LONDON (ShareCast) - (Sharecast News) - Camellia reported a broadly stable trading performance for the first half of 2025 on Friday, as seasonal losses were offset by asset disposals and progress on its value enhancement plan (VEP).
The AIM-traded company posted revenue of £107.7m for the six months ended 30 June, up from £105.1m a year earlier, while its trading loss narrowed slightly to £9.6m from £9.7m.

Lossed before tax came in at £10.4m compared with £11m in the prior period.

The group's net assets fell to £312.4m from £347.7m at the end of 2024, reflecting shareholder capital distributions, losses in the period and translation effects.

However, cash and liquid assets rose sharply to £81.7m from £21.3m, boosted by disposals including a tea estate, properties and collections, which generated £11.2m.

Distributions to shareholders amounted to £18.9m through a tender offer, share buybacks and a final dividend of 260p per share for 2024.

Chief executive Byron Coombs said the launch of the VEP in May was a key milestone, designed to "improve the performance of the company, by generating sustainable and growing profitability for the benefit of all stakeholders."

He added that progress had already been made through asset sales and reinvestment in higher-growth areas such as Tanzanian avocados and irrigation projects in Brazil.

"These actions have further strengthened the cash position, supporting the company's articulated capital allocation priorities of: maintenance of a strong balance sheet; payment of ordinary dividend; and investment in the business," Coombs said.

Operationally, results were mixed across regions.

Improved performances in Malawi and Brazil offset weaker results from tea operations in Bangladesh and Kenya, while Kakuzi delivered lower profit despite higher avocado and macadamia output.

In India, tea volumes were down 7% due to dry weather, while Bangladesh saw production fall 26% after a very dry winter, though prices rose under a new minimum price mechanism.

Macadamia crops in Malawi and South Africa benefited from stronger pricing, while Brazil reported higher soya and maize production following better farming conditions.

Camellia said it remained too early in the season to provide a clear outlook, but current expectations were for higher full-year revenues and improved trading performance compared with 2024.

The firm said it had adopted a new dividend policy of a single annual payment, citing the seasonality of crop revenues, and so would not declare an interim dividend.

At 0850 BST, shares in Camellia were down 1.14% at 5,660p.

Reporting by Josh White for Sharecast.com.

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