REG - Tate & Lyle PLC - Annual Financial Report and Notice of AGM

Tate & LyleAnnouncement

04/06/2024 17:30

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RNS Number : 1075R  Tate & Lyle PLC  04 June 2024

Tate & Lyle PLC

 

Annual Financial Report and Notice of Annual General Meeting 2024

 

In accordance with Listing Rule 9.6.1, Tate & Lyle PLC (the 'Company' or
'Tate & Lyle') confirms that copies of the following documents have been
submitted to the National Storage Mechanism and will shortly be available for
inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)

 

1.   Annual Report 2024 -
http://www.rns-pdf.londonstockexchange.com/rns/1075R_4-2024-6-4.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1075R_4-2024-6-4.pdf)

2.   Notice of Annual General Meeting 2024 -
http://www.rns-pdf.londonstockexchange.com/rns/1075R_2-2024-6-4.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1075R_2-2024-6-4.pdf)

3.   Notice of Availability -
http://www.rns-pdf.londonstockexchange.com/rns/1075R_1-2024-6-4.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1075R_1-2024-6-4.pdf)

4.   Proxy Form -
http://www.rns-pdf.londonstockexchange.com/rns/1075R_3-2024-6-4.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1075R_3-2024-6-4.pdf)

 

The Annual General Meeting 2024 will be held at the Royal College for Nursing,
20 Cavendish Square, London, W1G 0RN at 10.30am on 25 July 2024.

 

The Annual Report 2024, Notice of Annual General Meeting 2024, Notice of
Availability, and Proxy Form are also available on the Company's website:
https://www.tateandlyle.com/news/2024-annual-report-and-notice-agm
(https://www.tateandlyle.com/news/2024-annual-report-and-notice-agm) . Mailing
of the Annual Report 2024, Notice of Annual General Meeting 2024, Notice of
Availability and Proxy Form to shareholders who have requested or are entitled
to receive them will occur shortly.

 

We will notify shareholders of any significant updates to our Annual General
Meeting 2024 arrangements via a regulatory information service and on the
Investors Hub section of the Company's website.

 

Annual Financial Report

For the purposes of complying with Disclosure Guidance and Transparency Rule
('DTR') 6.3.5R, and the requirements it imposes on issuers as to how to make
public annual financial reports, we set out below:

 

-     in Appendix A, the principal risks and uncertainties facing the
Company;

-     in Appendix B, the Directors' responsibility statement; and

-     in Appendix C, the disclosure regarding related party transactions.

 

The appendices have been extracted from the Annual Report 2024 in unedited
full text and page numbers in the text refer to page numbers in that document.
This information should be read in conjunction with the Company's 2024
full-year results announcement, released on 23 May 2024, which contained a
condensed set of financial statements and can be found
at www.tateandlyle.com/investors/results-and-presentations
(http://www.tateandlyle.com/investors/results-and-presentations) . Together,
these constitute the material required by DTR 6.3.5R to be communicated to the
media in unedited full text through a Regulatory Information Service.

 

 

Claire-Marie O'Grady

Company Secretary

4 June 2024

 

For more information contact:

Investors and analysts

Christopher Marsh, VP Investor Relations

Mobile: +44 (0) 7796 192 688

 

 

APPENDIX A

PRINCIPAL RISKS AND UNCERTAINTIES

 

Strategic risks

1.   Strategy delivery

Failing to grow Food & Beverage Solutions would prevent us from delivering
against our Group targets. This could reduce our profitability in both the
short and long term and damage investors' view of us. Revenue and EBITDA
growth, and M&A activity, are key components of how we

will successfully grow our business, and we have a five-year strategic plan in
place to support this.

 

How we mitigate the risk

·      Our organic and acquisitive growth plan supports our strategy. We
have global and regional five-year plans focused on key categories.

·      Our Board regularly reviews and challenges the strategic
direction of the business to help us stay competitive and successful in our
chosen markets.

·      Our Executive Committee regularly reviews our strategic progress
and financial performance, as well as the opportunities in our markets and
competitor activities.

