Interim Results

Camellia PLC 11 September 2003 Camellia Plc Interim results for the period ended 30th June 2003 Chairman's Statement Pre-tax profits of Â£2,169,000 for the six months to 30th June 2003 compared with Â£2,221,000 for the same period last year. The Board has declared an interim dividend of 20p per ordinary share payable on 7th November 2003 to shareholders on the register on 17th October 2003. Tea and Coffee India Crops are slightly ahead of last year, but prices are very disappointing. This is partly due to an increasing amount of product coming from the smallholder sector. Instant tea is having a good year and has received orders for production well into 2004. Bangladesh Prices are higher than for the same period last year and crops are also ahead. Bangladesh has the advantage of an enlarging domestic market and good export orders to Pakistan. Africa Tea production is comparable to the previous year, but prices have been disappointing. A drought in South Africa resulted in a reduced tea crop and some gardens were closed during the period. Coffee prices continue at levels substantially below cost of production. The very strong South African Rand and relatively strong Kenya Shilling have resulted in a significant reduction in income, whilst costs continue to increase in local currency terms. Citrus We have encountered adverse weather conditions in Australia, where drought has led to a reduction in crop. Severe water restrictions are already in place and this must inevitably impact on future production levels. Edible Nuts Production of macadamia in Malawi and South Africa has been satisfactory and prices have been relatively strong in dollar terms. Pistachio production in California will be reduced on account of the alternate bearing cycle. Other Horticulture Climatic conditions in South Africa and Chile led to poor table grape production although wine grape production was satisfactory in Australia and South Africa. The wine market, however, continues to be over supplied and prices are under pressure. The recent improvement in the Brazilian operations has continued into 2003 and the prospects for the year are satisfactory assuming stable currency rates. Rubber production in Bangladesh continues to meet its budget and prices are satisfactory. Food Storage and Distribution Profits are considerably below expectation from Associated Cold Stores & Transport as pressure on margins continues. W. G. White is suffering from a decline in caviar sales. Engineering Our engineering activities have experienced mixed fortunes during the period with some reasonable results being countered by a continued shortage of activity in the aerospace and North Sea oil exploration sectors. Banking The reorganisation of Duncan Lawrie has continued during 2003. The business support and processing functions have been relocated to group premises at Wrotham thereby offering the opportunity of better utilisation of space. Increased investment activity and a reduction in costs has resulted in the bank making a welcome return to profitability. Pharmaceutical Our associated company, Siegfried AG, produced very satisfactory half-year results, which included a large one-off licence fee for its generics business. For the second half of 2003, Siegfried has expressed caution regarding its trading prospects and expects lower sales due to exchange rate movements and the discontinuation of two important products. The downturn in the market for Siegfried products will be more pronounced in 2004, but action to reduce costs has already been implemented. Other Associated Undertakings The United Leasing Company Limited and the United Insurance Company Limited in Bangladesh have both enjoyed a reasonable first half to the year and the prospects of these companies for the full year remain encouraging. Prospects Linton Park has experienced very difficult conditions in a number of its trading activities and at present there appears to be little prospect of any alleviation. Tea operations in India are also facing an uncertain future. It is difficult to make any definitive