Ingredients solutions provider Treatt says discussions with landowners for a relocation of the business within Bury St Edmunds have reached an advanced stage.
The manufacturer and supplier of innovative ingredient solutions, which has been based in Northern Way for 40 years, says it hopes to update investors on progress on the multi-million pound move next month.
Treatt first announced two years ago it was looking for a bigger site in Bury St Edmunds in order to grow the business.
In a new trading update, the company states: “Plans for the relocation of the Group’s UK site are progressing well.
“Discussions with landowners are now at an advanced stage.
“We anticipate providing a further update on progress when we report our full year results in November 2016.”
The update also revealed that Treatt’s profits for its full financial year will be comfortably above expectations.
The firm stated: “The Group has performed well in the second half of the financial year.
“As we approach our financial year end, momentum in the business has continued.
“Consequently the Board now expects to report profit before tax and exceptional items for the year ending 30 September 2016 comfortably above its previous expectations.
It added: “The Group’s focus on key beverage sectors including innovative citrus and sugar reduction solutions, as well as key markets such as China and North America, is showing encouraging signs of success.
“The cash performance of the Group has also been encouraging with net debt expected to end the year at its lowest level since 2005.
In addition, its strategy to manage foreign exchange risk has stopped currency fluctuations from having a “more material impact” on results for the year ended Friday.
However, Treatt said that while the underlying impact of the strong US dollar will reduce profit by £500,000, its hedging policies will substantially reverse that figure in the first quarter of the new financial year.
Looking to the year ahead, with the continuing momentum being delivered by our Strategic Plan and the beneficial impact should the US Dollar to Sterling remain at its current rates, the Board believes that the business will continue to perform well and management look to the future with confidence.
Treatt results for the year ending September 30, 2016 will be announced on November 29.