Camellia Interim Results

Date : 08/28/2008 @ 10:29AM
Source : UK Regulatory (RNS and others)
Stock : Camellia Plc (CAM)
Quote : 3800.0  10.0 (0.26%) @ 11:35AM
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Camellia Interim Results

    RNS Number : 2325C
  Camellia PLC
  28 August 2008
   

    Camellia Plc

    Half-yearly report 2008


 Highlights from the results

                               Six months ended        Six months ended 
                                   30 June 2008            30 June 2007 

                                          £'000                   £'000 

 Revenue                                 77,611                  74,550 

 Trading profit/(loss)                    2,837                    (359)

 Profit before tax                        7,991                  12,255 

 Profit for the period                    6,073                  10,965 

 Earnings per share                       203.9   p               387.2   p 

 Interim dividend                            20   p                  20   p 


    Chairman's statement

    The pre-tax profit from continuing operations of £7,991,000 for the six months to 30 June
2008 compares with a profit of £12,255,000 for
the same period last year which included a profit of £5,313,000 on the disposal of 'available
for sale' investments.

    The board has declared an interim dividend of 20p per ordinary share payable on 6 November
2008 to share holders on the register on 17
October 2008. 

    Tea
    India
    Despite dry weather at the beginning of the year, crops are only marginally behind those
of the previous year. Sales prices are ahead of
last year particularly for orthodox teas produced in Assam and Darjeeling. The demand for
independent statehood in Darjeeling and the
possible associated civil unrest are a cause for concern.

    Bangladesh
    Tea production in Bangladesh is similar to the previous year but tea prices have
increased. The prospects for the full year are
encouraging.

    Africa
    Kenya experienced a major drought at the beginning of the year which has reduced
production significantly when compared to the previous
year. The cost of production has increased as a result of the lower crop but increased sales
prices have compensated to some degree. The
political difficulties that Kenya experienced at the beginning of the year have been resolved
for the time being by the formation of a
Government of National Unity, which must now negotiate a new constitution.

    Our operations in Malawi have produced a crop similar to the previous year but higher
sales prices have more than offset the increased
cost of production.

    Edible nuts

    Macadamia production in both Malawi and South Africa is expected to exceed that of the
previous year and prices have recently shown some
improvement over the low levels of last year.

    Crop projections for the harvest in September of our pistachio orchards in California are
encouraging.

    Other horticulture

    Both production and sales prices for our citrus operations in California are higher than
the previous year.

    Exportable production of table grapes and citrus in Chile is on a par with last year.

    Kakuzi's avocado production is expected to exceed the previous year but difficulties in
the port of Mombasa are playing havoc with
shipping schedules and significant insurance claims are anticipated. The situation in the port
is chaotic and is seriously affecting all
exports from Kenya that have no option but to use Mombasa. It is to be hoped that the
Government will take immediate and firm action to
rectify the problems and enable Kenya to compete effectively in world markets.

    Rubber production in Bangladesh is on a par with last year although prices are expected to
be a little lower.

    Maize and Soya prices have increased over last year and, with similar production, the
results of our Brazilian farming operations are
most satisfactory.

    Wine production in both South Africa and Chile increased over the previous year but the
international wine market remains very
competitive.

    Food storage and distribution

    The re-organisation costs incurred in 2007 are beginning to show a positive result and it
is hoped that Associated Cold Stores and
Transport will make a profit for the full year. Rationalisation continues in this sector and
as a result there is now more likelihood of the
market, which has been very difficult for a number of years, returning to stability and
profitability.

    Engineering

    The difficulties of recruiting skilled operatives in some of our engineering companies
continue and are having a detrimental effect on
profitability. The price of steel and the availability of specialist metals combined with the
impact of the fall in demand in the
construction industry are also current concerns for our operations.

    Banking

    It is relevant to repeat that Duncan Lawrie has no exposure to sub-prime mortgages and
their derivatives and indeed is benefiting from
the current credit crisis due to its strong balance sheet and very conservative lending
policies. The wealth management division does of
course continue to suffer from lower fee income as a result of the decline in stock market
values. Duncan Lawrie has now completed the
integration of recent acquisitions, the costs of which will be a charge against profits in the
current year.

    Pharmaceutical

    Net sales of Siegfried Holding AG were marginally ahead of the same period last year.
Operating profit increased by 33% mainly as a
result of the sale of the pharmaceutical production facility in Zofingen to the US-based Arena
Pharmaceuticals and also to the receipt of
licence payments for a previous bio-generic project.
    
Prospects

    The Camellia Group is presently operating in a difficult global trading environment. The
substantially increased costs of energy and
fertilisers are a major cause of concern. However, the group's diversity and conservative
policies, particularly in respect of borrowings,
means that it should be well placed to withstand any forthcoming recession and continue to
develop its operations in a modest and structured
manner. It is however even more difficult than usual to give any indication of the outcome for
the full year.

