Interim Results - Pre-tax Profit Up 24%

Treatt PLC
22 May 2000


TREATT PLC
INTERIM STATEMENT

For the six months ended 31 March 2000

Treatt PLC, the manufacturer and supplier of flavour and fragrance
ingredients, primarily from essential oils, announces today its interim
results for the six months ended 31 March 2000. 

SUMMARY

* Group turnover increased by 19% to £12,113,000 (1999: £10,207,000)

* Profit before tax increased by 24% to £1,227,000 (1999: £987,000)

* Earnings per share increased by 24% to 8.8p (1999: 7.1p)

* Interim dividend increased by 14% to 2.5p (1999: 2.2p)

* Net assets per share increased to £1.44 (1999: £1.31)


For further information please contact:

Treatt PLC                                                    01284 702500
Hugo Bovill, Managing Director
Stephen Ashton, Finance Director

GCI Financial                                                 0207 398 0800
Margaret Jervoise/Richard Sunderland


TREATT PLC
INTERIM STATEMENT
For the six months ended 31 March 2000

CHAIRMAN'S STATEMENT

The six months to 31 March 2000 have been very satisfactory.  Group turnover
increased by 19 per cent to £12,113,000 (1999 : £10,207,000).  Profit before
tax and earnings per share both increased by 24 per cent to £1,227,000  (1999
: £987,000) and 8.8 pence per share (1999 : 7.1 pence per share) respectively.
The Board has declared a 14 per cent increased interim dividend of 2.5 pence
per share (1999 : 2.2 pence per share) payable on 5 October 2000 to
shareholders on the register at close of business on 8 September 2000. 

Increased sales to all the Group's largest customers accounted for over 90 per
cent of the overall rise in sales.  The Group continues to win business either
as a core supplier due to its extensive range,  or through new business with
our innovative natural specialities.  Florida Treatt saw sales grow over 30
per cent, particularly in natural specialities.  Across all the Group's
customers order numbers increased by 17 per cent, predominantly in our aroma
chemical distribution business.  Overall business conditions have certainly
been healthier than a year ago, but there is no doubt the Group's sales growth
in the last 6 months has increased our global market share.  Growth in the
United Kingdom was particularly strong as sales increased by £526,000 or 20
per cent.  Finally, after several years of low pricing in essential oils we
are seeing some upward movement in prices back to historical levels.  This is
gradually feeding into our selling prices so that our turnover is starting to
reflect the volume increases we have achieved over the last few years.   

I referred in my December 1999 statement to our investment in both new
facilities and Information Technology.  This will lead to some reorganisation
and one-off costs as we put the infrastructure in place to underpin Treatt's
future growth and allow continued delivery of shareholder value.  In the first
half of this financial year these one-off revenue costs totalled a little over
£100,000.  Based on our current plans we expect the level of one-off revenue
costs in the second half of the year to be of the same amount.  

The Group's balance sheet remains strong.  Net assets per share now stand at
£1.44 with net cash of £380,000.  Based on our current projections the second
half of the year should be cash generative.

The Future
In looking forward to our results for the full year we are conscious that the
second half of last year saw exceptional demand from a number of our largest
customers.  Furthermore, our ongoing capital investment and reorganisation
bring, in the short term at least, greater increases in operating costs than
would otherwise be the case.  As I said in December, these costs will impact
on profitability until the full benefits are realised.  On the positive side
the Group's order books are healthier than a year ago and the return to higher
price levels, particularly of orange oil, the orange juice by-product, will be
beneficial over the coming months.  On balance we still expect to make
progress over the year as a whole and that this financial year's results will
meet our expectations.  This will be a creditable performance through this
period of change.

