Treatt soars after update

Shares of Treatt, an ingredients supplier to the flavour and fragrance industries, soared after it said it expects to exceed company expectations for the current financial year.

Shares of Treatt, an ingredients supplier to the flavour and fragrance industries, soared after it said it expects to exceed company expectations for the current financial year.

The group's shares spiked earlier this month after it revealed a 30% hike in pre-tax profits and a 40% surge in earnings per share. In today's update it said momentum has continued.

Treatt said sales for May 2013 are expected to reach an all-time high and order books for the remainder of the third and fourth quarter now look promising.

"The positive commercial environment, coupled with the continuing impact of the board's new strategy, and the lower overheads and improved margins it is delivering, means that the board expects to exceed its expectations for the current financial year," it said in a company statement.

"Looking further ahead, the strategic creation of a global sales structure, which is clearly focused on selling value-added ingredient solutions with its emphasis on multi-national consumer goods companies, is already leading to significant new opportunities for growth," it added.

Treatt said it would focus on developing new products for the beverage sector where the possibilities for growing sales are 'material'.

It added that momentum now in the business and the benefits from significant cost saving measures will extend beyond the current financial year and that the prospects for the business for the years ending September 30th 2014 and 2015 are also improved.

Its shares jumped 13.33% or 65.00p to 552.50p at 12:30 in London.

CJ

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