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(Alliance News) - Camellia PLC on Thursday reported mixed results for last year amid "a range of challenges", recommending a dividend despite swinging to a loss and expecting improvement in 2023.
Camellia, a Kent-based agriculture and engineering services firm, swung to a GBP3.7 million pretax loss in 2022 from a GBP7.1 million profit in 2021. Revenue increased by 14% to GDP297.2 million from GBP255.3 million.
Camellia said cost of sales rose by 15% to GBP226.7 million in 2022 from GBP197.8 million in 2021. Administrative expenses grew 2.5% to GBP45.8 million from GBP44.7 million.
Distribution costs increased more dramatically, by 59% to GBP23.0 million from GBP14.5 million. It distribution costs increased particularly for exports out of Africa.
Camellia recommended a final dividend of 102 pence per share bringing the total 2022 dividend to 146p, unchanged from 2021. It said this reflected the board's confidence in its outlook.
Camellia said its full-year outlook was mixed, expecting increased revenue but lower trading profit, due to the impact of inflation on wages and other costs. Its associate BF&M Ltd is expected to swing to profit following trading losses last year, which Camellia predicts will raise adjusted pretax profit above the 2022 level.
Adjusted operating profit before tax was GBP3.3 million last year, down almost two thirds from GBP9.3 million in 2021.
Chair Malcolm Perkins commented: "Camellia withstood a range of challenges in 2022, including the impact of inflation on input and distribution costs as a result of the Ukraine war, volatility in financial markets, the cost of living crisis in the UK as well as adverse weather in India and prolonged strikes in Bangladesh. The combination of these meant that the group's profitability was significantly impacted. That said, the resilience and commitment of our people has enabled us to continue to focus on our strategy of expansion in areas of expertise while divesting non-core businesses."
He added: "Trading in 2023 to date has been mixed...The impact of substantial rises in wages and energy prices continue to be felt across all our agriculture operations and are expected to impact margins."
Camellia's shares were down 2.1% in London on Thursday at 4,740.00p each.
By Emma Curzon, Alliance News reporter
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