TIDMTATE
RNS Number : 8298B
Tate & Lyle PLC
06 June 2023
Tate & Lyle PLC
Annual Financial Report and Notice of Annual General Meeting
2023
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 2023;
2. Notice of Annual General Meeting 2023;
3. Notice of Availability; and
4. Proxy Form.
The Annual General Meeting 2023 will be held at Thistle London
Marble Arch, Bryanston Street, London, W1H 7EH at 10.30am on 27
July 2023.
The Annual Report 2023, Notice of Annual General Meeting 2023,
Notice of Availability and Proxy Form are also available on the
Investors Hub section of the Company's website. Mailing of the
Annual Report 2023, Notice of Annual General Meeting 2023, 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 2023 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 2023
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 2023 full-year results announcement,
released on 25 May 2023, 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
6 June 2023
For more information contact:
Investors and analysts
Christopher Marsh, VP Investor Relations
Mobile: +44 (0) 7796 192 688
APPIX 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 over both the short and long term and damage
investors' view of us.
How we mitigate the risk
-- Revenue and EBITDA, and M&A activity, are key components
of successfully growing our business and we have a five-year
strategic plan in place to support this.
-- 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 ensure we remain competitive and are
successful in our chosen markets.
-- Our Executive Committee regularly reviews our strategic
progress, financial performance, opportunities in our markets and
competitor activities.
-- Our M&A team works closely with Innovation and Commercial
Development and with Food & Beverage Solutions to find
acquisitions and partnerships that will help us grow.
-- We have incentive schemes and bonus programmes for
customer-facing teams tied to strategic, commercial and operational
targets.
What we've done this year
-- We strengthened our customer offering and presence in Asia
with the acquisition of Quantum Hi-Tech in China, a leader in FOS
and GOS dietary fibres.
-- We acquired Nutriati, a small ingredient technology business
making chickpea protein and flour to expand our customer offering
in plant-based proteins.
-- We expanded our sweetener platform with a distribution agreement to supply erythritol.
-- We invested in further building our solution selling
capabilities in areas such as sensory, nutrition, regulatory and in
consumer and category insight.
-- 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 Santiago, Chile and
extending our Centre in Singapore.
-- We delivered new training and tools for our customers, such
as recipe selection and cost analysis for sugar reduction, to
increase customer collaboration and knowledge sharing.
Trend compared with 2022 financial year: unchanged
2. Innovation
Developing and commercialising New Products are 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 that, through both
in-house development and external open innovation, delivers a
strong pipeline of new ingredients and solutions for our
customers.
-- Our Innovation and Commercial Development (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 develops and connects with external
organisations, including biotech, pharma, and food tech ecosystems,
to identify and leverage scalable innovation and new product
opportunities.
-- We prioritise partnership opportunities with customers to
accelerate development cycles and bring New Products to market
faster.
What we've done this year
-- Investment in innovation and solution selling capabilities
such as sensory, nutrition, regulatory and consumer and category
insights, increased by 11%.
-- New Product revenue grew by 17% with strong growth in
mouthfeel and fortification platforms.
-- New Product revenue as a percentage of Food & Beverage Solutions revenue increased to 17%.
-- We executed targeted programmes to develop new ways of
working with customers to build stronger solutions-based
partnerships, leading to solutions revenue from new business wins
increasing to 18%.
-- We strengthened our solutions offering for customers with acquisitions of
Quantum (dietary fibre) and Nutriati (chickpea protein).
-- To improve the ability of customer-facing teams to drive
customer intimacy and business development relationships, we
invested in, and increased, insights-specific resources within our
regions.
-- We expanded our Customer Innovation and Collaboration Centre
in Singapore to include an automated mouthfeel and texturants
laboratory, and opened a new Centre in Santiago, Chile.
Trend compared with 2022 financial year: unchanged
3. People and talent
To be a successful and purpose-led global business, and to
deliver our strategy, having the right capabilities and people is
critical. We have active 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 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 set a number of targets up to 2030 to track our
progress on delivering 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 measure progress against cultural objectives and carry out
global employee surveys that help tell us what employees really
think about working at Tate & Lyle.
