Bury St Edmunds-based Treatt poised for 11% growth in first half revenues
- Credit: Archant
West Suffolk flavour and fragrance ingredients specialist Treatt has confirmed a strong start to its current financial year.
In a trading update ahead of first half results due to be published next month, Bury St Edmunds-based Treatt said that revenues for the six months to March 31 were expected to be around 11% higher compared with the same period a year ago.
“The core business categories of citrus, tea and sugar reduction have continued to drive top-line growth with the combined effect of new business wins in the prior year, together with further wins in the current year, beginning to take hold,” the company said.
Treatt added that while currency hedging arrangements should result in a “broadly neutral” impact from exchange rate movements over the course of the full year, a weakening in the US dollar-sterling rate would have a negative effect of around £200,000 on the first half results.
However, it also said that tax changes in the United States were expected to result in a “material reduction” in the future tax charge on the group’s profits in the US.
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Looking ahead, Treatt said: “The momentum which is being delivered by the board’s Strategic Plan, with its focus on core product categories and key geographical markets, is expected to continue in the second half of the current financial year and beyond.
“The board therefore continues to believe that profit before tax and exceptional items will be in line with its expectations for the financial year ending September 30, 2018.”
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Last November, Treatt reported a 46% increase in pre-tax profits to £12.892m for the 12 months to September 30, 2017, a year which saw it achieve its previous strategic financial goals for 2020 three years early.
Its results for the six months to March 31, 2018, are expected to be announced on May 8.