REG - Treatt PLC - Half Year Results
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RNS Number : 2931C Treatt PLC 29 April 2026
29 April 2026
TREATT PLC
HALF YEAR RESULTS
SIX MONTHS ENDED 31 MARCH 2026
Treatt PLC ("Treatt" or the "Group"), the manufacturer and supplier of a
diverse and sustainable portfolio of natural extracts and ingredients for the
beverage, flavour and fragrance industries, announces its unaudited half year
results for the six months ended 31 March 2026 (the "Period").
FINANCIAL HIGHLIGHTS:
Restated(1)
Unaudited Half year ended Unaudited Half year ended Change
31 March 2026 31 March 2025
Revenue £59.9m £64.0m (6.5)%
Gross profit margin 24.9% 25.1% (20)bps
Adjusted(2) EBITDA £5.4m £6.5m (18.1)%
Operating profit before exceptional items £2.8m £3.9m (28.0)%
Adjusted(2) operating profit margin 4.7% 6.0% (130)bps
Profit before tax and exceptional items £2.5m £3.7m (33.4)%
Profit before tax £2.0m £2.9m (30.6)%
Adjusted(2) basic earnings per share 3.04p 4.56p (33.3)%
Basic earnings per share 2.48p 3.63p (31.7)%
Net (debt)/cash £(4.4)m £0.9m £(5.3)m
1 As explained further in note 12 of these financial statements,
revenue, cost of sales and all profit-related metrics for the six months ended
31 March 2025 have been restated.
2 Adjusted measures exclude exceptional items, details of which are
given in note 7.
HIGHLIGHTS:
· Revenue of £59.9m (H1 2025: £64.0m), reflecting lower Heritage and
Premium volumes, in line with expectations, and a slow recovery in citrus, as
anticipated.
· Adjusted EBITDA of £5.4m (H1 2025: £6.5m) reflecting lower volumes
in Heritage and Premium.
· Profit before tax and exceptionals ("PBTE") of £2.5m (H1 2025:
£3.7m).
· Net debt position of £4.4m (Year end 2025: net debt £5.9m)
reflecting robust cash generation since year end.
· Strategic progress during the Period included:
o encouraging volume growth in health & wellness;
o new product launches such as powdered citrus; and
o exciting growth in China following the launch of our Shanghai Commercial
& Innovation Centre
· As announced earlier today, the Board have recommended a cash offer
from Döhler Finance Management B.V of 305p per share together with the right
for shareholders to retain the previously declared final dividend of 3.0p per
share in respect of the financial year to 30 September 2025.
Commenting on the results, Interim Group Managing Director & Chief
Financial Officer, Manprit Randhawa, said:
"We are pleased to have delivered a first-half performance in line with
expectations, as we continued to execute our strategy and respond to global
trends in a challenging environment.
In Heritage, we leveraged our expertise to support customers, developing
price-stable citrus solutions, including powdered citrus extracts, which
launched as planned during the Period.
In Premium, we delivered strong health & wellness growth, driven by
momentum in sugar reduction, while in New Markets, the Shanghai Commercial
& Innovation Centre supported exciting progress in China through closer
customer collaboration"
In accordance with DTR 6.3.5 please find below the unedited full text of the
half year results.
A copy of the half year results will be submitted to the National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://protect.checkpoint.com/v2/___https:/data.fca.org.uk/___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpmNjdlZWEwNWMwOThmZWRhNTYyZDc1YmI4NzEwZTgyODo2OmU3ZTc6NjI0MWQ4MjExOWVlM2JiM2JlZjE4NjIxMzYxNGI4ZjcyNWYyMmZjOWNiZTBjMzQzYjI5NDExN2FlYTg4YzRkYTpwOkY6Tg#/nsm/nationalstoragemechanism)
. It will also be available on the Treatt website at
www.treatt.com/investor-relations
(https://protect.checkpoint.com/v2/___http:/www.treatt.com/investor-relations___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpmNjdlZWEwNWMwOThmZWRhNTYyZDc1YmI4NzEwZTgyODo2OmQ5Mzc6MGQxZjAwMjI2Y2UwOTU2MjZjYmJmZTYyZTU3NmM2ODNhODVmMGQyNGU3ODdjZGJjNzVhNjIyMzMwZTFhMzRlMTpwOkY6Tg)
.
