Last checked at 27 Aug 2009 11:00
Camellia Plc
Half-yearly report 2009
| Highlights from the results | ||||
| Six months ended | Six months ended | |||
| 30 June 2009 | 30 June 2008 | |||
| £'000 | £'000 | |||
| Revenue | 96,948 | 77,611 | ||
| Trading profit | 4,774 | 2,837 | ||
| Profit before tax | 4,995 | 7,991 | ||
| Profit for the period | 3,114 | 6,073 | ||
| Earnings per share | 63.4 | p | 203.9 | p |
| Interim dividend | 20 | p | 20 | p |
Chairman's statement
The pre-tax profit from continuing operations of £4,995,000 for the six months to 30 June 2009 compares with a profit of £7,991,000 for the same period last year.
The board has declared an interim dividend of 20p per ordinary share payable on 5 November 2009 to shareholders on the register on 16 October 2009.
Tea
India
The monsoon in India was late in arriving resulting in a loss of crop of approximately 20% over the same period last year. Tea prices have however been higher than last year which will mitigate the effect of the loss of production to some extent. The factory renovation programme is continuing with a number of projects being commissioned during the first half of the year.
Bangladesh
Bangladesh did not suffer to the same extent as India from the late arrival of the rains and production reduced by about 8%. Sale prices have increased over the previous year which, if maintained, will have a positive effect on the year's results.
Africa
Tea prices in both Kenya and Malawi have been strong in the first half of the year and production has been at expected levels.
The lack of progress towards a new constitution in Kenya together with corruption and poor security continue to be a major cause of concern, as is the current drought being experienced in many areas of Kenya which is putting severe pressure on such essential resources as water, power and food production.
Elections in Malawi proceeded peacefully. The stubbornly high value of the Kwacha continues to put pressure on margins in local currency.
Edible nuts
Macadamia production in Malawi is very disappointing due to the lack of rain at the time of flowering last year. Production in South Africa is anticipated to meet budget. Sale prices are low in comparison to recent years but demand at the lower prices is better than expected for what is essentially a luxury product and therefore more susceptible to the recession.
Production of pistachios in California will be low as 2009 is an 'off' year in the biennial bearing pattern of these nuts.
Other horticulture
The citrus crop and sale prices at Horizon Farms in California are expected to be on a par with the previous year.
Avocado production from Kakuzi's own plantings will be slightly reduced but this has been more than made up by significant volumes of outgrower fruit being packed in our facilities. Fruit came to the market at the same time as large volumes from Peru and South Africa and therefore sale prices have been lower than anticipated.
Rubber production in Bangladesh is equivalent to the previous year. Sale prices have reduced but are showing some signs of improvement and this operation remains profitable.
Maize production was reduced at CC Lawrie in Brazil. Soya production was on budget. However, input costs have increased and our operations will also suffer from the relative strength of the Brazilian currency against the US dollar.
Following a review of the prospects of Hacienda Chada in Chile, the board decided to consider a disposal of this asset and negotiations are presently being conducted with interested parties.
Food storage and distribution
The progress made last year at Associated Cold Stores and Transport has continued into this year and results to date are satisfactory. The market remains very competitive and customers continue to seek savings in their own costs wherever possible.
Engineering
Our engineering group experienced mixed fortunes with large fluctuations in orders received from month to month. Profits to 30 June are ahead of last year due to AKD in Lowestoft being awarded a number of offshore contracts where higher margins are achievable. General Utilities has however experienced a complete reversal of the very good results enjoyed last year.
Banking
Duncan Lawrie's conservative policy of not lending more than its share capital and reserves and placing customer deposits with highly rated counterparties has resulted in very low margins in its banking operations which are unlikely to improve in the current economic climate. Duncan Lawrie's results will also be impacted by calls being made by banking compensation schemes, to which I referred in my chairman's statement that accompanied the 2008 accounts.
Pharmaceutical
Sales by Siegfried Holdings AG for the first six months declined by 24% with a significant reduction in the generics division. Overall Siegfried recorded a net loss of CHF 6 million of which our share is £1.15 million. This compares with our share of net profit of £3.40 million in the first half of 2008 which included profit on disposal of the pharmaceutical production facility in Zofingen and licensing income from a previous bio-generics project. The board of Siegfried expect improved sales for the second half of the year but cannot yet forecast the result for the full year.
