Treatt PLC in Bury St Edmunds aims to expand its offer as financial results tell of successful year
Treatt PLC based in Bury St Edmunds has announced an oustantding year with sales exceeding £100 million and profit before tax up by 45.7 per cent.
The Northern Way company which is building a new 10-acre site at the new Suffolk Business Park has also achieved its 2020 strategic plan three years early and is now embarking on a new five year strategy.
Announcing the full year results CEO Daemmon Reeve, chief executive officer, said that 2017 had been a years of strong growth for the group gaining material new business in its three core areas of citrus, tea and sugar reduction and in the last five years had more than doubled adjusted profit before tax to £12.9 million.
Order books are also up year on year and sales at £109.6 million.
The company is also planning to invest in its expansion plans to increase capacity to meet demand.
Commenting on the move to the new UK site on the business park Mr Reeve said: “ Our new environment will provide a fundamentally improved customer experience enabling us to to showcase our expertise and extending our capabilities. We will have an appropriate technical-led facility aligned to meet our customers’ requirements at the same time as bringing all the operational benefits of being within one coherant facility as opposed to the six sub-optimal buildings we currently occupy.
“The new facility will be transformational and will enable us to more than meet customer expectations of a technical-led solutions provider.” The project is expected to cost £35 million net.
The company is also continuing its US expansion in Florida with the $14 million new build expected to be completed by the end of 2018.
The Group needs to make capital investment to support these projects and this will be met through a £15 million five year credit revolving facility for the UK project and a 10 year construction loan of $11 million in the US.
The group is also proposing to place 5,265,500 Placing Shares at 410.0 pence per share to raise around £21.6 million which is subject to the company’s general meeting on December 18.