30th Mar 2015 08:07
LONDON (Alliance News) - Ingredients company Treatt PLC Monday said it has seen solid revenue growth in the first half of its financial year, despite the improvements seen in the second quarter being offset by adverse raw materials prices.
Treatt said trading in the first part of the first half to the end of March had been relatively slow, reflecting the increased seasonality of its business. But trading recovered well in the second quarter, in line with company expectations.
However, though underlying gross margins have improved for the company in the first half, this has been partially offset by adverse raw material price movements, which have impacted on margins in some longer-term fixed-price contracts.
Overall, first half revenue has showed "solid" growth year-on-year, it said, with profit also increasing.
Treatt said the first half has been encouraging overall, with new business wins in some key market segments, including the growing craft beer market and in the sugar-reduction wellness segment for soft drinks.
Elsewhere, Treatt said it continues to consider options for its Bury St Edmunds plant and facilities, which no longer meet the medium- or long-term needs of the business. No formal plans have yet been put in place and remain "way off", Treatt said, but it expects to start a consultation on the future of the plant in the next six-to-nine months.
The group said it remains on course to meet its expectations for the full year, with its order book looking stronger year-on-year going into the second half.
Treatt will publish its half-year results on May 19.
Treatt shares were up 1.1% to 142.00 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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