Increased annual sales and profits for Bury St Edmunds-based Treatt
PUBLISHED: 10:12 08 December 2015 | UPDATED: 11:16 08 December 2015
Suffolk-based flavour and fragrance ingredients company Treatt today announced increased annual sales profits.
And the Bury St Edmunds-based firm confirmed that it has identified a preferred site in the town for its planned relocation, with the business having out-grown is current site in Northern Way.
Treatt said that revenues in the year to September 30 grew by 9% compared with the previous 12 months to £85.9million, with opearting profit 14% higher at £8.7m and adjusted profit before tax 15% ahead at £8.0m.
Adjusted basic earnings per share grew by 20% to 11.94p and the total dividend for the year will rise by 5% to 4.04p per share.
Group chief executive Daemmon Reeve said the strategy adopted in 2012 to focus on developing flavour and fragrance solutions for specific clients and products “continues to bear fruit and gives us confidence that the business is increasingly well placed to capitalise on the opportunities ahead of us”.
He added: “This progress has only been possible because of the energy and creativity of our people who are working ever more closely together across the business to meet our customers’ needs.
“We will continue to manage and invest in the business, ensuring that we build a business to deliver for our customers today and tomorrow.”
Mr Reeve said that the two most notable new business wins during the year were both achieved by building on existing relationships with clients in the beverage sector, one sugar reduction solution and one iced tea solution.
“Both of these wins took a high degree of technical input from Treatt’s various expert teams. Growing with customers is a key element of our strategy, and deep relationships formed over years of proven added-value are important for obtaining further opportunities,” he said.
Although Treatt is not confirming details of its planned new location, it it understood that it involves part of a 14 hectare site to the east of Moreton Hall which is one of 10 parcels of land forming a new Norfolk and Suffolk Enterprise Zone, announced by Chancellor George Osborne in his autumn statement last month.
Treatt, which first signalled in March that it was seeking to relocate its Bury operation, today confirmed its previous guidance that the cost of the project, net of proceeds from the disposal of its current site, is likely to be between £15m and £20m.
Mr Reeve said: “It is important to remember that this is not just a bricks and mortar project. This is a business development project aimed at taking Treatt to the next stage in its development. Our new facility will enable us to excite our customers, improve efficiency and, we believe, accelerate our growth.
“Indeed, not all of this investment is in land and buildings but in fact includes a significant investment in new plant and machinery, as well as technical capabilities – in other words bringing forward capital investment which we would need to do in any event in order to continue delivering upon our strategic objectives.”
He added: “We are ready to progress this move as fast as is practically possible, but the release of land on our preferred site is currently in the hands of local developers and authorities as it part of a major new business development project in the east of England.
“This is a hugely exciting opportunity for Treatt which we believe will act as a catalyst for growth and provide an added-value platform for all of our stakeholders, ensuring continued success for the long term.”
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