seek re-election at the annual general meeting. There have been no other subsequent changes of directors and 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 2010

Consolidated income statement
for the six months ended 30 June 2010
				Six months			Six months			Year
				ended			ended			ended
				30 June			30 June			31 December
				2010			2009			2009
			Notes	£'000			£'000			£'000
Revenue			4	102,557			96,948			230,270
Cost of sales				(69,824)			(68,076)			(148,506)
Gross profit				32,733			28,872			81,764
Other operating income				915			869			1,698
Distribution costs				(3,492)			(3,642)			(9,061)
Administrative expenses				(18,428)			(21,325)			(39,041)
Trading profit			4	11,728			4,774			35,360
Share of associates' results			5	2,387			465			(2,966)
Profit on disposal of available-for-sale   investments				80			28			28
Profit on disposal of an associate			6	248			-			-
Profit on part disposal of a subsidiary				-			135			135
Loss on disposal of a subsidiary				-			-			(674)
Gain arising from changes in fair value of   biological assets				1,085			95			2,746
Profit from operations				15,528			5,497			34,629
Investment income				452			412			1,106
Finance income				775			435			1,103
Finance costs				(452)			(650)			(1,566)
Pension schemes' net financing expense				(167)			(699)			(1,129)
Net finance income/(costs)			7	156			(914)			(1,592)
Profit before tax				16,136			4,995			34,143
Taxation			8	(5,163)			(1,881)			(11,702)
Profit for the period				10,973			3,114			22,441
Profit attributable to:
Non-controlling interests				3,463			1,353			6,544
Equity shareholders				7,510			1,761			15,897
				10,973			3,114			22,441
Earnings per share - basic and diluted			10	270.2		p	63.4		p	571.9	p
Statement of comprehensive income
for the six months ended 30 June 2010
				Six months			Six months			Year
				ended			ended			ended
				30 June			30 June			31 December
				2010			2009			2009
				£'000			£'000			£'000
Profit for the period				10,973			3,114			22,441
Other comprehensive income/(expense):
Foreign exchange translation differences				14,260			(32,479)			(24,276)
Release of exchange translation difference on   disposal of associate				(17,298)			-			-
Release of other reserve movements on disposal   of associate				945			-			-
Release of exchange translation difference on   disposal of subsidiary				-			-			(294)
Actuarial movement on defined benefit pension   scheme (note 14)				(6,577)			(13,890)			(2,657)
Available-for-sale investments:
Valuation losses taken to equity				(2,043)			(1,562)			(729)
Share of other comprehensive income of associates				(134)			262			3,075
Tax relating to components of other comprehensive   income				-			(104)			(1,276)
Other comprehensive expense for the period, net of   tax				(10,847)			(47,773)			(26,157)
Total comprehensive income/(expense) for the   period				126			(44,659)			(3,716)
Total comprehensive income/(expense) attributable to:
Non-controlling interests				4,582			(1,755)			4,163
Equity shareholders				(4,456)			(42,904)			(7,879)
				126			(44,659)			(3,716)
Consolidated balance sheet
at 30 June 2010
				30 June			30 June			31 December
				2010			2009			2009
			Notes	£'000			£'000			£'000
Non-current assets
Intangible assets				8,363			8,761			8,584
Property, plant and equipment			11	83,626			77,122			80,491
Biological assets				113,148			100,625			106,067
Prepaid operating leases				1,076			1,045			1,074
Investments in associates				38,360			93,731			97,364
Deferred tax assets				95			161			103
Other investments				30,901			28,937			30,153
Retirement benefit surplus				3,301			2,741			3,054
Trade and other receivables				17,121			18,752			19,646
Total non-current assets				295,991			331,875			346,536
Current assets
Inventories				33,927			28,004			28,279
Trade and other receivables				58,450			55,645			55,197
Other investments				6,072			7,871			12,420
Current income tax assets				2,361			2,633			763
Cash and cash equivalents			12	268,177			229,125			229,574
				368,987			323,278			326,233
Non-current assets classified as held for sale				-			5,768			-
Total current assets				368,987			329,046			326,233
Current liabilities
Borrowings			13	(13,727)			(18,432)			(12,761)
Trade and other payables				(251,473)			(263,398)			(254,346)
Current income tax liabilities				(6,718)			(3,696)			(5,353)
Other employee benefit obligations				(271)			(226)			(268)
Provisions				(150)			(297)			(150)
Total current liabilities				(272,339)			(286,049)			(272,878)
Net current assets				96,648			42,997			53,355
Total assets less current liabilities				392,639			374,872			399,891
Non-current liabilities
Borrowings			13	(1,165)			(7,475)			(3,119)
