Tate & Lyle PLC
Annual Financial Report and Notice of Annual General Meeting
2024
In accordance with Listing Rule
9.6.1, Tate & Lyle PLC (the 'Company' or 'Tate & Lyle')
confirms that copies of the following documents have been submitted
to the National Storage Mechanism and will shortly be available for
inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
1. Annual Report 2024 -
http://www.rns-pdf.londonstockexchange.com/rns/1075R_4-2024-6-4.pdf
2. Notice of Annual General
Meeting 2024 - http://www.rns-pdf.londonstockexchange.com/rns/1075R_2-2024-6-4.pdf
3. Notice of Availability -
http://www.rns-pdf.londonstockexchange.com/rns/1075R_1-2024-6-4.pdf
4. Proxy Form - http://www.rns-pdf.londonstockexchange.com/rns/1075R_3-2024-6-4.pdf
The Annual General Meeting 2024 will
be held at the Royal College for Nursing, 20 Cavendish Square,
London, W1G 0RN at 10.30am on 25 July 2024.
The Annual Report 2024, Notice of
Annual General Meeting 2024, Notice of Availability, and Proxy Form
are also available on the Company's website:
https://www.tateandlyle.com/news/2024-annual-report-and-notice-agm.
Mailing of the Annual Report 2024, Notice of Annual General Meeting
2024, Notice of Availability and Proxy Form to shareholders who
have requested or are entitled to receive them will occur
shortly.
We will notify shareholders of any
significant updates to our Annual General
Meeting 2024 arrangements via a regulatory
information service and on the Investors Hub section of the
Company's website.
Annual Financial Report
For the purposes of complying with
Disclosure Guidance and Transparency Rule ('DTR') 6.3.5R, and the
requirements it imposes on issuers as to how to make public annual
financial reports, we set out below:
- in
Appendix A, the principal risks and uncertainties facing
the Company;
- in
Appendix B, the Directors' responsibility statement; and
- in
Appendix C, the disclosure regarding related party
transactions.
The appendices have been extracted
from the Annual Report 2024 in unedited full text
and page numbers in the text refer to page numbers
in that document. This information should be read
in conjunction with the Company's 2024 full-year results
announcement, released on 23 May 2024, which contained a condensed
set of financial statements and can be found
at www.tateandlyle.com/investors/results-and-presentations.
Together, these constitute the material required by DTR 6.3.5R to
be communicated to the media in unedited full text through a
Regulatory Information Service.
Claire-Marie O'Grady
Company Secretary
4 June 2024
For
more information contact:
Investors and analysts
Christopher Marsh, VP Investor
Relations
Mobile: +44 (0) 7796 192
688
APPENDIX A
PRINCIPAL RISKS AND UNCERTAINTIES
Strategic risks
1. Strategy
delivery
Failing to grow Food & Beverage
Solutions would prevent us from delivering against our Group
targets. This could reduce our profitability in both the short and
long term and damage investors' view of us. Revenue and EBITDA
growth, and M&A activity, are key components of how
we
will successfully grow our business,
and we have a five-year strategic plan in place to support
this.
How we mitigate the
risk
· Our
organic and acquisitive growth plan supports our strategy. We have
global and regional five-year plans focused on key
categories.
· Our
Board regularly reviews and challenges the strategic direction of
the business to help us stay competitive and successful in our
chosen markets.
· Our
Executive Committee regularly reviews our strategic progress and
financial performance, as well as the opportunities in our markets
and competitor activities.
· Our
M&A team works closely with Innovation and Commercial
Development (ICD) and Food & Beverage Solutions to identify
acquisitions and partnerships that will help us grow.
· We
have incentive schemes and bonus programmes in place for
customer-facing teams that are tied to strategic, commercial and
operational targets.
What we've done this
year
· We
strengthened our customer offering and presence in Asia with the
integration of our acquired stevia and tapioca businesses, as well
as Quantum Hi-Tech, a leader in FOS and GOS dietary fibres in
China.