Enquiries:
Treatt PLC +44 (0)1284 702500
Manprit Randhawa Interim Group
Managing Director & CFO
Kelly Gordon Group
Finance Director
Joint Brokers
Investec Bank Plc +44 (0)20 7597 5970
James Hopton
Peel Hunt LLP +44 (0)20 7418 8900
George Sellar
Financial PR
MHP +44 (0)7701 308818
Tim Rowntree
Eleni Menikou
About the Group
Treatt is a global, independent manufacturer and supplier of a diverse and
sustainable portfolio of natural extracts and ingredients for the flavour,
fragrance and multinational consumer product industries, particularly in the
beverage sector. Renowned for its technical expertise and knowledge of
ingredients, their origins and market conditions, Treatt is recognised as a
leader in its field.
The Group employs around 360 staff in Europe, North America and Asia and has
manufacturing facilities in the UK and US. Its international footprint enables
the Group to deliver powerful and integrated solutions for the food, beverage
and fragrance industries across the globe.
For further information about the Group, visit www.treatt.com
(https://protect.checkpoint.com/v2/___http:/www.treatt.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpmNjdlZWEwNWMwOThmZWRhNTYyZDc1YmI4NzEwZTgyODo2OjI4MmQ6NGQyZjkwYzEwNzA4OWI0NzEzNTk4NDVmNWUyNWZhNjA1NmNjNmFlYTU5MmJiZDhkNTJlMTQ3MmI5ZTgwN2Y2ODpwOkY6Tg)
.
HALF YEAR RESULTS STATEMENT
Introduction
H1 trading was in-line with expectations, as a quiet first quarter, consistent
with prior years, was followed by increasing momentum in the second quarter.
The Group continues to operate against a backdrop of external industry,
macroeconomic and increased geopolitical pressures, however, Treatt remains
focused on the disciplined execution of its strategy, strengthening customer
relationships and positioning the business for sustainable growth over the
medium term.
As anticipated, first half revenue declined by 6.5% (4.1% in constant
currency), and PBTE declined to £2.5m (H1 2025: £3.7m). This was in line
with expectations as we forecasted for citrus recovery to take some time,
given the recent volatility. The reduction in profit was mainly due to lower
sales, led by lower citrus sales and challenging market conditions in North
America.
Gross profit margin, whilst stabilising, was 20 bps lower in the Period (24.9%
vs 25.1% in H1 2025), and adjusted net operating margin declined by 130 bps to
4.7% (H1 2025: 6.0%). The gross margin decline was driven by a combination of
product mix, with lower North America premium sales and citrus margin recovery
taking time as expected. The Group continues to exhibit strong cost control
discipline through ongoing self-help measures, with administrative expenses in
line with the prior half year.
Supported by a combination of ongoing market recovery within citrus, continued
customer engagement and a robust order pipeline, the Board expects to deliver
a full year performance in line with management expectations with a greater
weighting to the second half for FY26 than in FY25, as we continue to navigate
macroeconomic pressures.
Sales performance
Heritage
In Heritage, overall revenues declined by 8.8% in the Period, led by citrus.
The citrus market headwinds experienced in FY25 have begun to show initial
signs of easing, providing confidence that volumes will gain some positive
momentum in H2, although we continue to expect that a full recovery will take
some time to come through in line with market recovery. Citrus revenue overall
declined by 11.1% year-on-year, with prices reducing in line with market
prices in orange oil.
During the half, Treatt has made full use of its technical expertise and
product capabilities to support customers and protect relationships by
developing new, price-stable solutions, including the launch of powdered
citrus extracts.
Herbs, spices and florals revenue increased by 8.4% led by an uplift in volume
from one of our top five customers.
Within synthetic aroma, volumes have increased by 9.9%, which is pleasing to
see, despite overall revenue decreasing due to market pricing declines. We
have focused on growing volumes and maintaining margin in this area.
Premium
Overall, Premium revenue declined by 8.3%, pleasingly, gross profit increased
3% year-on-year, representing a positive inflection following prior periods of
decline. This improvement reflects a continued strategic focus on higher-value
categories, disciplined portfolio management and a product mix improvement
across the business.
Health & wellness was a particular highlight, with revenue increasing
robustly by 29.0% year-on-year, driven by strong momentum in sugar reduction
and low-and-no beverage applications. This remains one of our highest-margin
Premium categories and continues to benefit from powerful long-term consumer
trends around healthier lifestyles, calorie reduction and functional
nutrition, particularly in the US market. Our technologies and applications
are increasingly relevant in this evolving landscape, with a growing pipeline
of opportunities across beverage, wellness and sports nutrition platforms.
Within fruit & vegetables and tea, year-on-year sales were lower following
the exit of certain lower-value business as customers undertook cost
engineering and reformulation activity. These categories performed broadly in
line with expectations. Importantly the year-on-year impact is expected to
moderate in the second half. We remain confident in the long-term fundamentals
of these categories and continue to align innovation and customer partnerships
closely with evolving consumer trends and premiumisation opportunities.
New Markets
Revenue in our New Markets pillar increased by 16.7%, led by growth in China.