Prospects
Despite the poor figures from Siegfried and lack of rain in India, the group has performed well in the first six months. The economic environment remains challenging and it is my opinion that talk of an early end to the recession is premature. Whilst it is impossible to give any indication of the likely outcome for the full year, our conservative operating policies continue to stand us in good stead for the future.
M C Perkins
Chairman
27 August 2009
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 2009 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 2008 (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 2008. There have been no 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 PerkinsChairman 27 August 2009
| Consolidated income statement | |||||||
| for the six months ended 30 June 2009 | |||||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| Notes | £'000 | £'000 | £'000 | ||||
| Revenue | 4 | 96,948 | 77,611 | 190,551 | |||
| Cost of sales | (68,076) | (53,683) | (123,203) | ||||
| Gross profit | 28,872 | 23,928 | 67,348 | ||||
| Other operating income | 869 | 1,029 | 2,206 | ||||
| Distribution costs | (3,642) | (3,370) | (8,765) | ||||
| Administrative expenses | (21,325) | (18,750) | (37,588) | ||||
| Trading profit | 4 | 4,774 | 2,837 | 23,201 | |||
| Share of associates' results | 5 | 465 | 5,185 | (8,612) | |||
| Profit on disposal of available-for-sale investments | 28 | 23 | 390 | ||||
| Profit on part disposal of a subsidiary | 6 | 135 | 104 | 104 | |||
| Profit on disposal of an associate | - | - | 50 | ||||
| Profit on disposal of property | - | - | 280 | ||||
| Gain arising from changes in | |||||||
| fair value of biological assets | 95 | 178 | 8,916 | ||||
| Profit from operations | 5,497 | 8,327 | 24,329 | ||||
| Investment income | 412 | 476 | 1,070 | ||||
| Finance income | 435 | 278 | 643 | ||||
| Finance costs | (650) | (1,218) | (2,500) | ||||
| Pension schemes' net financing (cost)/income | (699) | 128 | 498 | ||||
| Net finance costs | 7 | (914) | (812) | (1,359) | |||
| Profit before tax | 4,995 | 7,991 | 24,040 | ||||
| Taxation | 8 | (1,881) | (1,918) | (7,547) | |||
| Profit for the period | 3,114 | 6,073 | 16,493 | ||||
| Profit attributable to: | |||||||
| Minority interests | 1,353 | 406 | 5,449 | ||||
| Owners of the parent | 1,761 | 5,667 | 11,044 | ||||
| 3,114 | 6,073 | 16,493 | |||||
| Earnings per share - basic and diluted | 10 | 63.4 | p | 203.9 | p | 397.3 | p |
| Statement of comprehensive income | |||||||
| for the six months ended 30 June 2009 | |||||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| £'000 | £'000 | £'000 | |||||
| Profit for the period | 3,114 | 6,073 | 16,493 | ||||
| Other comprehensive income: | |||||||
| Foreign exchange translation differences | (32,479) | 3,612 | 67,513 | ||||
| Actuarial movement on defined benefit pension schemes (note 15) | (13,890) | (9,595) | (21,926) | ||||
| Available-for-sale investments: | |||||||
| Valuation (losses)/gains taken to equity | (1,562) | 416 | (7,025) | ||||
| Transferred to profit or loss on sale | - | (2) | - | ||||
| Share of other comprehensive income of associates | 262 | 303 | (5,384) | ||||
| Tax relating to components of other comprehensive income | (104) | 2,686 | 1,784 | ||||
|
| |||||||
| Other comprehensive income |
|
|
| ||||
| for the period, net of tax | (47,773) | (2,580) | 34,962 | ||||
| Total comprehensive income | |||||||
| for the period | (44,659) | 3,493 | 51,455 | ||||
| Total comprehensive income | |||||||
| attributable to: | |||||||
| Minority interests | (1,755) | 91 | 10,437 | ||||
| Owners of the parent | (42,904) | 3,402 | 41,018 | ||||
| (44,659) | 3,493 | 51,455 | |||||
| Consolidated balance sheet | |||||||
| at 30 June 2009 | |||||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| Notes | £'000 | £'000 | £'000 | ||||
| Non-current assets | |||||||
