AGM Statement

7 Jun 2007 12:15

Camellia PLC07 June 2007 Camellia Plc Chairman's Statement at AGM 7 June 2007 I would now like to take this opportunity to bring shareholders up to date withdevelopments in the current year. 2006 started with droughts in the majority of the countries in which we grow teaand prices rose in sympathy. 2007 has seen the complete reverse of thissituation with good weather conditions and abundant crops but falling prices.The falling prices are made worse by the continuing decline in the value of thedollar particularly as against the Kenya Shilling. We are still experiencingdelays in exporting our tea from Malawi due to logistical problems. This resultsin increased warehousing costs and delayed cash flow. The weakness of the dollar also has a detrimental impact on our other exportoperations, particularly macadamia and wine from South Africa, arable crops fromBrazil and citrus and grapes from Chile. I cannot over-emphasise the negativeeffect of this dollar weakness on our sales income in the countries of originand there is little that management can do to reduce costs in local currencies,although they will of course take advantage of any such opportunities. Our engineering companies remain busy but attracting new qualified operatives,particularly in Aberdeen, is still a problem. I regret that local planningconsiderations continue to delay the proposed development of our galvanisingoperation in Great Yarmouth. There has been a significant management re-organisation within Associated ColdStores and Transport which will lead to further cost reductions and an increasein operating efficiency. The market however remains very competitive and newcontracts are difficult to acquire at profitable rates. Duncan Lawrie has been busy absorbing the acquisition of Hill Martin who havenow re-located into the Duncan Lawrie offices at Hobart Place. We remaincautiously optimistic about the prospects of the now enlarged banking group. The profits for 2007 received an early boost from the sale of our shareholdingin Getaz-Romang resulting in a gain over book value of approximately £4.8million. I am however unable to give any indication as to the results for thefirst half of the year. Further enquiries please contact Camellia PlcMalcolm Perkins01622 746655 This information is provided by RNS The company news service from the London Stock Exchange