The Board is pleased to confirm that the Group has performed well in the second half of the financial year. As we approach our financial year end, momentum in the business has continued and consequently the Board now expects to report profit before tax and exceptional items for the year ending 30 September 2016 comfortably above its previous expectations.
The performance across the Group has been consistently strong throughout 2016. The Group's focus on key beverage sectors including innovative citrus and sugar reduction solutions, as well as key markets such as China and North America, is showing encouraging signs of success. The cash performance of the Group has also been encouraging with net debt expected to end the year at its lowest level since 2005.
The Group's strategy to manage foreign exchange risk has prevented currency fluctuations during the year from having a more material impact on the net results. Whilst the underlying impact of the strengthening US dollar is expected to reduce profits by approximately £0.5m in the current financial year, it is expected that these hedging policies will substantially reverse this figure in the first quarter of the next financial year.
Plans for the relocation of the Group's UK site are progressing well. Discussions with landowners are now at an advanced stage and we anticipate providing a further update on progress when we report our full year results in November 2016.
Looking to the year ahead, with the continuing momentum being delivered by our Strategic Plan and the beneficial impact should the US Dollar to Sterling remain at its current rates, the Board believes that the business will continue to perform well and management look to the future with confidence.
Treatt Plc's results for the year ending 30 September 2016 will be announced on 29 November 2016.