Investors breathed a sigh of relief this morning as Tate & Lyle (LON:TATE) updated the market with the news it is on track for its full-year estimates.
The sugar and sweetener maker, which issued three profit warnings last year, said speciality food ingredients and bulk ingredients were ahead of expectations, but this was offset by lower ethanol margins.
Shore Capital said: “After a series of downgrades through 2014 & 2015, it is pleasing to see a more stable period of trading.”
The broker added that the company’s performance has levelled out, with the potential to return to profit growth next year.
Although results are in line, the company warned back in May that profits are likely to be flat this year, after reporting an 80% drop in pre-tax profit for 2014.
Cannacord Genuity said: “The tone underlying the statement is positive, so it is frustrating that they have left the guidance unchanged.”
Similarly, while pleased with the results, Shore Capital added it did not “see sufficient positive news to move the shares on”.
Tate also confirmed it is to sell-off its Eaststarch joint venture in the third quarter.
Shares eased 2.1% to 567p today.