Last checked at 26 Aug 2010 09:58
Camellia Plc
Half-yearly report 2010
| Highlights from the results
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| Six months ended |
| Six months ended |
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| 30 June 2010 |
| 30 June 2009 |
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| £'000 |
| £'000 |
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| Revenue | 102,557 |
| 96,948 |
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| Trading profit | 11,728 |
| 4,774 |
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| Profit before tax | 16,136 |
| 4,995 |
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| Profit for the period | 10,973 |
| 3,114 |
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| Earnings per share | 270.2 | p | 63.4 | p |
| Interim dividend | 30 | p | 20 | p |
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Chairman's statement
The profit before tax of £16,136,000 for the six months to 30 June 2010 compares with a profit of £4,995,000 for the same period last year.
In recognition of these positive results the board has declared an interim dividend of 30p per ordinary share payable on 4 November 2010 to shareholders registered on 15 October 2010.
Tea
India
Production has again been below expectation due to initial drought being followed by excessively wet and cold conditions. It is expected that some of the current shortfall in production will be recovered in the second half of the year. Sale prices have again increased over the previous year. The political situation in West Bengal and particularly in Darjeeling continues to be a cause for concern.
Bangladesh
Bangladesh also suffered a drought early in the year but production is now improving and sale prices remain beneficial.
Africa
Production is well ahead of last year as a result of good climatic conditions. This, combined with higher sale prices, has led to improved results particularly in Kenya. Prices have however declined from the high levels achieved earlier in the year.
Edible nuts
Macadamia production in Malawi and South Africa, whilst ahead of last year, is below expectations as a result of dry conditions at the time of flowering. Sale prices are above those of the previous year.
The pistachio harvest in California takes place in the second half of the year but prospects are in accordance with a normal 'on' year for production.
Other horticulture
The citrus crop at Horizon Farms in California is ahead of last year with sale prices expected to be on a par with those for 2009.
Although avocado production at Kakuzi in Kenya is higher than the previous year there has not been as much outgrower fruit processed through the packing facility. Sale prices are also expected to be lower than last year due to greater availability of fruit from South Africa and South America.
Rubber production in Bangladesh is similar to last year but sale prices are at a higher level.
Adverse climatic conditions reduced the maize harvest at CC Lawrie in Brazil. The soya harvest should increase over the previous year but sale prices for both crops remain disappointing due to reduced demand and increased production in the USA.
The wine harvest in South Africa was similar to the previous year.
Food storage and distribution
The highly competitive market for cold storage continues and has impacted adversely on the results of Associated Cold Stores and Transport. The prospects for the cold storage industry remain uncertain.
Engineering
It is difficult to establish any consistent pattern from our engineering group. Whilst de-stocking may now have run its course, orders are only being placed on a hand to mouth basis and there remains widespread caution in the engineering sector in respect of a potential double dip recession. Plans continue for the re-establishment of the Abbey Metal Finishing facility following the disastrous fire in April 2010.
Banking
It continues to be very difficult for Duncan Lawrie to make any margin on its deposit-taking business with interest rates remaining at historically low levels. The asset management division of the business continues to make a positive contribution to Duncan Lawrie's results.
Pharmaceutical
As previously announced, the group disposed of its interest in Siegfried Holding AG in April 2010.
Prospects
Our agricultural operations are making a positive contribution to profits, the maintenance of which is of course dependent on benign climatic conditions and reasonable sale prices, neither of which can be guaranteed, to cover the ever-increasing costs of production. The group has no net debt and remains in a strong financial position but, as usual, it is not possible to give any indication of the likely outcome for the full year.
M C Perkins
Chairman
26 August 2010
Interim management report
The chairman's statement forms part of this report and includes important events that have occurred during the six months ended 30 June 2010 and their impact on the financial statements set out herein.
Principal risks and uncertainties
The directors' report in the statutory financial statements for the year ended 31 December 2009 (the accounts are available on the company's website: www.camellia.plc.uk) highlighted risks and uncertainties that could have an impact on the group's businesses. As these businesses are widely spread both in terms of activity and location, it is unlikely that any one single factor could have a material impact on the group's performance. These risks and uncertainties continue to be relevant for the remainder of the year. In addition, the chairman's statement included in this report refers to specific risks and uncertainties that the group is presently facing.
Statement of directors' responsibilities
The directors confirm that these condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by sections 4.2.7 and 4.2.8 of the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
The directors of Camellia Plc are listed in the Camellia Plc statutory financial statements for the year ended 31 December 2009. Dr B A Siegfried did not seek re-election at the annual general meeting. There have been no other subsequent changes of directors and a list of current directors is maintained on the group's website at www.camellia.plc.uk.
