Treatt (TET)

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Treatt TET Logo

The manufacturer and supplier of innovative ingredient solutions for the flavour, fragrance, beverage and consumer product industries.

2-Oct-2017

Trading Update For The Year Ended September 2017 – Expects to be “comfortably in-line with its expectations which were revised upward during the course of the year”.

Doubled this past 12 months it’s on a PER of 23 here. The figures look good and I guess comfortably in-line with revised upwards forecasts is pretty good news. However, I just can’t help but think (in a bull market that seems to be slowing) this is still a little expensive here (even at 10% off it’s all time highs).

28-Nov-2017 – 420.25p – £219m – PER 21.4

Final Results For The 12 Months To End September 2017 – Nice headline “Adjusted PBT up 46% and adjusted EPS up 42% as the Group delivers a strong set of results”. Revenue is up 24.5% to £109.6m. Impressive and seems to be in-line and the Board expects trading to continue in-line.

Doubled this past 12 months on a PER of 21.4 it’s starting to look a little more attractive. It’s going on my Watchlist.

Subsequently decided to go Neutral here, just couldn’t justify paying a PER of 20+ for this.

5-Apr-2018 – 406p – £233.6m – PER 23.2

Trading Update For The 6 Months To End March 2018 – LFL Revenue up 11% expecting FY PBT and exceptional items to be in-line.

Still a lot to like here but I am going to switch to Neutral for now. On a PER of 20+ I would just be expecting updates to be more upbeat.

8-May-2018 – 465p – £267.7m – PER 25.7

Interim Results For The 6 Months To End March 2018 – Revenue up 14% to £53.6m (2017 H1: £47.1m), Adjusted PBT of £5.8m (up 20% from £4.8m. Following the reduction in US corporate taxes, Basic Adjusted EPS up 30% from 6.58p (2017 H1) to 8.58p (2018 H1). Interim Dividend up 10%. Warns on exchange rates and raw material costs but believes the FY will meet expectations.

I like this but as I think I said last time – On a PER of 20+ I would just be expecting a little more here (EPS is inflated by US tax change).

2-Oct-2018 – 482p – £281.4m – PER 25.3

Trading Update For The 12 Months To End September 2018 – In-line.

Based on forecasts I still can’t see the justification for a PER of 25 here – I remain Neutral.

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