Trade and other payables				(12,327)			(11,038)			(11,227)
Deferred tax liabilities				(31,538)			(28,090)			(30,449)
Retirement benefit obligations			14	(25,621)			(39,825)			(27,045)
Other employee benefit obligations				(1,761)			(1,927)			(1,623)
Other non-current liabilities				(116)			(120)			(118)
Total non-current liabilities				(72,528)			(88,475)			(73,581)
Net assets				320,111			286,397			326,310
Equity
Called up share capital				284			284			284
Reserves				284,611			258,699			293,570
Shareholders' funds				284,895			258,983			293,854
Non-controlling interests				35,216			27,414			32,456
Total equity				320,111			286,397			326,310
Consolidated cash flow statement
for the six months ended 30 June 2010
				Six months			Six months			Year
				ended			ended			ended
				30 June			30 June			31 December
				2010			2009			2009
			Notes	£'000			£'000			£'000
Cash generated from operations
Cash flows from operating activities			15	(4,081)			5,038			48,038
Interest paid				(311)			(870)			(1,747)
Income taxes paid				(5,885)			(4,123)			(10,074)
Interest received				787			513			1,189
Dividends received from associates				409			1,490			2,297
Net cash flow from operating activities				(9,081)			2,048			39,703
Cash flows from investing activities
Purchase of intangible assets				(72)			(115)			(192)
Purchase of property, plant and equipment				(5,783)			(4,055)			(10,111)
Proceeds from sale of non-current assets				734			139			697
Part disposal of a subsidiary				312			579			579
Disposal of a subsidiary				-			-			3,843
Purchase of non-controlling interests				(2,705)			-			-
Proceeds from sale of associate				48,754			-			-
Proceeds from sale of investments				10,037			3,487			5,509
Purchase of investments				(4,655)			(5,889)			(12,683)
Income from investments				452			412			1,106
Net cash flow from investing activities				47,074			(5,442)			(11,252)
Cash flows from financing activities
Equity dividends paid				-			-			(2,557)
Dividends paid to non-controlling   interests				(1,844)			(1,676)			(2,610)
New loans				-			850			788
Repayment of debt				(4,953)			(2,890)			(4,883)
Net cash flow from financing activities				(6,797)			(3,716)			(9,262)
Net increase/(decrease) in cash and
cash equivalents			16	31,196			(7,110)			19,189
Cash and cash equivalents at beginning of   period				28,631			9,919			9,919
Exchange gains/(losses) on cash				879			(434)			(477)
Cash and cash equivalents at end of period				60,706			2,375			28,631
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				268,177			229,125			229,574
Less banking operation funds				(196,166)			(212,869)			(193,434)
Overdrafts repayable on demand (included in   current  liabilities - borrowings)				(11,305)			(13,881)			(7,509)
				60,706			2,375			28,631
Statement of changes in equity
for the six months ended 30 June 2010
	Share	Share	Treasury		Retained		Other			Non-controlling	Total
	capital	premium	shares		Earnings		reserves	Total		Interests	equity
	£'000	£'000	£'000		£'000		£'000	£'000		£'000	£'000
At 1 January 2009	284	15,298	(400)		195,485		93,433	304,100		30,401	334,501
Total comprehensive   expense for the period	-	-	-		(11,971)		(30,933)	(42,904)		(1,755)	(44,659)
Dividends	-	-	-		(2,001)		-	(2,001)		(1,676)	(3,677)
Non-controlling interest   subscription	-	-	-		-		-	-		444	444
Share of associate's change   in treasury shares	-	-	-		(258)		-	(258)		-	(258)
Share of associates' other   equity movements	-	-	-		75		-	75		-	75
Loss on dilution of interest   in associate	-	-	-		(29)		-	(29)		-	(29)
At 30 June 2009	284	15,298	(400)		181,301		62,500	258,983		27,414	286,397
At 1 January 2009	284	15,298	(400)		195,485		93,433	304,100		30,401	334,501
Total comprehensive   income/(expense) for the   period	-	-	-		14,926		(22,805)	(7,879)		4,163	(3,716)
Dividends	-	-	-		(2,557)		-	(2,557)		(2,610)	(5,167)
Non-controlling interest   subscription	-	-	-		-		-	-		502	502
Share of associate's change   in treasury shares	-	-	-		200		-	200		-	200
Share of associates' other   equity movements	-	-	-		27		-	27		-	27
Loss on dilution of interest   in associate	-	-	-		(37)		-	(37)		-	(37)
At 31 December 2009	284	15,298	(400)		208,044		70,628	293,854		32,456	326,310
Total comprehensive   income/(expense) for the   period	-	-	-		1,709		(6,165)	(4,456)		4,582	126
Dividends	-	-	-		(2,057)		-	(2,057)		(1,844)	(3,901)
Non-controlling interest   subscription	-	-	-		43		-	43		270	313
Acquisition of non-   controlling interest	-	-	-		(2,457)		-	(2,457)		(248)	(2,705)
Share of associate's other   equity movements	-	-	-		64		-	64		-	64
Loss on dilution of interest   in associate	-	-	-		(96)		-	(96)		-	(96)
At 30 June 2010	284	15,298	(400)		205,250		64,463	284,895		35,216	320,111