-- Our Board and Executive Committee plan succession for business-critical roles.
-- We encourage open and transparent feedback from our people so
we are able to react to any challenges that emerge.
What we've done this year
-- Each year we carry out a global employee engagement survey
managed by an external organisation. This year, the response rate
was high at 82% and showed an encouragingly strong level of
employee engagement.
-- We provided specific support as needed to employees most impacted by high inflation and the cost-of-living crisis such as one-off payments to some employees and higher salary increases for those on lower pay.
-- We have a Group-wide programme to support the physical and
mental wellbeing of our employees.
-- We have six Employee Resource Groups which play an important
part in enabling employees to experience solidarity, support,
education, growth and development.
-- We introduced policies to promote equity and better work life
balance, such as a global policy on equal parental leave, and
enhancements to our healthcare offering and vacation policy in
North America.
-- We established four behaviours to underpin our growing
culture of innovation and experimentation: courage, challenge,
curiosity and create flow.
-- We accelerated adoption of e-learning for all employees by
providing access to learning tools such as LinkedIn Learning and
Workday (R) .
Trend compared with 2022 financial year: unchanged
4. Climate Change and Sustainability
Physical and transition climate change risks, such as extreme
weather events, temperature rises, water stress and increased
regulation, may result in increased volatility in the supply of raw
materials, distribution in our supply chain, production costs,
capacity constraints and higher costs of compliance. In addition,
the failure to meet our long-term sustainability goals could result
in financial loss and reputational damage amongst customers,
consumers, investors and other stakeholders. The longevity and
success of the business fundamentally depends on the health of the
natural environment.
How we mitigate the risk
-- Caring for our planet is one of the three pillars of our
purpose, and consideration of 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, chaired by the Chief Executive, which meets at least
twice a year, and a Sustainability Working Group which meets at
least quarterly.
-- We have established targets to 2030 for reduction in absolute
greenhouse gas emissions, use of waste, water reduction and
sustainable agriculture (see pages 54 to 61).
-- Communication programmes are in place to share the impact of,
and support actions to reduce our impact on, climate change.
-- Our risk management and sustainability teams work within the
business to identify and mitigate where possible resource-scarcity
issues especially within agricultural ingredient sourcing, and
manufacturing, water and energy.
-- We encourage our people's commitment to environmental
improvements and efficiency through our J2E programme (see page
51).
What we've done this year
-- We made good progress against our 2030 sustainability targets (see pages 54 to 61).
-- We carried out a comprehensive analysis of what a pathway to
net zero emissions would look like for Tate & Lyle, including
detailed Scope 1 and 2 decarbonisation reviews at our four largest
facilities and an in-depth review of our Scope 3 emissions. As a
result of this work, we made a commitment for Tate & Lyle to be
net zero by 2050.
-- We expanded our sustainable agriculture programme for stevia
in China working in partnership with the NGO, Earthwatch Europe,
and Nanjing Agricultural University.
-- Through our sustainable agriculture programme in the US with
Primient and Truterra LLC, we maintained sustainable acreage
equivalent to the volume of corn we use globally each year.
-- We undertook an ESG (environmental, social and governance)
materiality assessment to identify and prioritise key issues and
areas affecting our business now and in the future.
-- We started to explore carbon pricing as an internal mechanism
to drive deeper understanding of the impact of our energy choices
and capital investments.
Trend compared with 2022 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, known as the J2E programme. 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.
-- The Incident Review Board 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 supported our teams in China through an intense period of
Covid-19 infections after the government lifted its Covid-19
restrictions at the end of 2022.
-- Improved safety performance by contractors who did not have any recordable injuries.
-- By the end of the year, in J2E, 26 sites had passed tollgate
2, 22 sites tollgate 3, 21 sites tollgate 4, six sites tollgate 5,
and three sites tollgate 6. Our site in McIntosh, Alabama, US
became the first to pass the final stage, tollgate 7.
