Turnover rises but profit drops for Treatt
Treatt, this week announced that group turnover had increased by 7
per cent to £14,454,000 (€21,250) for the six months ended 31 March
2002.
UK manufacturer and supplier of flavour and fragrance ingredients, Treatt, this week announced that group turnover increased by 7 per cent to £14,454,000 (€22.9m) for the six months ended 31 March 2002 compared to 2001.
Profit before tax fell by 4 per cent to £1,255,000 compared to £1,312,000 in 2001 and earnings per share have consequently decreased to 8.6 pence per share (9.2 pence per share in 2001).
The company reported that due to the events of September 11th 2001, the year started slowly with trading in the first quarter well down on the same period for last year. In contrast, the second quarter saw a significant improvement in business activity, which in part was attributable to additional turnover derived from the recent increase in orange oil prices.
After 6 months trading, Florida Treatt reported increased sales, up 17 per cent on last year, despite the slow start. Orange oil and sales from the Treattarome range of natural distillates showed strong growth.
In a statement this week Treatt said that as the result of a strategy review for the Far East region the Singapore Treatt sales office were closed in March 2002. Sales will now be handled directly in the UK, by R.C. Treatt. The resulting closure costs of £41,000 are a one-off expense and have been fully provided for in the interim results.
Treatt remains upbeat about the full year with prospects remaining satisfactory although it stressed that the period ahead will be demanding for both management and staff, as the company aims to complete the development of a new facility at Lakeland, Florida and initiate the first phase of its Enterprise Resource Planning system implementation.
The Board declared a 3 per cent increase in the interim dividend to 2.7 pence per share, up from 2.6 pence per share in 2001.