    M C Perkins
    Chairman
    28 August 2008

    Interim management report

    The chairman's statement forms part of this report and includes important events that have
occurred during the six months ended 30 June
2008 and their impact on the financial statements set out herein.

    Principal risks and uncertainties
        
    The directors' report in the statutory financial statements for the year ended 31 December
2007 (the accounts are available on the
company's website: www.camellia.plc.uk) highlighted risks and uncertainties that could have an
impact on the group's businesses. As these
businesses are widely spread both in terms of activity and location, it is unlikely that any
one single factor could have a material impact
on the group's performance. These risks and uncertainties continue to be relevant for the
remainder of the year. In addition, the chairman's
statement included in this report refers to specific risks and uncertainties that the group is
presently facing.

    Statement of directors' responsibilities

    The directors confirm that these condensed financial statements have been prepared in
accordance with IAS 34 'Interim Financial
Reporting' as adopted by the European Union, and that the interim management report herein
includes a fair review of the information
required by sections 4.2.7 and 4.2.8 of the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.

    The directors of Camellia Plc are listed in the Camellia Plc statutory financial
statements for the year ended 31 December 2007. There
have been no subsequent changes of directors and a list of current directors is maintained on
the group's website at www.camellia.plc.uk.

    By order of the board


    M C Perkins
Chairman
28 August 2008

 Consolidated income statement 
 for the six months ended 30
 June 2008 

                                                                 Six months                   
              Six months                     
                  Year
                                                                      ended                   
                   ended                     
                 ended
                                                                    30 June                   
                 30 June                     
           31 December
                                                                       2008                   
                    2007                     
                  2007
                                        Notes                         £'000                  
                    £'000                     
                 £'000

 Revenue                                  4                         77,611                    
                 74,550                      
              161,936 
 Cost of sales                                                     (53,683)                   
                (53,828)                     
             (107,497)
 Gross profit                                                       23,928                    
                 20,722                      
               54,439 
 Other operating income                                              1,029                    
                    887                      
                1,631 
 Distribution costs                                                 (3,370)                   
                 (2,984)                     
               (9,665)
 Administrative expenses                                           (18,750)                   
                (18,984)                     
              (37,261)
 Trading profit/(loss)                    4                          2,837                    
                   (359)                     
                9,144 
 Share of associates' results             5                          5,185                    
                  7,743                      
               10,568 
 Profit on disposal of other              6                             23                    
                  5,313                      
                5,259 
 investments
 Profit on part disposal of a             7                            104                    
                      -                      
                  170 
 subsidiary
 Profit on disposal of property                                          -                    
                      -                      
                2,029 
 Profit on disposal of
 non-current
   assets held for sale                                                  -                    
                    171                      
                  327 
 Gain/(loss) arising from
 changes in
   fair value of biological                                            178                    
                   (637)                     
                2,770 
 assets
 Profit from operations                                              8,327                    
                 12,231                      
               30,267 
 Investment income                                                     476                    
                    457                      
                  867 
 Finance income                                                        278                    
                    377                      
                  701 
 Finance costs                                                      (1,218)                   
                 (1,107)                     
               (1,921)
 Pension schemes' net financing                                        128                    
                    297                      
                  737 
 income
 Net finance costs                        8                           (812)                   
                   (433)                     
                 (483)
 Profit before tax                                                   7,991                    
                 12,255                      
               30,651 
 Taxation                                 9                         (1,918)                   
                 (1,290)                     
               (3,205)
 Profit for the period                                               6,073                    
                 10,965                      
               27,446 

 Profit attributable to                                                406                    
                    203                      
                2,129 
 minority interests
 Profit attributable to equity                                       5,667                    
                 10,762                      
               25,317 
 shareholders
                                                                     6,073                    
                 10,965                      
               27,446 

 Earnings per share - basic and           11                         203.9                    
p                 387.2                     p
                910.8    p 
 diluted