· We
invested in further building our solution selling capabilities in
areas such as sensory and open innovation.
· We
executed targeted programmes to develop new ways of working with
customers to build stronger solutions-based
partnerships.
· We
expanded our global network of Customer Innovation and
Collaboration Centres, opening a new Centre in Jakarta,
Indonesia.
· We
continued to build our technical service capabilities in Asia, the
Middle East, Africa and Latin America - a process we began last
year to accelerate our business presence in higher growth
markets.
· We
launched a number of online tools to support and build connections
with our customers. These include our Communities of Practice for
dairy and beverage, and our Technical Exchange Forums for areas
such as plant-based products.
Trend compared with 2023 financial year:
unchanged
2. Innovation
Developing and commercialising new
products is essential to our ability to lead the industry in our
chosen categories, and therefore to the long-term growth of our
business. Without them, we might be unable to meet our customers'
future requirements which could damage our performance and
reputation and result in customers switching to
competitors.
How we mitigate the
risk
· We have a robust innovation process
based on both in-house development and external open innovation,
which delivers a strong pipeline of new ingredients and solutions
for our customers.
· Our
ICD team monitors consumer and category trends and works closely
with commercial partners to ensure new products and solutions meet
our customers' needs.
· Our
ICD team connects with external organisations, including biotech,
pharma, and food technology ecosystems, to identify and make the
most of scalable innovation and new product
opportunities.
· We
prioritise opportunities to partner with our customers to
accelerate development cycles and bring new products to market more
quickly.
What we've done this
year
· Our
investment in innovation and solution
selling capabilities, increased by 5%.
· New
Product revenue grew by 13% on a like-for-like basis (ie no
products are removed from disclosure due to age).
· Solutions revenue from new business wins increased by 3ppts,
to 21%.
· We
launched nine New Products into the market including TASTEVA® SOL
Stevia sweetener, a patent-protected breakthrough in stevia
technology to help customers solve stevia solubility
challenges.
· We
invested in a new automated lab at our Customer Innovation and
Collaboration Centre in Singapore with advanced technology to
accelerate the development and speed-to-market of mouthfeel
solutions.
· We
improved our approach to developing and deploying ingredients as
part of a solution, in particular by embracing our global solutions
chassis approach.
· We
added 61 patents to our portfolio and now have over 540 patents
granted and over 220 pending.
Trend compared with 2023 financial year:
unchanged
3. People and
talent
It is critical that we have the
right people with the right capabilities to be a purpose-led global
business and deliver our strategy. We have strategies in place to
recruit, develop and retain our people and to build a diverse and
inclusive workforce.
How we mitigate the
risk
· Our
talent development plans give employees opportunities and training
to build their capabilities and resilience.
· We
have set several 2030 targets to track our progress on delivering
equity, diversity and inclusion.
· We
have initiatives in place at Group, local and functional levels to
progress equity, diversity and inclusion across the organisation.
We also have employees dedicated to developing and measuring our
progress on equity, diversity and inclusion.
· We
have a mix of short- and long-term incentives. This includes a
bonus scheme available to a broad population of
employees.
· We
have a single global performance management system and talent
planning process.
· We
carry out global employee surveys that help tell us what employees
really think about working at Tate & Lyle.
· Our
Executive Committee and the Board plan succession for
business-critical roles.
· We
encourage our people to share open and transparent feedback so we
can react to any challenges that emerge.
What we've done this
year
· We
focus on maintaining competitiveness by updating our reward
framework to ensure it reflects current local
conditions.
· We
have a Group-wide programme to support the physical and mental
wellbeing of our employees.
· We
carried out a global employee engagement survey managed by an
external organisation. The response rate was high at 80% and showed
an encouragingly strong level of employee engagement.
· We
have seven Employee Resource Groups which play an important part in
enabling employees to experience solidarity, support, education,
growth and development.
