RESULTS
The company has fully adopted the amendments to the International Accounting Standard (IAS) 41 –
Agriculture and our permanent plantings are now classified under IAS 16 – property, plant and equipment as
bearer plants to be depreciated over their expected useful life. This has resulted in the original reported profit
before tax for the six month period to 30th June 2015 of Ksh 63.8 million being restated to Ksh 3.5 million. The
loss before tax for the period under review is Ksh 51.6 million. This somewhat disappointing result has been
mainly due to lower tea prices, lower livestock sales and the delay of macadamia sales due to awaiting
completion of the cracking facility construction.

OPERATIONS
We have experienced satisfactory weather conditions in our areas of operation and all our dams in Makuyu
are full. The tea crop is 37% up over last year but this has had a negative impact on prices where we now
operate below cost of production levels. The avocado factory throughput to date is 760,116 cartons, 18% up
on the equivalent position last year made up of our own and smallholder crop. There has been downward
pressure on prices due to large deliveries to Europe from Peru and South Africa and logistics on shipping in
particular to Southern France have been problematical. Our macadamia harvest has been up to budget
levels and we are storing our nut in shell at our new storage facility awaiting completion of the factory, which
began operations at the end of July. Prices are similar to last year at present. Livestock sales continue to be
a challenge to attract good quality beef market prices. Forestry operations continue with positive
development and demand. Our joint project operation produced a positive cash position.
We continue with our new planting development on avocado, macadamia and forestry and are exploring other
opportunities for land development.

PROSPECTS
To predict financial performance for the year is impossible at this stage with the irregularities of supply and
demand together with exchange rates to contend with. Labour costs and unrest in particular in our tea
operations must be monitored with concern. We expect a satisfactory avocado crop and hope for a positive
improvement in tea prices
DIVIDEND
The Directors do not recommend a dividend for the first half of the year

K W TARPLEE
CHAIRMAN
2 August 2016