| Intangible assets | 8,761 | 8,376 | 9,059 | ||||
| Property, plant and equipment | 11 | 77,122 | 75,885 | 85,787 | |||
| Biological assets | 100,625 | 79,797 | 114,220 | ||||
| Prepaid operating leases | 1,045 | 1,013 | 1,171 | ||||
| Investments in associates | 93,731 | 99,677 | 109,883 | ||||
| Deferred tax assets | 161 | 853 | 183 | ||||
| Other investments | 28,937 | 36,516 | 33,668 | ||||
| Retirement benefit surplus | 2,741 | 3,618 | 3,101 | ||||
| Trade and other receivables | 805 | 616 | 979 | ||||
| Total non-current assets | 313,928 | 306,351 | 358,051 | ||||
| Current assets | |||||||
| Inventories | 28,004 | 22,340 | 30,771 | ||||
| Trade and other receivables | 73,592 | 71,313 | 75,960 | ||||
| Current income tax assets | 2,633 | 1,623 | 1,481 | ||||
| Cash and cash equivalents | 12 | 236,996 | 283,671 | 281,634 | |||
| 341,225 | 378,947 | 389,846 | |||||
| Non-current assets classified as held for sale | 13 | 5,768 | - | - | |||
| Total current assets | 346,993 | 378,947 | 389,846 | ||||
| Current liabilities | |||||||
| Borrowings | 14 | (18,432) | (16,875) | (18,629) | |||
| Trade and other payables | (274,436) | (324,162) | (316,514) | ||||
| Current income tax liabilities | (3,696) | (2,176) | (4,605) | ||||
| Other employee benefit obligations | (226) | (183) | (247) | ||||
| Provisions | (297) | (75) | (123) | ||||
| Total current liabilities | (297,087) | (343,471) | (340,118) | ||||
| Net current assets | 49,906 | 35,476 | 49,728 | ||||
| Total assets less current liabilities | 363,834 | 341,827 | 407,779 | ||||
| Non-current liabilities | |||||||
| Borrowings | 14 | (7,475) | (11,348) | (11,354) | |||
| Deferred tax liabilities | (28,090) | (23,424) | (32,678) | ||||
| Retirement benefit obligations | 15 | (39,825) | (17,367) | (27,063) | |||
| Other employee benefit obligations | (1,927) | (1,385) | (2,052) | ||||
| Other non-current liabilities | (120) | (207) | (131) | ||||
| Total non-current liabilities | (77,437) | (53,731) | (73,278) | ||||
|
|
|
| |||||
| Net assets | 286,397 | 288,096 | 334,501 | ||||
| Equity | |||||||
| Called up share capital | 284 | 284 | 284 | ||||
| Reserves | 258,699 | 267,483 | 303,816 | ||||
| Shareholders' funds | 258,983 | 267,767 | 304,100 | ||||
| Minority interests | 27,414 | 20,329 | 30,401 | ||||
| Total equity | 286,397 | 288,096 | 334,501 | ||||
| Consolidated cash flow statement | |||||||
| for the six months ended 30 June 2009 | |||||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| Notes | £'000 | £'000 | £'000 | ||||
| Cash generated from operations | |||||||
| Cash flows from operating activities | 16 | 2,603 | (1,497) | 23,651 | |||
| Interest paid | (870) | (1,254) | (2,503) | ||||
| Income taxes paid | (4,123) | (1,805) | (4,720) | ||||
| Interest received | 513 | 164 | 579 | ||||
| Dividends received from associates | 1,490 | 2,397 | 2,884 | ||||
| Net cash flow from operating activities | (387) | (1,995) | 19,891 | ||||
| Cash flows from investing activities | |||||||
| Purchase of intangible assets | (115) | (336) | (602) | ||||
| Purchase of property, plant and equipment | (4,055) | (3,876) | (8,091) | ||||
| Proceeds from sale of non-current assets | 139 | 143 | 852 | ||||
| Part disposal of a subsidiary | 579 | 297 | 302 | ||||
| Acquisition of subsidiary (net of cash acquired) | - | - | (4,120) | ||||
| Purchase of minority interests | - | (173) | (177) | ||||
| Proceeds from sale of associate | - | - | 83 | ||||
| Proceeds from sale of investments | 51 | 6,735 | 7,188 | ||||
| Purchase of investments | (18) | (1,848) | (1,749) | ||||
| Income from investments | 412 | 476 | 1,070 | ||||
| Net cash flow from investing activities | (3,007) | 1,418 | (5,244) | ||||
| Cash flows from financing activities | |||||||
| Equity dividends paid | - | - | (2,557) | ||||
| Dividends paid to minority interests | (1,676) | (553) | (896) | ||||
| New loans | 850 | 69 | 738 | ||||
