28th Apr 2016 09:50
LONDON (Alliance News) - Camellia PLC, which operates across agriculture, banking, engineering, food service and investments, on Thursday said its Kenyan tea business led the way as underlying trading of its businesses improved in 2015, a year in which headline trading profit rose by more than a third, while warning of challenges in 2016.
Headline trading profit rose to GBP15.1 million in 2015, Camellia said in a statement, from GBP11.1 million in 2014, and the company increased its total dividend for the year to 129 pence from 126p.
After taking account of the provision for past service costs relating to changes in Bangladesh to post-employment benefit entitlements of GBP6.1 million, gains arising from changes in the fair value of biological assets of GBP20.6 million, exceptional and other one off items, Camellia's pretax profit in 2015 amounted to GBP40.5 million, compared with GBP22.0 million the prior year.
Chairman Malcolm Perkins warned of a "challenging" outlook for 2016, citing climate change, and in particular erratic rainfall patterns. He said that makes it tough to predict crop volume.
"The start of 2016 has seen record tea production in Kenya which has resulted in a significant fall in the market price. The continuing low oil price provides a challenge to our engineering businesses and low interest rates restrict returns in banking," Perkins said.
"However, the strength and diversity of our operations, the success we have had in bringing in new management where appropriate, and the ongoing turnaround, sale or closure of our loss making companies, all point to a more successful future," Perkins said.
Shares in Camellia were down 1.2% at 7,980.00 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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