By order of the board
M C Perkins
Chairman
26 August 2010
| Consolidated income statement |
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| for the six months ended 30 June 2010 |
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| Six months |
| Six months |
| Year |
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| ended |
| ended |
| ended |
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| 30 June |
| 30 June |
| 31 December |
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| 2010 |
| 2009 |
| 2009 |
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| Notes | £'000 |
| £'000 |
| £'000 |
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| Revenue | 4 | 102,557 |
| 96,948 |
| 230,270 |
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| Cost of sales |
| (69,824) |
| (68,076) |
| (148,506) |
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| Gross profit |
| 32,733 |
| 28,872 |
| 81,764 |
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| Other operating income |
| 915 |
| 869 |
| 1,698 |
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| Distribution costs |
| (3,492) |
| (3,642) |
| (9,061) |
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| Administrative expenses |
| (18,428) |
| (21,325) |
| (39,041) |
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| Trading profit | 4 | 11,728 |
| 4,774 |
| 35,360 |
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| Share of associates' results | 5 | 2,387 |
| 465 |
| (2,966) |
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| Profit on disposal of available-for-sale investments | 80 |
| 28 |
| 28 |
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| Profit on disposal of an associate | 6 | 248 |
| - |
| - |
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| Profit on part disposal of a subsidiary |
| - |
| 135 |
| 135 |
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| Loss on disposal of a subsidiary |
| - |
| - |
| (674) |
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| Gain arising from changes in fair value of biological assets | 1,085 |
| 95 |
| 2,746 |
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| Profit from operations |
| 15,528 |
| 5,497 |
| 34,629 |
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| Investment income |
| 452 |
| 412 |
| 1,106 |
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| Finance income |
| 775 |
| 435 |
| 1,103 |
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| Finance costs |
| (452) |
| (650) |
| (1,566) |
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| Pension schemes' net financing expense | (167) |
| (699) |
| (1,129) |
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| Net finance income/(costs) | 7 | 156 |
| (914) |
| (1,592) |
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| Profit before tax |
| 16,136 |
| 4,995 |
| 34,143 |
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| Taxation | 8 | (5,163) |
| (1,881) |
| (11,702) |
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| Profit for the period |
| 10,973 |
| 3,114 |
| 22,441 |
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| Profit attributable to: |
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| Non-controlling interests |
| 3,463 |
| 1,353 |
| 6,544 |
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| Equity shareholders |
| 7,510 |
| 1,761 |
| 15,897 |
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| 10,973 |
| 3,114 |
| 22,441 |
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| Earnings per share - basic and diluted | 10 | 270.2 | p | 63.4 | p | 571.9 | p |
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| Statement of comprehensive income |
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| for the six months ended 30 June 2010 |
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| Six months |
| Six months |
| Year |
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| ended |
| ended |
| ended |
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| 30 June |
| 30 June |
| 31 December |
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|
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| 2010 |
| 2009 |
| 2009 |
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|
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| £'000 |
| £'000 |
| £'000 |
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| Profit for the period |
| 10,973 |
| 3,114 |
| 22,441 |
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| Other comprehensive income/(expense): |
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| Foreign exchange translation differences | 14,260 |
| (32,479) |
| (24,276) |
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| Release of exchange translation difference on disposal of associate | (17,298) |
| - |
| - |
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| Release of other reserve movements on disposal of associate | 945 |
| - |
| - |
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| Release of exchange translation difference on disposal of subsidiary | - |
| - |
| (294) |
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| Actuarial movement on defined benefit pension scheme (note 14) | (6,577) |
| (13,890) |
| (2,657) |
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| Available-for-sale investments: |
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| Valuation losses taken to equity |
| (2,043) |
| (1,562) |
| (729) |
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| Share of other comprehensive income of associates | (134) |
| 262 |
| 3,075 |
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| Tax relating to components of other comprehensive income | - |
| (104) |
| (1,276) |
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| Other comprehensive expense for the period, net of tax | (10,847) |
| (47,773) |
| (26,157) |
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| Total comprehensive income/(expense) for the period | 126 |
| (44,659) |
| (3,716) |
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| Total comprehensive income/(expense) attributable to: |
| ||||||||||||
| Non-controlling interests |
| 4,582 |
| (1,755) |
| 4,163 |
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| Equity shareholders |
| (4,456) |
| (42,904) |
| (7,879) |
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|
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| 126 |