prediction of the outcome for the full year, but the prospects are not encouraging. M C Perkins Chairman Linton Park Linton Near Maidstone 11th September 2003 Kent ME17 4AB Consolidated Profit and Loss Account for the six months ended 30th June 2003 Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Notes Â£'000 Â£'000 Â£'000 Turnover - continuing operations 80,502 77,706 169,511 - discontinued operations - 3,577 7,012 -------- -------- --------- 1 80,502 81,283 176,523 -------- -------- --------- Operating (loss)/profit - continuing operations 1 (4,030) (1,847) 5,853 - discontinued operations - (67) 136 -------- -------- --------- (4,030) (1,914) 5,989 Share of results of associates 6,692 5,447 11,670 -------- -------- --------- 1 2,662 3,533 17,659 Investment income 713 792 1,431 Profit on disposal of fixed asset investments 3 558 182 170 Profit on disposal of fixed assets 325 - 195 Profit/(provision for loss) on disposal of a subsidiary and a business 4 98 - 255 --------- -------- --------- Profit on ordinary activities before interest 4,356 4,507 19,710 Net interest payable and similar charges 5 2,187 2,286 4,281 --------- -------- --------- Profit on ordinary activities before taxation 2,169 2,221 15,429 Taxation on profit on ordinary activities 6 1,292 2,505 4,827 --------- -------- --------- Profit/(loss) on ordinary activities after taxation 877 (284) 10,602 Interest of minority shareholders 154 1,045 3,453 --------- --------- ---------- Attributable profit/(loss) for the period 723 (1,329) 7,149 ---------- ---------- ----------- Dividends 7 519 532 2,270 Earnings per share 8 27.75p (49.95)p 269.57p Consolidated Balance Sheet at 30th June 2003 30th June 30th June 31st December 2003 2002 2002 Â£'000 Â£'000 Â£'000 Fixed assets Intangible assets Goodwill Positive 1,218 1,183 1,265 Negative (3,422) (3,874) (3,648) -------- -------- --------- (2,204) (2,691) (2,383) Tangible assets 168,841 167,544 166,232 Investments 81,457 76,725 79,387 -------- -------- --------- 248,094 241,578 243,236 -------- -------- --------- Current assets Stocks 28,894 31,203 31,467 Debtors 60,645 55,305 56,650 Cash at banks and in hand (note 9) 162,352 172,178 154,738 -------- -------- --------- 251,891 258,686 242,855 Creditors: amounts falling due within one year (224,423) (223,553) (210,650) -------- -------- --------- Net current assets 27,468 35,133 32,205 -------- -------- --------- Total assets less current liabilities 275,562 276,711 275,441 Creditors: amounts falling due after more than one year (38,428) (41,357) (38,047) Provisions for liabilities and charges (6,070) (7,122) (7,240) -------- -------- --------- 231,064 228,232 230,154 -------- -------- --------- Capital and reserves Called up share capital 260 266 264 Reserves 170,439 168,134 170,135 -------- -------- --------- Equity shareholders' funds 170,699 168,400 170,399 Minority shareholders' interest 60,365 59,832 59,755 -------- -------- --------- 231,064 228,232 230,154 -------- -------- --------- Consolidated Cash Flow Statement for the six months ended 30th June 2003 Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Notes Â£'000 Â£'000 Â£'000 Net cash flow from operating activities 10 1,372 3,243 12,810 Dividends received/capital distribution from associates 2,114 158 1,031 Returns on investments and servicing of finance (1,951) (2,953) (4,020) Taxation paid (645) (1,330) (2,736) Capital expenditure and financial investment (3,569) (4,742) (10,635) Acquisitions and disposals 971 412 3,699 Equity dividends paid - - (2,287) -------- -------- --------- Cash outflow before financing (1,708) (5,212) (2,138) Financing New loans 4,916 5,873 5,242 Loan and finance lease payments (3,917) (3,155) (6,264) Purchase of own shares (1,259) (1,514) (2,079) -------- -------- --------- Decrease in cash in the period 11 (1,968) (4,008) (5,239) -------- -------- --------- Statement of Total Recognised Gains and Losses for the six months ended 30th June 2003 Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Â£'000 Â£'000 Â£'000 Attributable profit/(loss) for the period 723 (1,329) 7,149 Exchange