- Treatt said, looking ahead to the second half of the financial year, its order books are encouragingly ahead of the same period last year and the board believes the group remains on course to meet its expectations for the full financial year ending 30 September 2015.

As reported in December 2014 the first half of the financial year began with a relatively slow Q1 which reflected the increased seasonality of the business. This seasonality relates to the Group's strategic focus on innovative ingredient solutions for the beverage market in particular.

Trading has recovered well in Q2 in line with our expectations. Whilst underlying gross margins continue to improve, this improvement in the first half has been offset, as expected, by some adverse raw material price movements which have affected margins on some longer term fixed price contracts.

Overall, H1 has seen solid revenue growth compared to the same period last year, with profits also up.

The first six months of this financial year have been encouraging with new business wins in a number of key market segments including the growing craft beer market, and in the sugar-reduction wellness arena for soft drinks.

In addition, active concentration on our partnerships with global customers has enabled us to win added-value citrus and other flavour business across a range of beverage products.

Although movements in FX rates (particularly the US Dollar and Euro) have been more volatile than usual in the first half of the year, we have a number of hedging strategies in place which have mitigated any materially adverse impact which such movements could have caused.

The Board have continued to actively consider a number of options with regard to its UK plant and facilities at Bury St Edmunds which no longer meet the medium to long term needs of the business as we pursue our strategy towards becoming an ingredient solutions partner of choice for both global and local FMCG businesses.

Whilst formal plans are some way off, we expect to be in a position to consult with key stakeholders to ensure their support as these plans come together over the next 6-9 months.

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