Camellia Regulatory News (CAM)

27 Apr 2006 16:05

Camellia PLC27 April 2006 Camellia Plc Preliminary Results For Year Ended 31 December 2005 Highlights from the results:- Year ended Year ended 31 December 31 December 2005 2004 £'000 £'000 Revenue - continuing operations 152,743 156,288 Profit before tax 22,275 8,013 Profit for the period 23,569 6,642 Earnings per share 793.2 p 217.8 p Dividends 89 p 88 p Chairman's statement The accounts for 2005 reflect a number of significant changes both in thecomposition of the group and those arising from compliance with InternationalFinancial Reporting Standards. In November 2005, Camellia acquired theoutstanding minority shareholding in Linton Park Plc resulting in a gain of£6.53 million partially offset by expenses of £1 million. Profits on thedisposal of investments, fixed assets and shares in a subsidiary companyamounted to £4.16 million and there was a gain arising from changes in the fairvalue of biological assets of £4.15 million. The profit before tax of £22.28million including the above mentioned items, compares with a re-stated profit of£8.01 million for 2004. In addition, the profit for the period includes a netexceptional gain of £3.06 million following the disposal of the group's interestin its Australian citrus operations and the resultant post tax profitattributable to shareholders of £20.33 million compares with £5.52 million in2004. Earnings per share increased to 793.2p from 217.8p. As stated above, part of the earnings includes a gain arising from changes inthe value of biological assets. In my statement last year I expressed myconcerns about including such amounts in the income statement and nothing hasoccurred over the last year to alleviate such concerns. We will continue toidentify these changes in fair value on the face of the income statement and myadvice to shareholders is to view such changes, whether they be increases orreductions, with extreme caution and not to rely on them when assessing theperformance or value of the company. Dividend The board is recommending a final dividend of 69p per share which, together withthe interim dividend already paid of 20p per share, brings the totaldistribution for the year to 89p per share compared with 88p per share inrespect of 2004. Agriculture and horticulture Tea India Our operations in India produced a crop of 26.16 million kgs which wasapproximately 1 million kgs ahead of the previous year despite the loss of 1.3million kgs due to a strike in the Dooars during the peak producing month ofJuly. Prices generally continued to be depressed and the market was adverselyaffected by lower exports and a substantial drop in the orthodox market as aresult of a decline in sales to Iran. Our continuing emphasis on quality enabledus to maintain our position as a premium supplier to the market. The Goodricke School for Special Education at Siliguri, gifted by The CamelliaFoundation, was formally opened on 11 April 2006 having moved from rentedaccommodation to a fine new purpose-built school. Bangladesh Production in Bangladesh at 13.25 million kgs was marginally ahead of last yearwith prices increasing by an average of 20 per cent.. This resulted in a goodcontribution to profits for the year. Replanting of old areas of tea continuedthrough the year and this will be an on-going exercise for a number of years tocome. A recent decline in the security situation in the country gives some causefor concern but as yet no problems have been encountered on the tea gardens. Africa Production in Africa of 30.8 million kgs was some 5 million kgs below the levelsachieved in 2004. The drought in East Africa started to impact on Kenyan production towards theend of the year. Prices achieved in the year were on average 15 US cents per kgbelow those in 2004 with the reduction being exacerbated by the strength of theKenyan shilling resulting in an adverse effect on profit margins. The droughtcontinued into the first part of 2006 leading to a significant increase inprices. Such increase is however not sufficient to cover the increased cost ofproduction. Our shareholding in Eastern Produce Kenya reduced to 70 per cent.during the year following the sale of a further 8 per cent. to the existingminority shareholder. This transaction resulted in a profit of £795,000. In Malawi, the tea operations managed only to break even for the year. Nosignificant rain fell between March and late November. This drought, one of theworst on record, resulted in production being well below 2004 levels and priceswere some 8 US cents lower than the previous year. Good rains were howeverreceived in December 2005, and although some young