Tate & Lyle profits sweeten by 14%

Tate & Lyle have said profits were up 14 per cent in the year to March 31 but warned a number of factors will hit performance this year.

The sugar and starch group said adjusted pre-tax profits were £336 million, up from £295 million previously.

This was despite the "headwinds" of energy cost increases, the impact of EU sugar reform and adverse currency movements, the firm said.

Tate said the continuing oversupply of sugar in the EU market will also have a negative impact on its sugar refining business, which has operations in London and Lisbon.

Additionally, plans to dispose its European food and industrial ingredients division will also reduce operating profits.

And a new factory in Singapore to meet demand for sweetener Sucralose will increase fixed costs.

© Independent Television News Limited 2007. All rights reserved.