Tate & Lyle Regulatory News (TATE)

31 Mar 2010 07:00

Tate & Lyle PLC - 31 March 2010

STATEMENT ON ENTERING CLOSE PERIOD

In line with our usual practice, Tate & Lyle PLC issues the following update for the year ended 31 March 2010 ahead of the announcement of the full year results on 27 May 2010.

Underlying trading in the final quarter of the 2010 financial year has been consistent with our expectations outlined in the Interim Management Statement of 28 January 2010. However, currency movements, in particular the stronger US dollar, will benefit reported performance in the final quarter.1

Performance at our Ingredients businesses in the Americas and Europe during the final quarter of the 2010 financial year has been in line with expectations. Margins in our EU sugar operations have remained consistent with those achieved in the third quarter, and, as anticipated, Sucralose has continued to deliver volume growth at lower average selling prices.

We have continued to focus on strengthening the Group's balance sheet through operational efficiencies and optimising both working capital and capital expenditure. We expect underlying cash inflows in the quarter to offset the translation impact of the significantly stronger US dollar2, and therefore anticipate that reported net debt at 31 March 2010 will be broadly similar to the £864 million reported at 31 December 2009.

Footnotes

1 A 1 cent change in the sterling:US dollar exchange rate leads to a £1.3 million change in reported Profit before tax excluding exceptional items and amortisation of acquired intangible assets for the continuing operations (PBTEA) for the full year. As reported in the Interim Management Statement of 28 January 2010, we assumed a sterling:US dollar exchange rate of 1.68 in translating profits for the balance of the 2010 financial year.

2 Every 1 cent change in the sterling:US dollar exchange rate leads to a £6 million change in reported net debt. The closing sterling:US dollar exchange rate at 31 December 2009 was 1.62 and at 30 March 2010 was 1.51.

END

A conference call will be held today at 8.00am BST, hosted by Javed Ahmed, Chief Executive, and Tim Lodge, Group Finance Director. Participants are requested to dial in at least 5 minutes before the commencement of the call. Details are provided below:

Participant dial in number: +44 (0) 1452 555 566 (UK freephone 0800 694 0257)Conference ID: 66276891

A replay of this call will be available from two hours after the end of the live call, for 7 days until 6 April 2010.

Replay dial in number: +44 (0) 1452 55 00 00 (UK freephone 0800 953 1533)Replay passcode: 66276891#

For more information contact Tate & Lyle PLC:

Chris McLeish, Director of Investor RelationsTel: +44 (0) 20 7977 6211 or Mobile: +44 (0) 7919 102 730

William Baldwin-Charles, Head of Media RelationsTel: +44 (0) 20 7977 6165 or Mobile: +44 (0) 7810 151 425

About Tate & Lyle:

Tate & Lyle is a world-leading renewable food and industrial ingredients company, serving a global market from more than 45 production facilities throughout the Americas, Europe and South East Asia. Our efficient, large-scale manufacturing plants turn agricultural products, corn and cane sugar, into valuable ingredients for our customers. These ingredients add taste, texture, nutrition and increased functionality to products that millions of people around the world use or consume every day.

Tate & Lyle's range of leading branded food ingredients includes SPLENDA® Sucralose, PROMITOR™ Dietary Fiber, STA-LITE® Polydextrose, Tate & Lyle Fairtrade Sugar and Lyle's Golden Syrup. Tate & Lyle also produces branded industrial ingredients including Bio-PDO™, Ethylex® and Sta-Lok® paper starches; and staple ingredients such as high fructose corn syrup, sugar, ethanol, citric acid and basic starches. In addition to providing a wide range of ingredients our expert sales and product applications teams support customers by providing technical advice and proprietary consumer insight studies.

Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2009, Tate & Lyle employed 5,718 people in its subsidiaries and joint ventures, and sales totalled £3.55 billion. http://www.tateandlyle.com.

SPLENDA® is a trademark of McNeil Nutritionals, LLC

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