Camellia PLC - Kent-based agriculture and engineering services firm - For first half of 2020 posts pretax loss of GBP12.9 million, swinging from a profit of GBP3.9 million a year before. This is as revenue falls 2.0% year-on-year to GBP114.9 million from GBP117.3 million and administrative expenses rise 12% to GBP25.0 million from GBP22.4 million. Books impairment cost of GBP3.4 million on the Jing Tea brand and plant and equipment at Abbey Metal Finishing and GBP3.5 million of legal claims costs.
Prices and therefore the profitability of tea operations hurt by oversupply of tea in Kenya and disruption due to Covid-19. Pandemic also hurts engineering and food services businesses in the UK.
Interim dividend deferred and company to consider full-year dividend at year end. However, will pay 102p special dividend, which is equal to its postponed 2019 final dividend. Earlier in the year, Camellia had paid an interim dividend of 42.0p.
Looking ahead, Chair Malcolm Perkins says: "Full year results for 2020 will be substantially below those of 2019 due to the weakness of the tea price, particularly in Bangladesh, Kenya and Malawi; the direct impact of Covid-19 on our engineering and food service operations; the reduction in the macadamia crop and prices; and legal costs. However, excluding legal costs, impairments and before any profit on disposal of the Horizon Farm property, we expect to record an underlying profit before tax."
Pretax profit was GBP22.3 million in 2019 on revenue of GBP291.5 million. Underlying pretax profit from continuing operations was down 58% from 2018 to GBP16.1 million.
Cash on June 30 was GBP82.9 million, down from GBP95.8 million.
Current stock price: 6,750.00 pence
Year-to-date change: down 23%
By Ife Taiwo; ifetaiwo@alliancenews.com
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Camellia (CAM)