Shares in Treatt PLC (LON:TET) ticked higher on Thursday morning after the flavour, fragrance and cosmetic ingredients supplier told investors it expects full-year profit before tax to “substantially exceed previous expectations”.
The bullish outlook comes as the group said it expects to see “substantial progress” when it reports its half-year results in May.
The firm said only last month that the start of its year had been “encouraging” with new business wins turning into orders, and this momentum has only “gathered pace” since.
For the six months to 31 March 2017, Treatt is forecasting year-on-year revenue growth in excess of 20%, while margins are also set to improve.
The strong performance hasn’t come from just one area, with the Bury St Edmunds-based group reporting “strong revenue growth” in all key product categories.
Treatt is also predicting a little bump from foreign exchange tailwinds, with the expected reversal of last year’s FX loss of £0.5mln positively impacting half-year results.
Net debt is forecast to come in at between £10mln and £12mln at the end of this half, although the company reckons it will be significantly lower come the end of its financial year.
Shares were up 55p, or 21%, to 315p.
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