| (44,659) |
| (3,716) |
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| Consolidated balance sheet |
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| at 30 June 2010 |
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| |||||
|
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| 30 June |
| 30 June |
| 31 December |
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|
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| 2010 |
| 2009 |
| 2009 |
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| Notes | £'000 |
| £'000 |
| £'000 |
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| Non-current assets |
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| Intangible assets |
| 8,363 |
| 8,761 |
| 8,584 |
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| Property, plant and equipment | 11 | 83,626 |
| 77,122 |
| 80,491 |
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| Biological assets |
| 113,148 |
| 100,625 |
| 106,067 |
|
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| Prepaid operating leases |
| 1,076 |
| 1,045 |
| 1,074 |
|
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| Investments in associates |
| 38,360 |
| 93,731 |
| 97,364 |
|
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| Deferred tax assets |
| 95 |
| 161 |
| 103 |
|
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| Other investments |
| 30,901 |
| 28,937 |
| 30,153 |
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| Retirement benefit surplus |
| 3,301 |
| 2,741 |
| 3,054 |
|
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| Trade and other receivables |
| 17,121 |
| 18,752 |
| 19,646 |
|
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| Total non-current assets |
| 295,991 |
| 331,875 |
| 346,536 |
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| Current assets |
|
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| Inventories |
| 33,927 |
| 28,004 |
| 28,279 |
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| Trade and other receivables |
| 58,450 |
| 55,645 |
| 55,197 |
|
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| Other investments |
| 6,072 |
| 7,871 |
| 12,420 |
|
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| Current income tax assets |
| 2,361 |
| 2,633 |
| 763 |
|
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| Cash and cash equivalents | 12 | 268,177 |
| 229,125 |
| 229,574 |
|
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|
|
| 368,987 |
| 323,278 |
| 326,233 |
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| Non-current assets classified as held for sale | - |
| 5,768 |
| - |
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| Total current assets |
| 368,987 |
| 329,046 |
| 326,233 |
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| Current liabilities |
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| Borrowings | 13 | (13,727) |
| (18,432) |
| (12,761) |
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| Trade and other payables |
| (251,473) |
| (263,398) |
| (254,346) |
|
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| Current income tax liabilities |
| (6,718) |
| (3,696) |
| (5,353) |
|
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| Other employee benefit obligations |
| (271) |
| (226) |
| (268) |
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| Provisions |
| (150) |
| (297) |
| (150) |
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| Total current liabilities |
| (272,339) |
| (286,049) |
| (272,878) |
|
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| Net current assets |
| 96,648 |
| 42,997 |
| 53,355 |
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| Total assets less current liabilities |
| 392,639 |
| 374,872 |
| 399,891 |
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| Non-current liabilities |
|
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| Borrowings | 13 | (1,165) |
| (7,475) |
| (3,119) |
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| Trade and other payables |
| (12,327) |
| (11,038) |
| (11,227) |
|
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| Deferred tax liabilities |
| (31,538) |
| (28,090) |
| (30,449) |
|
| |||||
| Retirement benefit obligations | 14 | (25,621) |
| (39,825) |
| (27,045) |
|
| |||||
| Other employee benefit obligations |
| (1,761) |
| (1,927) |
| (1,623) |
|
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| Other non-current liabilities |
| (116) |
| (120) |
| (118) |
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| Total non-current liabilities |
| (72,528) |
| (88,475) |
| (73,581) |
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| Net assets |
| 320,111 |
| 286,397 |
| 326,310 |
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| Equity |
|
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|
|
|
|
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| |||||
| Called up share capital |
| 284 |
| 284 |
| 284 |
|
| |||||
| Reserves |
| 284,611 |
| 258,699 |
| 293,570 |
|
| |||||
| Shareholders' funds |
| 284,895 |
| 258,983 |
| 293,854 |
|
| |||||
| Non-controlling interests |
| 35,216 |
| 27,414 |
| 32,456 |
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| Total equity |
| 320,111 |
| 286,397 |
| 326,310 |
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| Consolidated cash flow statement |
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| for the six months ended 30 June 2010 |
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| Six months |
| Six months |
| Year |
|
| |||||
|
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| ended |
| ended |
| ended |
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| |||||
|
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| 30 June |
| 30 June |
| 31 December |
|
| |||||
|
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| 2010 |
| 2009 |
| 2009 |
|
| |||||
|
| Notes | £'000 |
| £'000 |
| £'000 |
|
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| |||||
| Cash generated from operations |
|
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| Cash flows from operating activities | 15 | (4,081) |
| 5,038 |
| 48,038 |
|
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| Interest paid |
| (311) |
| (870) |
| (1,747) |
|
| |||||
| Income taxes paid |
| (5,885) |
| (4,123) |
| (10,074) |
|
| |||||
| Interest received |
| 787 |
| 513 |
| 1,189 |
|
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| Dividends received from associates |
