Sales evaporate at Treatt

Treatt, an ingredients supplier to the flavour and fragrance industries, posted a drop in annual revenue, after a weak first quarter, but say it remains well placed for future growth.

Group revenue fell 0.7% to £74m for the year ended September 30th 2012 while pre-tax profit fell to £5.1m from £6.4m in 2011.

Group operating profit after FX fell 18% to £5.6m while pre-exceptional profits for the year recovered to £5.1m. Earnings per share fell 19.1% to 34.4p.

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Sales in the UK grew by 12%, while across the rest of Europe demand was very weak, with sales to France and Germany coming under particular pressure during the year. Strong growth continues across Asia and the Americas.

"2012 has been a mixed year for the group. Notwithstanding a weak start to the financial year, it is pleasing to report that results for the last year were significantly better than had been originally forecast," the group said in a company statement.

Looking ahead, the group added, "The new financial year has started at a steady pace which in relative terms will mean that Q1 of the current year ending September 30th 2013 will show a significant improvement on last year."

Treatt said that the price of orange oil, the group's largest product segment, fell by over 60% creating downward pressure on margins.

The board said it is proposing a dividend increase of 6.9% to 15.5p per share.

Net assets per share increased to £2.48 from £2.44 previously.

CJ