| Repayment of debt | (2,890) | (2,030) | (4,356) | ||||
| Net cash flow from financing activities | (3,716) | (2,514) | (7,071) | ||||
| Net (decrease)/increase in cash and cash equivalents | 17 | (7,110) | (3,091) | 7,576 | |||
| Cash and cash equivalents at beginning of period | 9,919 | 758 | 758 | ||||
| Exchange (losses)/gains on cash | (434) | 412 | 1,585 | ||||
| Cash and cash equivalents at end of period | 2,375 | (1,921) | 9,919 | ||||
|
| |||||||
| 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. | |||||||
| For the purposes of the cash flow statement cash and cash equivalents comprise: | |||||||
| Cash and cash equivalents | 236,996 | 283,671 | 281,634 | ||||
| Less banking operation funds | (220,740) | (271,691) | (256,859) | ||||
| Overdrafts repayable on demand | |||||||
| (included in current liabilities - borrowings) | (13,881) | (13,901) | (14,856) | ||||
| 2,375 | (1,921) | 9,919 | |||||
| Statement of changes in equity | ||||||||
| for the six months ended 30 June 2009 | ||||||||
| Share | Share | Treasury | Retained | Other | Minority | Total | ||
| capital | premium | shares | earnings | reserves | Total | interest | equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 1 January 2008 | 284 | 15,298 | (400) | 212,286 | 38,803 | 266,271 | 20,870 | 287,141 |
| Total comprehensive income for the period | - | - | - | (939) | 4,341 | 3,402 | 91 | 3,493 |
| Dividends | - | - | - | (2,001) | - | (2,001) | (553) | (2,554) |
| Minority interest subscription | - | - | - | - | - | - | 192 | 192 |
| Payment to minority interest | - | - | - | - | - | - | (173) | (173) |
| Change in composition of group | - | - | - | 98 | - | 98 | (98) | - |
| Share of associate's change in treasury shares | - | - | - | (62) | - | (62) | - | (62) |
| Share of associates' other equity movements | - | - | - | 150 | - | 150 | - | 150 |
| Loss on dilution of interest in associate | - | - | - | (91) | - | (91) | - | (91) |
| At 30 June 2008 | 284 | 15,298 | (400) | 209,441 | 43,144 | 267,767 | 20,329 | 288,096 |
| At 1 January 2008 | 284 | 15,298 | (400) | 212,286 | 38,803 | 266,271 | 20,870 | 287,141 |
| Total comprehensive income for the period | - | - | - | (14,265) | 55,283 | 41,018 | 10,437 | 51,455 |
| Dividends | - | - | - | (2,557) | - | (2,557) | (896) | (3,453) |
| Reclassification of investment to an associate | - | - | - | - | (653) | (653) | - | (653) |
| Minority interest subscription | - | - | - | - | - | - | 260 | 260 |
| Change in composition of group | - | - | - | 126 | - | 126 | (270) | (144) |
| Share of associate's change in treasury shares | - | - | - | (49) | - | (49) | - | (49) |
| Share of associates' other equity movements | - | - | - | 268 | - | 268 | - | 268 |
| Loss on dilution of interest in associate | - | - | - | (324) | - | (324) | - | (324) |
| At 31 December 2008 | 284 | 15,298 | (400) | 195,485 | 93,433 | 304,100 | 30,401 | 334,501 |
| Total comprehensive income for the period | - | - | - | (11,971) | (30,933) | (42,904) | (1,755) | (44,659) |
| Dividends | - | - | - | (2,001) | - | (2,001) | (1,676) | (3,677) |
| Minority interest subscription | - | - | - | - | - | - | 444 | 444 |
| Share of associate's change in treasury shares | - | - | - | (258) | - | (258) | - | (258) |
| Share of associate's 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 |
| 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 2009 (the "Interim Report"). They should be read in conjunction with the Report and Accounts (the "Annual Report") for the year ended 31 December 2008. | |||||||||||||||||
| 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 2008 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 237(2) and Section 237(3) of the Companies Act 1985. | |||||||||||||||||
| 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 27 August 2009. | |||||||||||||||||