Treatt has continued to see encouraging progress in New Markets, particularly
in China, with strong year-on-year revenue growth. The new Shanghai Commercial
& Innovation Centre is fully operational, and we are already benefiting
from closer collaboration with customers. In Asia more generally, we continue
to be excited by the distribution partnership with IMCD, and the rollout is on
track.
Coffee, whilst still a nascent area for Treatt, grew slightly in revenue
year-on-year, and Treattzest revenues were in line with the prior half.
Geographical sales
The US, our largest region, accounted for 36.1% of Group revenue in the Period
(H1 2025: 40.8%), declining slightly because of ongoing slower end-consumer
demand due to macroeconomic conditions. Europe, including UK, represented
29.9% of Group revenue (H1 2025: 28.5%), increasing overall with the success
in herbs, spices & florals.
Encouragingly, China sales grew by 20.8%, with revenues now making up 8.9% of
Group revenue (H1 2025: 6.9%). We expect China to accelerate further in H2.
Rest of World sales also grew in the half and now make up 25.1% of Group sales
(H1 2025: 23.8%), reflecting our focus on expanding our reach.
Environmental, social and corporate governance (ESG)
Sustainability is a driving force behind our purpose-making the world taste
better, for good. This commitment is reflected in the development of our For
Good programme, our evolving sustainability strategy. This ensures we remain
focused on the areas that matter most across people, planet, and performance
and keep us future ready.
Our ESG governance framework continues to drive accountability and measurable
progress across the business. In the first half of 2026, approximately 79% of
our sales and over 83% of our purchases were derived from natural products,
all sourced in line with our Responsible and Sustainable Sourcing Policy to
promote transparency and support shared stakeholder objectives.
Our net zero model inclusive of our UK solar project, continue to keep us on
track to meet our SBTi-validated target of reducing Scope 1 and 2 emissions by
42% by 2030.
Financial review
Group revenue declined by 6.5% to £59.9m (H1 2025: £64.0m), and PBTE
decreased to £2.5m (H1 2025: £3.7m). In constant currency terms, revenue
declined by 4.1%. Gross profit margin was 20 bps lower in the Period (24.9% vs
25.1% in H1 2025).
Pre-exceptional operating costs decreased by 0.4% to £12.1m (H1 2025:
£12.2m). Having successfully embedded and maintained cost disciplines aimed
at increasing profitability, and self-funding investment, we do not anticipate
any significant increase in administrative expenses in FY26 compared to FY25.
Foreign exchange impacts continue to be successfully managed through our
hedging and currency management strategy, with a net loss of £0.1m in the
Period (H1 2025: £0.1m loss) despite exchange rate fluctuations, most notably
the US Dollar. Exceptional costs in the Period totalled £0.4m (H1 2025:
£0.8m), the majority related to one-off expenses which are explained in more
detail in note 7.
Adjusted net operating margin decreased 130 bps to 4.7% (H1 2025: 6.0%), this
is driven from the reduction in gross profit flowing through whilst the cost
base remains in control.
Reported profit for the Period was £1.5m (H1 2025: £2.2m) with basic
adjusted earnings per share decreasing to 3.04p (H1 2025: 4.56p), and basic
earnings per share decreasing to 2.48p (H1 2025: 3.63p).
Cash flow
The Group generated a cash inflow of £1.5m in the Period (H1 2025: £1.8m
inflow) ending the half year with net debt of £4.4m (H1 2025: net cash
£0.7m, year end 2025: net debt £5.9m).
Net cash generated by operations was £2.8m (H1 2025: 8.3m), a reduction from
the previous half year resulting from a £0.9m reduction in profit before tax,
and by an adverse working capital movement of £2.3m (H1 2025: £2.1m
favourable). Whilst working capital shows an unfavourable movement, driven by
a £3.6m swing in payables and receivables, this is in line with expectation
due to the phasing of the halves. Inventories have fallen by £1.2m which
shows progress in our inventory management.
Capital expenditure in the period was £1.0m (H1 2025: £2.1m) as we continue
to invest in the business. Capital expenditure is expected to pick up in H2
and bring the total spend in line with the previous year.
We continue to expect further cash generation in H2.
Balance sheet
The Group remains well invested, with a strong balance sheet and significant
manufacturing and innovation facilities.
Capital expenditure continues at more normalised levels, representing a
balance of maintenance spend and targeting strategic investments across UK and
US and China. The Shanghai Commercial & Innovation Centre formally opened
at the end of the prior year, and we have made investments in enhanced
manufacturing capabilities in the UK which we expect to complete in H2.
