Focus on added value drives strong growth in profits at Bury St Edmunds-based Treatt
- Credit: Archant
Flavour and fragrance ingredients specialist Treatt has reported another year of strong profits growth as its strategy to move further up the value chain continues to bear fruit.
Bury St Edmunds-based Treatt grew revenues by 2.5% to £88.04m in the year to September 30, but operating profit climbed by 9.9% thanks to the company's growing focus on added-value products.
Bottom-line pre-tax profit rose by 6.6% to £8.29m, with the pre-tax figure before exceptional costs 11.3% higher at £8.85m.
Chief executive Daemmon Reeve said: 'This year has been another solid year of progress for the business, both in terms of financial performance and also our cultural journey which will provide the platform for further progress.
'We have come a long way in the last few years in the migration of the business from that of a pure supplier to the food and beverage industries to being a trusted and valued partner in the development of innovative and effective ingredients for the industry.
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'This is a long term programme that involves not only the capability upskilling of our people but also a change in the mind-set of the business as a whole.
'Our progress on this journey is demonstrated through our financial performance. Over the last four years we have increased adjusted profit before tax by 75% from £5.1m in 2012 to £8.8m this year, a feat for which our colleagues can be immensely proud.'
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Treatt is planning to relocate from its current head office site in Northern Way, Bury, where its operations are spread across six different units, to a new purpose-built headquarters, still within the local area.
Mr Reeve said that plans for the new site were 'progressing well', with cross-functional teams working to ensure the project resulted in 'future-proofed world-class facilities'.
'The depth of involvement in the design of the new premises has been extensive, with internal design teams doing some great work to map out the future look and feel of Treatt in line with our strategy and, equally importantly, our culture,' he said.
'The customer experience will be greatly enhanced, correctly showcasing Treatt as a welcoming, vibrant and technically excellent environment.
'In the meantime, we have reduced investment into our current UK site and delayed a number of long term projects to enhance our manufacturing capabilities until we move. This has resulted in a short term cash flow gain which will reverse in due course.'
Looking ahead, Mr Reeve added: 'There is heightened confidence within Treatt and our financial year is off to a pleasing start given that the first quarter is, seasonally, normally our quietest period.
'Nevertheless, we continue to act in a prudent manner. The teams are driving at new business wins, improved systems and processes and further efficiency savings in the business.'