Our plans remain to develop Treatt further as a value added global supplier of
flavour and fragrance ingredients.  We are already a global business with
contacts and opportunities greater than many of our larger competitors. 
Building on this through investing in our distribution capabilities and
implementing some of the technologies now available will improve our
competitive position through increases in capacity and productivity. 
Delivering the changes required by our plans will be challenging and involve
all our employees.  I am very grateful to them for the efforts they have made
to date and I am confident they will rise to the challenges ahead.  I look
forward to the future with confidence.

GEOFFREY BOVILL
Chairman
19 May 2000


TREATT PLC
INTERIM STATEMENT
For the six months ended 31 March 2000
                                          
GROUP PROFIT AND LOSS ACCOUNT
                                          
                                    Six months ended         Year ended 
                                                                  
                             31 March       31 March       30 September
                                 2000           1999               1999
                           (Unaudited)    (Unaudited)         (Audited)
                     Notes       £'000         £'000              £'000
                                          
Turnover                1       12,113        10,207             22,443 
Cost of sales                   (8,325)       (6,984)           (15,097)
                                 ______       ______             ______
Gross profit                     3,788         3,223              7,346 
                                          
Net operating costs             (2,531)       (2,215)            (4,749)
                                 ______        ______            ______
Operating profit                 1,257         1,008              2,597 
                                          
Net interest payable 
and similar charges                (30)          (21)               (26)
                                 ______        ______            ______
Profit on ordinary 
activities before 
taxation                         1,227           987              2,571 
                                          
Tax on profit on 
ordinary activities     5         (338)         (271)              (707)
                                  ______       ______             ______
Profit on ordinary 
activities after 
taxation                           889           716              1,864 
                                          
Dividends                         (251)         (222)              (716)
                                 ______        ______             ______
Transfer to reserves               638           494              1,148 
                                  ______       ______             ______
                                          
Dividends per 
ordinary share                     2.5p          2.2p              7.1p
                                          
Earnings per share                                          
    -  Basic            6          8.8p          7.1p             18.5p
    -  Fully diluted    6          8.8p          7.1p             18.4p
                                          

TREATT PLC
INTERIM STATEMENT
For the six months ended 31 March 2000

GROUP BALANCE SHEET
                                          
                               As at           As at             As at
                            31 March        31 March      30 September
                                2000            1999              1999
                          (Unaudited)     (Unaudited)         (Audited)
                               £'000           £'000             £'000
                                   
Tangible fixed assets          5,215           4,268             5,117 
                                          
Current Assets                                          
  Stocks                       8,456           7,211             8,211 
  Debtors                      4,570           3,568             3,692 
  Cash at bank and in hand       380           2,288             1,689 
                               ______          ______           ______
                              13,406          13,067            13,592 

Creditors: amounts falling 
due in one year                                           
  Bank loans and overdrafts        -             (88)             (710)
       Other creditors        (4,072)         (3,384)           (4,204)
                               ______          ______           ______
                              (4,072)         (3,472)           (4,914)
                               ______          ______           ______
                                          
Net current assets             9,334           9,595             8,678 
                                          
Total assets less 
current liabilities           14,549          13,863            13,795 
                                          
Creditors: amounts 
falling due in more 
than one year               
       Bank loans                  -            (665)              -   
                                          
Deferred Taxation                (37)            (41)              (37)
                              ______          ______            ______
Net assets                    14,512          13,157            13,758 
                              ______          ______            ______
                                          
Share capital                  1,008           1,008             1,008 
Share premium account          1,929           1,929             1,929 
Profit and loss account       11,575          10,220            10,821 
                              ______          ______            ______
Shareholders' funds           14,512          13,157            13,758 
                              ______          ______            ______
                                           
The financial information set out in this document does not constitute
statutory accounts within the meaning of the Companies Act 1985.  

The figures for the year ended 30 September 1999 are an abridged version of
the Group's audited financial statements which have been delivered to the
Registrar of Companies.  These statements received an unqualified audit
opinion.  The figures for the six months ended 31 March 2000 and 1999 are
unaudited.  This interim report was approved by the Board on 19 May 2000.     
                


