LONDON (Alliance News) - Agriculture and horticulture group Camellia PLC said Tuesday its pretax profit for 2015 had been hit by newly enacted legislation in Bangladesh, but would be broadly in line with market expectations due to strengthening prices for crops.
Camellia said last year's introduction of legislation in Bangladesh, which required companies to make a payment on retirement to all employees, based upon compensation and length of service, had meant it was obliged to make an appropriate provision for the approximately 18,000 company employees in Bangladesh, estimated to amount to GBP6.5 million as at December 31.
However, pretax profit for 2015 looked to be broadly in line with expectations, boosted by a particularly good year for avocado, macadamia crops and tea. The prices of avocado and macadamia crops exceeded expectations, whilst tea prices in Kenya strengthened in the first half of 2015 and remained significantly higher than those experienced in 2014 in the second half.
Camellia said it anticipates its accounts for 2015 will reflect a "significant increase in the value of biological assets", due to currency movements.
Camellia shares were down 0.5% at 9,000.00 pence on Tuesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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