5th Jun 2014 12:16
LONDON (Alliance News) - Camellia PLC said Thursday its food storage and distribution businesses are still experiencing "very competitive conditions", making growth difficult to achieve.
In a statement at its annual general meeting, Camellia said an early drought was now expected in at least one of the countries in which it operates, and it is doubtful that its Indian operations will be able to make up its lost tea production later in the year.
Elsewhere, tea production was reasonable, and prices were satisfactory in India and Bangladesh, although Camellia noted that they were still "hovering around cost of production" in Kenya.
The company's other horticultural crops, including rubber in Bangladesh, macademia nuts in Malawi and South Africa, and soya in Brazil, are meeting expectations.
Its wine grape harvest in South Africa was in excess of budget and ahead of the previous year.
However, its citrus crop in California was severely damaged by frost, which reduced income. Additionally, its avocado crop in Kenya was projected to be below budget.
Outside of food storage and distribution, Camellia said its oil engineering businesses in Scotland and the North Sea are performing well.
Its Abbey Metal business is gradually recovering after a fire. However a return to profitability for the business "is still some way off", Camellia said.
Camellia's AKD engineering business continued to weather legal proceedings relating to a contract dispute
In its financial business, the company strengthened senior management at its Duncan Lawrie business. It said that "the continuing lack of any meaningful margin on depositors' funds and the ever increasing costs of compliance" remained an issue, but its expanding customer base was encouraging.
Shares in Camellia were trading down 2.0% at 10,000.00 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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