Camellia PLC AGM Trading Statement (2749B)
June 06 2019 - 5:30AM
UK Regulatory
TIDMCAM
RNS Number : 2749B
Camellia PLC
06 June 2019
Camellia Plc
AGM Trading Statement
(6 June 2019)
Camellia Plc (CAM.L) has today issued the following update on
trading in the year to date.
As stated in our annual results for the year ended 31 December
2018, tea volumes nationally in Kenya were very high at the end of
2018 and in the early part of 2019, resulting in poor prices at
auction for both Kenyan and Malawian teas. This situation has now
reversed with a dry spell in Kenya reducing volumes and a
consequent improvement in prices. However, our average prices in
Kenya and Malawi for the year to date remain significantly below
those of 2018 and our Kenya production volumes are circa 30% lower
than last year. In India and Bangladesh, good rains have resulted
in substantially higher early season production volumes, but our
average selling prices have been below those for 2018 due to an
oversupply of last season's teas. However, prices for new season
teas in India and Bangladesh have firmed slightly on last year. The
majority of tea production and sales take place in the second half
of the year.
Early harvesting of macadamia has seen crops slightly better
than last year; the majority of the crop has still to be harvested
and processed. Early indications are that prices will be better
than those of 2018.
Our 2019 Hass avocado season has yet to start, but should the
lack of rainfall continue we would expect a drop in volumes against
2018's record volumes.
In Food Service, ACS&T is trading as expected and Jing Tea
continues to grow strongly in line with its development plan.
Abbey Metal Finishing and Atfin have been impacted by a marked
slow-down in orders from aerospace customers at the end of the
first quarter. AJT Engineering continues to see an increase in its
order book.
Since the start of 2019, we have completed the acquisition of
the two tea estates in Assam. In addition, we have also agreed
contracts to purchase additional land close to our macadamia
operations in South Africa which will be developed to macadamia and
avocados.
The impacts of climate change on our Group are significant and
something that the Board is focused upon. I am therefore pleased to
announce that we have recently issued our first ever Group ESG
report which is available on our website (www.camellia.plc.uk). In
addition, the Board has established a 'Fund' of an initial GBP2m,
an initiative to use some of our centrally held resources to make a
step change in our sustainability programmes.
As always, our financial results remain largely dependent on
Agriculture where the majority of harvesting, and hence sales,
takes place in the second half of the year. It is therefore too
early to give an indication of the likely results for 2019.
This announcement contains inside information for the purpose of
Article 7 of the Market Abuse Regulation (EU) N0. 596/2014.
Enquiries
Camellia Plc 01622 746 655
Tom Franks, CEO
Susan Walker, CFO
Panmure Gordon 020 7886 2500
Nominated Adviser and Broker
Emma Earl
Erik Anderson
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END
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