· We are
strengthening our performance management system to create clear
strategic alignment for our teams, as well as introducing a more
frequent development conversation cycle and clarity of reward
outcomes.
· We
launched a new management training programme, Connect Catalyst, to
help our managers create an engaging, inclusive and high-performing
organisation. More than 200 managers have taken part so
far.
· We
completed a talent review for all employees to understand their
capabilities, aspirations and potential and how that connects with
future development and succession opportunities.
Trend compared with 2023 financial year:
unchanged
4. Climate Change and
Sustainability
Climate change risks, both physical
and transition, such as extreme weather events, temperature rises,
water stress and increased regulation, may increase volatility in
our raw materials supply chain and production costs. They may also
lead to capacity constraints and higher costs of compliance. In
addition, the failure to meet our sustainability goals could result
in financial loss and reputational damage among customers,
consumers, investors and other stakeholders.
How we mitigate the
risk
· Caring
for our planet is one of the three pillars of our purpose, and
considering the impact of climate change is embedded in our
key processes, including capital
investment, new product development and acquisitions.
· We
have established a governance process to oversee and monitor our
sustainability programme including a Sustainability Committee that
is chaired by the Chief Executive, and meets at least twice a year,
and a Sustainability Working Group which
meets at least monthly.
· We
have set Group targets to reduce our absolute greenhouse gas
emissions, our water use intensity and to ensure we beneficially
use our waste. We also operate sustainable agriculture
programmes.
· Each
site is set sustainability goals each year as part of the annual
planning process.
· We run
communication programmes to highlight the impact of climate change
and encourage our employees to help us reduce our impact on the
planet.
· Our
risk management and sustainability teams work alongside the
business to identify potential risks associated with resource
scarcity, particularly within sourcing key raw materials,
manufacturing, water and energy and look for ways to mitigate those
risks.
· We
encourage our people to help us lower our impact on the planet
while improving efficiency through our J2E programme (see pages 41
- 43).
What we've done this
year
· We
continue to make good progress against our 2030 sustainability
targets and commitments.
· In May
2024, we announced ambitious new Scope 1 and 2 and Scope 3 GHG
emissions targets to 2028. These targets have been validated by the
Science Based Targets initiative and are aligned to a 1.5 ̊C
trajectory.
· Through our sustainable agriculture programme with Truterra
LLC in the US, we maintain sustainable acreage equivalent to the
volume of corn we buy globally each year
(367,000 acres in 2023).
· We
continue to deliver a positive environmental impact through our
sustainable stevia agriculture programme in China, working in
partnership with the NGO, Earthwatch Europe, and Nanjing
Agricultural University.
· Our
facility in Guarani, Brazil, became our first site to be 100%
powered by renewable energy and our facilities in the Netherlands,
UK and Italy are buying 100% of their electricity from renewable
sources.
· We
carried out an analysis of the impact of climate change on our
operations and supply chain to identify key climate-related issues
that are affecting our business currently, and could have an impact
in future, to help us prioritise actions to mitigate those
risks.
· We
carried out a water risk assessment at our main facilities and
across our corn and stevia supply chain.
Trend compared with 2023 financial year:
increasing
Operational risks
5. Operating
Safely
Safety is not just a priority at
Tate & Lyle, it's foundational. Failure to comply with laws and
regulations relating to health, safety and the environment could
result in us being unable to protect our employees, stakeholders
and the wider communities in which we operate. It could also lead
to fines and have a negative impact on our reputation.
How we mitigate the
risk
· We
have a continuous improvement plan for Environment, Health, Safety,
Quality and Security (EHSQS) in place at all our sites (also known
as the J2E). It is visibly sponsored by the Chief Executive and
Executive Committee.
· Our EHS Advisory Board, which includes
our Chief Executive, receives EHSQS updates and reviews performance
quarterly. Our Executive Committee and Board regularly review
safety performance and progress against J2E.
· We
have an Incident Review Board which conducts reviews of major,
severe or potentially severe events.
· Benchmark, a cloud-based tool, is used
to manage EHS data and facilitate EHS reporting.
What we've done this
year
· We saw
a significant improvement in our safety performance with the
recordable incident rate 41% lower and in the lost-time rate 38%
lower.
· In
J2E, 60% of our plants and 38% of offices and labs had passed
tollgate 5 by the end of March 2024, with three sites having passed
tollgate 7.
· We
continued to deliver a major shift in risk awareness through our
combustible dust and chemical management programmes.
· We
continued to focus on employee wellbeing as part of our J2E
programme.
Trend compared with 2023 financial year:
unchanged
6. Product
Quality
Poor quality products could cause
safety issues and also damage our reputation and relationships with
customers. This could have a negative effect on our performance and
corporate reputation.
How we mitigate the
risk
· We
have strict quality control and product testing procedures in
place.
· We regularly test our recall
process.
· We have a third-party audit programme,
supplemented by internal compliance audits.
· We assess our raw material suppliers,
tollers and third-party warehouses for food safety and quality
risks.
· We have a programme to manage
allergens in our supply chain and ensure our ingredients are either
free from allergens or that any allergens are disclosed.
· Our Quality Incident Review Board
investigates incidents and shares best practice across our
sites.
· We
have a governance process in place for Tate & Lyle and Primient
to regularly review compliance with our long-term supply and other
agreements. Amongst other things, these determine the safety and
quality standards that products sold to each business must
meet.
What we've done this
year
· We successfully started up our new
quality lab within our facility in Hoffman Estates, Illinois, US,
complete with ISO certification.
· Our product recall processes were
externally assessed and validated by our insurance company, and we
carried out simulation exercises.
· We fully implemented our environmental
monitoring programme at all our locations.
· We
simplified our Food Safety Incident Management programme, including
implementing a steering committee and delivering
training.
· We transitioned all our manufacturing
facilities to the ISO-based FSSC 22000 GFSI (Global Food Safety
Initiative) scheme.
· We
developed and implemented a professional development programme for
quality team members.
· We
refreshed our 'management of change' (MOC) processes to enhance our
compliance from a quality, legal and regulatory
perspective.
Trend compared with 2023 financial year:
unchanged
7. Supply
chain
Fluctuations in crop prices could
affect our margins. Climate and weather-related events, disease,
lower yields, competition for acreage and freight restrictions can
impact crop availability and therefore price. We may not be able to
pass the full change in raw material prices, or higher energy,
freight or other operating costs, on to our customers. Our margins
may also be affected by customers not taking expected
volumes.
How we mitigate the
risk
· We
have strategic relationships and multi-year agreements with
suppliers and trading companies.
· We
increase the security of our supply through our raw material and
energy purchasing policies.
· We
have a governance process in place for Tate & Lyle and Primient
to regularly review the delivery of the long-term supply agreements
we have in place, as well as related corn procurement
services.
· We
benefit from the scale and expertise of Primient's corn procurement
services. This provides security of supply and allows us to lock in
corn prices when we secure customer contracts, reducing cost
volatility.
· We
maintain a good working relationship with KPS Capital Partners the
majority shareholder in Primient.
What we've done this
year
· The
raw material procurement team continued to manage corn supply
across the European corn sourcing regions for both dent and waxy
corn.
· We
identified new sourcing regions and suppliers for dent and waxy
corn in Europe, and agreed new waxy corn contracts to support our
volume growth.
· We
review and renew our energy supply contracts every year or, where
required, we adjust them to manage supply and price
conditions.
· To
further build resilience, we undertook a review of the impact of
climate change on our logistics and raw material supply chain over
the last five years, looking at the mitigations we had put in
place, and their effectiveness. The lessons learned and subsequent
actions are increasing the resilience of our supply
chain.
· We
hold monthly sessions with Primient to manage key supply topics,
including short-term adjustments in supply and medium-term
forecasting.