 Consolidated balance sheet
 at 30 June 2008
                                                                    30 June                   
                 30 June                     
           31 December
                                                                       2008                   
                    2007                     
                  2007
                                        Notes                         £'000                  
                    £'000                     
                 £'000
 Non-current assets
 Intangible assets                                                   8,376                    
                  7,767                      
                8,246 
 Property, plant and equipment            12                        75,885                    
                 76,117                      
               76,233 
 Biological assets                                                  79,797                    
                 76,047                      
               80,633 
 Prepaid operating leases                                            1,013                    
                    985                      
                  982 
 Investments in associates                                          99,677                    
                 82,720                      
               90,367 
 Deferred tax assets                                                 4,152                    
                    272                      
                1,356 
 Other investments                                                  36,516                    
                 38,364                      
               41,186 
 Retirement benefit surplus                                          3,618                    
                  8,566                      
                5,766 
 Trade and other receivables                                           616                    
                    546                      
                  634 
 Total non-current assets                                          309,650                    
                291,384                      
              305,403 
 Current assets
 Inventories                                                        22,340                    
                 19,906                      
               20,137 
 Trade and other receivables                                        71,313                    
                 59,143                      
               67,893 
 Current income tax assets                                           1,623                    
                  2,164                      
                1,616 
 Cash and cash equivalents                13                       283,671                    
                252,186                      
              235,612 
                                                                   378,947                    
                333,399                      
              325,258 
 Non-current assets classified                                          -                     
                    105                      
                   -  
 as held for sale
 Total current assets                                              378,947                    
                333,504                      
              325,258 
 Current liabilities
 Borrowings                               14                       (16,875)                   
                (16,935)                     
              (14,771)
 Trade and other payables                                         (324,162)                   
               (286,152)                     
             (275,913)
 Current income tax liabilities                                     (2,176)                   
                 (1,455)                     
               (1,786)
 Other employee benefit                                               (183)                   
                   (149)                     
                 (169)
 obligations
 Provisions                                                            (75)                   
                    (37)                     
                 (123)
 Total current liabilities                                        (343,471)                   
               (304,728)                     
             (292,762)
 Net current assets                                                 35,476                    
                 28,776                      
               32,496 
 Total assets less current                                         345,126                    
                320,160                      
              337,899 
 liabilities

 Non-current liabilities
 Borrowings                               14                       (11,348)                   
                (12,297)                     
              (11,797)
 Deferred tax liabilities                                          (26,723)                   
                (27,410)                     
              (26,719)
 Retirement benefit obligations                                    (17,367)                   
                (10,261)                     
              (10,608)
 Other employee benefit                                             (1,385)                   
                 (1,233)                     
               (1,293)
 obligations
 Other non-current liabilities                                        (207)                   
                   (401)                     
                 (341)
 Provisions                                                             -                     
                    (92)                     
                   -  
 Total non-current liabilities                                     (57,030)                   
                (51,694)                     
              (50,758)
 Net assets                                                        288,096                    
                268,466                      
              287,141 

 Equity
 Called up share capital                                               284                    
                    284                      
                  284 
 Reserves                                                          267,483                    
                249,407                      
              265,987 
 Shareholders' funds                      18                       267,767                    
                249,691                      
              266,271 
 Minority interests                       18                        20,329                    
                 18,775                      
               20,870 
 Total equity                                                      288,096                    
                268,466                      
              287,141 

 Consolidated cash flow
 statement
 for the six months ended 30
 June 2008
                                                                Six months                    
             Six months                      
                 Year 
                                                                     ended                    
                  ended                      
                ended 
                                                                   30 June                    
                30 June                      
          31 December 
                                                                      2008                    
                   2007                      
                 2007 
                                  Notes                              £'000                   
                   £'000                      
                £'000 
 Cash generated from operations
 Cash flows from operating         16                               (1,497)                   
                  1,831                      
               14,171 
 activities
 Interest paid                                                      (1,254)                   
                 (1,108)                     
               (2,271)
 Income taxes paid                                                  (1,805)                   
                 (2,220)                     
               (3,442)
 Interest received                                                     164                    
                    416                      
                  697 
 Dividends received from                                             2,397                    
                  1,955                      
                2,252 
 associates
 Net cash flow from operating                                       (1,995)                   
                    874                      
               11,407 
 activities
 Cash flows from investing
 activities
 Purchase of intangible assets                                        (336)                   
                    (90)                     
                 (208)
 Purchase of property, plant                                        (4,277)                   
                 (3,493)                     
               (6,953)
 and equipment
 Proceeds from sale of                                                 143                    
                    399                      
                2,948 
 non-current assets
 Proceeds from sale of
 non-current
   assets held for sale                                                  -                    
                    228                      
                  489 
 Part disposal of a subsidiary                                         297                    
                      -                      
                  400 
 Acquisition of subsidiary (net                                          -                    
                      -                      
                 (549)
 of cash  
   acquired)
 Purchase of minority interests                                       (173)                   
                      -                      
                 (193)
 Purchase of shares in                                                   -                    
                      -                      
                   (2)
 associate
 Proceeds from sale of                                               6,735                    
                  7,269                      
                8,235 
 investments
 Purchase of investments                                            (1,848)                   
                 (3,051)                     
               (7,915)
 Income from investments                                               476                    
                    457                      
                  867 
 Net cash flow from investing                                        1,017                    
                  1,719                      
               (2,881)
 activities
 Cash flows from financing
 activities
 Equity dividends paid                                                   -                    
                      -                      
               (2,502)
 Dividends paid to minority                                           (553)                   
                   (842)                     
               (1,132)
 interests
 Net repayment of debt                                              (1,560)                   
                 (3,734)                     
               (3,625)
 Net cash flow from financing                                       (2,113)                   
                 (4,576)                     
               (7,259)
 activities
 Net (decrease)/increase in
 cash and 
   cash equivalents                17                               (3,091)                   
                 (1,983)                     
                1,267 
 Cash and cash equivalents at
 beginning
   of period                                                           758                    
                   (542)                     
                 (542)
 Exchange gains/(losses) on                                            412                    
                   (138)                     
                   33 
 cash
 Cash and cash equivalents at
 end 
  of period                                                         (1,921)                   
                 (2,663)                     
                  758 

  For the purposes of the cash flow statement, cash and cash equivalents are included net of
overdrafts repayable on demand. These
overdrafts are excluded from the
 definition of cash and cash equivalents disclosed on the balance sheet.  


