Tate & Lyle PLC
Tate & Lyle PLC
Trading Update prior to Closed Period
Before entering its closed period for the year ending 31 March 2007 and prior to
briefing stockbrokers' analysts, Tate & Lyle issues the following routine
trading update. The preliminary announcement of results for the year ending 31
March 2007 will be made on 23 May 2007.
TRADING
Since the update on 23 January 2007 the Group's overall trading performance has
been in line with market expectations and has continued to comfortably exceed
the corresponding period of the prior year.
As previously indicated, sales and profits of SPLENDA((R)) Sucralose for the
year to 31 March 2007 are expected to only modestly exceed the prior year. We
are continuing to work with our customers on product innovation and will provide
an update on our SPLENDA((R)) Sucralose business at our results presentation on
23 May 2007.
OTHER ITEMS
The renunciation of beet sugar quota by Eastern Sugar (announced on 10 October
2006) has been formally agreed with the EU restructuring fund and Eastern Sugar
will be treated as a discontinued business in the financial results for the year
ending 31 March 2007. Tate & Lyle's share of net cash proceeds from the
restructuring fund of approximately £51 million will be payable in two
instalments in the financial year to 31 March 2009. The net exceptional gain on
closure is estimated at £15 million and will be reported in the year to 31 March
2007.
Following the decision to cease production of citric acid at the site in Selby,
Yorkshire, a fundamental review has been undertaken of the astaxanthin business
carried on at the same site. Following this review it has been decided to take
an impairment charge on our investment in the astaxanthin business. This charge
together with the closure costs for the citric plant are expected to result in
an exceptional charge of approximately £35 million in the year to 31 March 2007.
The disposal of Tate & Lyle Canada Ltd (announced on 14 February 2007)
('Redpath') remains subject to regulatory approvals. Our expectation remains
that completion will take place early in the next financial year and will result
in an exceptional gain of approximately £50 million in the year ending 31 March
2008. Redpath will be treated as a discontinued business in the financial
results for the year ending 31 March 2007.
We continue to make progress in exploring the possible full or partial disposal
of Food & Industrial Ingredients, Europe (announced on 25 October 2006). A
further update is planned within the next few weeks.
A conference call for analysts and investors will be held at 8.30am today. The
call will be hosted by John Nicholas, Group Finance Director and Mark Robinson,
Director of Investor Relations. Participants are requested to dial in at least 5
minutes before the commencement of the call. Dial in details are:
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Participant dial in number: +44(0) 20 7138 0817
Replay telephone number: +44(0) 20 7806 1970
Replay passcode: 1400984#
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The replay of this call will be available for 7 days until 4 April 2007.
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CONTACTS
Mark Robinson, Director of Investor Relations
Tel: 020 7626 6525 or Mobile: 07793 515861
Ferne Hudson, Head of Media and Public Relations
Tel: 020 7626 6525 or Mobile: 07713 067433
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About Tate & Lyle: Tate & Lyle is a world leading manufacturer of renewable food
and industrial ingredients. It uses innovative technology to transform corn,
wheat and sugar into value-added ingredients for customers in the food,
beverage, pharmaceutical, cosmetic, paper, packaging and building industries.
The Company is a leader in cereal sweeteners and starches, sugar refining, value
added food and industrial ingredients, and citric acid. Tate & Lyle is the world
number-one in industrial starches and is the sole manufacturer of SPLENDA((R))
Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange
under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company
operates more than 65 production facilities in 29 countries, throughout Europe,
the Americas and South East Asia. It employs 7,000 people in its subsidiaries
with a further 4,800 employed in joint ventures. Sales in the year to 31 March
2006 totalled £3.7 billion. Additional information can be found on this website
www.tateandlyle.com.
SPLENDA((R)) and the SPLENDA((R)) logo are trademarks of McNeil Nutritionals,
LLC
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