StockMarketWire.com - Ingredients and flavouring supplier Treatt said it had experienced strong demand in recent weeks, as customers get requests for beverages consumed at home and cleaning products amid the Covid-19 pandemic.

However, the company said it still expected its revenue for the six months through March to fall due to lower citrus raw material prices.

Revenue was seen falling about 5.1% on-year, or by 5.6% on a constant currency basis.

Building work on a new facility in the UK had slowed as a consequence of the Covid-19 pandemic, meaning a planned relocation may not take place until 2021.

'The delay to our UK relocation will not affect our ability to meet customer orders in the short to medium term but such a delay does enable the Group to preserve cash during this period of uncertainty,' Treatt said.

At the end of March, the company said it had net cash of £6.5m and total bank facilities of £25.0m, of which £24.9m remained undrawn.

'The business is both trading well and is financially robust; we are encouraged by our order book and current demand as we move into our peak seasonal period,' Treatt said.

'Also, and as expected, citrus raw material prices are firming once more, which should result in a stronger performance from our citrus category in the second half of the financial year.'

'Whilst it is difficult to determine the likely impact of Covid-19 on the demand for the group's products in the coming months, our early experience has shown demand to be robust and at this time, trading remains in line with the board's expectations.'

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