Camellia PLC · LSE:CAM
Camellia — FY2015 Earnings Presentation
19 slides from Camellia's earnings presentation, May 2016
Slide 1: Results Presentation 2016
Camellia Plc Results Presentation 2016 Tom Franks – CEO Susan Walker – CFO
Slide 2: Contents
Contents Operational Highlights Financial Highlights Income Statement Balance Sheet Cash flow Segmental analysis Divisional summaries • Agriculture • Banking and Financial Services • Engineering • Food Service • Investments Investment Case 2
Slide 3: Operational highlights
Operational highlights A strong performance led by underlying trading in Agriculture Tea prices in Kenya were very strong during the year Bangladesh hit by post employment benefit obligation of £6.1m Continued investment in diversification and water management in Agriculture Divisionalisat
Slide 4: Financial highlights
Financial highlights Group revenue £257.8m (up 8% from 2014 Group revenue £238.9m) Headline profit before tax £23.9m (up 39% from 2014 headline profit £17.2m) Profit after tax for the year £21.9m (2014: £8.3m) Earnings per share 450.7p (2014: 102.7p) Dividends per share up 2.4% to 129p (20
Slide 5: Income Statement
Income Statement £’m 2015 2014 Revenue 257.8 238.9 Gross Profit 84.2 75.1 Headline Profit 23.9 17.2 Bangladesh post employment benefit provision (prior years) (6.1) - Profits on sale of non-current assets 3.7 - Gains from biological asset movements 20.6 8.8 Profit before Tax 40.5 22.0 Tax (18.6) (13
Slide 6: Restatement of 2015 results – change in accounting for biological assets
Restatement of 2015 results – change in accounting for biological assets £’m 2015 Reported profit before tax 40.5 Gains arising from changes in fair value of bearer crops (18.7) Depreciation of bearer plants (4.4) Fair value adjustment for growing crop 2.6 Restated 2015 Profit before Tax 20.0 6
Slide 7: Balance Sheet
Balance Sheet £’m 2015 2014 Non-current assets Intangible assets 7.9 7.1 PPE and other non-current assets 128.2 138.9 Investment properties (directors’ valuation £21.4m) 15.8 - Biological assets 144.8 140.0 Investment in associates (inc BF&M) 48.8 8.7 Available for sale financial assets 30.6 63.5 He
Slide 8: Balance Sheet
Balance Sheet £’m 2015 2014 Current liabilities Borrowings (5.4) (2.9) Trade and other payables (258.9) (258.3) Tax, pensions and other (10.6) (6.8) Non-current liabilities Borrowings (5.1) (0.1) Trade and other payables (4.4) (5.1) Deferred tax (42.5) (41.6) Employee benefit (37.8) (41.9) Net asset
Slide 9: Cash flow (excluding Duncan Lawrie)
Cash flow (excluding Duncan Lawrie) £’m 2015 2014 Cash generated from operations 39.4 17.1 Tax and interest paid and dividends received (5.7) (9.2) Net cash flow from operations 33.7 7.9 Net cash flow from investing activities (18.8) (20.4) Net cash flow from financing activities (2.4) (7.5) Net inc
Slide 10: Segmental analysis
Segmental analysis Turnover Turnover Headline Headline Return on Return on 2015 2014 trading trading segment segment £’m £’m Profit* Profit* net assets net assets 2015 2014 2015 2104 £’m £’m Agriculture 186.5 164.2 32.4 27.2 9.9% 10.4% Banking and Financial 13.1 12.4 (3.6) (2.5) n/a n/a Services (ex
Slide 11: Agriculture - Tea
Agriculture - Tea Mature area Immature area Vol 2015 Vol 2014 31,991Ha 2,626Ha 63.4mkg 67.6mkg Pricing Drought conditions in Kenya led to very high prices in the year. Other markets also up 3% to 6% and Bangladesh 11% Labour rates are squeezing margins Record crops in Kenya in 2016 causing sig
Slide 12: Agriculture - Macadamia
Agriculture - Macadamia Mature Immature Vol 2015 Vol 2014 area area 2,165Ha 1,173Ha 1,156T 1,085T Further investment in macadamia as part of our diversification strategy Pricing Strong demand out of China and Japan led to record price levels in 2015 Operations Continuing investment in planting a
Slide 13: Agriculture - Avocado
Agriculture - Avocado Mature Immature Vol 2015 Vol 2014 area area 412Ha 39Ha 7.1mkg 6.3mkg Further investment in avocados as part of our diversification strategy Pricing Pricing of Kenyan avocado hit record levels in 2015 as demand from Europe soared Operations Continuing investment in planting
Slide 14: Agriculture - Speciality crops
Agriculture - Speciality crops Generally the markets for our speciality crops were up, with Citrus, maize, pineapples, soya, pistachios and almonds all selling at better prices than previous years Poor demand for natural latex which can be substituted with synthetic rubber Mature area Immature a
Slide 15: Banking and Financial Services
Banking and Financial Services Duncan Lawrie implementing new strategy New Chairman appointed at Duncan Lawrie subject to regulatory approval Losses likely to continue for the medium term as a result of investment in infrastructure, people and client experience BF&M treated as an Associate f
Slide 16: Engineering
Engineering Restructuring complete AKD closed, Loddon sold A JT continues to struggle in very difficult trading conditions in oilfield services Abbey turnaround in the UK and Germany progressing well The division made a trading loss of £5.5m (2014: £8.4m). Excluding companies no longer in
Slide 17: Food Service
Food Service ACS&T revenues up but margins squeezed by business mix and competition New IT system implemented successfully New management appointed in The Netherlands at Affish and Wylax 17
Slide 18: Investments
Investments £’m At 31 December 2015 Investment Portfolio 30.6 Investment Property (book value £15.8m) 21.4 (directors’ valuation) Philately, Collections and Manuscripts 9.0 (at cost, not revalued) Investment Portfolio consists principally of listed investments. No significant change in the value o
Slide 19: Investment Case
Investment Case Increasing Agricultural diversification impact Well placed to exploit the existing asset base Highly cash generative with a substantial asset base, very low gearing Long term growth in asset value Commitment to sustainability Ethical and responsible business Progressive