The company experienced supply chain issues in the first half of the year (Source: Getty)
After a string of profit warnings, Tate & Lyle's financial outlook seems to be stabilising at last.
For the full year to 31 March, Tate & Lyle estimates its pre-tax profit will be fall “modestly below” the range of £230m to £245m it predicted in September.
The update is based on trading results for the fourth quarter, and is in line with the guidance it issued in February.
The business expects net debt to be around £500m for the year, which is an increase from the £466m it predicted in December. It said this was due to investment in rebuilding and the exchange rate impacts of a strengthening US dollar.
The final set of results will be released on 28 May.
Why it's interesting
The news is likely to instil some confidence in investors – the company got off to a bad start to the year, issuing its third profit warning in 12 months
It blamed this on falling sugar and oil prices, as well as supply chain problems in the US during the first half of the financial year. This sent shares diving in value, and they have been slow to pick up since then.
Tate & Lyle has a long way to go if it is to recover from last year, but the fact that its latest prediction is in line with February's guidance will come as some relief to investors. Shares went up by 1.23 per cent to 615 pence following the news, reflecting this.