 For the purposes of the cash flow statement cash and cash equivalents comprise:
 Cash and cash equivalents                                         283,671                    
                252,186                      
              235,612 
 Less banking operation funds                                     (271,691)                   
               (240,820)                     
             (223,849)
 Overdrafts repayable on demand
   (included in current                                            (13,901)                   
                (14,029)                     
              (11,005)
 liabilities - borrowings)
                                                                    (1,921)                   
                 (2,663)                     
                  758 
  
 Statement of recognised income and expense
 for the six months ended 30 June 2008

                                                                Six months                    
             Six months                      
                 Year 
                                                                     ended                    
                  ended                      
                ended 
                                                                   30 June                    
                30 June                      
          31 December 
                                                                      2008                    
                   2007                      
                 2007 
                                                                     £'000                   
                   £'000                      
                £'000 

 Foreign exchange translation                                        3,612                    
                 (1,887)                     
                5,407 
 differences
 Actuarial movement on defined
   benefit pension schemes                                          (9,595)                   
                 11,516                      
                6,030 
 (note 15)
 Movement on deferred tax
 relating to 
   defined benefit pension                                           2,686                    
                 (2,765)                     
                 (639)
 schemes
 Available-for-sale
 investments:
   Valuation gains taken to                                            416                    
                  3,340                      
                2,044 
 equity 
   Transferred to profit or                                             (2)                   
                 (3,676)                     
               (3,630)
 loss on sale
 Share of associate's net
 movement in 
   defined benefit pension                                          (1,246)                   
                     92                      
                  372 
 schemes
 Share of associates' fair                                            (748)                   
                  1,353                      
                  932 
 value adjustments
 Share of associate's loss on                                            -                    
                    (92)                     
                 (115)
 cash flow
   hedges
 Share of associate's income
 taxes on 
   items recorded in equity                                            466                    
                      -                      
                  (29)
 Net (expense)/income
 recognised 
   directly in equity                                               (4,411)                   
                  7,881                      
               10,372 
 Profit for the period                                               6,073                    
                 10,965                      
               27,446 
 Total recognised income and
 expense
   for the period                                                    1,662                    
                 18,846                      
               37,818 
 Attributable to:
 Minority interests                                                     91                    
                    314                      
                2,505 
 Equity shareholders                                                 1,571                    
                 18,532                      
               35,313 
                                                                     1,662                    
                 18,846                      
               37,818 
 Notes to the accounts

 1 Basis of preparation

 These financial statements are the interim consolidated financial statements of Camellia Plc,
a company registered in England, and its
subsidiaries (the "group") for
 the six month period ended 30 June 2008 (the "Interim Report"). They should be read in
conjunction with the Report and Accounts (the
"Annual Report") for the year
 ended 31 December 2007.  
  



 The financial information contained in this interim report has not been audited and does not
constitute statutory accounts within the
meaning of Section 240 of the
 Companies Act 1985. A copy of the statutory accounts for the year ended 31 December 2007 has
been delivered to the Registrar of Companies.
The auditors' opinion on
 these accounts was unqualified and does not contain a statement made under Section 237(2) and
Section 237(3) of the Companies Act 1985.
  




 The interim financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") including IAS
34 "Interim Financial
 Reporting". For these purposes, IFRS comprise the Standards issued by the International
Accounting Standards Board ("IASB") and
Interpretations issued by the
 International Financial Reporting Interpretations Committee ("IFRIC") that have been endorsed
by the European Union.




  
 Where necessary, the comparatives have been reclassified from the previously reported interim
results to take into account any
presentational changes made in the
 Annual Report.
  

 These interim financial statements were approved by the board of directors on 28 August
2008.

 2 Accounting policies

 These interim financial statements have been prepared on the basis of accounting policies
consistent with those applied in the financial
statements for the year ended
 31 December 2007.


 The following interpretations made by IFRIC are mandatory for the first time in the current
financial year and have been adopted by the
group with no significant
 impact on its consolidated results or financial position:

   IFRIC 11 Group and treasury share transactions
   IFRIC 12 Service concession
 arrangements
   IFRIC 14 The limit on a defined benefit asset, minimum funding requirements and their
interaction

 3 Cyclical and seasonal
 factors

 Due to climatic conditions the group's tea operations in India and Bangladesh produce most of
their crop during the second half of the
year. Tea production in Kenya
 remains at consistent levels throughout the year but in Malawi, the majority of tea is
produced in the first six months.
  