Trend compared with 2023 financial year:
unchanged
8. Business
disruption
Business disruptions can occur for a
range of reasons, including pandemics, natural disasters, and
geopolitical turbulence. There are also many risks in operating our
plants that could cause breaks in production, leading to disruption
to our business and a deterioration in customer services. In all
cases, this could affect our financial performance and damage our
ability to grow our business.
How we mitigate the
risk
· We
have a global business continuity management framework in place to
enable effective recovery from a major disruption.
· Our
Risk Committee oversees existing and emerging risks to ensure
mitigating actions are in place wherever possible to meet
customers' needs.
· Having
plants in different regions and countries means we can continue to
serve customers where practical if a particular area or plant is
disrupted. It also diversifies our business into different markets
and geographies.
· Our
plant network has a preventative maintenance programme.
· Our
customer service team is part of Global Operations so works closely
with our plants, enabling us to be agile and responsive to customer
needs.
· We
have contingency plans to manage, as far as possible, disruption
such as extreme winter weather.
· We
have a governance process in place for Tate & Lyle and Primient
to regularly review the delivery of the long-term supply and other
related agreements.
What we've done this
year
· We
undertook business continuity tests at all our sites.
· Our
Manufacturing Excellence programme continues to support our ability
to operate safely and efficiently. It is a process of continuous
improvement across the business to drive safe working practices,
strengthen resilience and develop our wider safety
culture.
· We
enhanced our sales and operational planning programme by using
technology to improve our ability to forecast effectively and
strengthen how we supply customers.
· We introduced a Global Enterprise
Crisis Management Policy and strategy to strengthen our ability to
manage large-scale business disruption.
· We
undertook a review of the impact of climate change on our
manufacturing facilities, logistics and raw material supply chain
over the last five years, looking at the mitigations we had put in
place and their effectiveness. The lessons learned and subsequent
actions are increasing the resilience of our business.
· We
also carried out an analysis of the impact that geopolitical
turmoil and trade restrictions could have on our operations, supply
chain and key products, and the mitigations we have in place, and
their effectiveness.
Trend compared with 2023 financial year:
unchanged
9. Cyber and IT
resilience
We need to maintain the continuing
operation and security of our information systems and
data.
A cyber security breach, whether
stemming from human error, deliberate action or a technology
failure, could lead to unauthorised access to or misuse of our
information systems, technology or data. This, in turn, could
result in harm to our assets, data loss and business disruption -
and could bring legal risks and reputational damage.
How we mitigate the
risk
· Our cyber security programme focuses
on maintaining and strengthening our defences in terms of our
processes, people and technology.
· We run compulsory cyber security
awareness training for our employees which includes simulated
phishing campaigns.
· We have robust cyber security defences
including a continuous programme to detect threats and
vulnerabilities, and we carry out independent penetration
tests.
· Our plants run on separate IT systems
which increases their resilience.
· We have a 24/7, third-party security
operations centre to deal promptly with any issues.
· We have an investment plan in place to
update ageing equipment and address new threats as they
emerge.
· As
part of the integration process, acquisitions are aligned to our
operational and cyber security model.
What we've done this
year
· We improved our email protection by
using new monitoring technology.
· We introduced new reporting and dashboard capabilities across our cyber and
operations landscape.
· We
completed integrations of businesses acquired in Asia to ensure
they align with our operational and cyber model.
· We
established a separate IT security environment for China, to
improve our resilience.
· We replaced equipment that had reached
the end of its useful life and that we could no longer maintain
effectively within our operations.
Trend compared with 2023 financial year:
increasing
Legal, regulatory and governance risks
10. Legal and
Compliance
If we don't meet our legal and/or
regulatory obligations, our relationships with customers and
suppliers are likely to suffer. We could be subject to contractual
claims, threats to our licences and, in extreme cases, risks to our
directors and officers. It could also affect our performance and
corporate reputation.