·      Our M&A team works closely with Innovation and Commercial
Development (ICD) and Food & Beverage Solutions to identify acquisitions
and partnerships that will help us grow.

·      We have incentive schemes and bonus programmes in place for
customer-facing teams that are tied to strategic, commercial and operational
targets.

 

What we've done this year

·      We strengthened our customer offering and presence in Asia with
the integration of our acquired stevia and tapioca businesses, as well as
Quantum Hi-Tech, a leader in FOS and GOS dietary fibres in China.

·      We invested in further building our solution selling capabilities
in areas such as sensory and open innovation.

·      We executed targeted programmes to develop new ways of working
with customers to build stronger solutions-based partnerships.

·      We expanded our global network of Customer Innovation and
Collaboration Centres, opening a new Centre in Jakarta, Indonesia.

·      We continued to build our technical service capabilities in Asia,
the Middle East, Africa and Latin America - a process we began last year to
accelerate our business presence in higher growth markets.

·      We launched a number of online tools to support and build
connections with our customers. These include our Communities of Practice for
dairy and beverage, and our Technical Exchange Forums for areas such as
plant-based products.

 

Trend compared with 2023 financial year: unchanged

 

 

2.   Innovation

Developing and commercialising new products is essential to our ability to
lead the industry in our chosen categories, and therefore to the long-term
growth of our business. Without them, we might be unable to meet our
customers' future requirements which could damage our performance and
reputation and result in customers switching to competitors.

 

How we mitigate the risk

·      We have a robust innovation process based on both in-house
development and external open innovation, which delivers a strong pipeline of
new ingredients and solutions for our customers.

·      Our ICD team monitors consumer and category trends and works
closely with commercial partners to ensure new products and solutions meet our
customers' needs.

·      Our ICD team connects with external organisations, including
biotech, pharma, and food technology ecosystems, to identify and make the most
of scalable innovation and new product opportunities.

·      We prioritise opportunities to partner with our customers to
accelerate development cycles and bring new products to market more quickly.

 

What we've done this year

·      Our investment in innovation and solution selling capabilities,
increased by 5%.

·      New Product revenue grew by 13% on a like-for-like basis (ie no
products are removed from disclosure due to age).

·      Solutions revenue from new business wins increased by 3ppts, to
21%.

·      We launched nine New Products into the market including TASTEVA®
SOL Stevia sweetener, a patent-protected breakthrough in stevia technology to
help customers solve stevia solubility challenges.

·      We invested in a new automated lab at our Customer Innovation and
Collaboration Centre in Singapore with advanced technology to accelerate the
development and speed-to-market of mouthfeel solutions.

·      We improved our approach to developing and deploying ingredients
as part of a solution, in particular by embracing our global solutions chassis
approach.

·      We added 61 patents to our portfolio and now have over 540
patents granted and over 220 pending.

 

Trend compared with 2023 financial year: unchanged

 

 

3.   People and talent

It is critical that we have the right people with the right capabilities to be
a purpose-led global business and deliver our strategy. We have strategies in
place to recruit, develop and retain our people and to build a diverse and
inclusive workforce.

 

How we mitigate the risk

·      Our talent development plans give employees opportunities and
training to build their capabilities and resilience.

·      We have set several 2030 targets to track our progress on
delivering equity, diversity and inclusion.

·      We have initiatives in place at Group, local and functional
levels to progress equity, diversity and inclusion across the organisation. We
also have employees dedicated to developing and measuring our progress on
equity, diversity and inclusion.

·      We have a mix of short- and long-term incentives. This includes a
bonus scheme available to a broad population of employees.

·      We have a single global performance management system and talent
planning process.

·      We carry out global employee surveys that help tell us what
employees really think about working at Tate & Lyle.

·      Our Executive Committee and the Board plan succession for
business-critical roles.

·      We encourage our people to share open and transparent feedback so
we can react to any challenges that emerge.

 

What we've done this year

·      We focus on maintaining competitiveness by updating our reward
framework to ensure it reflects current local conditions.

