Camellia reports improved trading performance, shares fall

(Sharecast News) - Camellia reported an improvement in trading performance for 2025 on Tuesday, as early actions under its value enhancement plan helped the agriculture and investment group move to a trading profit.

The AIM-traded group said revenue from continuing operations rose to £268.0m in the year ended 31 December, from £262.2m in 2024.

Trading profit was £1.0m, compared with a £5.5m trading loss a year earlier, which Camellia said reflected early contributions from management actions under the value enhancement plan announced in May last year.

Operating profit fell to £1.2m from £2.2m, while profit before tax was £3.0m, compared with break-even in the prior year.

The adjusted loss before tax narrowed to £2.0m from £7.0m.

Losses after tax from continuing operations improved to £4.2m from £4.7m, while the total loss after tax narrowed to £4.1m from £5.3m.

EBITDA declined to £11.3m from £14.8m. Net cash, treasury deposits, gilts and money market instruments increased to £133.6m from £124.7m, helped by disposals of non-core businesses and assets that generated £20m of cash proceeds.

Net assets fell to £329.5m from £347.7m.

The board proposed a maintained final ordinary dividend of 260p per share, equivalent to a £6.5m outflow and funded from reserves.

Camellia said the dividend reflected the board's confidence in the group's direction and prospects.

Chief executive Byron Coombs said the value enhancement plan had provided "clear strategic direction" for the group.

"While we are still in the early stages of implementing the plan we are seeing positive results from our actions," he said.

"Our primary objectives in 2026 are improving business efficiency to deliver better trading profits and investing for growth."

Camellia said the foundation year of the value enhancement plan had included disposals of consistently unprofitable or non-core operating assets in the UK and India, alongside efforts to strengthen boards and leadership teams across the group.

The company committed £15m of investment capital from 2026 to 2031 across four projects, which it said were targeted to generate new revenue of £35m by 2034.

The projects use existing land, core infrastructure and management teams to improve returns on assets.

The group continued investment in two existing growth initiatives, including a further 100 hectares of planting at its Tanzanian avocado farm, bringing total planting over the past five years to 458 hectares.

It also continued converting commercial forestry to higher-return arable production in Brazil, bringing total converted land to 545 hectares.

Camellia approved two new growth projects in late 2025 - the development of 400 hectares of citrus in Brazil and the commercialisation of its Kakuzi blueberry trial in Kenya.

The blueberry project would expand from 10 hectares to 22 hectares in 2026, with an aspiration to reach 82 hectares in production by the end of 2029.

After the year ended, Camellia disposed of Linton Park and some UK artwork, generating total proceeds of £14.7m and disposal profits of £5m.

The company said disposals of UK investment properties were now largely complete.

Camellia also said independent non-executive director Frédéric Vuilleumier would not stand for re-election after 13 years with the company and would retire from the board at the conclusion of the AGM on 4 June.

At 1242 BST, shares in Camellia were down 6.17% at 5,700p.

Reporting by Josh White for Sharecast.com.

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