West Suffolk-based flavour and fragrance ingredients specialist Treatt has confirmed that will achieve its strategic objectives for 2020 three years early.
In a final trading update ahead of its annual results for the year to September 30, Treatt said it had continued to perform strongly throughout the second half, with profits set to come in at a new record level in line with its upgraded expectations.
Bury St Edmunds-based Treatt, a member of the EADT/EDP Top 100 list of the largest companies in Suffolk and Norfolk, said that its results would also benefit from the strength of the US dollar against the pound, with reported revenue expected to be around 24% up on the previous year (or 19% on a constant currency basis).
“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,” Treat said in its update.
And it added: “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 £14m.
“This increase in inventory, together with almost £5m 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 £11m to £13m.
Plans for the relocation of the company’s UK operation from Northern Way in Bury to a new purpose-built facility on a 10-acre site at Moreton Hall, on the edge of the town, were “progressing well”, and that work has now started on expansion at its United States site, in Lakeland, Florida, the statement said.
“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 12 months and beyond with confidence.
Treatt is due to announce its results on November 28.
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