·      We have a Group-wide programme to support the physical and mental
wellbeing of our employees.

·      We carried out a global employee engagement survey managed by an
external organisation. The response rate was high at 80% and showed an
encouragingly strong level of employee engagement.

·      We have seven Employee Resource Groups which play an important
part in enabling employees to experience solidarity, support, education,
growth and development.

·      We are strengthening our performance management system to create
clear strategic alignment for our teams, as well as introducing a more
frequent development conversation cycle and clarity of reward outcomes.

·      We launched a new management training programme, Connect
Catalyst, to help our managers create an engaging, inclusive and
high-performing organisation. More than 200 managers have taken part so far.

·      We completed a talent review for all employees to understand
their capabilities, aspirations and potential and how that connects with
future development and succession opportunities.

 

Trend compared with 2023 financial year: unchanged

 

 

4.   Climate Change and Sustainability

Climate change risks, both physical and transition, such as extreme weather
events, temperature rises, water stress and increased regulation, may increase
volatility in our raw materials supply chain and production costs. They may
also lead to capacity constraints and higher costs of compliance. In addition,
the failure to meet our sustainability goals could result in financial loss
and reputational damage among customers, consumers, investors and other
stakeholders.

 

How we mitigate the risk

·      Caring for our planet is one of the three pillars of our purpose,
and considering the impact of climate change is embedded in our key processes,
including capital investment, new product development and acquisitions.

·      We have established a governance process to oversee and monitor
our sustainability programme including a Sustainability Committee that is
chaired by the Chief Executive, and meets at least twice a year, and a
Sustainability Working Group which meets at least monthly.

·      We have set Group targets to reduce our absolute greenhouse gas
emissions, our water use intensity and to ensure we beneficially use our
waste. We also operate sustainable agriculture programmes.

·      Each site is set sustainability goals each year as part of the
annual planning process.

·      We run communication programmes to highlight the impact of
climate change and encourage our employees to help us reduce our impact on the
planet.

·      Our risk management and sustainability teams work alongside the
business to identify potential risks associated with resource scarcity,
particularly within sourcing key raw materials, manufacturing, water and
energy and look for ways to mitigate those risks.

·      We encourage our people to help us lower our impact on the planet
while improving efficiency through our J2E programme (see pages 41 - 43).

 

What we've done this year

·      We continue to make good progress against our 2030 sustainability
targets and commitments.

·      In May 2024, we announced ambitious new Scope 1 and 2 and Scope 3
GHG emissions targets to 2028. These targets have been validated by the
Science Based Targets initiative and are aligned to a 1.5 ̊C trajectory.

·      Through our sustainable agriculture programme with Truterra LLC
in the US, we maintain sustainable acreage equivalent to the volume of corn we
buy globally each year (367,000 acres in 2023).

·      We continue to deliver a positive environmental impact through
our sustainable stevia agriculture programme in China, working in partnership
with the NGO, Earthwatch Europe, and Nanjing Agricultural University.

·      Our facility in Guarani, Brazil, became our first site to be 100%
powered by renewable energy and our facilities in the Netherlands, UK and
Italy are buying 100% of their electricity from renewable sources.

·      We carried out an analysis of the impact of climate change on our
operations and supply chain to identify key climate-related issues that are
affecting our business currently, and could have an impact in future, to help
us prioritise actions to mitigate those risks.

·      We carried out a water risk assessment at our main facilities and
across our corn and stevia supply chain.

 

Trend compared with 2023 financial year: increasing

 

 

 

Operational risks

5.   Operating Safely

Safety is not just a priority at Tate & Lyle, it's foundational. Failure
to comply with laws and regulations relating to health, safety and the
environment could result in us being unable to protect our employees,
stakeholders and the wider communities in which we operate. It could also lead
to fines and have a negative impact on our reputation.

 

How we mitigate the risk

·      We have a continuous improvement plan for Environment, Health,
Safety, Quality and Security (EHSQS) in place at all our sites (also known as
the J2E). It is visibly sponsored by the Chief Executive and Executive
Committee.

