28th Mar 2014 16:02
LONDON (Alliance News) - Camellia PLC gave a trading update for its businesses Friday, ahead of its full-year results for 2013, which it said it will release on April 24.
The company and its subsidiaries are engaged in the agriculture and horticulture, engineering, food storage and distribution and private banking and financial services.
It said that whilst Indian tea prices are currently slightly in excess of last year, those in Bangladesh are lower due to competition from cheaper imports. It said that tea production in India and Bangladesh is minimal at this time of year.
Camellia said that tea crop production in Kenya has been well ahead of budget, but prices have been volatile and are currently lower than last year.
It said that there has been high levels of rainfall in Malawi, and prices are currently lower than last year, although the outlook for production is promising for later in the season.
Camellia said that avocado harvest forecasts in Kenya are slightly below initial expectations due to the recent dry weather conditions, while the Macadamia crop in Malawi is expected to be in line with budget, supported by favourable weather conditions at the end of 2013.
The group said that the soya harvest in Brazil has been hit by a severe drought early in the season, which resulted in a reduction in yield.
It said that citrus and pistachio production is expected to be in line with budget at Horizon Farms, despite the record drought in California, while investment in irrigation on the farm has helped protect the crops from the severe shortage of water.
The group said its UK engineering businesses continued to experience an uneven recovery.
It said its AJT Engineering business in Scotland has performed well, boosted by the strength of the oil and gas sector, while its trading performance at AKD Engineering has been hit hard by the delay and increased costs of completing a major fabrication contract.
Camellia said that its loss-making Abbey Metal Finishing business has seen a gradual improvement in sales, but is yet to return to profitability. It said trading at BMT in Great Yarmouth, Norfolk has improved following the recovery in the UK construction industry.
The group said sales at its Dutch business Affish BV continues to be hit by the severe shortage of prawns, while sales at Wylax International BV were in line with budget as the Dutch economy slowly started to recover.
Camellia said that its private banking and financial services subsidiary Duncan Lawrie, continues to see a rise in current account business following the success of recent marketing and business development activity, although it said new lending has been slower than estimated at the end of 2013. It said the prospects for the lending business are promising this year with the recovery in the UK economy.
Camellia said that it will announced its full-year results for the year ended December 31, 2013 on April 24.
Camellia shares were trading 3.6% higher Friday afternoon at 9,300.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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