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 2010 (the "Interim Report"). They should be read in conjunction with the Report and Accounts (the "Annual Report") for the year ended 31 December 2009.

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 2009 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 Interpretations Committee ("IFRIC") 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 2010.

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 2009. In addition the group has implemented the following new and revised standards and interpretations:

IFRS 3 (revised)	Business combinations
IFRS 5 (amendment)	Non-current assets held for sale and discontinued operations
IAS 27 (revised)	Consolidated and separate financial statements
IAS 38 (amendment)	Intangible assets
IFRIC 17	Distribution of non-cash assets to owners

A summary of each of the above standards and interpretations was provided on page 34 of the 2009 Annual Report. IFRS 3 (revised) and IAS 27 (revised) apply prospectively to acquisitions and disposals of interests in businesses completed on or after 1 January 2010. The adoption of IFRS 5, IAS 38 and IFRIC 17 has had no material impact on the group's results, assets and liabilities.

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 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. 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 ended									Six months ended						Year ended
30 June 2010									30 June 2009						31 December 2009
			Revenue			Trading profit			Revenue			Trading profit			Revenue			Trading profit
			£'000			£'000			£'000			£'000			£'000			£'000
Agriculture and horticulture			70,811			13,909			60,167			5,392			156,974			37,949
Engineering			10,394			331			12,231			938			24,028			1,608
Food storage and distribution			15,079			(810)			18,634			707			37,434			985
Banking and financial services			6,027			28			5,664			(340)			11,347			(925)
Other operations			246			25			252			143			487			181
			102,557			13,483			96,948			6,840			230,270			39,798
Unallocated corporate expenses						(1,755)						(2,066)						(4,438)
Trading profit						11,728						4,774						35,360
Share of associates' results						2,387						465						(2,966)
Profit on disposal of available-for-sale   investments						80						28						28
Profit on disposal of an associate						248						-						-
Profit on part disposal of a subsidiary						-						135						135
Loss on disposal of a subsidiary						-						-						(674)
Gain arising from changes in fair value of   biological assets						1,085						95						2,746
Investment income						452						412						1,106
Net finance income/(costs)						156						(914)						(1,592)
Profit before tax						16,136						4,995						34,143
Taxation						(5,163)						(1,881)						(11,702)
Profit after tax						10,973						3,114						22,441
5 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
							2010					2009				2009
							£'000					£'000				£'000
Operating profit							2,695					1,335				2,516
Net finance costs							(39)					(465)				(2,653)
Impairment							-					-				(3,103)
Profit/(loss) before tax							2,656					870				(3,240)
Taxation							(269)					(405)				274
Profit/(loss) after tax							2,387					465				(2,966)
In 2009, the impairment charge of £3,103,000 relates to development projects of the Siegfried Group.
6 Profit on disposal of an associate
On 15 April 2010, the group disposed of its entire shareholding in Siegfried Holding AG, an associated undertaking. The net proceeds on disposal were £48,754,000 and a net profit of £248,000 was realised, after the transfer of £16,353,000 of exchange difference and other movements previously included in reserves.
7 Finance income and costs
							Six months					Six months				Year
							ended					ended				ended
							30 June					30 June				31 December
							2010					2009				2009