·      Our EHS Advisory Board, which includes our Chief Executive,
receives EHSQS updates and reviews performance quarterly. Our Executive
Committee and Board regularly review safety performance and progress against
J2E.

·      We have an Incident Review Board which conducts reviews of major,
severe or potentially severe events.

·      Benchmark, a cloud-based tool, is used to manage EHS data and
facilitate EHS reporting.

 

What we've done this year

·      We saw a significant improvement in our safety performance with
the recordable incident rate 41% lower and in the lost-time rate 38% lower.

·      In J2E, 60% of our plants and 38% of offices and labs had passed
tollgate 5 by the end of March 2024, with three sites having passed tollgate
7.

·      We continued to deliver a major shift in risk awareness through
our combustible dust and chemical management programmes.

·      We continued to focus on employee wellbeing as part of our J2E
programme.

 

Trend compared with 2023 financial year: unchanged

 

 

6.   Product Quality

Poor quality products could cause safety issues and also damage our reputation
and relationships with customers. This could have a negative effect on our
performance and corporate reputation.

 

How we mitigate the risk

·      We have strict quality control and product testing procedures in
place.

·      We regularly test our recall process.

·      We have a third-party audit programme, supplemented by internal
compliance audits.

·      We assess our raw material suppliers, tollers and third-party
warehouses for food safety and quality risks.

·      We have a programme to manage allergens in our supply chain and
ensure our ingredients are either free from allergens or that any allergens
are disclosed.

·      Our Quality Incident Review Board investigates incidents and
shares best practice across our sites.

·      We have a governance process in place for Tate & Lyle and
Primient to regularly review compliance with our long-term supply and other
agreements. Amongst other things, these determine the safety and quality
standards that products sold to each business must meet.

 

What we've done this year

·      We successfully started up our new quality lab within our
facility in Hoffman Estates, Illinois, US, complete with ISO certification.

·      Our product recall processes were externally assessed and
validated by our insurance company, and we carried out simulation exercises.

·      We fully implemented our environmental monitoring programme at
all our locations.

·      We simplified our Food Safety Incident Management programme,
including implementing a steering committee and delivering training.

·      We transitioned all our manufacturing facilities to the ISO-based
FSSC 22000 GFSI (Global Food Safety Initiative) scheme.

·      We developed and implemented a professional development programme
for quality team members.

·      We refreshed our 'management of change' (MOC) processes to
enhance our compliance from a quality, legal and regulatory perspective.

 

Trend compared with 2023 financial year: unchanged

 

 

7.   Supply chain

Fluctuations in crop prices could affect our margins. Climate and
weather-related events, disease, lower yields, competition for acreage and
freight restrictions can impact crop availability and therefore price. We may
not be able to pass the full change in raw material prices, or higher energy,
freight or other operating costs, on to our customers. Our margins may also be
affected by customers not taking expected volumes.

 

How we mitigate the risk

·      We have strategic relationships and multi-year agreements with
suppliers and trading companies.

·      We increase the security of our supply through our raw material
and energy purchasing policies.

·      We have a governance process in place for Tate & Lyle and
Primient to regularly review the delivery of the long-term supply agreements
we have in place, as well as related corn procurement services.

·      We benefit from the scale and expertise of Primient's corn
procurement services. This provides security of supply and allows us to lock
in corn prices when we secure customer contracts, reducing cost volatility.

·      We maintain a good working relationship with KPS Capital Partners
the majority shareholder in Primient.

 

What we've done this year

·      The raw material procurement team continued to manage corn supply
across the European corn sourcing regions for both dent and waxy corn.

·      We identified new sourcing regions and suppliers for dent and
waxy corn in Europe, and agreed new waxy corn contracts to support our volume
growth.

·      We review and renew our energy supply contracts every year or,
where required, we adjust them to manage supply and price conditions.

·      To further build resilience, we undertook a review of the impact
of climate change on our logistics and raw material supply chain over the last
five years, looking at the mitigations we had put in place, and their
effectiveness. The lessons learned and subsequent actions are increasing the
resilience of our supply chain.