tea areas have been lost as aresult of the drought, production is returning to more normal levels. In South Africa slow progress is being made with the disposal of the assetslocated on the estates which were closed during 2004. The sale of one estate,which was not subject to a land claim, has been completed and the level ofcompensation to be received for another estate has been agreed with the LandClaims Commission. It is hoped to have resolved all issues surrounding theremaining estates during 2006. Nepal The political situation in Nepal continues to give serious cause for concern andthe future of our small investment in Himalaya Goodricke Private Limited isunder consideration. Citrus The citrus operations in both Chile and South Africa performed disappointinglyin 2005 with wet weather and pest problems resulting in poor pack outs forexport. Excellent results were achieved from the new development in Californiaand we are presently expanding this operation to utilise available land andwater resources. Edible nuts A better than expected 'off-year' crop was achieved from our pistachio orchardsin California and good prices were attained. Our macadamia production in both South Africa and Malawi showed a considerableimprovement over the previous year and prices remained strong resulting in mostsatisfactory profits. However the outlook for 2006 is not as promising as bothcountries suffered drought conditions during the period of flowering which hasresulted in a lower fruit set. In addition, market demand has weakened andprices are expected to be lower. Other horticulture Table grape production in South Africa was well below expectations due toadverse weather conditions particularly at the time of flowering. We decided tolessen our investment in this sector and therefore sold one of our two tablegrape properties in 2005. In Chile production levels increased as the orchardsbecame more mature. Income was adversely affected by the strengthening of thelocal currency. Wine grape production in Chile and South Africa was satisfactory. Prices inChile were considerably ahead of the previous year due to the increasingmaturity of our vines but the global market remains very competitive. There arehowever tentative signs that demand for our South African wines is improving. The avocado crop in Kenya was slightly below the levels achieved in 2004 butgood prices were received for our exports although once again the strength ofthe Kenyan shilling had a negative impact on income. Good progress is being madewith the building of the new avocado pack house, which is expected to beoperational in 2006. The pineapple joint venture in Kenya again made a significant contribution toprofits. The existing agreement expires in stages up to 2008 but negotiations toenter into a new agreement have been unsuccessful. In view of this, adevelopment plan is being prepared for alternative use of the land presentlyoccupied by pineapples. Rubber production in Bangladesh again showed a small improvement and whencombined with higher prices, produced a good contribution to profits. Newlyinstalled drying facilities are helping to control the cost of production. Our farming operations in Brazil were affected by dry weather, poor commodityprices and the strength of the local currency. Nonetheless a small operationalprofit was achieved which together with investment income produced a worthwhileresult albeit at a lower level than the previous year. Food storage and distribution As a result of the loss of a major contract at the beginning of 2005 AssociatedCold Stores and Transport had another disappointing year. The markets andlocations in which the company operates remain very competitive with continueddownward pressure on transport, cold storage and handling rates. In addition,increasing energy and fuel costs have affected the results. Further controllablecost reductions have taken place and space utilisation rates improved marginallyduring the year. Affish's results in The Netherlands were slightly better than last year but thefish trading business is still suffering from very tight margins. Wylax's fishdistribution business showed a modest improvement but there has not been anymeaningful recovery in the Dutch restaurant sector. Engineering The buoyant oil and gas sector has had a positive impact on the results of AJTEngineering in Aberdeen, where demand for its BOP (blow out preventor) repairsand new build service is strong. The cold extrusion business continues toexpand. Losses on a large contract undertaken by AKD in Lowestoft produced anotherdisappointing result, notwithstanding the site operating close to full capacity.The management