 Soya and maize in Brazil are generally harvested in the first half of the year. In California
the pistachio crop occurs in the second half
of the year and has 'on' and
 'off' years. Avocados in Kenya are mostly harvested in the second half of the year. 
  


 There are no other cyclical or seasonal factors which have a material impact on the trading
results.

 4 Segment reporting

                                          Six months ended                Six months ended    
            Year ended
                                            30 June 2008                     30 June 2007     
         31 December 2007 
                                     Revenue                          Revenue    Trading
profit     Revenue    Trading profit 
                                                    Trading profit 
                                       £'000                 £'000      £'000            
£'000       £'000             £'000 

 Agriculture and horticulture         42,069                 2,989     38,404              
671      89,004             9,072 
 Engineering                          10,132                   671     10,293              
947      20,109             2,124 
 Food storage and distribution        17,932                   324     18,831             
(356)     38,561              (133)
 Banking and financial services        7,322                   798      6,911              
849      13,949             1,431 
 Other operations                        156                    56        111             
(156)        313              (113)
                                      77,611                 4,838     74,550            
1,955     161,936            12,381 
 Unallocated corporate expenses                             (2,001)                     
(2,314)                       (3,237)
 Trading profit/(loss)                                       2,837                        
(359)                        9,144 
 Share of associates' results                                5,185                       
7,743                        10,568 
 Profit on disposal of other                                    23                       
5,313                         5,259 
   investments
 Profit on part disposal of a                                  104                           
-                           170 
   subsidiary
 Profit on disposal of property                                  -                           
-                         2,029 
 Profit on disposal of
 non-current 
   assets held for sale                                          -                         
171                           327 
 Gain/(loss) arising from
 changes
   in fair value of biological                                 178                        
(637)                        2,770 
 assets
 Investment income                                             476                         
457                           867 
 Net finance costs                                            (812)                       
(433)                         (483)
 Profit before tax                                           7,991                      
12,255                        30,651 
 Taxation                                                   (1,918)                     
(1,290)                       (3,205)
 Profit after tax                                            6,073                      
10,965                        27,446 


 5 Share of associates' results                                                               
                                   
                                                                                              
                                   
 The group's share of the results of associates is analysed below:                            
                                   
                                                                                              
                                   
                                                                       Six months          Six
months                      Year   
                                                                            ended             
 ended                     ended   
                                                                          30 June            
30 June               31 December   
                                                                             2008             
  2007                      2007   
                                                                            £'000            
  £'000                     £'000   
                                                                                              
                                   
 Operating profit                                                           6,579             
 4,914                     8,561   
 Net finance costs                                                           (463)            
   (90)                     (650)  
 Profit before tax                                                          6,116             
 4,824                     7,911   
 Taxation                                                                    (931)            
  (701)                   (1,026)  
 Profit after tax                                                           5,185             
 4,123                     6,885   
 Net profit from discontinued operations                                        -             
 3,620                     3,683   
                                                                            5,185             
 7,743                    10,568   
                                                                                              
                                   
 The net profit from discontinued operations relates to the disposal by the Siegfried Group of
its Sidroga division and its
 biologics business unit.

                                                                                              
                                   
 6 Profit on disposal of other investments                                                    
                                   
                                                                                              
                                   
 In 2007, a profit of £4,801,000 was realised on the disposal of the group's entire
shareholding in Gaz Romang Holding SA, a
 public quoted company on the SWX Swiss Exchange.

                                                                                              
                                   
 7 Profit on part disposal of a subsidiary                                                    
                                   
                                                                                              
                                   
 A profit of £104,000 (2007: six months £nil - year £170,000) was realised in relation to
the disposal by Kakuzi Limited of 10%
 (2007: six months nil - year 14%) of its interest in Siret Tea Company Limited to EPK
Outgrowers Empowerment Project Company
 Limited, a company mainly owned by smallholders in Kenya.


                                                                                              
                                   
 8 Finance income and costs                                                                   
                                   
                                                                       Six months          Six
months                      Year   
                                                                            ended             
 ended                     ended   
                                                                          30 June            
30 June               31 December   
                                                                             2008             
  2007                      2007   
                                                                            £'000            
  £'000                     £'000   
                                                                                              
                                   
 Interest payable on loans and bank overdrafts                               (986)            
(1,085)                   (2,141)  
 Interest payable on obligations under finance                                                
                                   
   leases                                                                     (92)            
   (96)                     (180)  
 Total borrowing costs                                                     (1,078)            
(1,181)                   (2,321)  
 Net exchange (loss)/gain on foreign currency                                                 
                                   
   borrowings                                                                (140)            
    74                       400   
 Finance costs                                                             (1,218)            
(1,107)                   (1,921)  
 Finance income - interest income on short-term                                               
                                   
   bank deposits                                                              278             
   377                       701   
 Pension schemes' net financing income                                        128             
   297                       737   
 Net finance costs                                                           (812)            
  (433)                     (483)  
                                                                                              
                                   
 The above figures do not include any amounts relating to the banking subsidiaries.           
                                   
