REG - Camellia PLC - Director Changes and Trading Update

CamelliaAnnouncement

06/05/2022 07:00

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RNS Number : 5283K  Camellia PLC  06 May 2022

 

Friday 6 May 2022

Camellia Plc

Director Changes and Trading Update

Resignation of CEO

Camellia Plc announces that Tom Franks, having substantially achieved the
objective of focusing the group's investments into the core activities of
agriculture and food and beverage distribution, has indicated his wish not to
stand for re-election at the forthcoming Annual General Meeting ("AGM") which
is expected to be held in late June.

The Board is initiating a search process to identify a new Chief Executive
Officer ("CEO") and will update the market in due course.  Malcolm Perkins
will take on the CEO duties in the interim, after the AGM.

Malcolm Perkins, Chairman, commented:

"I would like to thank Tom for his contribution to the business as CEO since
2015, including through a very challenging few years.  We wish him well for
the future."

Appointment of independent non-executive Director

Camellia is pleased to announce the appointment of Rachel English, a Fellow of
the Institute of Chartered Accountants, as an independent non-executive
director of the Company with effect from Friday 6 May 2022.

Rachel has extensive international and general management experience, having
served on the board of several significant businesses including as set out
below under additional disclosures. She has a particular focus on ESG matters.

Resignation of Independent non-executive Directors

Camellia also announces that William Gibson and Gautam Dalal have indicated
that they will not be standing for re-election at the forthcoming Annual
General Meeting. The Company thanks them both for their contribution to the
Board and wishes them well in the future.

Further appointment of new non-executive Directors to the Board will be
announced in due course.  The Company remains committed to complying with the
principles set out in the Quoted Companies Alliance Corporate Governance Code.

Trading Update

2021 Results

Full year results in respect of the year to 31 December 2021, which are in
line with the guidance issued in December 2021, are expected to be announced
in late May.

Outlook for 2022

Revenues and profits for the year to date are ahead of the same period of 2021
and for the full year are expected to be significantly ahead of that of 2021
and ahead of market expectations.  This reflects improved trading conditions
in all markets for tea, higher production of macadamia, significantly improved
soya prices and our expectation that 2022 will be an "on year" for Hass
avocado.

Tea

In India the last of the limited tea stocks left over from 2021 have now been
sold and the first auction of the new season opened in March 2022 with strong
pricing. In Bangladesh prices remained under pressure for prior season teas
due to the high volumes of inventory carried forward. However, the market for
new season teas has started firm and is expected to remain relatively stable
as stocks are now depleted and the new season production has yet to gain
momentum.

The indications in both India and Bangladesh are that markets will remain firm
for the early part of the new season, and thereafter as is normal, pricing
will be determined by regional production volumes.

In Kenya, our average selling prices in the period to the end of April 2022
were significantly higher than the same period of 2021 although this was
partially offset by significantly lower production. Pricing levels looking
forward will depend on country wide production volumes and the impact of the
reserve pricing policy for KTDA teas (KTDA manages the production and
wholesaling of smallholder-produced teas).

While selling prices in Malawi have firmed, they are below those of the same
period of 2021.  The market is expected to be volatile for a period due to
uncertainty relating to logistics (as detailed below) and will also be
influenced by the general direction of the Kenya market. Our production
volumes in Malawi are also lower than that of last year.

Macadamia

Harvesting of the 2022 crop is underway and the indications are that volumes
will be ahead of 2021 levels.  However, we expect net selling prices to be
lower than in 2021.

Avocado

The Pinkerton harvest is well advanced with volumes ahead of 2021, however we
expect prices to be lower.  The Hass season has now started with volumes
expected to be significantly ahead of 2021 reflecting the fact that it is an
"'on year' for Hass".

Apples and pears

Bardsley England, a significant apple grower in the UK, was acquired in August
2021.  The last of the 2021 season stock is being sold at prices in line with
our expectations.  It is too early to predict the crop profile for 2022.

Logistics and input costs

Durban (South Africa) port is currently experiencing significant disruption
which is creating logistical challenges for our tea exports from Malawi and
may impact the timing of macadamia sales from both Malawi and South Africa.

Wage negotiations for 2022 are ongoing in all our key operating
jurisdictions.  In the UK, Bardsley England is experiencing wage inflation of
13%.  In common with others in the agriculture sector, we are experiencing
significant cost inflation on key inputs such as fertiliser, fuel and energy
costs across all our operations.

 

Additional Disclosures

 

Further information, as required pursuant to Schedule 2(g) of the AIM Rules
for Companies, is set out below:-

Rachel English (aged 60)

Current directorships

·      Mishcon De Reya Group plc

·      Helios Foundation For Sustainable Development

·      Helios Social Enterprise

Past directorships within the last 5 years

·      Interswitch Holdings Limited

·      Acacia Mining plc (subsequently Barrick Tz Limited)

·      Adam Smith International Ltd; The Amphion Group Limited; Adam
Smith Advisory Group Limited; Adam Smith Services Limited

·      The Private Infrastructure Development Group Limited

·      Kuwait Energy plc

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014.

 

Enquiries

Camellia Plc
 
01622 746655

Malcolm Perkins, Chairman

Susan Walker, Chief Financial Officer

Panmure Gordon
 
020 7886 2500

Nominated Adviser and Broker

Emma Earl

Erik Anderson

Maitland/AMO

PR

William Clutterbuck
 
07785 292617

 

 

 

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