Tate & Lyle share price falls as is reiterates not-so-sweet profit forecast

Emma Haslett
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The company said it expected profits to remain flat this year (Source: Tate & Lyle)

Shares in Tate & Lyle fell two per cent to 568p this morning, after it said it expects full-year profits to be in line with the rather sour expectations it set out in May.

In a trading update this morning, the company said guidance for the full year remained unchanged.

In May it said it expected profits to stay flat in 2015, after profits before tax fell 28 per cent to £224m in the year to the end of March

It added that while its speciality ingredients arm had performed "encouragingly" and bulk ingredients had performed in line with expectations during the quarter, its commodities arm had been hit by low US ethanol margins, which were "significantly lower" than during the comparative period.

It added that the "realignment" of its Eaststarch joint venture in Europe had been given regulatory approval, after it chose to dispose of its bulk sweeteners operation in Europe

"Overall, before the impact of exchange rate movements1 and the final timing of the completion of the Eaststarch transaction, expectations for the group’s full year performance remain unchanged from our guidance," it said.

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