                                                                                              
                                   
 9 Taxation on profit on ordinary activities 

                                    Six months ended       Six months ended       Year ended
                                      30 June 2008           30 June 2007      31 December
2007
                                        £'000     £'000     £'000      £'000    £'000    
 £'000
 Current tax
 UK corporation tax                         -                   -                 107 
 Overseas corporation tax               2,062               1,008               2,935 
 Total current tax                                2,062               1,008              
3,042 

 Deferred tax
 Origination and reversal of timing
 differences
 UK                                       529                 (34)               (483)
 Overseas                                (673)                316                 646 
 Total deferred tax                                (144)                282                
163 
 Tax on profit on ordinary                        1,918               1,290              
3,205 
 activities
  
 Tax on profit on ordinary activities for the six months to 30 June 2008 has been calculated
on
 the basis of the estimated annual effective rate for the year ending 31 December 2008. 









      10 Equity dividends







  
    
 
      

      Six months 
  
     Six months 
  
     Year 

  

     ended 
  
     ended 
  
     ended 

  

    30 June 
  
     30 June 
  
     31 December 

  

     2008 
  
     2007 
  
     2007 

  

     £'000 
  
     £'000 
  
     £'000 

  







    Amounts recognised as distributions to equity holders in the period:





  







    Final dividend for the year ended 31 December 2007 






        of 72.00p (2006: 70.00p) per share
  
      2,001 
  
      1,946 
  
      1,946 

      Interim dividend for the year ended 31 December 2007 






        of 20.00p per share
  




      556 

  





      2,502 

      

      Dividends amounting to £45,000 (2007: six months £44,000 - year £56,000) have not
been included as group companies hold 62,500 issued
shares in the company. These are classified as treasury shares.
  







    Proposed interim dividend for the year ended 31 







        December 2008 of 20.00p (2007: 20.00p) per share
  
      556 
  
      556 



  







    The proposed interim dividend was approved by the board of directors on 28 August 2008 and
has not been included as a liability in these
financial statements.

 11 Earnings per share (EPS)

                                   Six months ended      Six months ended        Year ended 
                                     30 June 2008          30 June 2007       31 December 2007

                                  Earnings       EPS    Earnings       EPS     Earnings    
EPS
                                     £'000     Pence       £'000     Pence        £'000  
Pence
 Basic and diluted EPS
 Attributable to ordinary            5,667     203.9      10,762     387.2       25,317  
910.8
 shareholders

 Basic and diluted earnings per share are calculated by dividing the earnings attributable to
 ordinary shareholders by the weighted average number of ordinary shares in issue of
2,779,500
 (2007: six months 2,779,500 - year 2,779,500), which excludes 62,500 (2007: six months
62,500
 - year 62,500) shares held by the group as treasury shares.



 12 Property, plant and                                                                       
       
 equipment                                                                                    
       
                                                                                              
       
 During the six months ended 30 June 2008 the group acquired assets with a cost of £4,277,000
(2007:
 six months £3,493,000 - year £6,953,000). Assets with a carrying amount of £96,000 were
disposed of
 during the six months ended 30 June 2008 (2007: six months £217,000 - year £910,000).


                                                                                              
       
 13 Cash and cash equivalents                                                                 
       
                                                                                              
       
 Included in cash and cash equivalents of £283,671,000 (2007: six months £252,186,000 -
year
 £235,612,000) are cash and short-term funds, time deposits with banks and building societies
and
 certificates of deposit amounting to £271,691,000 (2007: six months £240,820,000 - year
 £223,849,000), which are held by banking subsidiaries and which are an integral part of the
banking
 operations of the group.



                                                                                              
       
 14 Borrowings                                                                                
       
                                                                                              
       
 Borrowings (current and non-current) include loans and finance leases of £14,322,000 (2007:
six
 months £15,203,000 - year £15,563,000) and bank overdrafts of £13,901,000 (2007: six
months
 £14,029,000 - year £11,005,000). The following loans and finance leases were issued and
repaid during
 the six months ended 30 June 2008:



                                                                                              
       
                                                             £'000                           
        
                                                                                              
       
 Balance at 1 January 2008                                  15,563                            
       
 Exchange differences                                          320                            
       
 New issues                                                                                   
       
 Loans                                                          69                            
       
 Finance lease liabilities                                     401                            
       
 Repayments                                                                                   
       
 Loans                                                      (1,528)                           
       
 Finance lease liabilities                                    (503)                           
       
 Balance at 30 June 2008                                    14,322                            
       
                                                                                              
       
 15 Retirement benefit schemes                                                                
       
                                                                                              
       
 UK defined benefit pension schemes for the purposes of IAS 19 have been updated to 30 June
2008 from
 the valuations as at 31 December 2007 by the group's actuaries and the movements have been
reflected
 in this interim statement. Overseas schemes have not been updated from 31 December 2007
valuations as
 it is considered that there have been no significant changes.