-- We completed investments to reduce site risks based on
findings from Process Risk and Dust Hazard Assessments.
-- We integrated the EHS and Quality Management systems.
-- Following lifting of Covid-19 restrictions, the global EHSQS
team resumed on-site assessments and providing hands-on support to
all facilities.
-- Employee wellbeing continued to be included in the J2E programme.
Trend compared with 2022 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.
-- A governance process is in place for Tate & Lyle and
Primient to review on a regular basis compliance with the long-term
supply and other agreements which determine the safety and quality
standard that products sold to each business must meet.
What we've done this year
-- We started to build a new quality lab within our facility in
Hoffman Estates, Illinois, US to enable in-house micro-testing and
support.
-- Our environmental monitoring programme was fully implemented at all sites.
-- We supported the importation, testing, and management of
non-GMO waxy corn from the US into Europe for use in our
plants.
-- Our product recall processes were externally assessed and
validated, and a simulation exercise conducted.
-- We integrated the acquired Quantum Hi-Tech business into our
quality policies and processes.
-- We implemented a new Incident Management programme for
quality and delivered the necessary training.
Trend compared with 2022 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 increase 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.
-- Our raw material and energy purchasing policies increase the security of our supply.
-- A governance process is in place for Tate & Lyle and
Primient to review on a regular basis the delivery of the long-term
supply agreements we have in place, and related corn procurement
services.
-- We benefit from the scale and expertise of Primient's corn
procurement services, providing us with supply security and
allowing us to lock in corn prices when we secure customer
contracts, thereby reducing cost volatility.
-- We maintain a strong partnership with our joint venture
partner in Primient, KPS Capital Partners.
What we've done this year
-- Following the outbreak of the conflict in Ukraine, we formed
an executive steering committee that met weekly for most of the
year to analyse the impact on our supply chain and our customers,
and to develop appropriate mitigating actions.
-- We enhanced our supplier risk programme to add further resilience to our supply base.
-- We have reviewed our corn supply contracts to allow for
improved volume and price management.
-- Our transportation procurement and logistics teams work
together to manage and optimise supplier and customer service
levels.
-- We created additional flexibility in our standard contracts.
Trend compared with 2022 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 which could cause
breaks in production leading to disruption to our business and a
deterioration in customer services. In all cases, this could impact
our financial performance and damage our ability to grow our
business.
How we mitigate the risk
-- We have a global business continuity management framework 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
serve customers where practical from elsewhere if a particular area
or plant is disrupted, and 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.
-- We have contingency plans to manage disruption from extreme
winter weather to the extent possible.
-- Governance process is in place for Tate & Lyle and
Primient to review on a regular basis the delivery of the long-term
supply and other related agreements.
What we've done this year
-- We analysed learnings from our Global Pandemic Response Team
to ensure we can respond quickly and effectively to future major
events such as pandemics.
-- We operated strict hygiene protocols at all our sites to
ensure our people are protected, and our plants kept running.
-- We continued to implement and refresh our business continuity
management framework across the organisation.
-- In the face of significant supply chain disruption, we worked
closely with our external suppliers and customers to manage
volatility and minimise business disruption.
-- We enhanced our sales and operational planning (S&OP)
programme by leveraging technology to improve our ability to
forecast effectively and strengthen how we supply customers.
-- We improved the way we manage our inventories in order to
better position our ingredients across our markets and support our
customers' growth.
-- Our productivity programme delivered US$21 million of savings.
Trend compared with 2022 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 which
includes simulated phishing campaigns.
-- We have robust cyber security defences including a continuous
programme to detect threats and vulnerabilities, and we undertake
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 investment plans in place to update ageing equipment
and address new threats as they emerge.
-- Acquisitions are aligned to our operational and cyber model
as part of their integration journey.
What we've done this year
-- We completed the separation of our IT systems with Primient.
-- We improved our email protection by leveraging new monitoring
technology, and observing communication threats between us, our
suppliers and customers.
