Last checked at 26 Mar 2009 14:20
Camellia Plc
Interim Management Statement
26 March 2009
Interim Management Statement
This statement is made in accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency Rules and covers the period from 1 January 2009 to 26 March 2009.
Dry weather is affecting the group's tea operations in both Bangladesh and the Dooars and Darjeeling areas of India and whilst this may affect our crop, tea prices have so far remained firm. The recent mutiny by the border defence force in Bangladesh did not affect our operations and it is to be hoped that the newly elected government will be able to maintain stability. In India, there has been some political unrest in the Dooars but of more concern is the effect that any upsurge in activity by those demanding statehood in Darjeeling might have on our gardens in that area.
Kenya also suffered from dry weather but there and in Malawi tea prices have remained firm. The political situation in both Kenya and Malawi remains a cause for concern with an election due to take place in Malawi in May 2009.
The group's UK engineering operations have had a mixed start to 2009 with some units, as might be expected, experiencing a reduction in orders although opportunities for new business continue to arise.
Duncan Lawrie will find it challenging to generate income in the current environment of low interest rates and falling stock market values. The bank continues to operate on a conservative basis.
Earlier this month, our associate company, Siegfried Holding AG, announced their results for the year to 31 December 2008. These results included an impairment provision of CHF97 million in respect of goodwill and non-financial assets resulting in a net loss for the year of CHF74.8 million. However, this has not had a negative effect on the book value of the group's investment in Siegfried because of the fall in the value of sterling. Siegfried continues to operate in a very competitive marketplace in the pharmaceutical industry and has recently announced the appointment of a new Chief Executive Officer.
Two of the group's UK final salary pension schemes are currently undergoing triennial actuarial valuations, the results of which are likely to show significant increases in the schemes' deficits.
Camellia Plc will announce its results for the year ended 31 December 2008 on 28 April 2009.
For further enquiries please contact Camellia Plc
Malcolm Perkins, Chairman
01622 746655
26 March 2009