| 409 |
| 1,490 |
| 2,297 |
|
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| Net cash flow from operating activities |
| (9,081) |
| 2,048 |
| 39,703 |
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| Cash flows from investing activities |
|
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| |||||
| Purchase of intangible assets |
| (72) |
| (115) |
| (192) |
|
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| Purchase of property, plant and equipment |
| (5,783) |
| (4,055) |
| (10,111) |
|
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| Proceeds from sale of non-current assets |
| 734 |
| 139 |
| 697 |
|
| |||||
| Part disposal of a subsidiary |
| 312 |
| 579 |
| 579 |
|
| |||||
| Disposal of a subsidiary |
| - |
| - |
| 3,843 |
|
| |||||
| Purchase of non-controlling interests |
| (2,705) |
| - |
| - |
|
| |||||
| Proceeds from sale of associate |
| 48,754 |
| - |
| - |
|
| |||||
| Proceeds from sale of investments |
| 10,037 |
| 3,487 |
| 5,509 |
|
| |||||
| Purchase of investments |
| (4,655) |
| (5,889) |
| (12,683) |
|
| |||||
| Income from investments |
| 452 |
| 412 |
| 1,106 |
|
| |||||
| Net cash flow from investing activities |
| 47,074 |
| (5,442) |
| (11,252) |
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| Cash flows from financing activities |
|
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| |||||
| Equity dividends paid |
| - |
| - |
| (2,557) |
|
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| Dividends paid to non-controlling interests |
| (1,844) |
| (1,676) |
| (2,610) |
|
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| New loans |
| - |
| 850 |
| 788 |
|
| |||||
| Repayment of debt |
| (4,953) |
| (2,890) |
| (4,883) |
|
| |||||
| Net cash flow from financing activities |
| (6,797) |
| (3,716) |
| (9,262) |
|
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| Net increase/(decrease) in cash and |
|
|
|
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| |||||
| cash equivalents | 16 | 31,196 |
| (7,110) |
| 19,189 |
|
| |||||
|
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| |||||
| Cash and cash equivalents at beginning of period |
| 28,631 |
| 9,919 |
| 9,919 |
|
| |||||
| Exchange gains/(losses) on cash |
| 879 |
| (434) |
| (477) |
|
| |||||
| Cash and cash equivalents at end of period |
| 60,706 |
| 2,375 |
| 28,631 |
|
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| For the purposes of the cash flow statement, cash and cash equivalents are included net of overdrafts repayable on demand. These overdrafts are excluded from the definition of cash and cash equivalents disclosed on the balance sheet. |
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| For the purposes of the cash flow statement cash and cash equivalents comprise: |
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| |||||||||
|
|
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|
|
|
|
|
|
| |||||
| Cash and cash equivalents |
| 268,177 |
| 229,125 |
| 229,574 |
|
| |||||
| Less banking operation funds |
| (196,166) |
| (212,869) |
| (193,434) |
|
| |||||
| Overdrafts repayable on demand (included in current liabilities - borrowings) | (11,305) |
| (13,881) |
| (7,509) |
|
| ||||||
|
|
| 60,706 |
| 2,375 |
| 28,631 |
|
| |||||
|
|
|
|
|
|
|
|
|
| |||||
| Statement of changes in equity | |||||||||||||
| for the six months ended 30 June 2010 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||
|
| Share | Share | Treasury | Retained | Other |
| Non-controlling | Total | |||||
|
| capital | premium | shares | Earnings | reserves | Total | Interests | equity | |||||
|
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||||
|
|
|
|
|
|
|
|
|
| |||||
| At 1 January 2009 | 284 | 15,298 | (400) | 195,485 | 93,433 | 304,100 | 30,401 | 334,501 | |||||
|
|
|
|
|
|
|
|
|
| |||||
| Total comprehensive expense for the period | - | - | - | (11,971) | (30,933) | (42,904) | (1,755) | (44,659) | |||||
| Dividends | - | - | - | (2,001) | - | (2,001) | (1,676) | (3,677) | |||||
| Non-controlling interest subscription | - | - | - | - | - | - | 444 | 444 | |||||
| Share of associate's change in treasury shares | - | - | - | (258) | - | (258) | - | (258) | |||||
| Share of associates' other equity movements | - | - | - | 75 | - | 75 | - | 75 | |||||
| Loss on dilution of interest in associate | - | - | - | (29) | - | (29) | - | (29) | |||||
| At 30 June 2009 | 284 | 15,298 | (400) | 181,301 | 62,500 | 258,983 | 27,414 | 286,397 | |||||
|
|
|
|
|
|
|
|
|
| |||||
| At 1 January 2009 | 284 | 15,298 | (400) | 195,485 | 93,433 | 304,100 | 30,401 | 334,501 | |||||
|
|
|
|
|
|
|
|
|
| |||||
| Total comprehensive income/(expense) for the period | - | - | - | 14,926 | (22,805) | (7,879) | 4,163 | (3,716) | |||||
| Dividends | - | - | - | (2,557) | - | (2,557) | (2,610) | (5,167) | |||||
| Non-controlling interest subscription | - | - | - | - | - | - | 502 | 502 | |||||
| Share of associate's change in treasury shares | - | - | - | 200 | - | 200 | - | 200 | |||||
| Share of associates' other equity movements | - | - | - | 27 | - | 27 | - | 27 | |||||
| Loss on dilution of interest in associate | - | - | - | (37) | - | (37) | - | (37) | |||||
| At 31 December 2009 | 284 | 15,298 | (400) | 208,044 | 70,628 | 293,854 | 32,456 | 326,310 | |||||
|
|
|
|
|
|
|
|
|
| |||||
| Total comprehensive income/(expense) for the period | - | - | - | 1,709 | (6,165) | (4,456) | 4,582 | 126 | |||||
| Dividends | - | - | - | (2,057) | - | (2,057) | (1,844) | (3,901) | |||||
| Non-controlling interest subscription | - | - | - | 43 | - | 43 | 270 | 313 | |||||
| Acquisition of non- controlling interest | - | - | - | (2,457) | - | (2,457) | (248) | (2,705) | |||||
| Share of associate's other equity movements | - | - | - | 64 | - | 64 | - | 64 | |||||
| Loss on dilution of interest in associate | - | - | - | (96) | - | (96) | - | (96) | |||||
| At 30 June 2010 | 284 | 15,298 | (400) | 205,250 | 64,463 | 284,895 | 35,216 | 320,111 | |||||
|
|
|
|
|
|
|
|
|
| |||||
|
| |||||||||||||
Notes to the accounts
1 Basis of preparation
These financial statements are the interim condensed consolidated financial statements of Camellia Plc, a company registered in England, and its subsidiaries (the "group") for the six month period ended 30 June 2010 (the "Interim Report"). They should be read in conjunction with the Report and Accounts (the "Annual Report") for the year ended 31 December 2009.
