Treatt PLC Trading Statement (9415A)
30 March 2017 - 5:00PM
UK Regulatory
TIDMTET
RNS Number : 9415A
Treatt PLC
30 March 2017
30 March 2017
TREATT PLC
Trading Update for the half year ending 31 March 2017
Treatt Plc ('Treatt' or the 'Group'), the manufacturer and
supplier of innovative ingredient solutions for the flavour,
fragrance, beverage and consumer product industries today publishes
a trading update for the half year ending 31 March 2017.
In the latest trading update announced on 23 February 2017 the
Board reported that momentum in the business had gathered pace and
consequently the results for the six months to 31 March 2017 ('Half
Year') were expected to show substantial progress when compared to
the prior year. The Board also reported that it believed that
profit before tax for the full year ending 30 September 2017 would
substantially exceed its previous expectations.
Since that announcement, trading has continued to be strong and
whilst the Group has benefitted from the effect of a stronger US
Dollar, underlying revenue growth continues to gain momentum, with
Half Year revenue expected to show an increase in excess of 25%
over the prior year period, of which approximately 10% can be
attributed to the effects of currency movements.
New business wins and a strong performance across all our
categories, particularly in Sugar Reduction, Tea and Citrus, which
are areas of strategic focus, together with the impact of current
foreign exchange rates have combined in an order book which has
increased materially compared with the same time last year.
As announced on 23 February 2017 the impact of higher raw
material prices, increased order book and the strengthening of the
US Dollar has resulted in net debt at the Half Year increasing to
approximately GBP12m, being some GBP3.6m higher than the same time
last year. Historically, the Group reports a net trading cash
outflow in the first six months of the year and a net trading cash
inflow in the second half of the year, and the Board would expect a
similar pattern in the current financial year.
Outlook
Following a strong performance across the Group in March 2017
and clear signs that the momentum described above, which is being
delivered by our 2020 Strategic Plan, is continuing into the second
half of the current financial year, the Board now expect to exceed
its revised expectations for the full financial year ending 30
September 2017.
The Board expects to announce Treatt's Half Year results on 9
May 2017.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Treatt plc +44 (0)1284 702500
Daemmon Reeve Chief Executive Officer
Richard Hope Finance Director
Broker
Investec Investment Banking
Patrick Robb +44 (0)20 7597 5970
David Anderson
Alex Wright
Public relations
Davidson Ryan Dore
Lawrence Dore +44 (0)20 7520 9218
About the Group
Treatt is a global, independent supplier of innovative
ingredient solutions for the flavour, fragrance and multinational
consumer product industries, particularly in the beverage sector.
Renowned for its technical expertise and knowledge of ingredients,
their origins and market conditions, Treatt is recognised as a
leader in its field.
The Group employs over 300 staff in Europe, North America,
Africa and Asia and has manufacturing facilities in the UK, USA and
Kenya. Its international foot print enables the Group to deliver
powerful and integrated solutions for the food, beverage and
fragrance industries across the globe.
Earthoil is the personal care ingredients division of Treatt,
which specialises in pure and organic fair trade essential and cold
pressed vegetable seed oils, offering a broad spectrum of natural
raw materials for cosmetic applications.
For further information about the Group, visit www.treatt.com
and www.earthoil.com.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements that are
subject to risk factors associated with, among other things, the
economic and business circumstances occurring from time to time in
the countries, sectors and markets in which the Group operates. It
is believed that the expectations reflected in these statements are
reasonable but they may be affected by a wide range of variables
which could cause actual results to differ materially from those
currently anticipated. No assurances can be given that the
forward-looking statements in this announcement will be realised.
The forward-looking statements reflect the knowledge and
information available at the date of preparation of this
announcement and the Group undertakes no obligation to update these
forward-looking statements. Nothing in this announcement should be
construed as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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