Treatt plans further growth to 2022
Ingredients specialist Treatt plc, already three years ahead of its financial targets and growing on both sides of the Atlantic, says it is now planning for further significant global expansion over the long haul.
The upbeat message from CEO Daemmon Reeve in a bullish full-year trading update helped send the share price almost 6p higher to 466.81p when the UK markets opened on Monday.
The Bury St Edmunds business manufactures and supplies innovative ingredient solutions for the flavour, fragrance, beverage and consumer product industries.
Treatt says it continued to perform strongly in the second half of the financial year and expects to report profit before tax and exceptional items for the year ended September 30 comfortably in line with its enhanced expectations which had already been revised upwards previously.
Reeve said the business had performed exceptionally well throughout the financial year and the relatively stronger dollar against the pound also had a positive impact on the group’s results.
Revenue for the year is expected to be approximately 24 per cent up on last year (some 19 per cent in constant currency).
The group’s focus on key growth drivers in the beverage sector including innovative citrus, tea and sugar reduction solutions, as well as important markets such as China and North America, were showing clear signs of success, shareholders were told.
With strong growth over the year, the continuing strength of the order book, and the impact of higher prices for certain key raw materials, inventory levels across the group have increased by approximately £14 million.
Plans for the relocation of the group’s UK headquarters are progressing well. Outline planning permission for the new 10-acre site at the Suffolk Business Park, Bury St. Edmunds, has been granted, the land acquired and the detailed planning application submitted.
The site will be a purpose built science-led facility designed to drive growth with domestic and international fast moving consumer goods companies as well as creating a scalable business for the long term.
Work on Treatt’s US site expansion, which is required to meet the growing demand for the group’s products as well as enhancing the company’s technical capabilities and facilities, is underway.
As previously stated, Treatt will therefore have met its 2020 strategic objectives three years early. Looking ahead, the board has approved a strategic plan to drive the business through to 2022 which seeks to build on the success of the last five years.
“With relentless focus being applied to our key product categories of citrus, tea and sugar reduction, whilst continuing to grow our wider product portfolio, the board looks forward to the next twelve months and beyond with confidence,” the company told the stock market.
The full year results are set to be announced on November 28.
Treatt employs over 300 staff in Europe, North America, Africa and Asia and has manufacturing facilities in the UK, US and Kenya.