Treatt hails strong H2 as full-year profits rise

In the year to 30 September, adjusted pre-tax profit was up 36.3% to £18.5m on revenue of £153.1m, up 3.8% on the previous year. Revenue was driven by strong second-half growth of 13%, reflecting organic growth from new business wins and a normalisation in industry demand, it said.

Treatt said revenue was "marginally" lower than expected as extreme weather in the US delayed a large shipment at year-end, shifting associated revenue into 2025.

The company declared a full-year dividend of 8.41p a share, up 5%.

Net debt declined to £700,000 from £10.4m a year earlier. This reflected "robust cash generation and investment discipline," Treatt said.

Chief executive David Shannon said: "We made great progress, with growth in both sales and profit, boosted by a really strong revenue performance in the second half, up 13%. And I am particularly pleased that we have brought net debt right down thanks to our strong cash generation, with further momentum to be cash positive in the new financial year.

"This performance not only reflects good conversion of the order book and the strong cost discipline that's now embedded across the group, but also normalising demand trends and the benefits of investment. We have invested for growth, expanding our commercial teams, bringing them closer to customers, and are close to opening our new Shanghai innovation centre, in line with our strategic focus in the region."