Last checked at 28 May 2013 07:00
28 May 2013
TREATT PLC
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 issues the following trading update for the year ending 30 September 2013.
Following the recent announcement of our half year results, which showed pre-tax profits up 30% and EPS up 40%, momentum in the business has continued to build towards a very strong Q3. We are delighted to report that Group sales for May 2013 are expected to reach an all-time high and order books for the remainder of Q3 and for Q4 now look promising. This positive commercial environment, coupled with the continuing impact of the Board's new strategy, and the lower overheads and improved margins it is delivering, means that the Board expects the Group to exceed its expectations for the current financial year ending 30 September 2013.
Looking further ahead, the strategic creation of a global sales structure, which is clearly focused on selling value-added ingredient solutions with its emphasis on multi-national consumer goods companies, is already leading to significant new opportunities for growth. We are particularly focused on developing new and exciting products for the beverage sector where the possibilities for growing sales are material. The continuing transition of product mix towards added-value manufactured ingredients should enable the Group to target higher margin business. The Board believes that this, coupled with significant cost saving measures, some of which have already been implemented but have not yet delivered their full-year impact, should deliver the long-term sustainable growth in earnings intended.
Consequently, the Board believes that the momentum now in the business and the benefits from the initiatives outlined above will extend beyond the current financial year and that the prospects for the business for the years ending 30 September 2014 and 2015 are also improved.
The Company intends to release its Interim Management Statement for the second half year in July 2013 and the full year results for the current financial year will be announced on 9 December 2013.
For further information please contact:
Tim Jones
Chairman
Daemmon Reeve
Chief Executive Officer
Richard Hope
Group Finance Director
01284 702500