differences 1,355 (2,738) (6,914) -------- -------- --------- Total recognised gains and losses for the period 2,078 (4,067) 235 Prior period adjustment - (4,515) (4,515) -------- -------- --------- 2,078 (8,582) (4,280) -------- -------- --------- The prior period adjustment is the additional deferred tax provision attributable to equity shareholders arising from the adoption of FRS 19 - 'Deferred Tax'. Reconciliation of Movement in Shareholders' Funds for the six months ended 30th June 2003 Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Â£'000 Â£'000 Â£'000 Attributable profit/(loss) for the period 723 (1,329) 7,149 Dividends (519) (532) (2,270) Exchange differences 1,355 (2,738) (6,914) Purchase of own shares (1,259) (1,514) (2,079) -------- -------- --------- Net movement to shareholders' funds 300 (6,113) (4,114) Opening equity shareholders' funds 170,399 174,513 174,513 -------- -------- --------- Closing equity shareholders' funds 170,699 168,400 170,399 -------- -------- --------- Notes to the Accounts 1 Segmental analysis of turnover and operating profit/(loss) Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Â£'000 Â£'000 Â£'000 Turnover By activity Agriculture and horticulture 50,967 48,496 111,327 Trading and agency 205 174 133 Food storage and distribution 20,452 21,200 42,791 Engineering 7,899 6,743 13,122 Property leasing 970 972 2,068 Central management and miscellaneous 9 121 70 -------- -------- --------- 80,502 77,706 169,511 Discontinued - Trading and agency - 3,447 6,761 Discontinued - Fine art trading - 130 251 -------- -------- --------- 80,502 81,283 176,523 -------- -------- --------- By country of origin United Kingdom 24,497 23,822 47,168 Continental Europe 4,797 4,959 10,290 India 12,110 11,092 32,112 Kenya 9,825 10,025 20,787 Malawi 7,291 7,232 9,634 Bangladesh 3,104 3,648 8,966 North America 244 146 1,439 South America and Bermuda 1,750 1,471 1,422 Australia 9,399 7,869 22,858 South Africa 7,485 7,442 14,835 -------- -------- --------- 80,502 77,706 169,511 Discontinued - United Kingdom - 3,577 7,012 -------- -------- --------- 80,502 81,283 176,523 -------- -------- --------- Operating Profit By activity Agriculture and horticulture (2,595) (714) 8,842 Trading and agency 724 690 501 Food storage and distribution (441) 282 576 Engineering 453 478 421 Property leasing 951 942 1,993 Banking 187 (287) (83) Central management and miscellaneous (3,312) (3,241) (5,595) -------- -------- --------- (4,033) (1,850) 6,655 Discontinued - Trading and agency - 35 (3) Discontinued - Fine art trading - (102) 139 -------- -------- --------- (4,033) (1,917) 6,791 Profit on sale of investments to group company included in banking results - - (795) Net interest received/(paid) by banking operations from/to group companies 3 3 (7) -------- -------- --------- (4,030) (1,914) 5,989 Associated undertakings Agriculture and horticulture (85) (116) (44) Pharmaceutical 6,242 5,108 10,504 Insurance and leasing 535 455 1,210 -------- -------- --------- 2,662 3,533 17,659 -------- -------- --------- Operating Profit By country of origin United Kingdom (1,251) (933) (2,657) Continental Europe (2) 2 120 India (3,234) (4,070) (51) Kenya 114 1,043 3,209 Malawi 2,384 2,303 1,563 Bangladesh (272) (943) 1,053 North America (36) (160) 460 South America and Bermuda 447 (81) (542) Australia (589) 89 1,452 South Africa (1,591) 903 1,246 -------- -------- --------- (4,030) (1,847) 5,853 Discontinued - United Kingdom - (67) 136 -------- -------- --------- (4,030) (1,914) 5,989 -------- -------- --------- 2 Business interruption insurance proceeds of Â£268,000 (2002 six months: Â£415,000 - year: Â£829,000) have been credited to operating profit. 3 The profit on disposal of Â£558,000 in the six months to 30th June 2003, relates to the disposal of an unlisted investment in The Tay Salmon Fisheries Company Limited in which the Group had a 13.0 per cent. holding. The minority interest relating to this profit on disposal is Â£116,000. 