 An actuarial loss of £13,471,000 was realised in the period in relation to the scheme
assets
 following the recent falls in global stock markets. An actuarial gain of £3,876,000 was
realised in
 relation to changes in the underlying actuarial assumptions. The assumed discount rate has
increased
 to 6.70% (31 December 2007: 5.90%), giving rise to a decrease to the defined benefit
obligation. This
 reduction is partly offset by the impact of increases in the assumptions for the rate of
inflation,
 to 4.20% (31 December 2007: 3.40%), and for the rate of increases for salaries, to 4.30% (31
December
 2007: 3.50%). There has been no change in the mortality assumptions used. 





                                                                                              
                                
 16 Reconciliation of profit from operations to cash                                          
                                
 flow
                                                                Six months               Six
months                     Year   
                                                                     ended                   
ended                    ended   
                                                                   30 June                  30
June              31 December   
                                                                      2008                    
2007                     2007   
                                                                     £'000                   
£'000                    £'000   
                                                                                              
                                
 Profit from operations                                                                     
12,231                   30,267   
                                                                     8,327
 Share of associates' results                                                                 
                     (10,568)   
                                                                   (5,185)                 
(7,743)
 Depreciation and amortisation                                                                
                                
                                                                     3,922                   
4,044                    7,868
 (Gain)/loss arising from                                                                     
                                
 changes in fair value
  of biological assets                                                                        
                                
                                                                     (178)                    
 637                  (2,770)
 Profit on disposal of                                                                        
                                
 property, plant and equipment                                        (47)                    
   -                  (2,029)
 Profit on disposal of                                                   -                   
(171)                    (327)   
 non-current assets held for
 sale
 Profit on part disposal of a                                                                 
                                
 subsidiary                                                          (104)                    
                        (170)
 Profit on disposal of other                                                                  
                                
 investments                                                          (23)                 
(5,313)                  (5,259)
 Decrease/(increase) in working                                                               
                                
 capital                                                               907                 
(2,811)                  (7,949)
 Net (increase)/decrease in                                                                   
                                
 funds of banking
  subsidiaries                                                                                
                                
                                                                   (9,116)                    
 957                    5,108
 Cash flows from operating                                                                    
                       14,171   
 activities                                                        (1,497)                   
1,831
      

      17 Reconciliation of net cash flow to movement in net debt
  






  

     Six months 
  
     Six months 
  
     Year 

  

     ended 
  
     ended 
  
     ended 

  

     30 June 
  
     30 June 
  
     31 December 

  

     2008 
  
     2007 
  
     2007 

  

     £'000 
  
     £'000 
  
     £'000 

  







    (Decrease)/increase in cash and cash 







        equivalents in the period
  
      (3,091)
  
      (1,983)
  
      1,267 

      Cash outflow from decrease in debt
  
      1,961 
  
      3,914 
  
      4,310 

      (Increase)/decrease in net debt resulting from 







        cash flows
  
      (1,130)
  
      1,931 
  
      5,577 

      New finance leases
  
      (401)
  
      (181)
  
      (685)

      Exchange rate movements
  
      93 
  
      (116)
  
      (197)

      (Increase)/decrease in net debt in the period
  
      (1,438)
  
      1,634 
  
      4,695 

      Net debt at beginning of period
  
      (14,805)
  
      (19,500)
  
      (19,500)

      Net debt at end of period
  
      (16,243)
  
      (17,866)
  
      (14,805)


 18 Statement of changes in shareholders' equity

                                    Share       Share    Treasury    Retained       Other     
         Minority       Total
                                   capital    premium      shares    earnings    reserves     
Total    interest      equity
                                     £'000      £'000       £'000       £'000       £'000
     £'000       £'000       £'000

 At 1 January 2007                     284     15,298        (400)    182,543      38,236   
235,961      19,303    255,264 

 Exchange differences                    -          -           -           -      (1,998)   
(1,998)        111     (1,887)
 Net profit                              -          -           -      10,762           -    
10,762         203     10,965 
 Dividends                               -          -           -      (1,946)          -    
(1,946)       (842)    (2,788)
 Actuarial gain                          -          -           -      11,516           -    
11,516           -     11,516 
 Deferred tax on actuarial gain          -          -           -      (2,765)          -    
(2,765)          -     (2,765)
 Available-for-sale
 investments:
   Valuation gains taken to              -          -           -           -       3,340     
3,340           -      3,340 
 equity
   Transfer to profit or loss            -          -           -           -      (3,676)   
(3,676)          -     (3,676)
 on sale
   Reclassification of
 investment to an 
    associate                            -          -           -           -      (2,748)   
(2,748)          -     (2,748)
 Share of associates' fair               -          -           -       1,353           -     
1,353           -      1,353 
 value adjustments
 Share of associate's change in          -          -           -         144           -     
  144           -        144 
 treasury shares
 Share of associate's movement in defined 
   benefit pension schemes               -          -           -          92           -     
   92           -         92 
 Share of associate's loss on            -          -           -         (92)          -     
  (92)          -        (92)
 cash flow hedges
 Loss on dilution of interest            -          -           -        (252)          -     
 (252)          -       (252)
 in associate
 At 30 June 2007                       284     15,298        (400)    201,355      33,154   
249,691      18,775    268,466 

