Treatt PLC Trading Update (3072S)
02 October 2017 - 5:00PM
UK Regulatory
TIDMTET
RNS Number : 3072S
Treatt PLC
02 October 2017
2 October 2017
TREATT PLC
Trading update for year ended 30 September 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 year ended 30 September 2017.
The Board is pleased to confirm that the Group has continued to
perform strongly in the second half of the financial year and
consequently the Board expects to report profit before tax and
exceptional items for the year ended 30 September 2017 comfortably
in line with its expectations which were revised upward during the
course of the year.
The business has performed exceptionally well throughout the
financial year and the relatively stronger USD against GBP has also
had a positive impact on the Group's results. Revenue for the year
is expected to be approximately 24% up on last year (approximately
19% in constant currency). The Group's focus on key growth drivers
in the beverage sector including innovative citrus, tea and sugar
reduction solutions, as well as important markets such as China and
North America, is showing clear signs of success.
With strong growth over the year, the continuing strength of the
order book, and the impact of higher prices for certain key raw
materials, inventory levels across the Group have increased by
approximately GBP14m. This increase in inventory, together with
almost GBP5m of one-off outflows relating to a change to the
dividend timetable and the new UK site, has resulted in the net
debt position of the Group at year end of approximately
GBP11-GBP13m.
Plans for the relocation of the Group's UK site are progressing
well. Outline planning permission for the new ten acre site at the
Suffolk Business Park, Bury St. Edmunds, has been granted, the land
acquired and the detailed planning application submitted. The site
will be a purpose built science-led facility designed to drive
growth with domestic and international fast moving consumer goods
companies as well as creating a scalable business for the long
term.
Additionally, work on the Group's US site expansion, which is
required to meet the growing demand for the Group's products, as
well as enhancing the Company's technical capabilities and
facilities, has commenced.
As previously stated the Group will therefore have met its 2020
strategic objectives three years early. Looking ahead, the Board
has approved a strategic plan to drive the business through to 2022
which seeks to build on the success of the last five years. With
relentless focus being applied to our key product categories of
citrus, tea and sugar reduction, whilst continuing to grow our
wider product portfolio, the Board looks forward to the next twelve
months and beyond with confidence.
Treatt Plc's results for the year ended 30 September 2017 will
be announced on 28 November 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 Chief Financial Officer
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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