4 Profit/(provision for loss) on disposal of a subsidiary and a business Six months Six months Year ended ended ended 30 June 30 June 31 December 2003 2002 2002 Â£000 Â£000 Â£000 Profit on disposal of subsidiaries 280 - 255 Provision for loss on disposal of a business (182) - - -------- -------- --------- 98 - 255 -------- -------- --------- In the six months to 30th June 2003, the Group realised a profit of Â£280,000 on the disposal of its interest in British Traders & Shippers Limited. In addition, the Group also made a provision of Â£182,000 which relates to SWF Citrus Inc.'s citrus estates in Florida which are in the course of disposal. 5 Net interest payable includes Â£273,000 (2002 six months: Â£363,000 - year: Â£537,000) in respect of the Group's share of associated undertakings' net interest. 6 Taxation includes overseas taxation of Â£275,000 (2002 six months: Â£1,339,000 - year: Â£3,199,000) and share of associated undertakings' taxation charge of Â£1,682,000 (2002 six months: Â£1,306,000 - year: Â£2,747,000). 7 Dividends Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Â£'000 Â£'000 Â£'000 Interim of 20p per share (2002: 20p) 519 532 528 Final for 2002 of 66p per share - - 1,742 -------- -------- --------- 519 532 2,270 -------- -------- --------- 8 The calculation of earnings per share is based on attributable profit/ (loss) divided by the weighted average number of ordinary shares in issue which was 2,605,450 (2002 six months: 2,660,540 - year: 2,652,023). 9 Included in cash at banks and in hand of Â£162,352,000 (2002 six months: Â£172,178,000 - year: Â£154,738,000) are cash and short-term funds, time deposits with banks and building societies and certificates of deposit amounting to Â£153,637,000 (2002 six months: Â£160,033,000 - year: Â£144,439,000), which are held by banking subsidiaries and which are an integral part of the banking operations of the Group. 10 Reconciliation of operating (loss)/profit to net cash flow from operating activities Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Â£'000 Â£'000 Â£'000 Operating (loss)/profit (4,030) (1,914) 5,989 Depreciation 4,346 4,372 8,539 Amortisation of goodwill (179) (190) (375) Profit on sale of fixed assets (93) (95) (250) Decrease/(increase) in working capital 9,503 12,203 (3,871) Net (increase)/decrease in funds of banking subsidiaries (9,198) (12,344) 3,250 Currency adjustment 1,023 1,211 (472) -------- -------- --------- Net cash flow from operating activities 1,372 3,243 12,810 -------- -------- --------- 11 Reconciliation of net cash flow to movements in net debt Six months Six months Year ended ended ended 30th June 30th June 31st December 2003 2002 2002 Â£'000 Â£'000 Â£'000 Decrease in cash in the period (1,968) (4,008) (5,239) Cash (inflow)/outflow from changes in debt and financing (999) (2,718) 1,022 -------- -------- --------- Change in net debt resulting from cash flows (2,967) (6,726) (4,217) Businesses sold 136 666 (3,557) New finance leases - - (824) Translation differences (923) (944) 219 -------- -------- --------- Increase in net debt in the period (3,754) (7,004) (8,379) Net debt at beginning of period (57,417) (49,038) (49,038) -------- -------- --------- Net debt at end of period (61,171) (56,042) (57,417) -------- -------- --------- 12 The accounts to 30th June 2003 have been prepared on the basis of the accounting policies set out in the financial statements for the year ended 31st December 2002. The six months figures are unaudited and have not been reviewed by the company's auditors. The figures for the year ended 31st December 2002 are an abridged statement from the Group's accounts at that date which have been delivered to the Registrar of Companies. The Auditors' Report on these accounts was unqualified. 13 The interim dividend of 20p per share is payable on 7 November 2003 to shareholders on the register on 17 October 2003. 14 The interim report will be posted to shareholders and will be available to the public this afternoon, 11 September 2003. Press enquiries Malcolm Perkins, Chairman 01622 746655 This information is provided by RNS The company news service from the London Stock Exchange

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