Inventories remain the most significant current asset on the balance sheet at
£61.3m (H1 2025: £57.2m, FY25: £62.5m). We have effective inventory
management in place to ensure the position is the right balance of strategic
stock, raw material positions where appropriate, WIP to ensure lead times are
appropriate, and finished products.
The Group maintains a $25m facility with Bank of America and a £25m facility
with HSBC, providing our UK and US entities with significant headroom to
support future investment and absorb any variability in cash flows. Both
facilities have been recently extended by a further year, and are now due for
renewal in H2 2027. Cash outlook remains positive, with minimal net debt at
the half year, and an expectation to return to net cash by the year end.
The UK defined benefit pension scheme, which has been closed to future
accruals since October 2001, has been successfully de-risked through a
full-scheme buy-in. The Trustees signed an agreement with Just Group PLC on 5
December 2025, effectively buying an insurance policy to cover all scheme
liabilities, with the insurance premium having been paid out of surplus scheme
assets. Largely, as a result of paying of the insurance premium to secure the
contract, the overall IAS 19 pension surplus has reduced to £2.4m compared to
£4.1m at the previous year end date.
Dividend
In light of the offer from Döhler Finance Management B.V, announced
separately today, the Board has decided not to declare an interim dividend for
the Period.
TREATT PLC
HALF YEAR FINANCIAL STATEMENTS
CONDENSED GROUP INCOME STATEMENT
for the six months ended 31 March 2026
Restated(1)
Six months to Six months to
31 March 2026 (unaudited) 31 March 2025 (unaudited)
Before exceptional items Exceptional items Total Before exceptional items Exceptional items Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Revenue 6 59,862 - 59,862 64,048 - 64,048
Cost of sales (44,942) - (44,942) (47,996) - (47,996)
- -
Gross profit 14,920 - 14,920 16,052 - 16,052
Administrative expenses (12,136) (559) (12,695) (12,183) (758) (12,941)
Acquisition expenses(2) - 134 134 - - -
- -
Operating profit/(loss) 2,784 (425) 2,359 3,869 (758) 3,111
Finance income 101 - 101 104 - 104
Finance costs (428) - (428) (286) - (286)
Profit/(loss) before taxation 2,457 (425) 2,032 3,687 (758) 2,929
Taxation 8 (650) 93 (557) (899) 190 (709)
Profit/(loss) for the period 1,807 (332) 1,475 2,788 (568) 2,220
attributable to owners of the
Parent Company
Earnings per share attributable to equity holders of the Parent Company Adjusted(3) Statutory Adjusted(3) Statutory
Basic 10 3.04p 2.48p 4.56p 3.63p
Diluted 10 3.03p 2.48p 4.55p 3.62p
1 Revenue and cost of sales, and therefore the profit attributable to owners
of the Parent Company, have been restated for the six months ended 31 March
2025, further details are given in note 12.
2 Acquisition expenses relate to costs incurred as a result of the proposed
acquisition of Treatt PLC by Natara Global Limited which lapsed on 3 November
2025, details of which are given in note 7.
3 Adjusted earnings per share measures exclude exceptional items and the
related tax effect, details of which are given in note 7.
Notes 1 - 13 form part of these condensed half year financial statements.
( )
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 March 2026
Restated(1)
Six months to Six months to
31 March 31 March
2026 2025
(unaudited) (unaudited)
£'000 £'000
Profit for the period attributable to owners of the Parent Company 1,475 2,220
Items that may be reclassified subsequently to profit or loss:
Currency translation differences on foreign currency net investments 1,092 2,489
Current tax on foreign currency translation differences 50 118
Deferred taxation on foreign currency translation differences (29) (326)
Fair value movement on cash flow hedges (8) (83)
Deferred tax on fair value movement 2 21
1,107 2,219
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension scheme (1,475) -
(1,475) -
Other comprehensive (expense)/income for the period (368) 2,219
Total comprehensive income for the period attributable 1,107 4,439
to owners of the Parent Company
1 Revenue and cost of sales, and therefore the profit attributable to owners
of the Parent Company, have been restated for the six months ended 31 March
2025, further details are given in note 12.
Notes 1 - 13 form part of these condensed half year financial statements.
