TREATT PLC

PRELIMINARY STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2005

GROUP PROFIT AND LOSS ACCOUNT

2005

2004

Notes

£'000

£'000

Turnover - continuing operations

1

32,521

31,809

Cost of sales

(21,952)

(23,354)

______

______

Gross profit

10,569

8,455

Net operating costs

- exceptional items

2

-

(70)

- other operating costs

(7,023)

(6,025)

______

______

Operating profit

3,546

2,360

Exceptional profit on sale of fixed assets

2

-

131

______

______

Profit on ordinary activities before interest

3,546

2,491

Net interest payable

(90)

(123)

______

______

Profit on ordinary activities before taxation

3,456

2,368

Tax on profit on ordinary activities

3

(1,082)

(669)

______

______

Profit on ordinary activities after taxation

2,374

1,699

Dividends

4

(937)

(893)

______

______

Retained profit for the year

1,437

806

______

______

Dividends per ordinary share

4

9.5p

8.8p

Earnings per share

- Basic

- after exceptional items

5

23.7p

16.6p

- before exceptional items

5

23.7p

16.0p

- Diluted

5

23.6p

16.6p

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

2005

2004

£'000

£'000

Profit for the financial year

2,374

1,699

Exchange differences on foreign

currency net investments

123

(431)

______

______

Total recognised gains and losses

2,497

1,268

______

______

The figures for the years ended 30 September 2005 and 2004 are an abridged version of the group's audited financial statements, these are not statutory accounts.  The figures for the year ended 30 September 2004 have been delivered to the Registrar of Companies.  These statements received an unqualified audit opinion and the auditors' report contained no statement under section 237(2) or 237(3) of the Companies Act 1985.

TREATT PLC

PRELIMINARY STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2005

GROUP BALANCE SHEET

2005

2004

£'000

£'000

Tangible fixed assets

9,374

9,536

Current Assets

Stocks

11,395

8,355

Debtors

5,718

6,007

Cash at bank and in hand

297

809

______

______

17,410

15,171

______

______

Creditors: amounts falling due within one year

Loan

(144)

(141)

Other creditors

(5,472)

(4,451)

______

______

(5,616)

(4,592)

______

______

Net current assets

11,794

10,579

______

______

Total assets less current liabilities

21,168

20,115

Creditors: amounts falling due after more than one year

Loan

(2,179)

(2,271)

Deferred tax

(451)

(519)

______

______

Net assets

18,538

17,325

______

______

Capital and reserves

Share capital

1,029

1,029

Share premium account

2,143

2,143

Own shares in share trust

(625)

(278)

Profit and loss account

15,991

14,431

______

______

Shareholders' funds

Equity Interests

18,538

17,325

______

______

TREATT PLC

PRELIMINARY STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2005

GROUP CASH FLOW STATEMENT

2005

2004

£'000

£'000

Cash inflow from operating activities

2,630

4,952

Return on investments and servicing of finance

(90)

(123)

Taxation

(812)

(312)

Capital expenditure and financial investment

(862)

(646)

Equity dividends paid

(895)

(861)

______

______

Cash (outflow)/inflow before financing

(29)

3,010

Financing

- net acquisition of own shares by share trust

(347)

(278)

- decrease in debt

(144)

(142)

______

______

(Decrease)/increase in cash in the year

(520)

2,590

______

______

RECONCILIATION OF NET CASH FLOW TO INCREASE IN DEBT

(Decrease)/increase in cash in the year

(520)

2,590

Cash outflow from change in net debt

144

142

Exchange difference

(47)

203

______

______

(Increase)/decrease in net debt in the year

(423)

2,935

Net debt at 1 October 2004

(1,603)

(4,538)

______

______

Net debt at 30 September 2005

(2,026)

(1,603)

______

______

TREATT PLC

PRELIMINARY STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2005

NOTES TO THE PRELIMINARY STATEMENT

2005

2004

£'000

£'000

1

Turnover by destination :

United Kingdom

6,314

6,725

Rest of Europe

9,331

8,674

The Americas

8,816

8,756

Rest of the World

8,060

7,654

______

______

32,521

31,809

______

______

2

Exceptional items :

The exceptional items referred to in the Group Profit and Loss Account are categorised as follows :

2005

2004

£’000

£'000

Reorganisation costs

-

70

______

______

Profit on the sale of fixed assets

-

(131)

______

______

2005

2004

£'000

£'000

3

Taxation:

UK current year corporation tax

784

395

Overseas current year tax

375

109

Transfer (from)/to deferred tax

(52)

176

UK prior year corporation tax

(3)

(10)

Overseas prior year  tax

(1)

18

Prior year deferred tax

(21)

(19)

______

______

1,082

669

______

______

2005

2004

£'000

£'000

4

Dividends :

Interim declared of 3.1p (2004: 2.7p) per share

310

278

Final proposed of 6.4p (2004: 6.1p) per share

639

615

Over accrual from previous year

(12)

-

______

______

Total for the year

937

893

______

______

Subject to approval at the Annual General Meeting on 27 February 2006, the final dividend for the

year ended 30 September 2005 will be payable on 10 March 2006 to those shareholders on the

Register at the close of business on 10 February 2006 (ex-dividend date 8 February 2006).

5

(a) Basic earnings per share:

Basic earnings per share is based on the weighted average number of ordinary shares in issue

and ranking for dividend during the year of 10,024,533 (2004 : 10,248,749) and earnings of : 

-

£2,374,000 (2004 : £1,699,000), being the profit on ordinary activities after taxation and exceptional items 

-

£2,374,000 (2004: £1,643,000) being the profit on ordinary activities, after taxation excluding the net impact of exceptional items (2004:£61,000) and tax thereon (2004: £5,000).

The weighted average number of shares excludes shares held by the Treatt Employees’ Share Trust.

(b) Diluted earnings per share:

Diluted earnings per share is based on the weighted average number of ordinary shares in issue 

and ranking for dividend during the year, adjusted for the effect of all dilutive potential ordinary 

shares, of 10,050,258 (2004 :10,259,601), and the same earnings as above.