Tate & Lyle's promise boosts price
Thursday 26 November 1998
Reporting a 31 per cent fall in profits to pounds 167m for the year to September, Sir David said: "Last year was self-evidently disappointing for Tate & Lyle. Our aim is to ensure that 1997/98 represents the trough."
Brokers were encouraged by news that a much-delayed starch plant in Nesle, France, would be running at full capacity by early next year.
Sir David, formerly with the engineering group GKN, was appointed chairman two months ago after a difficult year for Tate which included a string of exceptional costs.
Income fell sharply because of narrow margins at the company's Staley subsidiary, which makes high-fructose corn syrup for use in soft drinks. This was compounded by a beet disease in North America, costing pounds 20m, and weak prices for starch in Europe. Confidence in the management was undermined by an incident known as the "Great Greek Grain Robbery", in which a Greek subsidiary delivered pounds 10m of grain but was never paid.
Simon Gifford, finance director, said the company was setting a new target for return on net operating assets of 15 per cent. He added: "The dividend will be maintained in real terms as an absolute minimum."
Analysts are now pinning their hopes on Sir David's influence. David Lang, of Henderson Crosthwaite, said: "These shares were completely clapped out... But the company is making the right noises to sort out the share price problem."
- 3 Russian girl takes her own life after parents find pornography on her computer
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...