Treatt plc three years ahead of 2020 growth targets
Suffolk manufacturer Treatt plc has hit a revenue peak that puts it three years ahead of global growth targets set out in its 2020 vision.
The company is expanding in both the UK and US as demand continues to increase for its ingredient solutions for the flavour, fragrance, beverage and consumer products industries.
First-half revenue to March 31 grew 27 per cent to £51.8 million with adjusted EPS growth of 63 per cent and adjusted profit before tax up by 63 per cent to £5.5m. A buoyant board has raised the interim dividend by seven per cent to 1.45p.
CEO Daemmon Reeve said that all key product categories are performing well and the group’s strategic focus on innovative citrus, tea and sugar reduction categories are proving to be key growth drivers.
Reeve said: “These are a great set of half-year numbers for which our staff deserve huge credit. The quality and frequency of new business wins is gaining good momentum, and through the dedication and skill of our colleagues we are on course to meet our 2020 targets some three years ahead of schedule.
“With the investments planned in the UK and the US we will be able to build on these successes as we look towards the next exciting steps of our journey.”
The effect of foreign exchange was materially positive in the first half. The US dollar’s relative strength against sterling over a prolonged period boosted revenue by £3m and profit before tax by £0.8m.
Chairman Tim Jones said the strong performance for the group in the first half of the year had continued into the third quarter with order books “remaining materially higher than this time last year as the benefit of some significant new business wins continues to show through.”
He also outlined the group’s multimillion dollar investment in transatlantic expansion.
The Suffolk Business Park in Bury St Edmunds has now received outline planning consent and, having exchanged contracts on a new 10-acre site at the park last December, Treatt remains on course to transition the UK operations there in late 2019.
The US business has continued to grow significantly. Treatt USA moved to its existing 15-acre site, which it owns outright, in 2002, and capacity now needs to expand not only to meet greater client demand for products but also to enhance the company’s technical capabilities and office facilities. This work will start within the current financial year and at an estimated cost of between $11m and $14m.