Tate and Lyle see profits fall

British sugars and ingredients group Tate & Lyle today said a “year of transition” had seen an 11% fall in annual profits.

The company has rocked investors with a series of profits warnings after being hit by a host of factors including the weak US dollar, lower sugar prices after EU reforms and higher European corn costs.

The group’s underlying pre-tax profits fell to £244m (€306m) in the year to March 31 – slightly better than market forecasts – but it said an overhaul of the business was “largely complete”.

Tate & Lyle has sold off divisions more exposed to volatile commodity prices and simplified its management structure, which it said would offer a “solid platform” to grow the business.

Current trading is on track and the group expects to make good progress this year, the firm said.