The financial information contained in this interim report has not been audited and does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 December 2009 has been delivered to the Registrar of Companies. The auditors' opinion on these accounts was unqualified and does not contain an emphasis of matter paragraph or a statement made under Section 498(2) and Section 498(3) of the Companies Act 2006.
The interim condensed financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") including IAS 34 "Interim Financial Reporting". For these purposes, IFRS comprise the Standards issued by the International Accounting Standards Board ("IASB") and Interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") that have been adopted by the European Union.
Where necessary, the comparatives have been reclassified from the previously reported interim results to take into account any presentational changes made in the Annual Report.
These interim condensed financial statements were approved by the board of directors on 26 August 2010.
2 Accounting policies
These interim condensed financial statements have been prepared on the basis of accounting policies consistent with those applied in the financial statements for the year ended 31 December 2009. In addition the group has implemented the following new and revised standards and interpretations:
| IFRS 3 (revised) | Business combinations |
| IFRS 5 (amendment) | Non-current assets held for sale and discontinued operations |
| IAS 27 (revised) | Consolidated and separate financial statements |
| IAS 38 (amendment) | Intangible assets |
| IFRIC 17 | Distribution of non-cash assets to owners |
A summary of each of the above standards and interpretations was provided on page 34 of the 2009 Annual Report. IFRS 3 (revised) and IAS 27 (revised) apply prospectively to acquisitions and disposals of interests in businesses completed on or after 1 January 2010. The adoption of IFRS 5, IAS 38 and IFRIC 17 has had no material impact on the group's results, assets and liabilities.
3 Cyclical and seasonal factors
Due to climatic conditions the group's tea operations in India and Bangladesh produce most of their crop during the second half of the year. Tea production in Kenya remains at consistent levels throughout the year but in Malawi the majority of tea is produced in the first six months.
Soya and maize in Brazil are generally harvested in the first half of the year. In California the pistachio crop occurs in the second half of the year and has 'on' and 'off' years. Avocados in Kenya are mostly harvested in the second half of the year.
There are no other cyclical or seasonal factors which have a material impact on the trading results.
| 4 Segment reporting |
|
|
|
|
|
| ||||||||||||||||
| Six months ended | Six months ended | Year ended |
| |||||||||||||||||||
| 30 June 2010 | 30 June 2009 | 31 December 2009 |
| |||||||||||||||||||
|
| Revenue | Trading profit | Revenue | Trading profit | Revenue | Trading profit |
| |||||||||||||||
|
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| Agriculture and horticulture | 70,811 | 13,909 | 60,167 | 5,392 | 156,974 | 37,949 |
| |||||||||||||||
| Engineering | 10,394 | 331 | 12,231 | 938 | 24,028 | 1,608 |
| |||||||||||||||
| Food storage and distribution | 15,079 | (810) | 18,634 | 707 | 37,434 | 985 |
| |||||||||||||||
| Banking and financial services | 6,027 | 28 | 5,664 | (340) | 11,347 | (925) |
| |||||||||||||||
| Other operations | 246 | 25 | 252 | 143 | 487 | 181 |
| |||||||||||||||
|
| 102,557 | 13,483 | 96,948 | 6,840 | 230,270 | 39,798 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| Unallocated corporate expenses | (1,755) |
| (2,066) |
| (4,438) |
| ||||||||||||||||
| Trading profit |
| 11,728 |
| 4,774 |
| 35,360 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| Share of associates' results | 2,387 |
| 465 |
| (2,966) |
| ||||||||||||||||
| Profit on disposal of available-for-sale investments | 80 |
| 28 |
| 28 |
| ||||||||||||||||
| Profit on disposal of an associate | 248 |
| - |
| - |
| ||||||||||||||||
| Profit on part disposal of a subsidiary | - |
| 135 |
| 135 |
| ||||||||||||||||
| Loss on disposal of a subsidiary | - |
| - |
| (674) |
| ||||||||||||||||
| Gain arising from changes in fair value of biological assets | 1,085 |
| 95 |
| 2,746 |
| ||||||||||||||||
| Investment income | 452 |
| 412 |
| 1,106 |
| ||||||||||||||||
