Tate & Lyle expects annual profit to be marginally lower

2nd Apr 2015 08:03

Ingredient and beverage provider Tate & Lyle reiterated guidance for the current financial year, saying that it expected profit to be lower than initial estimates.The FTSE 250 group said it expected pre-tax for the year ended 31 March to be "modestly" below the £230m to £245m range first stated in September.In a trading update on Thursday, the company said profit had been held back by the impact of the operational and supply chains and by the challenging market conditions for its Splenda sucralose product.The group added that a project to evaluate how to best maximise returns from the product was coming to an end and would be finalised by the end of the month.T&L expected debt for the year to be approximately £500m, around 7.3% higher than at the end of December, due to investment towards working capital.Analysts at Shore Capital said they expected progress in the next financial year to remain challenging and reiterated their 'hold' rating on the stock.Shares in the group were up 1.76% to 618.68p at 08:37 on Thursday.