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2025 (unaudited)
Share capital Share Own shares in share trusts Hedging Foreign Retained earnings Total equity
premium account Treasury shares reserve exchange
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
1 October 2024 1,225 23,484 - (2) 104 1,050 116,153 142,014
Prior year adjustment(1) - - - - - - (954) (954)
1 October 2024 (restated) 1,225 23,484 - (2) 104 1,050 115,199 141,060
Profit for the period (restated) - - - - - - 2,220 2,220
Exchange differences - - - - - 2,489 - 2,489
Fair value movement on cash flow hedges - - - - (83) - - (83)
Actuarial loss on defined benefit pension scheme - - - - - - - -
Taxation relating to items above - - - - 21 (208) - (187)
Total comprehensive expense - - - - (62) 2,281 2,220 4,439
Transactions with owners:
Dividends - - - - - - (3,555) (3,555)
Share-based payments - - - - - - 206 206
Movement in own shares in share trusts - - - 76 - - - 76
Total transactions with owners - - - 76 - - (3,349) (3,273)
As at 31 March 2025 1,225 23,484 - 74 42 3,331 114,070 142,226
1 Opening retained earnings as at 1 October 2024 and profit for the six months
ended 31 March 2025 are shown restated, further details are given in note 12.
for the six months ended 31 March 2026 (unaudited)
Share capital Share Treasury shares Own shares in share trusts Hedging Foreign Retained earnings Total equity
premium account reserve exchange
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
1 October 2025 1,226 23,484 (39) - 22 752 109,294 134,739
Profit for the period - - - - - - 1,475 1,475
Exchange differences - - - - - 1,092 - 1,092
Fair value movement on cash flow hedges - - - - (8) - - (8)
Actuarial loss on defined benefit pension scheme - - - - - - (1,475) (1,475)
Taxation relating to items above - - - - 2 21 - 23
Total comprehensive income - - - - (6) 1,113 - 1,107
Transactions with owners:
Dividends - - - - - - - -
Share-based payments - - - - - - 124 124
Movement in own shares in share trusts - - - - - - 45 45
Total transactions with owners - - - - - - 169 169
As at 31 March 2026 1,226 23,484 (39) - 16 1,865 109,463 136,015
CONDENSED GROUP BALANCE SHEET
as at 31 March 2026
As at 31 March As at 30 September
2026 (unaudited) 2025 (audited)
£'000 £'000
ASSETS
Non-current assets
Intangible assets 1,949 2,231
Property, plant and equipment 69,150 69,989
Right-of-use assets 844 884
Post-employment benefits 2,434 4,060
74,377 77,164
Current assets
Inventories 61,291 62,524
Trade and other receivables 30,634 26,826
Current tax assets 450 254
Derivative financial instruments - 81
Cash and bank balances 1,914 1,745
94,289 91,430
Total assets 168,666 168,594
LIABILITIES
Current liabilities
Borrowings (5,446) (6,718)
Provisions (170) (169)
Trade and other payables (21,559) (21,815)
Lease liabilities (205) (205)
Current tax liabilities (301) -
Derivative financial instruments (122) (63)
(27,803) (28,970)
Net current assets 66,486 62,460
Non-current liabilities
Lease liabilities (657) (721)
Deferred tax liabilities (4,191) (4,164)
(4,848) (4,885)
Total liabilities (32,651) (33,855)
Net assets 136,015 134,739
( )
( )
(
)
( )
CONDENSED GROUP BALANCE SHEET (continued)
as at 31 March 2026
As at 31 March As at 30 September
2026 (unaudited) 2025 (audited)
£'000 £'000
EQUITY
Share capital 1,226 1,226
Share premium account 23,484 23,484
Treasury shares (39) (39)
Own shares in share trusts - -
Hedging reserve 16 22
Foreign exchange reserve 1,865 752
Retained earnings 109,463 109,294
Total equity attributable to owners of the Parent Company 136,015 134,739
Notes 1 - 13 form part of these condensed half year financial statements.
CONDENSED GROUP STATEMENT OF CASH FLOWS
for the six months ended 31 March 2026
Restated(1)
Six months to Six months to
31 March 31 March
2026 2025
(unaudited) (unaudited)
£'000 £'000
Cash flow from operating activities
Profit before taxation including discontinued operations 2,032 2,929
Adjusted for:
Depreciation of property, plant and equipment 2,350 2,440
Amortisation of intangible assets 231 224
Loss on disposal of intangible assets - 41
Net finance costs excluding post-employment benefit expense 427 282
Share-based payments 120 200
Decrease/(increase) in fair value of derivatives 131 306
Defined benefit pension scheme expenses 258 -
Post-employment benefit income (106) (100)
Operating cash flow before movements in working capital 5,443 6,322
Movements in working capital:
Decrease/(increase) in inventories 1,228 (1,121)
(Increase)/decrease in receivables (2,810) 1,649
(Decrease)/increase in payables (740) 1,599
Cash generated from operations 3,121 8,449
Taxation paid (289) (160)
Net cash from operating activities 2,832 8,289
Cash flow from investing activities
Purchase of property, plant and equipment (977) (1,925)
Purchase of intangible assets (37) (170)
Interest received 1 5
Net cash used in investing activities (1,013) (2,090)
CONDENSED GROUP STATEMENT OF CASH FLOWS (continued)
for the six months ended 31 March 2026
Restated(1)
Six months to Six months to
31 March 31 March
2026 2025
(unaudited) (unaudited)
£'000 £'000
Cash flow from financing activities
Proceeds from bank loans - 228
Repayment of bank loans (1,281) (1,877)
Interest paid (409) (274)
Repayment of lease liabilities (124) (109)
Dividends paid - (3,555)
Sale of own shares by share trusts 44 76
Net cash used in financing activities (1,770) (5,511)
Net increase in cash and cash equivalents 49 688
Effect of foreign exchange rates 120 99
Movement in cash and cash equivalents in the period 169 787
Cash and cash equivalents at beginning of period 1,745 1,786
Cash and cash equivalents at end of period 1,914 2,573
Cash and cash equivalents comprise:
Cash and bank balances 1,914 2,573
1,914 2,573
1 Profit before taxation and the movement in receivables has been restated for
the six months ended 31 March 2025, further details are given in note 12.