| Net finance income/(costs) | 156 |
| (914) |
| (1,592) |
| ||||||||||||||||
| Profit before tax |
| 16,136 |
| 4,995 |
| 34,143 |
| |||||||||||||||
| Taxation |
| (5,163) |
| (1,881) |
| (11,702) |
| |||||||||||||||
| Profit after tax |
| 10,973 |
| 3,114 |
| 22,441 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
|
5 Share of associates' results |
|
|
|
|
|
|
|
| ||||||||||||||
| The group's share of the results of associates is analysed below: |
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
| Six months |
| Six months |
| Year |
|
| ||||||||||||||
|
|
| ended |
| ended |
| ended |
|
| ||||||||||||||
|
|
| 30 June |
| 30 June |
| 31 December |
|
| ||||||||||||||
|
|
| 2010 |
| 2009 |
| 2009 |
|
| ||||||||||||||
|
|
| £'000 |
| £'000 |
| £'000 |
|
| ||||||||||||||
| Operating profit |
| 2,695 |
| 1,335 |
| 2,516 |
|
| ||||||||||||||
| Net finance costs |
| (39) |
| (465) |
| (2,653) |
|
| ||||||||||||||
| Impairment |
| - |
| - |
| (3,103) |
|
| ||||||||||||||
| Profit/(loss) before tax |
| 2,656 |
| 870 |
| (3,240) |
|
| ||||||||||||||
| Taxation |
| (269) |
| (405) |
| 274 |
|
| ||||||||||||||
| Profit/(loss) after tax |
| 2,387 |
| 465 |
| (2,966) |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| In 2009, the impairment charge of £3,103,000 relates to development projects of the Siegfried Group. |
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| 6 Profit on disposal of an associate |
|
|
|
|
|
|
|
| ||||||||||||||
| On 15 April 2010, the group disposed of its entire shareholding in Siegfried Holding AG, an associated undertaking. The net proceeds on disposal were £48,754,000 and a net profit of £248,000 was realised, after the transfer of £16,353,000 of exchange difference and other movements previously included in reserves. |
| |||||||||||||||||||||
|
| ||||||||||||||||||||||
|
| ||||||||||||||||||||||
|
| ||||||||||||||||||||||
| 7 Finance income and costs |
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
| Six months |
| Six months |
| Year |
|
| ||||||||||||||
|
|
| ended |
| ended |
| ended |
|
| ||||||||||||||
|
|
| 30 June |
| 30 June |
| 31 December |
|
| ||||||||||||||
|
|
| 2010 |
| 2009 |
| 2009 |
|
| ||||||||||||||
|
|
| £'000 |
| £'000 |
| £'000 |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Interest payable on loans and bank overdrafts | (286) |
| (942) |
| (1,586) |
|
| |||||||||||||||
| Interest payable on obligations under finance leases | (49) |
| (75) |
| (140) |
|
| |||||||||||||||
| Total borrowing costs |
| (335) |
| (1,017) |
| (1,726) |
|
| ||||||||||||||
| Net exchange (loss)/gain on foreign currency borrowings | (117) |
| 367 |
| 160 |
|
| |||||||||||||||
| Finance costs |
| (452) |
| (650) |
| (1,566) |
|
| ||||||||||||||
| Finance income - interest income on short-term bank deposits | 775 |
| 435 |
| 1,103 |
|
| |||||||||||||||
| Pension schemes' net financing expense |
| (167) |
| (699) |
| (1,129) |
|
| ||||||||||||||
| Net finance income/(costs) |
| 156 |
| (914) |
| (1,592) |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| The above figures do not include any amounts relating to the banking subsidiaries. |
|
|
|
| ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| 8 Taxation on profit on ordinary activities |
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
| Six months |
| Six months |
| Year |
|
| ||||||||||||||
|
|
| ended |
| ended |
| ended |
|
| ||||||||||||||
|
|
| 30 June |
| 30 June |
| 31 December |
|
| ||||||||||||||
|
|
| 2010 |
| 2009 |
| 2009 |
|
| ||||||||||||||
|
|
| £'000 |
| £'000 |
| £'000 |
|
| ||||||||||||||
| Current tax |
|
|
|
|
|
|
|
| ||||||||||||||
| UK corporation tax |
| - |
| 205 |
| 142 |
|
| ||||||||||||||
| Overseas corporation tax |
| 5,500 |
| 2,228 |
| 11,852 |
|
| ||||||||||||||
| Total current tax |
| 5,500 |
| 2,433 |
| 11,994 |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Deferred tax |
|
|
|
|
|
|
|
| ||||||||||||||
| Origination and reversal of timing differences |
| |||||||||||||||||||||
| UK |
| - |
| 13 |
| (1,782) |
|
| ||||||||||||||
| Overseas |
| (337) |
| (565) |
| 1,490 |
|
| ||||||||||||||
| Total deferred tax |
| (337) |
| (552) |
| (292) |
|
| ||||||||||||||
| Tax on profit on ordinary activities |
| 5,163 |
| 1,881 |
| 11,702 |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Tax on profit on ordinary activities for the six months to 30 June 2010 has been calculated on the basis of the estimated annual effective rate for the year ending 31 December 2010. |