 At 1 January 2007                     284     15,298        (400)    182,543      38,236   
235,961      19,303    255,264 
 Exchange differences                    -          -           -           -       4,973     
4,973         434      5,407 
 Net profit                              -          -           -      25,317           -    
25,317       2,129     27,446 
 Dividends                               -          -           -      (2,502)          -    
(2,502)     (1,132)    (3,634)
 Actuarial gain                          -          -           -       6,171           -     
6,171        (141)     6,030 
 Deferred tax on actuarial gain          -          -           -        (684)          -     
 (684)         45       (639)
 Available-for-sale
 investments:
   Valuation gains taken to              -          -           -           -       2,006     
2,006          38      2,044 
 equity
   Transfer to profit or loss            -          -           -           -      (3,630)   
(3,630)          -     (3,630)
 on sale
   Reclassification of
 investment to an
    associate                            -          -           -           -      (2,782)   
(2,782)          -     (2,782)
 Minority interest subscription          -          -           -           -           -     
    -         230        230 
 Payment to minority interest            -          -           -           -           -     
    -        (193)      (193)
 Change in composition of group          -          -           -        (157)          -     
 (157)        157          - 
 Share of associates' fair               -          -           -         932           -     
  932           -        932 
 value adjustments
 Share of associate's loss on            -          -           -        (115)          -     
 (115)          -       (115)
 cash flow hedges
 Share of associate's change in          -          -           -         430           -     
  430           -        430 
 treasury shares
 Share of associate's movement in defined 
   benefit pension schemes               -          -           -         372           -     
  372           -        372 
 Share of associate's income taxes on items
   recorded in equity                    -          -           -         (29)          -     
  (29)          -        (29)
 Share of associates' other              -          -           -         123           -     
  123           -        123 
 equity movements
 Loss on dilution of interest            -          -           -        (115)          -     
 (115)          -       (115)
 in associate
 At 31 December 2007                   284     15,298        (400)    212,286      38,803   
266,271      20,870    287,141 

 Exchange differences                    -          -           -           -       3,927     
3,927        (315)     3,612 
 Net profit                              -          -           -       5,667           -     
5,667         406      6,073 
 Dividends                               -          -           -      (2,001)          -    
(2,001)       (553)    (2,554)
 Actuarial loss                          -          -           -      (9,595)          -    
(9,595)          -     (9,595)
 Deferred tax on actuarial loss          -          -           -       2,686           -     
2,686           -      2,686 
 Available-for-sale
 investments:
   Valuation gains taken to              -          -           -           -         416     
  416           -        416 
 equity
   Transfer to profit or loss            -          -           -           -          (2)    
   (2)          -         (2)
 on sale
 Minority interest subscription          -          -           -           -           -     
    -         192        192 
 Payment to minority interest            -          -           -           -           -     
    -        (173)      (173)
 Change in composition of group          -          -           -          98           -     
   98         (98)         - 
 Share of associate's restatement of
 pension
   plan assets                           -          -           -       1,831           -     
1,831           -      1,831 
 Share of associates' fair               -          -           -        (748)          -     
 (748)          -       (748)
 value adjustments
 Share of associate's change in          -          -           -         (62)          -     
  (62)          -        (62)
 treasury shares
 Share of associate's movement in defined 
   benefit pension schemes               -          -           -      (1,246)          -    
(1,246)          -     (1,246)
 Share of associate's income taxes on items
   recorded in equity                    -          -           -         466           -     
  466           -        466 
 Share of associate's other              -          -           -         150           -     
  150           -        150 
 equity movements
 Loss on dilution of interest            -          -           -         (91)          -     
  (91)          -        (91)
 in associate
 At 30 June 2008                       284     15,298        (400)    209,441      43,144   
267,767      20,329    288,096 

                                                     
 19 Related party transactions                       

 There have been no related party transactions that
 have a material effect on the financial position or
 performance of the group in the first six months of
 the financial year.

                                                     
 20 Events after the balance sheet date              

 With effect from 1 July 2008, the group has
 representation on the board of West Hamilton
 Holdings Limited, a Bermudian property company, and
 as a result the investment in this company will be
 reclassified from a financial asset to an investment
 in associate. Based on the latest available accounts
 to 31 December 2007, the estimated result of this
 reclassification will be that the value of
 investments in associates will increase by
 £1,261,000, being the equity value, and the value of
 financial assets will decline by £2,696,000, being
 the market value. The difference of £1,435,000 will
 be transferred to reserves.








    Further enquiries please contact Camellia Plc
    Malcolm Perkins
    01622 746655
    28 August 2008




This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IR KGGZRFRLGRZM
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