-- We introduced new reporting and dashboarding capabilities
across our cyber and operations landscape.
-- We further developed our monitoring capabilities and automation.
-- We completed integrations of new businesses acquired in Asia
to align them with our operational and cyber model.
-- We established a separate IT security environment for
countries of high risk to improve our resilience.
-- We further updated and strengthened our Cyber Security Incident Response Plan.
Trend compared with 2022 financial year: increased
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,
and 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
globally to identify legal and regulatory risk, and provide advice
and solutions to mitigate it.
-- We monitor legal and regulatory developments to make sure we
know what could affect Tate & Lyle.
-- We review our key policies and training material regularly.
-- We run a comprehensive legal and ethics and compliance training programme.
-- We have a third-party whistleblowing service that gives our
employees a way to raise concerns anonymously if they're not
comfortable raising them internally.
-- We have lawyers in each region to work with colleagues to
identify and mitigate legal and regulatory risk from the bottom
up.
What we've done this year
-- We continued to embed our contract documentation processes
including the tracking of customer terms and conditions, and
provided in-depth training to our sales teams.
-- We worked with our procurement team to strengthen their legal and compliance processes.
-- We continued to provide legal and ethics and compliance
training across the organisation as part of our annual training
plan, including training on Code of Ethics, anti-trust/competition,
modern slavery, criminal finances and trade secrets.
-- We reinforced our sanctions procedures and continued to provide training.
-- We recruited local lawyers in Singapore and China to increase
the focus on compliance in the Asia region.
Trend compared with 2022 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.
-- The design and operating effectiveness of controls are
monitored on an ongoing basis and the results are reported
regularly to the Audit Committee and Executive Committee.
-- We have several forums to monitor and manage our financial
controls effectiveness, 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,
confirmation is provided to the Executive Committee, the Audit
Committee and the Board 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 leverage our Finance Global Process Ownership
Forum, to maintain consistency and effectiveness of financial
controls at all Group locations.
-- We continued to provide refresher training for our senior
finance team on more complicated areas of finance and accounting
which require more judgement, and the importance of effective
financial controls.
-- We created new roles to manage areas of increasing relevance
such as sustainability reporting and accounting.
-- Following completion of the separation of Primient in April
2022, we established additional financial controls to manage the
financial impact of the long-term agreements between Tate &
Lyle and Primient. We monitor the operating effectiveness of these
controls within our established risk and controls framework.
Trend compared with 2022 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 and 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 which give us access to
broader sources of information and provide, where necessary, a
single voice for our industry on issues, both regulatory and public
interest, affecting 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 the US, China and other key countries where
we operate 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 supporting the safety and efficacy of our
ingredients and maintain differentiation against competitors.
-- We expanded our advocacy programme in key markets; including
building partnerships with key customers and by taking up the
positions on the Board and as Committee Chair on various key trade
associations.
-- 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 2022 financial year: increased
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,
performance, business model and strategy.
APPENDIX C
RELATED PARTY DISCLOSURES
Identity of related parties
The Group has related party relationships with its joint
ventures, 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.
As a result of the sale of the controlling stake in the Primient
business, Tate & Lyle now holds a 49.7% interest in Primient,
effective from 1 April 2022. Primient comprises of the Group's
former Primary Products business in North America and Latin America
and its former interests in the Almidones Mexicanos S.A de C.V
('Almex') and Covation Biomaterials LLC, formerly 'Bio-PDO'
('Covation') joint ventures. There were no other material changes
in related parties or in the nature of related party transactions
during the year and no material related party transactions
containing unusual commercial terms in the current or prior
year.
Related party transactions with joint ventures and outstanding
balances
Year ended 31 March
-------------------------------------- ----------------------
Primient Almex and
2023 Covation
GBPm 2022
GBPm
-------------------------------------- ---------- ----------
Sales of goods and services to joint
ventures and other income 47 147
Purchases of goods and services from 302 -
joint ventures
Receivables due from joint ventures 16 13
Payables due to joint ventures 18 -
-------------------------------------- ---------- ----------
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.
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