| |||||||||||||||||||||
|
| ||||||||||||||||||||||
| 9 Equity dividends |
|
|
|
|
|
|
|
| ||||||||||||||
|
|
| Six months |
| Six months |
| Year |
|
| ||||||||||||||
|
|
| ended |
| ended |
| ended |
|
| ||||||||||||||
|
|
| 30 June |
| 30 June |
| 31 December |
|
| ||||||||||||||
|
|
| 2010 |
| 2009 |
| 2009 |
|
| ||||||||||||||
|
|
| £'000 |
| £'000 |
| £'000 |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Amounts recognised as distributions to equity holders in the period: |
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Final dividend for the year ended 31 December 2009 of 74.00p (2008: 72.00p) per share | 2,057 |
| 2,001 |
| 2,001 |
|
| |||||||||||||||
| Interim dividend for the year ended 31 December 2009 of 20.00p per share |
|
|
|
| 556 |
|
| |||||||||||||||
|
|
|
|
|
|
| 2,557 |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Dividends amounting to £46,000 (2009: six months £45,000 - year £58,000) have not been included as group companies hold 62,500 issued shares in the company. These are classified as treasury shares. |
| |||||||||||||||||||||
|
| ||||||||||||||||||||||
|
| ||||||||||||||||||||||
| Proposed interim dividend for the year ended 31 December 2010 of 30.00p (2009: 20.00p) per share |
| 834 |
| 556 |
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| The proposed interim dividend was approved by the board of directors on 26 August 2010 and has not been included as a liability in these financial statements. |
| |||||||||||||||||||||
|
| ||||||||||||||||||||||
| 10 Earnings per share (EPS) |
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
|
| Six months ended | Six months ended | Year ended |
| ||||||||||||||||||
|
| 30 June 2010 | 30 June 2009 | 31 December 2009 |
| ||||||||||||||||||
|
| Earnings | EPS | Earnings | EPS | Earnings | EPS |
| |||||||||||||||
|
| £'000 | Pence | £'000 | Pence | £'000 | Pence |
| |||||||||||||||
| Basic and diluted EPS |
|
|
|
|
|
| ||||||||||||||||
| Attributable to ordinary shareholders | 7,510 | 270.2 | 1,761 | 63.4 | 15,897 | 571.9 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| Basic and diluted earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue of 2,779,500 (2009: six months 2,779,500 - year 2,779,500), which excludes 62,500 (2009: six months 62,500 - year 62,500) shares held by the group as treasury shares. |
| |||||||||||||||||||||
|
| ||||||||||||||||||||||
|
| ||||||||||||||||||||||
|
| ||||||||||||||||||||||
|
| ||||||||||||||||||||||
| 11 Property, plant and equipment |
|
|
|
|
|
|
| |||||||||||||||
| During the six months ended 30 June 2010 the group acquired assets with a cost of £5,783,000 (2009: six months £4,089,000 - year £10,111,000). Assets with a carrying amount of £645,000 were disposed of during the six months ended 30 June 2010 (2009: six months £73,000 - year £442,000). | ||||||||||||||||||||||
| 12 Cash and cash equivalents |
|
|
|
|
|
|
| |||||||||||||||
| Included in cash and cash equivalents of £268,177,000 (2009: six months £229,125,000 - year £229,574,000) are cash and short-term funds, time deposits with banks and building societies and certificates of deposit amounting to £196,166,000 (2009: six months £212,869,000 - year £193,434,000), which are held by banking subsidiaries and which are an integral part of the banking operations of the group. | ||||||||||||||||||||||
| 13 Borrowings |
|
|
|
|
|
|
| |||||||||||||||
| Borrowings (current and non-current) include loans and finance leases of £3,587,000 (2009: six months £12,026,000 - year £8,371,000) and bank overdrafts of £11,305,000 (2009: six months £13,881,000 - year £7,509,000). The following loans were repaid during the six months ended 30 June 2010: | ||||||||||||||||||||||
|
|
| £'000 |
|
|
|
|
| |||||||||||||||
| Balance at 1 January 2010 |
| 8,371 |
|
|
|
|
| |||||||||||||||
| Exchange differences |
| 169 |
|
|
|
|
| |||||||||||||||
| Repayments |
|
|
|
|
|
|
| |||||||||||||||
| Loans |
| (4,953) |
|
|
|
|
| |||||||||||||||
| Balance at 30 June 2010 |
| 3,587 |
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| 14 Retirement benefit schemes |
|
|
|
|
|
|
| |||||||||||||||
