Camellia PLC on Wednesday upgraded its 2022 guidance, as its agricultural division performed ahead of expectations during the fourth quarter of the year.

In December, the Kent-based agriculture and engineering services firm warned of a hit to 2022 profit, as a result of BF&M Ltd’s performance. BF&M is an insurance company based in Bermuda, in which Camellia holds a 37.4% stake.

It said that BF&M has reported a shareholders’ net loss of BMD13.4 million, about £11.0 million, for the nine months that ended September 30, compared to net income of BMD19.5 million a year before.

At the time, Camellia said that excluding results for BF&M, it believes its adjusted pretax profit for 2022 to be about 50% to 55% below that of last year, which was £8.8 million

On Wednesday, Camellia said revenue for continuing operations, which excludes BF&M, for 2022 is now expected to be around £294 million. The company recorded revenue of £277.2 million in 2021.

It also believes adjusted pretax profit for continuing operations for the company will be about 10% below £8.8 million.

It said that this compares ‘very favourably’ to the company’s previous guidance given in December.

The company explained that negotiations on pay in Bangladesh have now conclude resulting in government mandated payment of BDT11,000 per permanent worker, around £88, payable during 2023, and a pay increase of 42% effective from the beginning of August 2022.

‘This is a significantly improved outcome than anticipated and will be reflected in our 2022 results,’ Camellia said.

Further the company said that trading in its agricultural division in the final quarter of the year has been ahead of expectations.

Shares in Camellia were up 1.0% to 4,900.00 pence each in London on Wednesday morning.

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