Treatt (TET)

Business description

Treatt provides innovative ingredient solutions from its manufacturing bases in Europe, North America and Africa, principally for the flavours and fragrance industries and multinational consumer goods companies, particularly in the beverage sector.

Stock data

Market cap.£237m
Last close412.00p
High / Low (52 weeks)523.0p / 314.0p
Stock market listingLN
Forecast net debt (£m)2.7
Forecast gearing ratio (%)4
TeamIndustrials
SectorBasic Industries

Price performance

%1m3m12m
Actual(5.7)(0.5)58.5
Relative *0.01.657.5

* % Relative to local index

Other companies in sector Show

Company news

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 88.0 11.6 9.6 14.3 28.8 19.8
2017A 109.6 16.3 14.0 20.4 20.2 45.9
2018E 117.3 17.3 14.4 19.2 21.5 12.2
2019E 123.2 20.5 15.5 20.7 19.9 12.7

Last updated on 17/01/2018

Latest research

Growth continues apace

Update | Basic Industries | 30/11/2017

A full year Treat(t)

Update | Basic Industries | 03/10/2017

A brilliant half

Update | Basic Industries | 09/05/2017

Another upward surprise

Update | Basic Industries | 07/04/2017

Keep Treat(t)ing

Update | Basic Industries | 27/02/2017

What a Treatt

Outlook | Basic Industries | 18/01/2017

Staying sweet

Update | Basic Industries | 30/11/2016

Treat(t)ing investors

Update | Basic Industries | 11/10/2016

New strategy playing out

Update | Basic Industries | 17/05/2016

A great recipe

Outlook | Basic Industries | 06/01/2016

Steady as she goes

Update | Basic Industries | 12/10/2015

Another good half

Update | Basic Industries | 28/05/2015

Investment summary

Treatt's strategy to improve the quality of earnings is coming through and the move from commoditised sales to more value-added products is playing out. The company has delivered a year of record growth and has achieved its FY20 financial objectives three years early. There will be a full site relocation for the UK business over the next three years or so, and expansion of the US site. Management chose to fund these via a successful share placing in November, which raised c £22m. We continue to view Treatt as a good-value opportunity in the highly rated and high-growth ingredients space.

Last updated on 02/02/2018

Industry outlook

Annual growth rates for the global flavours, fragrance and ingredients sector are expected to be low single digits in 2013-18 (source: IAL Consultants). Treatt is migrating its business from that of a pure supplier to the food and beverage industries to being a valued partner in the development of new ingredients. Citrus flavours and sugar reduction are core areas of focus, with the latter undergoing a structural growth trend.

Last updated on 02/02/2018

Key management

Tim Jones , Chairman
Daemmon Reeve, CEO
Richard Hope , CFO

Company address

Northern Way
Bury St Edmunds
Suffolk
IP32 6NL
United Kingdom
+44 1284 702500
View website