Tate & Lyle PLC Statement on Entering Close Period
31 Mar 2010 07:00
Tate Lyle PLC Statement on Entering Close Period
In line with our usual practice, Tate Lyle PLC issues the following update for the year ended 31 March 2010 ahead of the announcement of the full year results on 27 May 2010.
Underlying trading in the final quarter of the 2010 financial year has been consistent with our expectations outlined in the Interim Management Statement of 28 January 2010. However, currency movements, in particular the stronger US dollar, will benefit reported performance in the final quarter.[1]
Performance at our Ingredients businesses in the Americas and Europe during the final quarter of the 2010 financial year has been in line with expectations. Margins in our EU sugar operations have remained consistent with those achieved in the third quarter, and, as anticipated, Sucralose has continued to deliver volume growth at lower average selling prices.
We have continued to focus on strengthening the Group’s balance sheet through operational efficiencies and optimising both working capital and capital expenditure. We expect underlying cash inflows in the quarter to offset the translation impact of the significantly stronger US dollar[2], and therefore anticipate that reported net debt at 31 March 2010 will be broadly similar to the £864 million reported at 31 December 2009.
[1] A 1 cent change in the sterling:US dollar exchange rate leads to a £1.3 million change in reported Profit before tax excluding exceptional items and amortisation of acquired intangible assets for the continuing operations (PBTEA) for the full year. As reported in the Interim Management Statement of 28 January 2010, we assumed a sterling:US dollar exchange rate of 1.68 in translating profits for the balance of the 2010 financial year.
[2] Every 1 cent change in sterling:US dollar exchange rate leads to a £6 million change in reported net debt. The closing sterling:US dollar exchange rate at 31 December 2009 was 1.62 and at 30 March 2010 was 1.51.
Notes to Editors:
A conference call will be held today at 8.00am BST, hosted by Javed Ahmed, Chief Executive, and Tim Lodge, Group Finance Director. Participants are requested to dial in at least 5 minutes before the start of the call. Details are provided below:
Participant dial in number: +44 (0) 1452 555 566 (UK freephone 0800 694 0257) Conference ID: 66276891
A replay of this call will be available from two hours after the end of the live call, for 7 days until 6 April 2010.
Replay dial in number: +44 (0) 1452 55 00 00 (UK freephone 0800 953 1533) Replay passcode: 66276891#
For more information contact:
About Tate Lyle: Tate Lyle is a global provider of ingredients and solutions to the food, beverage and other industries, operating from over 30 production facilities around the world.
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 2013, Tate Lyle sales totalled £3.3 billion. http://www.tateandlyle.com. SPLENDA® is a trademark of McNeil Nutritionals, LLC
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