How we mitigate the
risk
· Our
legal and regulatory teams work closely with colleagues around the world
to identify legal and regulatory risk and provide advice and
solutions to mitigate them.
· We
regularly monitor legal and regulatory developments to make sure we understand
how any changes could affect Tate & Lyle.
· We
regularly review our key policies and training material, and update them as
needed.
· We run a
comprehensive legal and ethics and compliance training
programme.
· We have a
third-party whistleblowing service that allows our employees to
raise concerns anonymously if they're not comfortable speaking up
internally.
· We have lawyers in each region to work with colleagues to identify and
mitigate relevant legal and regulatory risks.
What we've done this
year
· We
further embedded our contract documentation processes including the
tracking of customer terms and conditions, and provided training to
our sales teams.
· We
worked with our procurement team to review the effectiveness of our
legal and compliance processes for suppliers and implemented
improvement opportunities identified.
· We
continued to run our annual legal, ethics and compliance training
across the organisation, including training on our Code of Ethics,
anti-trust/competition, modern slavery, criminal finances and trade
secrets (all with at least 98% compliance completion
rates).
· We
reinforced our sanctions procedures and continued to provide
training to relevant employees.
· We
continued to expand our Responsible Sourcing Programme with further
audits completed of existing Tier 1 suppliers and further due
diligence on new, high-risk suppliers.
Trend compared with 2023 financial year:
unchanged
11. Financial
controls
Without effective internal financial
controls, we could be exposed to the risk of fraud and error in our
financial reporting, as well as losses from events which may then
affect our performance and ability to operate.
How we mitigate the
risk
· We
have a well-established framework of financial policies and
standards supported by procedures and controls over key processes.
Where possible, these controls are automated, and we maximise the
use of preventative controls.
· We
monitor the design and operating
effectiveness of controls on an ongoing basis and regularly report
the results to the Audit Committee and Executive
Committee.
· We
have several forums to monitor and manage the effectiveness of our
financial controls, such as our quarterly regional Control
Environment Councils chaired by the relevant General
Manager.
· The Chief Executive and Chief Financial Officer review the business and
financial performance at least monthly.
· At
both the half year and the end of the financial year, Executive
Committee, the Audit Committee and the Board receive confirmation
that minimum control standards are operating
effectively.
· Our
well-resourced Group Audit and Assurance team provides independent
assurance to management and the Board.
What we've done this
year
· We
continued to invest in our financial controls function and our
centres of excellence within our Global Shared Services Centre in
Poland.
· We
continued to evolve our Risk and Controls matrix to ensure that our
controls adapt to mirror changes within the organisation along with
increasing levels of automation across multiple process
areas.
· We
continue to leverage our Finance Global Process Ownership Forum, to
maintain consistency and effectiveness of financial controls at all
Group locations.
· We
continued to invest in training to ensure control owners fully
understand their responsibilities and accountabilities.
· We
continued to leverage technology to enhance our control environment
and support our key financial processes.
Trend compared with 2023 financial year:
unchanged
12. Regulatory and trade
risks
The regulatory status or perception
of our ingredients could be affected by things like changes in
customers' or consumers' attitudes, changes in food laws and
regulations and/or campaigns targeted at specific ingredients or
technologies. These could affect our ability or freedom to operate.
Government actions or policies could also impose import/export
limitations and other barriers on our business. These could lead to
additional costs, restrict our growth and limit our ability to
operate in certain markets.
How we mitigate the
risk
· The science behind our ingredients, for example, health claims or
nutritional impact, is supported by credible sources and is
communicated clearly to, so that it is understood by, the relevant
regulatory authorities.
· Our
global regulatory team, supported by external consultants, monitors
any local regulatory requirements that affect our
products.
· Our global nutrition team initiates
and monitors research and publications on the use and functionality
of our ingredients, and maintains a global advisory network of
health and nutrition clinicians, academics and experts.
