Tate & Lyle Finals

[idpickering]

Actions to accelerate business performance
• Growth strategy refocused around three programmes:
- Sharpen focus on our customers and key categories of beverages, dairy, and soups, sauces and dressings
- Accelerate portfolio development: innovation, partnerships, acquisitions
- Simplify the business and deliver US$100m productivity improvements over four years
• As programmes gather momentum, we expect:
- Growth2 in earnings per share to accelerate
- Organic return on capital employed2 to improve
- Strong cash generation to support progressive dividend policy
• Acquired minority stake in Sweet Green Fields, a leading stevia business

Reporting changes
• Two divisions renamed: Primary Products and Food & Beverage Solutions (including Sucralose)
• Three reporting segments: Primary Products, Food & Beverage Solutions, Sucralose

Year of progress: profit and cash delivery
• 13% increase in adjusted profit before tax at constant currency with profit growth in all businesses
• 8% increase in Food & Beverage Solutions profit3 to £137m, with good volume and New Products momentum
• 5% increase in Sucralose profit3 to £55m
• 30% increase in Primary Products profit3 to £166m, 11% profit3 growth in main business, Commodities +£24m
• 7% increase in earnings per share4 at constant currency
• £53m higher Group statutory profit before tax with improved trading and lower exceptional costs
• Net debt £60m lower, with adjusted free cash flow £22m higher at £196m
• Proposed final dividend increased by 0.5p to 20.3p per share; making a total dividend of 28.7p, up 2.5%

And later;

Dividend

The Board is recommending a 0.5p or 2.5% increase in the final dividend to 20.3p (2017 – 19.8p) per share. This increased final dividend makes a full year dividend of 28.7p (2017 – 28.0p) per share, up 2.5% on the prior year. Subject to shareholder approval, the proposed final dividend will be due and payable on 1 August 2018 to all shareholders on the Register of Members on 22 June 2018. In addition to the cash dividend option, shareholders will continue to be offered a Dividend Reinvestment Plan (DRIP) alternative.

https://www.investegate.co.uk/tate---38 ... 0000Z8100/

[Arborbridge]

Thanks Ian. Tate has been a suitable candidate for topping-up on the "as good as it gets" yield basis. That is, is history yield is about as high as one can expect, and the forward - of about 4.9% - is certainly worth having. The only thing which has prevented me is that other candidates come out a little better!

It's also noteworthy (perhaps not in a good way) as being like Pearson: not the company I first bought into. It has been undergoing years of transformation, but unlike Pearson seems to have continued giving me the goods in its own quiet way.