Camellia PLC (LON:CAM), whose interests span agriculture, engineering, food service and investment, hit a series of problems expected to make a “significant” dent in 2019 profits.
Global over-production of tea put “severe pressure” on prices, while avocado crop volumes were off 40%.
BF&M, the Bermuda-based insurer in which Camellia holds a 37% stake, saw its profits hit by Hurricane Dorian.
It also highlighted a number of other issues, the most concerning being allegations of “serious assault, harassment and sexual misconduct allegedly committed by certain individuals employed by those two foreign operating companies”.
In a comprehensive statement, the company said it may be impacted by Bangladesh legislation on profit participation, while it will also re-assess tax provisions across the group.
“Overall, the combination of these items, and particularly the impact of lower tea prices, means that profits for the group will be significantly below expectations for the year ended 31 December 2019,” investors were told.
It is guiding that revenues will be £294mln for 2019, up from the £245mln posted in 2018, which generated £51mln of profits.