Trading Statement on entering Closed Period
In line with our usual practice, Tate Lyle issues the following trading update for the year ending 31 March 2008 ahead of the announcement of the preliminary results on 22 May 2008.
TRADING PERFORMANCE
The Group’s trading performance since the Interim Management Statement (“IMS”) on 15 February 2008 further reinforces the Board’s overall expectations as set out in the IMS, that the outturn for our continuing operations in the second half of the year to 31 March 2008 will be broadly similar to that of the first six months*.
*The profit before tax for the first six months of the year ending 31 March 2008 from continuing operations, after adjusting for exceptional items and the amortisation of acquired intangible assets and the reclassification of the profit before tax for Occidente from continuing operations to discontinued operations, was £117 million.
NET DEBT
Net debt of £1,036 million at the end of February was in line with our internal forecast made at the time of the IMS.
EXCHANGE RATES
We now anticipate a reduction in profit before tax of approximately £11 million for the year as a whole from exchange translation by comparison with the prior year. The average sterling : US dollar exchange rate of 2.01 (2007: 1.89) for the year ending March 2008 was the main factor behind this, although the impact of the translation of the US dollar was partially offset by other currency movements, and in particular by the stronger euro.
RETURN OF CAPITAL
Following approval from shareholders at the AGM in July 2007 to purchase up to 10% of the issued share capital at that time, we had acquired by the close of business on 31 March 2008 33.6 million shares (6.9% of the issued share capital at the time of the AGM) for a total cash consideration of £159 million. The Company had 457.2 million ordinary shares in issue at 31 March 2008, excluding 2.8 million ordinary shares held in Treasury.
The average number of shares in issue during the year for use in calculating basic earnings per share is 475 million, and the estimate for calculating diluted earnings per share is 481 million shares. ENDS
A conference call will be held today at 8.30am, hosted by Iain Ferguson, Chief Executive and John Nicholas, Group Finance Director. Participants are requested to dial in at least five minutes before the commencement of the call. Dial in details are as follows:
Participant dial in number: +44 (0)1452 560 304 (UK freephone 0800 694 1449) Conference passcode: 41737930
Replay dial in number: +44 (0)1452 550 000 (UK freephone 0800 953 1533) Replay passcode: 41737930#
A replay of this call will be available from two hours after the end of the live event, for seven days until 8 April 2008.
Tate Lyle operates through two global business units, Speciality Food Ingredients and Bulk Ingredients, supported by Innovation and Commercial Development. The Group's strategy is to become the leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving the Bulk Ingredients business for sustained cash generation to fuel this growth.
Speciality Food Ingredients include starch-based speciality ingredients (corn-based speciality starches, sweeteners and fibres), no calorie sweeteners (including SPLENDA® Sucralose) and Food Systems which provides blended ingredient solutions. Bulk Ingredients include corn-based bulk sweeteners, industrial starches and fermentation products (primarily acidulants). The co-products from both divisions are primarily sold as animal feed.
Tate Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2012, Tate Lyle sales totalled £3.1 billion. http://www.tateandlyle.com. SPLENDA® is a trademark of McNeil Nutritionals, LLC
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