Notes 1 - 13 form part of these condensed half year financial statements.
CONDENSED GROUP RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET (DEBT)/CASH
for the six months ended 31 March 2026
Six months to Six months to
31 March 31 March
2026 2025
(unaudited) (unaudited)
£'000 £'000
Movement in cash and cash equivalents in the period 169 787
Repayment of bank loans 1,281 1,877
Proceeds from bank borrowings - (228)
Decrease/(increase) in lease liabilities 64 (653)
Cash inflow from changes in net cash in the period 1,514 1,783
Effect of foreign exchange rates (9) (95)
Movement in net debt in the period 1,505 1,688
Net debt at beginning of period (5,899) (739)
Net (debt)/cash at end of period (4,394) 949
Notes 1 - 13 form part of these condensed half year financial statements.
Responsibility statement
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements for the six months ended 31
March 2026 has been prepared in accordance with IAS 34
(b) the half year report and condensed financial statements includes a fair
review of the information required by DTR 4.2.7R (indication of important
events during the first six months and description of principal risks and
uncertainties for the remaining six months of the year)
(c) the half year report and condensed financial statements includes a fair
review of the information required by DTR 4.2.8R (disclosure of related party
transactions and changes therein).
By order of the Board
Manprit Randhawa
Group Chief Financial Officer and Interim Group Managing Director
29 April 2026
NOTES TO THE UNAUDITED CONDENSED HALF YEAR FINANCIAL STATEMENTS
1. Basis of preparation
The Group has prepared its condensed half year financial statements in
accordance with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority and the reporting requirements of IAS 34, 'Interim
Financial Reporting'.
The information relating to the six months ended 31 March 2026 and 31 March
2025 is unaudited and does not constitute statutory accounts. The statutory
accounts for the year ended 30 September 2025 have been reported on by the
Group's auditors and delivered to the Registrar of Companies. The report of
the auditors was unqualified, did not include a reference to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report and did not contain a statement under section 498 of the Companies Act
2006. These condensed half year financial statements for the six months ended
31 March 2026 have neither been audited nor formally reviewed by the Group's
auditors.
2. Accounting policies
These condensed half year financial statements have been prepared on the basis
of the same accounting policies and methods of computation as set out in the
Group's 30 September 2025 annual report.
There were no new standards, or amendments to standards, which are mandatory
and relevant to the Group for the first time for the financial year ending 30
September 2026 which have had a material effect on these condensed half year
financial statements.
3. Accounting estimates
The preparation of the condensed half year financial statements requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and
liabilities, income and expenses. In preparing these condensed half year
financial statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the audited consolidated
financial statements as at, and for the year ended, 30 September 2025.
4. Going concern
As at the date of this report, the Directors have a reasonable expectation
that the Group has adequate resources to continue in business for the
foreseeable future. Accordingly, the condensed half year financial statements
have been prepared on the going concern basis.
5. Risks and uncertainties
The Group's operations involve a series of risks and uncertainties across a
range of strategic, commercial, operational and financial areas and a process
is in place to identify and assess their potential impact on the Group's
business, which is regularly updated. The principal risks and uncertainties
for the remainder of the financial year are not expected to change materially
from those included on pages 58 - 63 of the 2025 Annual Report and Financial
Statements.
6. Segmental information
Business segments
IFRS 8 requires operating segments to be identified on the basis of internal
financial information reported to the Chief Operating Decision Maker (CODM).
The Group's CODM has been identified as the Board of Directors who are
primarily responsible for the allocation of resources to the segments and for
assessing their performance. The disclosure in the Group accounts of segmental
information is consistent with the information used by the CODM in order to
assess profit performance from the Group's operations. The Group operates one
global business segment engaging in the manufacture and supply of innovative
ingredient solutions for the beverage, flavour, fragrance and consumer product
industries with manufacturing sites in the UK and the US.