team is being restructured in order that the company can takeadvantage of increased activity in the southern sector of the North Sea. Abbey Metal Finishing achieved further important accreditations during the yearwhich are necessary for it to operate in the aerospace sector. The companyproduced satisfactory operating profits and demand for its services continues togrow. The galvanizing business of British Metal Treatments and the profile cutting andprecision grinding business of General Utilities both produced good results forthe year. Banking and financial services The Duncan Lawrie private banking group experienced significant growth duringthe year and produced a profit 23 per cent. above last year. The acquisition ofthe investment management business of Douglas Deakin Young has to date met ourexpectations in full. We hope to build on this area of our business whilst atthe same time enhancing the other activities of the bank in offering integratedwealth management. Pharmaceuticals Following a strong second half year, the Siegfried group reported sales of CHF318.3 million for 2005. Consolidated net profit increased from CHF 16.4 millionin 2004 to CHF 36.5 million in 2005. The sales increase is due mainly to an improvement in the Siegfried Division'score business of manufacturing active pharmaceutical ingredients. Satisfactoryresults were also achieved in the markets for generics and biologically producedactive ingredients. The Sidroga division also reported improved sales andoperating results. Other associated undertakings and investments The United Leasing Company Limited in Bangladesh produced profits before tax of£2.30 million compared with £2.64 million in 2004. This reduction in profits islargely due to increased competition. Also, in Bangladesh where the insurancemarket remains competitive, The United Insurance Company Limited producedresults similar to last year. Its subsidiary, The Surmah Valley Tea CompanyLimited improved its profit for the year. Our investments in Bermuda and elsewhere are now shown in the balance sheet atmarket value rather than cost in accordance with International FinancialReporting Standards. The underlying investments performed well in 2005 andinvestment income increased. Development Organic growth will continue on the majority of our agricultural properties aswill improvements to infrastructure and welfare facilities. Where assets are inneed of development to maintain their value and effectiveness we are making thenecessary improvements, such as in some of our tea factories in India and byreplanting areas of tea that are in decline through old age. Support is alsogiven to the growth of those activities where there are attractive opportunitiesfor extending and expanding those operations, such as at Duncan Lawrie and thegalvanising business of British Metal Treatments. Developing our managementstructures to ensure they remain efficient and effective is also an ongoingprocess and is currently being pursued further as a result of the merger withLinton Park. Pensions The group operates a number of defined benefit pension schemes, and in commonwith the majority of such schemes in the UK, the group's UK schemes are indeficit. The combined deficits have previously been an off-balance sheet item,but as a result of new accounting regulations have now become an on-balancesheet liability. The newly appointed Pensions Regulator has wide powers overcompanies with pension scheme deficits that could hinder those companies frommaking normal commercial decisions. Whether such draconian powers areappropriate is a matter for debate but what seems incomprehensible is that thefunding of the Pension Protection Fund penalises those schemes that are alreadyin deficit making an unfortunate situation even worse. Leaving aside the power of the Pensions Regulator and the impact he can have onthe way in which a company is managed, one feels a sense of enormous frustrationat the manner in which defined benefit schemes have been targeted in such a wayas to make them virtually untenable. It is, after all, not so long ago thatactuaries were busy calculating the improved benefits that could be given, orcontribution holidays taken, to utilise surpluses that would otherwise, at thegovernment's behest, have to be returned to sponsoring companies and then taxed.Companies operating rationally were not therefore permitted to maintainreasonable pension fund surpluses for the time when circumstances changed. Andchange they certainly did. Firstly, advance corporation tax credits were removedfrom pension scheme investment income and then equity market values fellsignificantly. This has more