| 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 2008. In addition the group has implemented the following new and revised standards and interpretations: | |||||||||||||||||
| IFRS 8 Operating segments | |||||||||||||||||
| IAS 1 Presentation of financial statements | |||||||||||||||||
| IAS 19 Employee benefits | |||||||||||||||||
| IAS 23 Borrowing costs | |||||||||||||||||
| IAS 41 Agriculture | |||||||||||||||||
| IFRIC 15 Agreements on the construction of real estate | |||||||||||||||||
| IFRIC 16 Hedges of a net investment in a foreign operation | |||||||||||||||||
| The adoption of IFRS 8 requires operating segments to be identified on the basis of internal reports used to assess performance and allocate resources by the chief operating decision maker. The chief operating decision maker has been identified as the Executive Committee led by the Chairman and Chief Executive. The adoption of this standard has not resulted in any change to the segments reported previously with 'trading profit' maintained as the reportable measure of profit or loss. Inter segment sales are not significant. | |||||||||||||||||
| The impacts of the changes to IAS 1 are of a presentation and disclosure nature only, with the main presentational changes arising from this standard being the replacement of the 'statement of recognised income and expense' with a 'statement of comprehensive income' which discloses information on a gross rather than a net basis and the presentation of a complete statement of changes in equity as a primary statement rather than as a note to the financial statements. | |||||||||||||||||
| The adoption of IAS19, IAS 23, IAS 41, IFRIC 15 and IFRIC 16 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 | Six months | Year | |||||||||||||||
| ended | ended | ended | |||||||||||||||
| 30 June | 30 June | 31 December | |||||||||||||||
| 2009 | 2008 | 2008 | |||||||||||||||
| Revenue | Trading profit | Revenue | Trading profit | Revenue | Trading profit | ||||||||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||||||||||||
| Agriculture and horticulture | 60,167 | 5,392 | 42,069 | 2,989 | 116,297 | 23,349 | |||||||||||
| Engineering | 12,231 | 938 | 10,132 | 671 | 23,019 | 1,814 | |||||||||||
| Food storage and distribution | 18,634 | 707 | 17,932 | 324 | 36,922 | 1,156 | |||||||||||
| Banking and financial services | 5,664 | (340) | 7,322 | 798 | 13,930 | 666 | |||||||||||
| Other operations | 252 | 143 | 156 | 56 | 383 | 75 | |||||||||||
| 96,948 | 6,840 | 77,611 | 4,838 | 190,551 | 27,060 | ||||||||||||
| Unallocated corporate expenses | (2,066) | (2,001) | (3,859) | ||||||||||||||
| Trading profit | 4,774 | 2,837 | 23,201 | ||||||||||||||
| Share of associates' results | 465 | 5,185 | (8,612) | ||||||||||||||
| Profit on disposal of available- for-sale investments | 28 | 23 | 390 | ||||||||||||||
| Profit on part disposal of a subsidiary | 135 | 104 | 104 | ||||||||||||||
| Profit on disposal of an associate | - | - | 50 | ||||||||||||||
| Profit on disposal of property | - | - | 280 | ||||||||||||||
| Gain arising from changes in fair value of biological assets | 95 | 178 | 8,916 | ||||||||||||||
| Investment income | 412 | 476 | 1,070 | ||||||||||||||
| Net finance costs | (914) | (812) | (1,359) | ||||||||||||||
| Profit before tax | 4,995 | 7,991 | 24,040 | ||||||||||||||
| Taxation | (1,881) | (1,918) | (7,547) | ||||||||||||||
| Profit after tax | 3,114 | 6,073 | 16,493 | ||||||||||||||
| 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 | |||||
| 2009 | 2008 | 2008 | |||||
| £'000 | £'000 | £'000 | |||||
| Operating profit | 1,335 | 6,579 | 6,448 | ||||
| Net finance costs | (465) | (463) | (825) | ||||
| Impairment | - | - | (15,691) | ||||
| Profit/(loss) before tax | 870 | 6,116 | (10,068) | ||||
| Taxation | (405) | (931) | 1,456 | ||||
| Profit/(loss) after tax | 465 | 5,185 | (8,612) | ||||
| The impairment of £15,691,000 relates to goodwill and non-financial assets of the Siegfried Group. | |||||||
