For the six months ended 31 March 2003

Trading for the six months to 31st March 2003 was challenging, with Group turnover increasing 5.3 per cent to £15,216,000 (2002: £14,454,000) and profit before tax falling by 24 per cent to £955,000 (2002: £1,255,000). Earnings per share have consequently decreased to 6.5 pence per share (2002: 8.6 pence per share). The Board has declared an unchanged interim dividend of 2.7 pence per share (2002: 2.7 pence per share) which is payable on 3rd October 2003 to all shareholders on the register at close of business on 5th September 2003.

R C Treatt, the Group's principal operating subsidiary based in the UK, has increased sales but net profits were lower due to the absence of last year's significant one-off orange stock profits together with the impact of the weakening US Dollar during the last 12 months.

Despite moving to a new facility and poor weather in the northern United States, Treatt USA sales have been stable. However, there has also been a slight reduction in margins due to the product mix and increased overheads in the new facility. The last six months have not been easy for staff at Treatt USA, having relocated within budget and on time, and having installed a new Enterprise Resource Planning computer system. R C Treatt intends to implement fully this system later this year.

Orange oil prices remain firm and are expected to remain so until the new Brazilian orange crop in 2004 when it is believed that prices may well return to near historical levels.

The Group's balance sheet remained stable with net assets per share of £1.68 (September 2002: £1.65 per share). Net Debt was £5.5m and gearing was 31 per cent. Based upon our current projections the cash flow in the second half should be positive.

Prospects
The Group order book is much stronger than at this time last year, particularly in the USA. Treatt USA will have a stronger second half and although it is too early to predict results for R C Treatt, we believe that they will have at least as good a second half as the first half.

People
We are pleased to welcome Richard Hope (aged 36) as Finance Director, who joined the company on 12th May. Having qualified as a Chartered Accountant in 1990 with PriceWaterhouseCoopers, Richard has been Head of Finance at Hampshire Cosmetics Limited for seven years and was Finance Director of the Marketing Services Division of The Richbell Group.

EDWARD DAWNAY
Chairman
19 May 2003