·      We hold monthly sessions with Primient to manage key supply
topics, including short-term adjustments in supply and medium-term
forecasting.

 

Trend compared with 2023 financial year: unchanged

 

 

8.   Business disruption

Business disruptions can occur for a range of reasons, including pandemics,
natural disasters, and geopolitical turbulence. There are also many risks in
operating our plants that could cause breaks in production, leading to
disruption to our business and a deterioration in customer services. In all
cases, this could affect our financial performance and damage our ability to
grow our business.

 

How we mitigate the risk

·      We have a global business continuity management framework in
place to enable effective recovery from a major disruption.

·      Our Risk Committee oversees existing and emerging risks to ensure
mitigating actions are in place wherever possible to meet customers' needs.

·      Having plants in different regions and countries means we can
continue to serve customers where practical if a particular area or plant is
disrupted. It also diversifies our business into different markets and
geographies.

·      Our plant network has a preventative maintenance programme.

·      Our customer service team is part of Global Operations so works
closely with our plants, enabling us to be agile and responsive to customer
needs.

·      We have contingency plans to manage, as far as possible,
disruption such as extreme winter weather.

·      We have a governance process in place for Tate & Lyle and
Primient to regularly review the delivery of the long-term supply and other
related agreements.

 

What we've done this year

·      We undertook business continuity tests at all our sites.

·      Our Manufacturing Excellence programme continues to support our
ability to operate safely and efficiently. It is a process of continuous
improvement across the business to drive safe working practices, strengthen
resilience and develop our wider safety culture.

·      We enhanced our sales and operational planning programme by using
technology to improve our ability to forecast effectively and strengthen how
we supply customers.

·      We introduced a Global Enterprise Crisis Management Policy and
strategy to strengthen our ability to manage large-scale business disruption.

·      We undertook a review of the impact of climate change on our
manufacturing facilities, logistics and raw material supply chain over the
last five years, looking at the mitigations we had put in place and their
effectiveness. The lessons learned and subsequent actions are increasing the
resilience of our business.

·      We also carried out an analysis of the impact that geopolitical
turmoil and trade restrictions could have on our operations, supply chain and
key products, and the mitigations we have in place, and their effectiveness.

 

Trend compared with 2023 financial year: unchanged

 

 

9.   Cyber and IT resilience

We need to maintain the continuing operation and security of our information
systems and data.

A cyber security breach, whether stemming from human error, deliberate action
or a technology failure, could lead to unauthorised access to or misuse of our
information systems, technology or data. This, in turn, could result in harm
to our assets, data loss and business disruption - and could bring legal risks
and reputational damage.

 

How we mitigate the risk

·      Our cyber security programme focuses on maintaining and
strengthening our defences in terms of our processes, people and technology.

·      We run compulsory cyber security awareness training for our
employees which includes simulated phishing campaigns.

·      We have robust cyber security defences including a continuous
programme to detect threats and vulnerabilities, and we carry out independent
penetration tests.

·      Our plants run on separate IT systems which increases their
resilience.

·      We have a 24/7, third-party security operations centre to deal
promptly with any issues.

·      We have an investment plan in place to update ageing equipment
and address new threats as they emerge.

·      As part of the integration process, acquisitions are aligned to
our operational and cyber security model.

 

What we've done this year

·      We improved our email protection by using new monitoring
technology.

·      We introduced new reporting and dashboard capabilities across our
cyber and operations landscape.

·      We completed integrations of businesses acquired in Asia to
ensure they align with our operational and cyber model.

·      We established a separate IT security environment for China, to
improve our resilience.

·      We replaced equipment that had reached the end of its useful life
and that we could no longer maintain effectively within our operations.

 

Trend compared with 2023 financial year: increasing

 

 

Legal, regulatory and governance risks

 

10.  Legal and Compliance

If we don't meet our legal and/or regulatory obligations, our relationships
with customers and suppliers are likely to suffer. We could be subject to
contractual claims, threats to our licences and, in extreme cases, risks to
our directors and officers. It could also affect our performance and corporate
reputation.

