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.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund