Sweet and sour for Treatt plc
Ingredient solutions manufacturer Treatt plc saw its share price drop 11.35p (2.59 per cent) to 426.65p after only posting modest increases in revenue and pre-tax profit for the year to September 30.
The Bury St Edmunds-based global business lifted revenue 0.5 per cent to £112.7 million and PBT by 5.2 per cent to £13.3m.
Cash generated from operations increased to £20.5m from £3.6m in 2018, driven by improved working capital.
Eighty-one per cent of group revenue was derived from natural and clean-label products.
CEO Daemmon Reeve said the diversification of the company’s portfolio was progressing well. Citrus revenue was down 10 per cent.
He said: “The group delivered solid results for the year. The strength of our strategy shone through strongly as we increased our profitability in the face of citrus market headwinds.
“To have decoupled our financial performance from external market factors which were once a dominant feature of Treatt’s financial performance augers well for our future.
“We are driving ahead with confidence and whilst it is still early in the new financial year, the group continues to perform in line with the board’s expectations for the year ending September 30, 2020.”