8th May 2018 10:14
LONDON (Alliance News) - Flavouring and fragrance firm Treatt PLC hiked its interim dividend 10% Tuesday after half-year profit and revenue grew strongly and it disposed of a non-core business.
For the six months ended March, pretax profit widened to GBP5.6 million from GBP4.8 million the year prior. This was after revenue rose to GBP53.6 million from GBP47.1 million the year before.
Treatt hiked its interim dividend per share by 10% to 1.60 pence from 1.45p prior.
"Following the exceptional performance of the group in 2017, it is very encouraging to again be reporting both strong revenue and profit growth for the half year," Treatt Chief Executive Officer Daemmon Reeve said. "Our strategy continues to deliver with the main business drivers of citrus, tea and sugar reduction performing well in the period."
"Whilst there is still much to do to complete the year, and movements in exchange rates or raw material prices can impact results, the board is currently confident that the group will meet its expectations for the financial year ending 30 September 2018," Reeve added.
In a separate announcement Tuesday, Treatt said it had sold its Earthoil Plantations Ltd business for around GBP11 million in cash. Of this, 90% will be paid on completion with the remainder paid twelve months after completion.
Treatt said it expects the sale of the vegetable seed oil firm to complete on May 31. The sale comes amid a strategic review in 2017 which saw Treatt focus on its core growth business of citrus, sugar reduction and tea.
For the year ended September, Earthoil generated GBP1.2 million in pretax profit on revenue of GBP7.7 million.
"As Treatt continues to grow and we embark on our revised 2022 strategy, Earthoil Plantations has become non-core to the group", Reeve said. "This sale will allow us to focus our efforts and resources on developing our business in the global supply of innovative ingredient solutions to the flavour, fragrance, beverage and consumer product industries."
Funds will be used to strengthen Treatt's balance sheet in order to provide for future growth and investment in its key product areas.
Shares in Treatt were 2.6% higher at 477.00 pence on Tuesday.
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