Treatt ups dividend and reports upbeat outlook

Treatt increased its interim dividend and said it had felt no ill-effect from the Covid-19 crisis as the ingredients supplier reported a 2% decline in first-half profit.

Pretax profit for the six months to the end of March fell to £6.1m from £6.2m as revenue dropped 5.3% to £53.6m. Treatt increased its half-year dividend by 8.2% to 1.84p a share.

Revenue and profit fell because of sharp declines in citrus prices the year before. Treatt said prices of citrus, which makes up about half its business, were picking up with a positive impact expected in the second half.

Treatt said the Covid-19 crisis had no adverse effect on its trading to date and that orders were strong as business customers respond to increased demand for drinks at home and cleaning products.

Treatt supplies ingredients for products ranging from herbal teas and premium tonic water to fragrances for household cleaners. The company said it had not furloughed any employees or taken part in Covid-19 related government support schemes.

"The group is trading well and is encouraged by the level of its order book and the current demand for its products from beverage ingredients through to solutions for hand soaps and cleaning products," Treatt said. "Whilst there remains much to do, the board is pleased to report that at this time trading remains in line with its expectations for the financial year."

The company's shares rose 3.2% to 505.8p at 11:33 BST. Treatt shares have risen by more than 60% since the government's lockdown started on 23 March.