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AIM-listed tea producer Camellia (LON:CAM) has seen its share price drop by 3.47% to 9,750p (as of 15:45 BST) as it posted an underlying loss before tax for the six months ended 30th June. Revenues for the period dropped by 8%, but the firm reported that pre-tax profits were propped up by the release of provisions linked to resolved labour disputes in India and Kenya.
Chairman Malcolm Perkins commented: “The oversupply of tea at the end of 2018 has had a direct impact on global tea prices and hence on the revenues and profitability of our tea operations in the first half. Our increasing agricultural diversity has however helped to temper the impact of the tea market on our results and I am pleased that we are able to increase the interim dividend. The in principle agreement and today’s payment of wages in Kenya and India relating back to 2014 has allowed us to release the excess of the associated provisions, resulting in a profit for the period broadly in line with the comparable period of 2018“.