Camellia PLC on Thursday said it expects adjusted pretax profit in 2022 to be below both market expectations and what it achieved last year, but it said revenue will be slightly above forecasts.

Shares were down 6.4% at 5,450.00 pence each around Thursday midday in London.

For the six months that ended on June 30, the Kent-based agriculture and engineering services firm said revenue rose by 19% to £125.8 million from £105.5 million a year earlier, reflecting ‘improvements in all divisions and the acquisition of Bardsley England’.

Pretax loss, however, widened to £15.6 million from £7.8 million, as a result of ‘significant wage increases in India and Bangladesh and on the impact of stock market volatility on BF&M’s investment valuations’, it noted.

Camellia said its 37%-owned associate BF&M made a significant loss during the period. Looking ahead, the ‘prevalence of hurricanes in the second half of the year are critical’.

Therefore, Camellia said it is ‘premature’ to offer any firm indication of the likely results for 2022.

However, if current trends continue and a normal second half is assumed for BF&H, Camellia expects revenue to be slightly above market expectations.

On the other hand, it said adjusted pretax profit for the year will be below forecasts and below that of last year.

Adjusted pretax profit was £8.8 million in 2021, down from £16.0 million in 2020, on revenue of £277.2 million, down from £291.2 million.

Chair & Chief Executive Malcolm Perkins said: ‘The combination of extreme weather conditions, continuing disruption on account of the pandemic, war in Ukraine, inflation, supply chain delays and industrial unrest have all conspired to make this year one of the most difficult we have encountered.’

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