Despite a slow start to the year for the Bury St Edmunds based arm of the Treatt Group, the company believes it will exceed its financial expectations.
The group has seen profits before tax for the first six months fall from 3.7 million last year to £1.6m in 2012.
However it says this was only because last year’s figures were skewed by a windfall from its orange oil stocks and that it is actually an increase on the six month profits for 2009 and 2010 of £1.4m and £1.5m respectively.
The Treatt Group which includes Treatt USA, Kenyan based Earthoil and RC Treatt in Bury announced its half year results to March 31, on Monday.
The group, which makes and supplies ingredients for the flavours, fragrance and cosmetics industries saw its revenue climb up by one per cent to £36 million.
Chairman Tim Jones, in a statement, said Treatt USA continued to perform well following a strong year in 2011, while Earthoil which specialises in organic and Fairtrade cosmetic ingredients, was growing at a steady pace.
“The group’ s UK operating business, RC Treatt, was less busy in the first quarter of the financial year,” said Mr Jones. “However, as anticipated, business began to recover in quarter two and has much improved.”
He said orange oil prices, the groups largest raw material had peaked in stock price last year at $10 a kilo but have crashed this year to $4.
Mr Jones added: “The improvement in the group’s performance has continued into quarter three with order books increasing across the group.
“The board, therefore, now believes that results in the second half of the year will result in its expectations for the full financial year ended September 30 being exceeded, particularly now that raw material ingredient market prices have begun to stabilise.”