| UK defined benefit pension schemes for the purposes of IAS 19 have been updated to 30 June 2010 from the valuations as at 31 December 2009 by the actuaries to each relevant pension scheme and the movements have been reflected in this interim statement. Overseas schemes have not been updated from 31 December 2009 valuations as it is considered that there have been no significant changes. | ||||||||||||||||||||||
| An actuarial loss of £6,577,000 was realised in the period, of which £2,318,000 was realised in relation to the scheme assets and £4,259,000 was realised in relation to changes in the underlying actuarial assumptions. The assumed discount rate has decreased to 5.30% (31 December 2009: 5.70%), the assumed rate of inflation has decreased to 3.30% (31 December 2009: 3.60%) and the assumed rate of increases for salaries to 3.40% (31 December 2009: 3.70%), giving rise to an increase in defined benefit obligations. There has been no change in the mortality assumptions used. | ||||||||||||||||||||||
| 15 Reconciliation of profit from operations to cash flow | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
| Six months |
| Six months |
| Year |
| |||||||||||||||
|
|
| ended |
| ended |
| ended |
| |||||||||||||||
|
|
| 30 June |
| 30 June |
| 31 December |
| |||||||||||||||
|
|
| 2010 |
| 2009 |
| 2009 |
| |||||||||||||||
|
|
| £'000 |
| £'000 |
| £'000 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| Profit from operations |
| 15,528 |
| 5,497 |
| 34,629 |
| |||||||||||||||
| Share of associates' results |
| (2,387) |
| (465) |
| 2,966 |
| |||||||||||||||
| Depreciation and amortisation |
| 4,594 |
| 4,545 |
| 8,685 |
| |||||||||||||||
| Impairment of non-current assets |
| - |
| 359 |
| 204 |
| |||||||||||||||
| Gain arising from changes in fair value of biological assets | (1,085) |
| (95) |
| (2,746) |
| ||||||||||||||||
| Profit on disposal of non-current assets |
| (89) |
| (65) |
| (260) |
| |||||||||||||||
| Profit on disposal of investments |
| (80) |
| (28) |
| (28) |
| |||||||||||||||
| Profit on disposal of an associate |
| (248) |
| - |
| - |
| |||||||||||||||
| Loss on disposal of a subsidiary |
| - |
| - |
| 674 |
| |||||||||||||||
| Profit on part disposal of a subsidiary |
| - |
| (135) |
| (135) |
| |||||||||||||||
| Increase in working capital |
| (10,631) |
| (2,163) |
| (3,741) |
| |||||||||||||||
| Net (increase)/decrease in funds of banking subsidiaries | (9,683) |
| (2,412) |
| 7,790 |
| ||||||||||||||||
|
|
| (4,081) |
| 5,038 |
| 48,038 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| 16 Reconciliation of net cash flow to movement in net debt |
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
| Six months |
| Six months |
| Year |
| |||||||||||||||
|
|
| ended |
| ended |
| ended |
| |||||||||||||||
|
|
| 30 June |
| 30 June |
| 31 December |
| |||||||||||||||
|
|
| 2010 |
| 2009 |
| 2009 |
| |||||||||||||||
|
|
| £'000 |
| £'000 |
| £'000 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| Increase/(decrease) in cash and cash equivalents in the period | 31,196 |
| (7,110) |
| 19,189 |
| ||||||||||||||||
| Net cash outflow from decrease in debt |
| 4,953 |
| 2,040 |
| 4,095 |
| |||||||||||||||
| Decrease/(increase) in net debt resulting from cash flows | 36,149 |
| (5,070) |
| 23,284 |
| ||||||||||||||||
| New finance leases |
| - |
| (34) |
| (65) |
| |||||||||||||||
| Disposal of a subsidiary |
| - |
| - |
| 1,868 |
| |||||||||||||||
| Exchange rate movements |
| 710 |
| 66 |
| 381 |
| |||||||||||||||
| Decrease/(increase) in net debt in the period |
| 36,859 |
| (4,443) |
| 25,468 |
| |||||||||||||||
| Net cash/(debt) at beginning of period |
| 20,260 |
| (5,208) |
| (5,208) |
| |||||||||||||||
| Net cash/(debt) at end of period |
| 57,119 |
| (9,651) |
| 20,260 |
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||
| 17 Related party transactions |
|
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| |||||||||||||||
| In June 2010, the group purchased the remaining 49 per cent. holding in its subsidiary, Duncan Properties Limited from United Leasing Company Limited, an associate company. Both companies are based in Bangladesh. The consideration paid was £2,705,000 which resulted in a charge of £2,457,000 to reserves. | ||||||||||||||||||||||
| There have been no other related party transactions that had a material effect on the financial position or performance of the group in the first six months of the financial year. | ||||||||||||||||||||||
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Further enquiries please contact Camellia Plc
Malcolm Perkins
01622 746655