							£'000					£'000				£'000
Interest payable on loans and bank  overdrafts							(286)					(942)				(1,586)
Interest payable on obligations under finance   leases							(49)					(75)				(140)
Total borrowing costs							(335)					(1,017)				(1,726)
Net exchange (loss)/gain on foreign currency   borrowings							(117)					367				160
Finance costs							(452)					(650)				(1,566)
Finance income - interest income on short-term   bank deposits							775					435				1,103
Pension schemes' net financing expense							(167)					(699)				(1,129)
Net finance income/(costs)							156					(914)				(1,592)
The above figures do not include any amounts relating to the banking subsidiaries.
8 Taxation on profit on ordinary activities
							Six months					Six months				Year
							ended					ended				ended
							30 June					30 June				31 December
							2010					2009				2009
							£'000					£'000				£'000
Current tax
UK corporation tax							-					205				142
Overseas corporation tax							5,500					2,228				11,852
Total current tax							5,500					2,433				11,994
Deferred tax
Origination and reversal of timing differences
UK							-					13				(1,782)
Overseas							(337)					(565)				1,490
Total deferred tax							(337)					(552)				(292)
Tax on profit on ordinary activities							5,163					1,881				11,702
Tax on profit on ordinary activities for the six months to 30 June 2010 has been calculated on the basis of the estimated annual effective rate for the year ending 31 December 2010.
9 Equity dividends
							Six months					Six months				Year
							ended					ended				ended
							30 June					30 June				31 December
							2010					2009				2009
							£'000					£'000				£'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December   2009 of 74.00p (2008: 72.00p) per share							2,057					2,001				2,001
Interim dividend for the year ended 31 December   2009 of 20.00p per share																556
																2,557
Dividends amounting to £46,000 (2009: six months £45,000 - year £58,000) 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 2010 of 30.00p   (2009: 20.00p) per share							834					556
The proposed interim dividend was approved by the board of directors on 26 August 2010 and has not been included as a liability in these financial statements.
10 Earnings per share (EPS)
	Six months ended						Six months ended							Year ended
	30 June 2010						30 June 2009							31 December 2009
	Earnings				EPS		Earnings			EPS				Earnings		EPS
	£'000				Pence		£'000			Pence				£'000		Pence
Basic and diluted EPS
Attributable to ordinary   shareholders		7,510			270.2		1,761			63.4				15,897		571.9
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 2,779,500 (2009: six months 2,779,500 - year 2,779,500), which excludes 62,500 (2009: six months 62,500 - year 62,500) shares held by the group as treasury shares.
11 Property, plant and equipment
During the six months ended 30 June 2010 the group acquired assets with a cost of £5,783,000 (2009: six months £4,089,000 - year £10,111,000). Assets with a carrying amount of £645,000 were disposed of during the six months ended 30 June 2010 (2009: six months £73,000 - year £442,000).
12 Cash and cash equivalents
Included in cash and cash equivalents of £268,177,000 (2009: six months £229,125,000 - year £229,574,000) are cash and short-term funds, time deposits with banks and building societies and certificates of deposit amounting to £196,166,000 (2009: six months £212,869,000 - year £193,434,000), which are held by banking subsidiaries and which are an integral part of the banking operations of the group.
13 Borrowings
Borrowings (current and non-current) include loans and finance leases of £3,587,000 (2009: six months £12,026,000 - year £8,371,000) and bank overdrafts of £11,305,000 (2009: six months £13,881,000 - year £7,509,000). The following loans were repaid during the six months ended 30 June 2010:
								£'000
Balance at 1 January 2010								8,371
Exchange differences								169
Repayments
Loans								(4,953)
Balance at 30 June 2010								3,587
14 Retirement benefit schemes
UK defined benefit pension schemes for the purposes of IAS 19 have been updated to 30 June 2010 from the valuations as at 31 December 2009 by the actuaries to each relevant pension scheme and the movements have been reflected in this interim statement. Overseas schemes have not been updated from 31 December 2009 valuations as it is considered that there have been no significant changes.
An actuarial loss of £6,577,000 was realised in the period, of which £2,318,000 was realised in relation to the scheme assets and £4,259,000 was realised in relation to changes in the underlying actuarial assumptions. The assumed discount rate has decreased to 5.30% (31 December 2009: 5.70%), the assumed rate of inflation has decreased to 3.30% (31 December 2009: 3.60%) and the assumed rate of increases for salaries to 3.40% (31 December 2009: 3.70%), giving rise to an increase in defined benefit obligations. There has been no change in the mortality assumptions used.
15 Reconciliation of profit from operations to cash flow
								Six months					Six months				Year
								ended					ended				ended
								30 June					30 June				31 December
								2010					2009				2009
								£'000					£'000				£'000
Profit from operations								15,528					5,497				34,629
Share of associates' results								(2,387)					(465)				2,966
Depreciation and amortisation								4,594					4,545				8,685
Impairment of non-current assets								-					359				204
Gain arising from changes in fair value of biological   assets								(1,085)					(95)				(2,746)
Profit on disposal of non-current assets								(89)					(65)				(260)
Profit on disposal of investments								(80)					(28)				(28)
Profit on disposal of an associate								(248)					-				-
Loss on disposal of a subsidiary								-					-				674
Profit on part disposal of a subsidiary								-					(135)				(135)
Increase in working capital								(10,631)					(2,163)				(3,741)
Net (increase)/decrease in funds of banking   subsidiaries								(9,683)					(2,412)				7,790
								(4,081)					5,038				48,038
16 Reconciliation of net cash flow to movement in net debt
								Six months					Six months				Year
								ended					ended				ended
								30 June					30 June				31 December
								2010					2009				2009
								£'000					£'000				£'000
Increase/(decrease) in cash and cash equivalents in   the period								31,196					(7,110)				19,189
Net cash outflow from decrease in debt								4,953					2,040				4,095
Decrease/(increase) in net debt resulting from cash   flows								36,149					(5,070)				23,284
New finance leases								-					(34)				(65)
Disposal of a subsidiary								-					-				1,868
Exchange rate movements								710					66				381
Decrease/(increase) in net debt in the period								36,859					(4,443)				25,468
Net cash/(debt) at beginning of period								20,260					(5,208)				(5,208)
Net cash/(debt) at end of period								57,119					(9,651)				20,260
17 Related party transactions
In June 2010, the group purchased the remaining 49 per cent. holding in its subsidiary, Duncan Properties Limited from United Leasing Company Limited, an associate company. Both companies are based in Bangladesh. The consideration paid was £2,705,000 which resulted in a charge of £2,457,000 to reserves.
There have been no other related party transactions that had a material effect on the financial position or performance of the group in the first six months of the financial year.

Further enquiries please contact Camellia Plc

Malcolm Perkins

01622 746655

 

END

 

 

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