- Treatt chairman buys stock after profit warning
- The company’s CEO also buys shares
- ConvaTec non-exec buys after better-than-expected results
Two directors bought shares in flavour and fragrance ingredients maker Treatt (TET) on 15 August in the wake of a profits warning which sent shares sliding by over 30%.
Chairman Tim Jones purchased 8,944 shares across, taking his total interest to 67,032 shares, or 0.1% of its total voting rights. He invested a total of £49,724.
Chief executive officer Daemmon Reeve, meanwhile, paid 559p per share for his single purchase of 3,556 shares, valuing the transaction at £19,878. Following the purchase, Reeve holds 544,056 shares, equivalent to 0.89% of total voting rights.
The latest trading update for the year ending September 2022 was disappointing because the group reduced its earnings guidance for the full year. It now expects pre-tax profits before exceptional items to be between £15 million and £15.3 million.
This shocked the market because it is significantly lower than the £21.7 million analysts were anticipating.
However, Reeve’s decision to buy shares reflects the confident nature of the comments he made in the trading update.
The company still expects to report strong sales growth for the year and boasts an ‘excellent’ order book up 25% year-on-year. Reeve said: ‘We remain encouraged by the underlying trading performance of the business and are confident in the long-term growth drivers for Treatt’.
Reeve highlighted ‘significant opportunities across our categories and geographies’ and said that notwithstanding the short-term impacts in tea, he sees ‘strong momentum in all of our categories given the alignment with prevailing consumer trends. For example, there continues to be sustained growth in demand for our natural and authentic extracts and bespoke solutions for a wide range of beverages.’
CONVATEC EXECUTIVE TOPS UP HIS HOLDING AFTER RESULTS
Sten Scheibye, non-executive director of FTSE 250 listed wound care specialist ConvaTec (CTEC), bought £47,400 worth of shares less than a fortnight after the company’s forecast-beating half-year results.
Earnings before interest and tax came in at $205 million against a consensus of $198 million.
The market has been encouraged that management maintained its guidance for full year organic revenue growth of between 4% and 5.5% and a constant-currency EBIT margin of at least 18% after 19.6% over the first half.
ConvaTec’s shares have risen by 8.3% over the past month and by 37.3% over the last six months.