 

How we mitigate the risk

·      Our legal and regulatory teams work closely with colleagues
around the world to identify legal and regulatory risk and provide advice and
solutions to mitigate them.

·      We regularly monitor legal and regulatory developments to make
sure we understand how any changes could affect Tate & Lyle.

·      We regularly review our key policies and training material, and
update them as needed.

·      We run a comprehensive legal and ethics and compliance training
programme.

·      We have a third-party whistleblowing service that allows our
employees to raise concerns anonymously if they're not comfortable speaking up
internally.

·      We have lawyers in each region to work with colleagues to
identify and mitigate relevant legal and regulatory risks.

 

What we've done this year

·      We further embedded our contract documentation processes
including the tracking of customer terms and conditions, and provided training
to our sales teams.

·      We worked with our procurement team to review the effectiveness
of our legal and compliance processes for suppliers and implemented
improvement opportunities identified.

·      We continued to run our annual legal, ethics and compliance
training across the organisation, including training on our Code of Ethics,
anti-trust/competition, modern slavery, criminal finances and trade secrets
(all with at least 98% compliance completion rates).

·      We reinforced our sanctions procedures and continued to provide
training to relevant employees.

·      We continued to expand our Responsible Sourcing Programme with
further audits completed of existing Tier 1 suppliers and further due
diligence on new, high-risk suppliers.

 

Trend compared with 2023 financial year: unchanged

 

 

11.  Financial controls

Without effective internal financial controls, we could be exposed to the risk
of fraud and error in our financial reporting, as well as losses from events
which may then affect our performance and ability to operate.

 

How we mitigate the risk

·      We have a well-established framework of financial policies and
standards supported by procedures and controls over key processes. Where
possible, these controls are automated, and we maximise the use of
preventative controls.

·      We monitor the design and operating effectiveness of controls on
an ongoing basis and regularly report the results to the Audit Committee and
Executive Committee.

·      We have several forums to monitor and manage the effectiveness of
our financial controls, such as our quarterly regional Control Environment
Councils chaired by the relevant General Manager.

·      The Chief Executive and Chief Financial Officer review the
business and financial performance at least monthly.

·      At both the half year and the end of the financial year,
Executive Committee, the Audit Committee and the Board receive confirmation
that minimum control standards are operating effectively.

·      Our well-resourced Group Audit and Assurance team provides
independent assurance to management and the Board.

 

What we've done this year

·      We continued to invest in our financial controls function and our
centres of excellence within our Global Shared Services Centre in Poland.

·      We continued to evolve our Risk and Controls matrix to ensure
that our controls adapt to mirror changes within the organisation along with
increasing levels of automation across multiple process areas.

·      We continue to leverage our Finance Global Process Ownership
Forum, to maintain consistency and effectiveness of financial controls at all
Group locations.

·      We continued to invest in training to ensure control owners fully
understand their responsibilities and accountabilities.

·      We continued to leverage technology to enhance our control
environment and support our key financial processes.

 

Trend compared with 2023 financial year: unchanged

 

 

12.  Regulatory and trade risks

The regulatory status or perception of our ingredients could be affected by
things like changes in customers' or consumers' attitudes, changes in food
laws and regulations and/or campaigns targeted at specific ingredients or
technologies. These could affect our ability or freedom to operate. Government
actions or policies could also impose import/export limitations and other
barriers on our business. These could lead to additional costs, restrict our
growth and limit our ability to operate in certain markets.

 

How we mitigate the risk

·      The science behind our ingredients, for example, health claims or
nutritional impact, is supported by credible sources and is communicated
clearly to, so that it is understood by, the relevant regulatory authorities.

·      Our global regulatory team, supported by external consultants,
monitors any local regulatory requirements that affect our products.

·      Our global nutrition team initiates and monitors research and
publications on the use and functionality of our ingredients, and maintains a
global advisory network of health and nutrition clinicians, academics and
experts.