NOTES TO THE UNAUDITED HALF YEAR FINANCIAL STATEMENTS (continued)
Geographical segments
The following table provides an analysis of the Group's revenue by
geographical market for continuing operations.
Restated(1)
Six months to Six months to
31 March 31 March Year-on-year
2026 2025 growth
(unaudited) (unaudited) (unaudited)
Revenue by destination £'000 £'000 %
United Kingdom 3,715 3,122 19.0%
Rest of Europe - Germany 3,179 3,463 (8.2)%
- Ireland 4,116 3,659 12.5%
- Other 7,657 8,005 (4.3)%
The Americas - USA 21,593 26,143 (17.4)%
- Other 4,004 3,115 28.5%
Rest of the World - China 5,328 4,412 20.8%
- Japan 3,031 3,232 (6.2)%
- Other 7,239 8,897 (18.6)%
59,862 64,048 (6.5)%
1 Revenue, and therefore the analysis by geographical market has been restated
for the six months ended 31 March 2025, further details are given in note 12.
NOTES TO THE UNAUDITED HALF YEAR FINANCIAL STATEMENTS (continued)
7. Exceptional items
The exceptional items referred to in the income statement can be categorised
as follows:
Six months to Six months to
31 March 31 March
2026 2025
(unaudited) (unaudited)
£'000 £'000
Restructuring and other expenses (559) (758)
Acquisition expenses 134 -
Less: tax effect of expenses 93 190
(332) (568)
The exceptional items all relate to non-recurring costs which are considered
material in aggregate and discrete in nature; therefore, the Group considers
them exceptional in order to provide a more meaningful view of the Group's
underlying business performance.
Restructuring and other expenses
Pension scheme de-risking (31 March 2026)
Pension scheme buy-in costs relate to the expenses incurred to date in respect
of de-risking the R.C. Treatt & Company Pension Scheme via a full-scheme
buy-in. This process was completed on 5th December 2025 and has been
classified as exceptional due to its expected financial impact over the
duration of the project and its non-recurring nature. Total expenses incurred
in the six months to 31 March 2026 are £186,000.
Payments for loss of office (31 March 2026)
David Shannon (former Chief Executive Officer) stepped down from the Board on
31 December 2025, and payments for loss of office of £373,000 have been
incurred in line with the terms set out within the Directors' Remuneration
Report on page 90 of the audited 2025 Annual Report and Financial Statements.
Restructuring (31 March 2025)
Restructuring costs mainly comprised contractual employment and termination
payments in respect of changes to a regional operating and leadership
structure, which became effective 1 January 2025. Amounts contractually due
under employees' existing terms and conditions were considered to be fully
allowable for tax purposes This process was completed in FY25, and no further
expense has been incurred during the six months to 31 March 2026.
Acquisition expenses (31 March 2026)
Acquisition expenses related to legal, financial, advisory and other direct
costs incurred solely in relation to the recommended offer first announced on
8 September 2025, via a scheme of arrangement from Natara Global Limited, to
acquire the entire issued and to-be-issued share capital of Treatt PLC. On 3
November 2025, the scheme of arrangement failed to reach the 75% approval
threshold and did not pass. As a result, the acquisition lapsed and Treatt
exited the offer period under the UK takeover code. The credit to the income
statement in the six months to 31 March 2026 represents the release of an over
accrual for unbilled advisory work at 30 September 2025.
NOTES TO THE UNAUDITED HALF YEAR FINANCIAL STATEMENTS (continued)
8. Taxation
The effective tax rate for the six months ended 31 March 2026 has been
estimated at 25.0% (H1 2025: 25.0%).
9. Dividends
Equity dividends on ordinary shares
A final dividend of 3.00p (2024: 5.81p) per ordinary share was recommended and
approved at the Annual General Meeting on 26 March 2026, and will be accounted
for in the second half of the financial year ending 30 September 2026.
Six months to Six months to
31 March 31 March
2026 2025
(unaudited) (unaudited)
£'000 £'000
Final dividend for the year ended 30 September 2025 of 3.00p per share - -
Final dividend for the year ended 30 September 2024 of 5.81p per share - 3,555
NOTES TO THE UNAUDITED HALF YEAR FINANCIAL STATEMENTS (continued)
10. Earnings per share
Basic earnings per share
Basic earnings per share is based on the weighted average number of ordinary
shares in issue and ranking for dividend during the year. The weighted average
number of shares excludes shares held by the Treatt Employee Benefit Trust
(EBT), together with treasury shares and shares held in respect of the Treatt
Share Incentive Plan (SIP) which do not rank for dividend.
