Last checked at 25 Mar 2010 11:59
Camellia Plc
Interim Management Statement
25 March 2010
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 2010 to 25 March 2010.
Dry weather is affecting the group's tea operations in both India and Bangladesh. Tea prices have remained firm and hopefully our operations will be able to recover from the loss of crop production during the first part of 2010.
In Kenya, unseasonable rainfall in the Nandi Hills area has led to excellent cropping conditions with tea volumes achieved well in excess of those anticipated in the first quarter. Rainfall patterns in Malawi have been erratic but more recent rain has helped the tea crop to recover to levels anticipated for the first quarter of the year. Tea prices in both countries have remained steady.
Our operations in Brazil continue to be adversely affected by low sale prices of maize and soya beans.
The group's UK engineering operations have had a difficult start to 2010 although opportunities for new business continue to arise.
Duncan Lawrie continues to find it challenging to generate income in the current environment of low interest rates which looks set to continue throughout 2010. The bank has maintained its policy of operating on a conservative basis.
On 8 March 2010, the Company announced that agreements had been entered into for the sale of the group's entire interest in Siegfried Holding AG. The sale of the shares for a total consideration of CHF 79.57 million (or £49 million at the exchange rate on 8 March 2010) is conditional, inter alia, on Siegfried's proposed capital raising being approved by its shareholders at its AGM on 14 April 2010.
Based on Siegfried's audited annual results for the year ended 31 December 2009, as announced on 5 March 2010, Camellia's share of Siegfried's loss for the year was £6.8 million and its share of Siegfried's gross assets and net assets at year end was £92.2 million and £63.3 million respectively. On completion, this disposal is expected to result in a small profit on sale being recognised by Camellia in the current financial year.
Camellia Plc will announce its results for the year ended 31 December 2009 on 29 April 2010.
For further enquiries please contact Camellia Plc
Malcolm Perkins, Chairman
01622 746655
25 March 2010