· We work closely with thought-leading
customers around the world to jointly focus on the science and
consumer benefits of our ingredients.
· We are
members of trade organisations that give us access to broader
sources of information and provide, where necessary, a single voice
for our industry on issues of both regulatory and public interest
that affect our ingredients.
· We
engage with political parties, influencers and regulatory
authorities in the main countries in which we operate.
What we've done this
year
· We
worked with national and state trade associations, as well as local
authorities in several key countries where we operate, including
the US and China to progress our commercial and sustainability
goals.
· We
continued to develop our regulatory team in the Asia, Middle East,
Africa and Latin America regions to strengthen relationships with
regulators in these markets.
· We
continued to invest in our Global Nutrition team with funding for
studies that support the safety and efficacy of our ingredients and
maintain differentiation against competitors.
· We
expanded our advocacy programme in key markets; including building
partnerships with customers and participating on the boards and
committees of key trade associations. This included working with
trade associations and other nutritional bodies to improve
understanding about the importance of the nutritional content of
food, rather than the level of processing, as well as the benefits
of low- and no-calorie sweeteners to help reduce their calorie and
sugar intake.
· We
continued to expand our online Nutrition Centre, which includes
independent scientific contributions by external experts on key
topics of public health and on our ingredients.
Trend compared with 2023 financial year:
increasing
APPENDIX B
DIRECTORS' RESPONSIBILITY STATEMENT
In accordance with Disclosure
Guidance and Transparency Rule 4.1, the directors confirm, to the
best of their knowledge that:
• the Group
financial statements, prepared in accordance with UK-adopted
international accounting standards, give a true and fair view of
the assets, liabilities, financial position and profit of the
Company and undertakings included in the consolidation taken as a
whole;
· the
Annual Report, including the Strategic Report, includes a fair
review of the development and performance of the business and the
position of the Company and undertakings included in the
consolidation taken as a whole, together with a description of the
principal risks and uncertainties that they face; and
· they
consider the Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Group's and Company's position and
performance, business model and strategy.
APPENDIX C
RELATED PARTY DISCLOSURES
Identity of related parties
The Group has related party
relationships with its joint venture, the Group's pension schemes
and with key management, being its Directors and executive
officers. Key management compensation is disclosed in Note 9. There
were no other related party transactions with key
management.
There were no material changes in
related parties or in the nature of related party transactions
during the 2024 financial year and no material related party
transactions containing unusual commercial terms in the current or
prior year. In the 2023 financial year, as a result of the sale of
the controlling stake in the Primient business, the Group holds a
49.7% interest in Primient.
Related party transactions with the Primient joint venture and
outstanding balances
|
Year ended
31 March
|
|
2024
|
2023
|
|
£m
|
£m
|
Sales of goods and services to joint
ventures and other income
|
39
|
47
|
Purchases of goods and services from
joint ventures
|
243
|
302
|
Receivables due from joint
ventures
|
11
|
16
|
Payables due to joint
ventures
|
1
|
18
|
|
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Transactions entered into by the
Company, Tate & Lyle PLC, with subsidiaries and between
subsidiaries as well as the resultant balances of receivables and
payables are eliminated on consolidation and are not required to be
disclosed.
Sales of goods and services to the
Primient joint venture are considered in scope of IFRS 15 and
relate to the Group's commitment under the long-term agreements in
operation following the completion of the Transaction to produce
industrial starches for Primient under a tolling arrangement
whereby Primient retains control of the net raw material at all
times. The Group earns a manufacturing margin for this production
when the service is provided. All associated income is earned in
North America. The Group considers it appropriate to exclude this
amount from revenue and record the income in operating profit on
the basis that this income is generated with a related party, is
not part of the Group's normal revenue generating activities (where
revenue is recognised when control of the goods is transferred),
only arises because of the relationship that exists in which
Primient is a supplier of the Group, and is outside the Group's
core focus on speciality food and beverage solutions.