AUS
NZ
UK
CA
USA
IND
Camellia (LSE:CAM) reported a challenging first half on Friday, posting a loss after tax of £14 million, a significant shift from the £3.5 million profit recorded in the same period last year. The AIM-traded company revealed that revenue from continuing operations increased by 7% to £105.1 million, up from £98 million in the first half of 2023. This growth was attributed to improvements in both agriculture and engineering sectors.
However, the firm experienced an adjusted loss before tax of £11.6 million, which widened from the £9.2 million loss reported a year ago. Key factors influencing the mixed performance included increased tea volumes, which were counterbalanced by lower prices; reduced macadamia volumes, although improved pricing somewhat mitigated this; and weaker soya volumes and prices. Additionally, avocado production declined, though higher prices helped to offset some of this drop.
On a more positive note, the engineering sector showed higher revenue, and management costs were reduced. Despite these operational improvements, the overall performance was impacted by elevated financing costs, which climbed to £4.1 million due to exchange losses related to the strengthening of the Kenyan shilling. Furthermore, the lack of a significant impairment write-back—previously contributing £18 million to last year’s results—negatively affected the year-on-year comparison.
The company also reported that Bardsley had been categorized as a discontinued operation, which influenced the results. Due to the ongoing operating losses, the board decided not to declare an interim dividend for the period.
Despite the difficult conditions, the board remains focused on supporting and expanding the group’s agricultural operations while working to diversify where appropriate. As part of its broader strategy, the company is also concentrating on exiting non-core assets to improve margins and manage risks associated with adverse weather, political instability, and fluctuating commodity prices.
At 0953 BST, shares in Camellia had fallen by 5.63% to 4,199.4p. The decline reflects market reaction to the company’s challenging financial performance and the decision to forgo an interim dividend.