TREATT PLC
INTERIM STATEMENT
For the six months ended 31 March 2000

GROUP CASH FLOW STATEMENT
                                          
                                    Six months ended         Year ended
                                               
                             31 March       31 March       30 September
                                 2000           1999               1999
                           (Unaudited)    (Unaudited)          (Audited)
                     Notes      £'000          £'000              £'000
                                          
Cash inflow from 
operating activities     2        183            412              2,044 
                                          
Returns on 
investments and 
servicing of finance              (30)           (21)               (26)
                                           
Taxation                         (210)           (50)              (679)
                                          
Capital expenditure 
and financial investment         (341)          (261)            (1,361)
                                          
Equity dividends paid            (221)          (202)              (646)
                                          
                                 ______        ______             ______
Cash outflow before
financing                        (619)          (122)              (668)
                                          
Financing - Repayment 
of debt                  3       (710)          (456)              (499)
                                ______         ______             ______
Decrease in cash in 
the period               3     (1,329)          (578)            (1,167)
                                ______         ______             ______
                                          

TREATT PLC
INTERIM STATEMENT
For the six months ended 31 March 2000

NOTES TO THE INTERIM STATEMENT
                                   
                                    Six months ended         Year ended
                                    
                             31 March       31 March       30 September
                                 2000           1999               1999
                           (Unaudited)    (Unaudited)          (Audited)
                                £'000          £'000              £'000
                                          
(1) Turnover by 
    destination :                                   
      United Kingdom            3,159          2,633              5,620 
      Rest of Europe            3,002          2,532              6,298 
      The Americas              3,233          2,700              5,383 
      Rest of the World         2,719          2,342              5,142 
                                ______        ______             ______
                               12,113         10,207             22,443 
                                ______        ______             ______
                                               
(2) Reconciliation of 
    operating profit 
    to cash inflow from 
    operating activities:                            
      Operating profit          1,258          1,008              2,597 
      Depreciation charges        263            255                505 
      Net increase in 
      working capital 
      and other items          (1,338)          (851)            (1,058)
                               ______          ______            ______
      Cash inflow from 
      operating activities        183            412              2,044 
                               ______          ______            ______
                                            
(3) Reconciliation of net 
    cash flow to increase 
    in funds:                                   
      Decrease in funds 
      in the period            (1,329)          (578)            (1,167)
      Cash outflow from 
      repayment of bank 
      loans                       710            456                499 
      Exchange and other 
      non-cash movements           20             16                  4 
                                ______         ______             ______
     Decrease in net funds 
     in the period               (599)          (106)              (664)
                                          
     Net funds at 
     1 October 1999               979          1,641              1,643 
                                ______        ______             ______
     Net funds at 
     31 March 2000                380          1,535                979 
                                ______        ______             ______
                                           
(4) Statement of recognised 
    gains and losses       
      Profit for the period 
      before dividends            890            716              1,864 
      Currency translation 
      differences on foreign                                    
      currency net investments    116             80                  9 
                                ______         ______            ______
      Total recognised 
      gains and losses          1,006            796              1,873 
                               ______          ______            ______
                                          
(5) Taxation has been provided at 27.5 per cent (1999 : 27.5 per cent) which  
    is the effective group rate currently anticipated for the financial year  
    ending 30 September 2000.                                   
                                          
(6) (a) Basic earnings per share for the six months ended 31 March 2000 are   
        based on the weighted average number of shares in issue in the period 
        of 10,077,749 (1999 : 10,077,749) and earnings of £890,000 (1999 :    
         £716,000) being the profit on ordinary activities after taxation.    
                       
                                          
    (b) Fully diluted earnings per share for the six months ended 31 March    
        2000 are based on the weighted average number of shares in issue in   
        the period, adjusted for the effects of all dilutive potential        
        ordinary shares of 10,132,708 (1999 : 10,107,407) and the same        
        earnings as above.