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30 Sep 2013 07:00
30 September 2013
TREATT PLC
Pre-Close Trading Update for year ending 30 September 2013
Treatt PLC (the 'Group'), the manufacturer and supplier of conventional, organic and fair traded ingredient solutions for the flavour, fragrance and consumer goods industries today publishes a pre-close period trading update for the year ending 30 September 2013.
Following the Q3 IMS published on 1 August 2013, the Board is pleased to confirm that trading in Q4 has remained steady across the Group, following a strong Q3. Although the final quarter of the financial year is seasonally a quieter period for the Group, this year Q4 has held up well. As a consequence, the Group expects to report profits before tax and exceptional items in line with its expectations. The exceptional items relate to legal and professional fees in respect of litigation arising from the acquisition of the Earthoil Group in 2008, and the company's costs in respect of the shareholder matters that arose earlier in the year. Whilst profit before tax is expected to meet the Board's expectations which were revised upwards in May, revenue from our lower margin business is expected to be a little lower than anticipated due to customer product mix variations and market conditions for some ingredients. This affected revenues but had little impact on profits.
Looking beyond the current financial year, order books for the first quarter of the new financial year, which is seasonally the Group's weakest quarter, are encouraging. The coming year will be the first full financial year to see the benefits of the new strategy with its focus on selling added-value ingredient solutions to leading FMCG and beverage businesses, whilst maintaining a tight control of costs.
Treatt Plc's results for the year ending 30 September 2013 will be announced on 9 December 2013.
For further information please contact:
Daemmon Reeve
Chief Executive Officer
Richard Hope
Finance Director
01284 702500
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