recently been exacerbated by the lemming-like rush,particularly by pension funds driven to do so in part by changes in theregulatory environment, into bonds (the wisdom of which is at last beingchallenged by serious commentators). This has forced up bond prices and forced down bond yields, a key measure usedby actuaries to calculate a pension fund's liabilities - the lower the realyield the greater the liability. In addition, life expectancy has grown rapidlywhich has forced actuaries to change another of the key assumptions they use tovalue pension schemes' liabilities. Suddenly schemes faced large deficits which,as a result of the change in the accounting rules, have had a significant impacton employers' balance sheets. The unpredictability of such changes to actuarialassumptions and the resultant movement in pension schemes' deficits togetherwith the fact that the Pensions Regulator requires deficits to be paid off overa far shorter period than previously recommended by the actuaries (leading tocompanies facing a bill that could easily render them uncompetitive in theirmarket place) has sounded the death knell of many defined benefit schemes. Basedon this experience, companies might well feel that, even if they sort out thepresent situation, it could all so easily happen again. Thus we see the frequentpress coverage of UK employers making significant changes to their occupationalpension schemes. Full actuarial valuations of two of our schemes are taking place in 2006 anddespite the rise in equity markets we nonetheless expect contribution rates toincrease. It would be a great pity, particularly for scheme members, if our owndefined benefit schemes are closed as a result of assumptions that subsequentlycould be found to be inaccurate or based on short term distortions. However, wecannot place the group in jeopardy and consequently we will over the next fewmonths be reviewing in great depth our ability to continue with defined benefitschemes in their current form. I can only hope that common sense, whichsometimes to the layman seems to be missing, will in the end prevail. Corporate social responsibility During 2005 the board adopted a Statement of Business Principles whichencapsulates the standards to which the group's businesses operate. TheStatement, which can be viewed on the company's website (www.camellia.plc.uk),sets out the group's policy on business integrity, health and safety,environmental matters and social issues and human resources. Next year'saccounts will include a business review as required by recent legislation whichwill cover these areas in detail. Directors and staff I am pleased to welcome Chris Relleen to the board as deputy chairman and as anindependent non-executive director. Chris will bring a wealth of experience andexpertise and will I am sure make a significant contribution to ourdeliberations. Abu Subhan will be retiring as a director at the conclusion of the forthcomingannual general meeting. Abu has been responsible for the redevelopment of thegroup's interests in Bangladesh and has improved their profitability with greatcare and vision. His contribution has been immense and I wish him a long, happyand healthy retirement. 2005 has been a successful year in many ways and this could not have beenachieved without the skill and dedication of our staff who not only have to dealwith the day to day operations but also comply with increasing regulatoryrequirements. M C Perkins Chairman 27 April 2006 Consolidated income statementfor the year ended 31 December 2005 2005 2004 Notes £'000 £'000Continuing operations Revenue 2 152,743 156,288Cost of sales (107,968) (112,498) ------------- ------------Gross profit 44,775 43,790 Other operating income 2,373 955Distribution costs (7,969) (7,337)Administrative expenses (35,978) (33,941) ------------- ------------Trading profit 2 3,201 3,467 Share of associates' results 5,842 2,924Profit on disposal of non-current assets 874 1,283Profit on disposal of 'available-for-sale'investments 2,488 844Profit on part disposal of a subsidiary 795 -Profit on part disposal of an associate - 121Gain arising from changes in fair value ofbiological assets 4,147 1,722Gain/(loss) on group restructuring 3 5,523 (1,634) ------------- ------------Profit from operations 22,870 8,727 Investment income 1,313 1,447Net finance costs (1,908) (2,161) ------------- ------------Profit before tax 22,275 8,013 Taxation (1,764) (2,741) ------------ ------------Profit for the period from continuingoperations 20,511 5,272 Discontinued operationsProfit for the period from discontinuedoperations 2 3,058 1,370 ------------ ------------Profit for the period 23,569 