Camellia PLC - Kent-based agriculture and engineering services firm - Looking ahead for 2022, adjusted pretax profit is anticipated to be below market expectations, but above the £8.8 million posted for the year before.

This is if current trends seen in the first half continues, and Camellia’s 37%-owned associate BF&M reports a normal performance for the second half of 2022, following a swing to a loss for the first half.

Revenue for the year meanwhile, is expected to end up above market expectations.

For the first half of 2022, Camellia’s Tea business continues to suffer from reduced production as a result of monsoonal conditions in northern India and Bangladesh, as well as recent strike actions by tea workers in Bangladesh over wages.

Output from the Nut & Fruits unit for the six months ended June 30 is set to be higher year-on-year, however demand in China has not recovered due to continued lockdown measures, while demand from the US and Japan, though improving, remains subdued. Pricing remains under pressure, and is not expected to recover in the current season.

The company reports a cash balance net of borrowings of £37.1 million as at June 30, down 31% from £54.0 million as at December 31, 2021.

Camellia will publish its interim results on Thursday next week.

Current stock price: 6,000.00 pence, down 1.6% on Wednesday morning in London

12-month change: down 9.8%

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