| 6 Profit on part disposal of a subsidiary | |||||||
| A profit of £135,000 (2008: six months £104,000 - year £104,000) was realised in relation to the disposal by Kakuzi Limited of 17% (2008: six months 10% - year 10%) of its interest in Siret Tea Company Limited to EPK Outgrowers Empowerment Project Company Limited, a company mainly owned by smallholders in Kenya. | |||||||
| 7 Finance income and costs | |||||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| £'000 | £'000 | £'000 | |||||
| Interest payable on loans and bank overdrafts | (942) | (986) | (2,057) | ||||
| Interest payable on obligations under finance leases | (75) | (92) | (181) | ||||
| Total borrowing costs | (1,017) | (1,078) | (2,238) | ||||
| Net exchange gain/(loss) on foreign currency borrowings | 367 | (140) | (262) | ||||
| Finance costs | (650) | (1,218) | (2,500) | ||||
| Finance income - interest income on short-term bank deposits | 435 | 278 | 643 | ||||
| Pension schemes' net financing (cost)/income | (699) | 128 | 498 | ||||
| Net finance costs | (914) | (812) | (1,359) | ||||
| 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 | |||||
| 2009 | 2008 | 2008 | |||||
| £'000 | £'000 | £'000 | |||||
| Current tax | |||||||
| UK corporation tax | 205 | - | (46) | ||||
| Overseas corporation tax | 2,228 | 2,062 | 6,782 | ||||
| Total current tax | 2,433 | 2,062 | 6,736 | ||||
| Deferred tax | |||||||
| Origination and reversal of timing differences | |||||||
| UK | 13 | 529 | (2,310) | ||||
| Overseas | (565) | (673) | 3,121 | ||||
| Total deferred tax | (552) | (144) | 811 | ||||
| Tax on profit on ordinary activities | 1,881 | 1,918 | 7,547 | ||||
| Tax on profit on ordinary activities for the six months to 30 June 2009 has been calculated on the basis of the estimated annual effective rate for the year ending 31 December 2009. | |||||||
| 9 Equity dividends | |||||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| £'000 | £'000 | £'000 | |||||
| Amounts recognised as distributions to equity holders in the period: | |||||||
| Final dividend for the year ended 31 December 2008 | |||||||
| of 72.00p (2007: 72.00p) per share | 2,001 | 2,001 | 2,001 | ||||
| Interim dividend for the year ended 31 December 2008 | |||||||
| of 20.00p per share | 556 | ||||||
| 2,557 | |||||||
| Dividends amounting to £45,000 (2008: 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 2009 of 20.00p (2008: 20.00p) per share | 556 | 556 | |||||
| The proposed interim dividend was approved by the board of directors on 27 August 2009 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 2009 | 30 June 2008 | 31 December 2008 | ||||
| Earnings | EPS | Earnings | EPS | Earnings | EPS | |
| £'000 | Pence | £'000 | Pence | £'000 | Pence | |
| Basic and diluted EPS | ||||||
| Attributable to ordinary shareholders | 1,761 | 63.4 | 5,667 | 203.9 | 11,044 | 397.3 |
| 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 (2008: six months 2,779,500 - year 2,779,500), which excludes 62,500 (2008: 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 2009 the group acquired assets with a cost of £4,089,000 (2008: six months £4,277,000 - year £8,545,000). Assets with a carrying amount of £73,000 were disposed of during the six months ended 30 June 2009 (2008: six months £96,000 - year £333,000) and assets with a carrying value of £4,293,000 (2008: six months £nil - year £nil) were reclassified as held for sale. | |||||||
| 12 Cash and cash equivalents | |||||||
| Included in cash and cash equivalents of £236,996,000 (2008: six months £283,671,000 - year £281,634,000) are cash and short-term funds, time deposits with banks and building societies and certificates of deposit amounting to £220,740,000 (2008: six months £271,691,000 - year £256,859,000), which are held by banking subsidiaries and which are an integral part of the banking operations of the group. | |||||||
| 13 Non-current assets classified as held for sale