6,642 ------------ ------------ Profit attributable to minority interests 3,243 1,127Profit attributable to equity shareholders' 20,326 5,515 ------------ ------------ 23,569 6,642 ------------ ------------ Earnings per share - basic and diluted 5 793.2p 217.8pEarnings per share from continuingoperations - basic and diluted 5 692.2p 194.4p Consolidated balance sheetat 31 December 2005 2005 2004 £'000 £'000 Non-current assetsGoodwill 4,220 - Intangible assets 368 398Property, plant and equipment 82,069 82,813Biological assets 86,679 79,805Prepaid operating leases 1,062 876Investments in associates 65,672 60,689Deferred tax assets 1,330 691Financial assets 61,831 43,371Retirement benefit surplus 2,634 3,212Trade and other receivables 583 756 ------------ -----------Total non-current assets 306,448 272,611 ------------ ----------- Current assets Inventories 18,204 20,918Trade and other receivables 50,699 50,606Current income tax assets 1,820 1,699Cash and cash equivalents 170,940 150,857 ------------ ----------- 241,663 224,080Non-current assets classified 1,036 11,157as held for sale ------------ -----------Total current assets 242,699 235,237 ------------ ----------- Current liabilitiesBorrowings (21,234) (28,282)Trade and other payables (201,779) (166,484)Deferred income from anticipated sale - (3,591)Current income tax liabilities (1,888) (2,132)Other employee benefit obligations (190) (213)Provisions (88) (506) ------------ -----------Total current liabilities (225,179) (201,208) ------------ ----------- Net current assets 17,520 34,029 ------------ ----------- Total assets less current liabilities 323,968 306,640 Non-current liabilitiesBorrowings (10,959) (20,541)Deferred tax liabilities (27,061) (26,246)Retirement benefit obligations (21,284) (26,290)Other employee benefit obligations (1,399) (1,277)Other non-current liabilities (353) (436)Provisions (70) (113) ------------- -----------Total non-current liabilities (61,126) (74,903) ------------- ----------- Net assets 262,842 231,737 ------------- ----------- EquityCalled up share capital 284 260Reserves 241,632 187,229 ------------- -----------Shareholders' funds 241,916 187,489Minority interests 20,926 44,248 ------------- -----------Total equity 262,842 231,737 ------------- ----------- Consolidated cash flow statementfor the year ended 31 December 2005 2005 2004 Notes £'000 £'000 Cash generated from operationsCash flows from operating activities 6 20,753 11,401Interest paid (2,551) (2,785)Income taxes paid (3,435) (2,552)Interest received 635 265Dividends received from associates 1,564 2,149 ---------- ----------Net cash flow from continuing operating activities 16,966 8,478Net cash flow from discontinued operatingactivities 1,730 6,330 ---------- ----------Net cash flow from operating activities 18,696 14,808 Cash flows from investing activitiesPurchase of intangible assets (105) (70)Purchase of property, plant and equipment (6,844) (5,328)Proceeds from sale of non-current assets 2,418 2,244Disposal of subsidiaries/businesses (net of cashdisposed) 7 12,883 540Part disposal of a subsidiary 1,673 -Acquisition of subsidiary (net of cash acquired) 7 (4,393) (52)Purchase of minority interests (3,027) (482)Purchase of shares in associate (16) -Proceeds from sale of shares in associates - 1,075Proceeds from sale of investments 3,200 2,589Purchase of investments (7,141) (3,579)Income from investments 1,313 1,374Net cash flow from discontinued operations (1,430) (725) ---------- ----------Net cash flow from investing activities (1,469) (2,414) Cash flows from financing activitiesEquity dividends paid (2,284) (2,258)Dividends paid to minority interests (1,306) (1,871)Net repayment of debt (9,213) (5,328)Purchase of own shares - (16)Net cash flow from discontinued operations - (3,879) ---------- ----------Net cash flow from financing activities (12,803) (13,352) ---------- ----------Net increase/(decrease) in cash and cashequivalents 4,424 (958) Cash and cash equivalents at beginning of period (10,637) (9,946)Exchange (losses)/gains on cash (222) 267 ---------- ----------Cash and cash equivalents at end of period (6,435) (10,637) ---------- ---------- For the purposes of the cash flow statement, cash and cash equivalents are included net of overdrafts repayable on demand. These overdrafts are excludedfrom the definition of cash and cash equivalents disclosed on the balance sheet. Statement of recognised income and expensefor the year ended 31 December 2005 2005 2004 £'000 £'000 Foreign exchange translation differences 12,725 (7,826)Actuarial movement on defined benefit pension schemes 4,310 (7,420)Movement on deferred tax relating to defined