Treatt - manufacturer and supplier of flavour and fragrance ingredients - has warned that interim profit to March will not match last year’s and full year figures will be short of market expectations.

The group said its main UK-based operation increased sales but margins came under pressure due to product mix and foreign exchange movements.

In the US Treatt sales have been stable but a slight reduction in margins due to the product mix and costs in moving to a new facility.

The company said the fall in profits was “a temporary factor and with a much stronger order book in Treatt USA than last year” and has confidence in its future prospects.

Interim results are due to be announced on May 19.