| |||||||
| Non-current assets held for sale represents assets of Hacienda Chada S.A., the Chilean wine and table grape operation. | |||||||
| 14 Borrowings | |||||||
| Borrowings (current and non-current) include loans and finance leases of £12,026,000 (2008: six months £14,322,000 - year £15,127,000) and bank overdrafts of £13,881,000 (2008: six months £13,901,000 - year £14,856,000). The following loans and finance leases were issued and repaid during the six months ended 30 June 2009: | |||||||
| £'000 | |||||||
| Balance at 1 January 2009 | 15,127 | ||||||
| Exchange differences | (1,095) | ||||||
| New issues | |||||||
| Loans | 850 | ||||||
| Finance lease liabilities | 34 | ||||||
| Repayments | |||||||
| Loans | (2,412) | ||||||
| Finance lease liabilities | (478) | ||||||
| Balance at 30 June 2009 | 12,026 | ||||||
| 15 Retirement benefit schemes | |||||||
| UK defined benefit pension schemes for the purposes of IAS 19 have been updated to 30 June 2009 from the valuations as at 31 December 2008 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 2008 valuations as it is considered that there have been no significant changes. | |||||||
| An actuarial loss of £13,890,000 was realised in the period, of which £3,589,000 was realised in relation to the scheme assets and £10,301,000 was realised in relation to changes in the underlying actuarial assumptions. The assumed discount rate has decreased to 6.00% (31 December 2008: 6.25%), the assumed rate of inflation has increased to 4.20% (31 December 2008: 3.40%) and the assumed rate of increases for salaries to 3.50 - 3.65% (31 December 2008: 2.85 - 3.00%), giving rise to an increase in defined benefit obligations. There has been no change in the mortality assumptions used. | |||||||
| 16 Reconciliation of profit from operations to cash flow | |||||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| £'000 | £'000 | £'000 | |||||
| Profit from operations | 5,497 | 8,327 | 24,329 | ||||
| Share of associates' results | (465) | (5,185) | 8,612 | ||||
| Depreciation and amortisation | 4,545 | 3,922 | 8,294 | ||||
| Impairment of non-current assets | 359 | - | 350 | ||||
| Gain arising from changes in fair value of | |||||||
| biological assets | (95) | (178) | (8,916) | ||||
| Profit on disposal of non-current assets | (65) | (47) | (519) | ||||
| Profit on disposal of an associate | - | - | (50) | ||||
| Profit on part disposal of a subsidiary | (135) | (104) | (104) | ||||
| Profit on disposal of investments | (28) | (23) | (390) | ||||
| (Increase)/decrease in working capital | (2,163) | 907 | (2,335) | ||||
| Net increase in funds of banking subsidiaries | (4,847) | (9,116) | (5,620) | ||||
| 2,603 | (1,497) | 23,651 | |||||
| 17 Reconciliation of net cash flow to movement in net debt | |||||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June | 30 June | 31 December | |||||
| 2009 | 2008 | 2008 | |||||
| £'000 | £'000 | £'000 | |||||
| (Decrease)/increase in cash and cash | |||||||
| equivalents in the period | (7,110) | (3,091) | 7,392 | ||||
| Cash outflow from decrease in debt | 2,040 | 1,961 | 3,618 | ||||
| (Increase)/decrease in net debt resulting from cash flows | (5,070) |
| (1,130) |
| 11,010 | ||
|
|
|
|
| ||||
| New finance leases | (34) | (401) | (453) | ||||
| Exchange rate movements | 661 | 93 | (960) | ||||
| (Increase)/decrease in net debt in the period | (4,443) | (1,438) | 9,597 | ||||
| Net debt at beginning of period | (5,208) | (14,805) | (14,805) | ||||
| Net debt at end of period | (9,651) | (16,243) | (5,208) | ||||
| 18 Related party transactions | |||||||
| There have been no related party transactions that have a material effect on the financial position or performance of the group in the first six months of the financial year. | |||||||
| Further enquiries please contact Camellia Plc Malcolm Perkins 01622 746655 27 August 2009 | |||||||