benefitpension schemes 1,204 (244)Available-for-sale investments: Valuation gains taken to equity 7,124 5,070 Transferred to profit or loss on sale (1,562) (669)Other fair value adjustment 135 (49)Share of associate's fair value adjustments (45) 169Share of associate's loss on cash flow hedges (585) - ----------- -----------Net income/(expense) recognised directly in equity 23,306 (10,969) Profit for the period 23,569 6,642 ----------- -----------Total recognised income and expense for the period 46,875 (4,327) ----------- ----------- Attributable to:Minority interests 5,767 (1,777)Equity shareholders' 41,108 (2,550) ----------- ----------- 46,875 (4,327) ----------- ----------- Notes 1 General information The consolidated income statement, consolidated balance sheet, consolidated cashflow statement, consolidated statement of recognised income and expense andextracts from the notes to the accounts for 31 December 2005 and 31 December2004 do not constitute the group's Annual Report and Accounts. The auditors havereported on the group's statutory accounts for each of the years 2005 and 2004under section 235 of the Companies Act 1985, which do not contain statementsunder sections 237 (2) or (3) of the Companies Act and are unqualified. Thestatutory accounts for 2004 under UK GAAP have been delivered to the Registrarof Companies and the statutory accounts for 2005 will be filed with theRegistrar in due course. Copies of the Annual Report and Accounts will be postedto shareholders on 5 May 2006. The consolidated financial statements have been prepared in accordance withInternational Financial Reporting Standards (IFRS) as adopted by the EU. Detailsof the accounting policies applied to these financial statements were publishedin the group interim financial statements on 28 September 2005. 2 Business and geographical segments The principal activities of the group are as follows: Agriculture and horticultureEngineeringFood storage and distributionBanking and financial services For management reporting purposes these activities form the basis on which the group reports its primary divisions. Segment information about these businesses is presented below: 2005 Agriculture Engineering Food storage Banking and Other Consolidated and and financial operations horticulture distribution services 2005 2005 2005 2005 2005 2005 £'000 £'000 £'000 £'000 £'000 £'000 RevenueExternal sales 83,861 19,441 38,734 9,350 1,357 152,743 -------- -------- --------- -------- -------- ----------- Trading profitSegment profit 6,506 223 (1,004) 1,303 339 7,367 -------- -------- --------- -------- -------- Unallocated corporate expenses (4,166) -----------Trading profit 3,201 Share of associates' results 68 560 5,214 5,842Profit on disposal ofnon-current assets 874Profit on disposal of'available-for-sale'investments 2,488Profit on part disposalof a subsidiary 795Gain arising from changes infair value of biological assets 4,147 4,147Gain/(loss) on grouprestructuring 5,523Investment income 1,313Net finance costs (1,908) -----------Profit before tax 22,275Taxation (1,764)Profit for the period fromdiscontinued operations 3,058 -----------Profit after tax anddiscontinued operations 23,569 ----------- Other informationSegment assets 164,534 14,406 29,850 193,716 7,997 410,503Investment in associates 1,052 2,781 61,839 65,672Unallocated assets 72,972 -----------Consolidated total assets 549,147 ----------- Segment liabilities (28,105) (4,016) (7,406) (177,361) (135) (217,023)Unallocated liabilities (69,282) -----------Consolidated total liabilities (286,305) ----------- Capital expenditure 4,423 461 1,338 366 44Depreciation (2,956) (837) (2,910) (234) (108)Amortisation (15) (11) - (78) -Impairment (111) (179) - - - 2004 Agriculture Engineering Food storage Banking and Other Consolidated and and financial operations horticulture distribution services 2005 2005 2005 2005 2005 2005 £'000 £'000 £'000 £'000 £'000 £'000 RevenueExternal sales 92,650 13,684 42,007 6,611 1,336 156,288 -------- -------- --------- -------- -------- -----------Trading profitSegment profit 7,822 (582) (682) 1,059 478 8,095 -------- -------- --------- -------- -------- Unallocated corporate expenses (4,628) -----------Trading profit 3,467Share of associates' results 8 412 2,504 2,924Profit on disposal ofnon-current assets 1,283Profit on disposal of'available-for-sale'investments 844Profit on part disposalof an associate 121Gain arising from changes infair value of biologicalassets 1,722 1,722Gain/(loss) on grouprestructuring (1,634)Investment income 1,447Net finance costs (2,161) -----------Profit before tax 8,013Taxation (2,741)Profit for the period fromdiscontinued