·      We work closely with thought-leading customers around the world
to jointly focus on the science and consumer benefits of our ingredients.

·      We are members of trade organisations that give us access to
broader sources of information and provide, where necessary, a single voice
for our industry on issues of both regulatory and public interest that affect
our ingredients.

·      We engage with political parties, influencers and regulatory
authorities in the main countries in which we operate.

 

What we've done this year

·      We worked with national and state trade associations, as well as
local authorities in several key countries where we operate, including the US
and China to progress our commercial and sustainability goals.

·      We continued to develop our regulatory team in the Asia, Middle
East, Africa and Latin America regions to strengthen relationships with
regulators in these markets.

·      We continued to invest in our Global Nutrition team with funding
for studies that support the safety and efficacy of our ingredients and
maintain differentiation against competitors.

·      We expanded our advocacy programme in key markets; including
building partnerships with customers and participating on the boards and
committees of key trade associations. This included working with trade
associations and other nutritional bodies to improve understanding about the
importance of the nutritional content of food, rather than the level of
processing, as well as the benefits of low- and no-calorie sweeteners to help
reduce their calorie and sugar intake.

·      We continued to expand our online Nutrition Centre, which
includes independent scientific contributions by external experts on key
topics of public health and on our ingredients.

 

Trend compared with 2023 financial year: increasing

 

 

APPENDIX B

DIRECTORS' RESPONSIBILITY STATEMENT

 

In accordance with Disclosure Guidance and Transparency Rule 4.1, the
directors confirm, to the best of their knowledge that:

 

•     the Group financial statements, prepared in accordance with
UK-adopted international accounting standards, give a true and fair view of
the assets, liabilities, financial position and profit of the Company and
undertakings included in the consolidation taken as a whole;

·      the Annual Report, including the Strategic Report, includes a
fair review of the development and performance of the business and the
position of the Company and undertakings included in the consolidation taken
as a whole, together with a description of the principal risks and
uncertainties that they face; and

·      they consider the Annual Report, taken as a whole, is fair,
balanced and understandable and provides the information necessary for
shareholders to assess the Group's and Company's position and performance,
business model and strategy.

 

 

APPENDIX C

RELATED PARTY DISCLOSURES

 

Identity of related parties

The Group has related party relationships with its joint venture, the Group's
pension schemes and with key management, being its Directors and executive
officers. Key management compensation is disclosed in Note 9. There were no
other related party transactions with key management.

 

There were no material changes in related parties or in the nature of related
party transactions during the 2024 financial year and no material related
party transactions containing unusual commercial terms in the current or prior
year. In the 2023 financial year, as a result of the sale of the controlling
stake in the Primient business, the Group holds a 49.7% interest in Primient.

 

Related party transactions with the Primient joint venture and outstanding
balances

 

                                                                 Year ended 31 March
                                                                 2024        2023
                                                                 £m          £m
 Sales of goods and services to joint ventures and other income  39          47
 Purchases of goods and services from joint ventures             243         302
 Receivables due from joint ventures                             11          16
 Payables due to joint ventures                                  1           18

Transactions entered into by the Company, Tate & Lyle PLC, with
subsidiaries and between subsidiaries as well as the resultant balances of
receivables and payables are eliminated on consolidation and are not required
to be disclosed.

 

Sales of goods and services to the Primient joint venture are considered in
scope of IFRS 15 and relate to the Group's commitment under the long-term
agreements in operation following the completion of the Transaction to produce
industrial starches for Primient under a tolling arrangement whereby Primient
retains control of the net raw material at all times. The Group earns a
manufacturing margin for this production when the service is provided. All
associated income is earned in North America. The Group considers it
appropriate to exclude this amount from revenue and record the income in
operating profit on the basis that this income is generated with a related
party, is not part of the Group's normal revenue generating activities (where
revenue is recognised when control of the goods is transferred), only arises
because of the relationship that exists in which Primient is a supplier of the
Group, and is outside the Group's core focus on speciality food and beverage
solutions.

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