Restated(1)
Six months to Six months to
31 March 2026 31 March 2025
(unaudited) (unaudited)
Profit after taxation attributable to owners of the Parent Company (£'000) 1,475 2,220
Weighted average number of ordinary shares in issue (No: '000) 59,370 61,154
Basic earnings per share (pence) 2.48p 3.63p
Diluted earnings per share
Diluted earnings per share is based on the weighted average number of ordinary
shares in issue and ranking for dividend during the year, adjusted for the
effect of all dilutive potential ordinary shares. The number of shares used to
calculate earnings per share (EPS) have been derived as follows:
Restated(1)
Six months to Six months to
31 March 2026 31 March 2025
(unaudited) (unaudited)
No ('000) No ('000)
Weighted average number of shares 61,287 61,274
Weighted average number of shares held in treasury (1,900) -
Weighted average number of shares held in the EBT and SIP (17) (120)
Weighted average number of shares for calculating basic EPS 59,370 61,154
Executive share option schemes 175 111
All-employee share options 31 11
Weighted average number of shares for calculating diluted EPS 59,576 61,276
Diluted earnings per share (pence) 2.48p 3.62p
NOTES TO THE UNAUDITED HALF YEAR FINANCIAL STATEMENTS (continued)
10. Earnings per share (continued)
Adjusted earnings per share
Adjusted earnings per share measures are calculated based on profits for the
year attributable to owners of the Parent Company before exceptional items as
follows:
Restated(1)
Six months to Six months to
31 March 2026 31 March 2025
(unaudited) (unaudited)
£'000 £'000
Profit after taxation attributable to owners of the Parent Company 1,475 2,220
Adjusted for exceptional items (see note 7):
- Restructuring and other expenses 709 559 758
- Acquisition expenses (134) -
- Taxation thereon (93) (190)
Adjusted earnings from continuing operations 1,807 2,788
Adjusted basic earnings per share (pence) 3.04p 4.56p
Adjusted diluted earnings per share (pence) 3.03p 4.55p
559
758
- Acquisition expenses
(134)
-
- Taxation thereon
(93)
(190)
Adjusted earnings from continuing operations
1,807
2,788
Adjusted basic earnings per share (pence)
3.04p
4.56p
Adjusted diluted earnings per share (pence)
3.03p
4.55p
1 Profit before tax, and therefore all earnings per share metrics have been
restated for the six months ended 31 March 2025, further details are given in
note 12.
( )
11. Capital commitments
The Group has entered into committed capital projects totaling £1,988,000 (H1
2025: £488,000), all of which were unprovided for at the Period end.
NOTES TO THE UNAUDITED HALF YEAR FINANCIAL STATEMENTS (continued)
12. Prior year adjustment
As per our stated revenue recognition policy, revenue is
recognised when control over goods is transferred to the customer. Depending
on the terms agreed with the customer, control may pass as early in the
delivery process as commencement of transport to the export port or as late as
unloading at the customer destination.
Following a comprehensive review of shipment terms as part of 30 September
2025 revenue cut-off procedures, we deemed it appropriate to revisit revenue
cut-off data as at the end of FY24 and FY23. In doing so, we identified errors
whereby revenue was recognised pre, rather than post year end in both periods,
that have been corrected by restatement.
The impacts of these restatements on the income statement for half year ended
31 March 2025 are shown below:
Restated Group income statement for the six months ended 31 March 2025
Previously reported Adjustment As restated(1)
£'000 £'000 £'000
Revenue 64,191 (143) 64,048
Cost of sales (48,182) 186 (47,996)
Gross profit(1) 16,009 43 16,052
Profit before taxation(1) 3,644 43 3,687
Basic earnings per share (pence) 3.56p 0.07p 3.63p
Diluted earnings per share (pence) 3.55p 0.07p 3.62p
Adjusted basic earnings per share (pence) 4.49p 0.07p 4.56p
Adjusted diluted earnings per share (pence) 4.48p 0.07p 4.55p
1 Profit figures are stated before exceptional items.
13. Post balance sheet event
As announced earlier today, the Board have recommended a cash offer from
Döhler Finance Management B.V of 305p per share.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements that are subject to risk
factors associated with, among other things, the economic and business
circumstances occurring from time to time in the countries, sectors and
markets in which the Group operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be affected by a
wide range of variables which could cause actual results to differ materially
from those currently anticipated. No assurances can be given that the
forward-looking statements in this announcement will be realised. The
forward-looking statements reflect the knowledge and information available at
the date of preparation of this announcement and the Group undertakes no
obligation to update these forward-looking statements. Nothing in this
announcement should be construed as a profit forecast.
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