operations 1,370 -----------Profit after tax anddiscontinued operations 6,642 ----------- Other informationSegment assets 149,072 13,991 32,862 163,833 10,602 370,360Investment in associates 1,002 2,345 57,342 60,689Unallocated assets 76,799 -----------Consolidated total assets 507,848 ----------- Segment liabilities (26,784) (3,973) (8,287) (140,180) (293) (179,517)Unallocated liabilities (96,594) -----------Consolidated total liabilities (276,111) ----------- Capital expenditure 3,759 342 1,943 990 -Depreciation (3,086) (817) (2,838) (212) (99)Amortisation - (5) (26) (60) -Impairment (270) - - - - Segment assets consist primarily of intangible assets, property, plant and equipment, biological assets, prepaid operating leases,inventories, trade and other receivables and cash and cash equivalents. Receivables for tax have beenexcluded. Investments for associates, valued using the equity method, have been shown separately in the segmentinformation. Segment liabilities are primarily those relating to the operating activities and generally excludeliabilities for taxes, short term loans, finance leases and non-current liabilities. Geographical segmentsThe group operations are based in nine main geographical areas. The United Kingdom is the home country of the parent. The principal territories in which the group operates are as follows: United KingdomContinental EuropeIndiaKenyaMalawiBangladeshNorth AmericaSouth AfricaSouth America The following table provides an analysis of the group's sales by geographical market, irrespective of the originof the goods/services: 2005 2004 £'000 £'000 United Kingdom 65,242 62,599Continental Europe 17,799 19,729India 32,451 28,056Kenya 11,361 13,681Malawi 3,118 4,864Bangladesh 8,375 7,656North America 4,115 3,395South Africa 1,987 6,311South America 3,112 3,320Other 5,183 6,677 --------- ---------- 152,743 156,288 --------- ---------- The following is an analysis of the carrying amount of segment assets, and additions to property, plant and equipment, analysed by the geographical area in which the assets are located: Carrying amount of segment assets Additions to property, plant and equipment 2005 2004 2005 2004 £'000 £'000 £'000 £'000 United Kingdom 239,591 215,037 2,151 3,251Continental Europe 3,493 3,501 58 70India 48,192 44,973 1,548 1,032Kenya 36,723 30,360 947 746Malawi 27,962 25,047 841 870Bangladesh 23,587 21,807 550 438North America 3,109 3,785 82 306South Africa 14,721 15,912 254 115South America 13,125 9,938 387 312 --------- -------- ---------- ---------- 410,503 370,360 6,818 7,140 --------- -------- ---------- ----------Discontinued operations In March 2005, the group disposed of its 70.5 per cent. holding in East African Coffee Plantations Limited (EACP), as a result the revenue and results of the EACP group have been excluded from the income statement and are recorded in a single line on a post-tax basis. A breakdown of the results of discontinued operations is shown below: Agriculture and Food storage and Consolidated horticulture distribution 2005 2004 2005 2004 2005 2004 £'000 £'000 £'000 £'000 £'000 £'000 RevenueExternal sales 3,373 29,044 - 187 3,373 29,231 -------- -------- -------- ------- ----------- --------- Trading profitSegment profit (499) 2,317 - (17) (499) 2,300 -------- -------- -------- ------- Investment income 1 4Net finance costs 18 (336) ----------- ---------(Loss)/profit before tax (480) 1,968Taxation - (598) ----------- ---------(Loss)/profit after tax (480) 1,370Profit on disposal ofdiscontinued operations 5,167 -Taxation in relation todisposal (1,629) - ----------- ---------Profit for the year fromdiscontinued operations 3,058 1,370 ----------- --------- Geographical segmentsRevenue from the group's discontinued operations was derived as follows: United Kingdom - 378 - 187 - 565India 20 817 - - 20 817Bangladesh - 94 - - - 94North America 80 6,804 - - 80 6,804Australia 3,013 15,629 - - 3,013 15,629Other 260 5,322 - - 260 5,322 -------- -------- -------- ------- ----------- --------- 3,373 29,044 - 187 3,373 29,231 -------- -------- -------- ------- ----------- --------- 3 Gain/(loss) on group restructuring In November 2005, Camellia Plc acquired the outstanding minority shareholding inLinton Park Plc. A gain of £6,529,000 was realised as the consideration paid waslower than the net assets acquired. This gain has been partially offset byexpenses incurred in relation to the transaction of £1,006,000. The loss in 2004 related to the closure of the group's tea operations in SouthAfrica and closure costs relating to the Birmingham division of British MetalTreatments Limited. 4 Equity dividends 2005 2004 £'000 £'000 Amounts recognised as distributions to equity holdersin the period: Final dividend for the year ended 31 December 2004 of68.00p (2003: 67.00p) per share 1,765 1,739Interim dividend for the year ended 31 December 2005of 20.00p (2004: 20.00p) per share 519 519 -------- ---------- 2,284 2,258 -------- ---------- Proposed final dividend for the year ended 31December 2005 of 69.00p (2004:68.00p) per share 1,961 1,765 -------- ---------- The proposed final dividend is subject to approval by the shareholders at theAnnual General Meeting and has not been included as a liability in thesefinancial statements and will be payable on 5 July 2006 to shareholders on theregister of members at the close of business on 9 June 2006. 5 Earnings per share (EPS) 2005 2004 Weighted Weighted average average number of number of Earnings shares EPS Earnings shares EPS £'000 Number Pence £'000 Number Pence Basic and diluted EPS Continuing and discontinued operations Attributable to ordinaryshareholders 20,326 2,562,401 793.2 5,515 2,532,653 217.8 ------- --------- ------ ------- ------- -------Continuing operations Attributable to ordinaryshareholders 17,737 2,562,401 692.2 4,923 2,532,653 194.4 ------- -------- ------ ------- -------- ------- Discontinued operations Attributable to ordinary shareholders 2,589 2,562,401 101.0 592 2,532,653 23.4 ------- -------- ------ ------- -------- ------- Basic and diluted earnings per share are calculated by dividing the earningsattributable to ordinary shareholders by the weighted average number of ordinaryshares in issue during the period, excluding those held by the group as treasuryshares. 6 Reconciliation of profit from operations to cash flow 2005 2004 £'000 £'000 Profit from operations 22,870 8,727Share of associates' results (5,842) (2,924)Depreciation and amortisation 7,249 7,365Impairment of fixed assets 336 1,254Gain arising from changes in fair value of biologicalassets (4,147) (1,722)Loss on disposal of investment 25 -Profit on disposal of non-current assets (874) (1,283)Profit on part disposal of a subsidiary (795) -Profit on disposal of investments (2,488) (844)Profit on part disposal of an associate - (121)(Gain)/loss on group restructuring (5,523) 1,634Decrease/(increase) in working capital 31,521 (9,412)Net (increase)/decrease in funds of banking subsidiaries (21,579) 8,727 --------- --------- 20,753 11,401 --------- --------- 7 Acquisition and disposal of businesses Acquisition Disposal Acquisition Disposal 2005 2005 2004 2004 £'000 £'000 £'000 £'000 Book value of assets and liabilities:Property, plant and equipment 124 3,252 324 -Biological assets - 4,292 - -Financial assets - 75 - -Deferred tax asset - 29 - -Cash and cash equivalents 1,252 1,435 81 -Inventories - 1,386 3 166Trade and other receivables 626 1,938 17 278Current income tax assets - 1,101 - -Non-current assets classified as held for sale - 11,157 - -Trade and other payables (577) (9,135) (61) (4)Net amount due from group undertaking - - - 100Borrowings - (2,002) (25) -Other non-current liabilities - (43) - - --------- ------- --------- -------- 1,425 13,485 339 540Goodwill 4,220 - (23) -Minority interest - (4,334) (150) -Profit on disposal - 5,167 - - --------- ------- --------- -------- 5,645 14,318 166 540 --------- ------- --------- -------- Satisfied by:Cash consideration and costs 5,645 14,318 108 540Transfer from other investments - - 58 - --------- ------- --------- -------- 5,645 14,318 166 540 --------- ------- --------- -------- Net (outflow)/inflow of cash in respect ofacquisition and disposal of businesses:Cash consideration and costs (5,645) 14,318 (108) 540Net cash balances ofbusiness acquired/(sold) 1,252 (1,435) 56 -Net overdraft of business sold - - - - --------- ------- --------- -------- (4,393) 12,883 (52) 540 --------- ------- --------- -------- On 17 February 2005, the group acquired 100 per cent. of the issued sharecapital of Douglas Deakin Young Limited for cash consideration of £5,645,000.Monies to the value of £300,000 were retained from the consideration under theterms of the share sale agreement in respect of certain liabilities that mightarise in respect of zero dividend preference shares.Douglas Deakin Young Limited contributed £2,669,000 operating income and£470,000 to the group's profit before tax for the period between the date ofacquisition and the balance sheet date.In March 2005, the group disposed of its 70.5 per cent. interest in EastAfrican Coffee Plantations Limited for cash considersation of £14,318,000. Press Enquiries: Malcolm Perkins, ChairmanTel: 01622 746655 This information is provided by RNS The company news service from the London Stock Exchange