Treatt’s half year update confirms that the strong start to trading this financial year has been maintained throughout the first six months. It reports that it expects to deliver c14% growth in H1 revenue to just below £61m. Within this total, most areas of the group’s portfolio are growing. The higher value add ranges of health & wellbeing, fruit & vegetables and tea continue to be the main driver, as product development favours clean labels/natural ingredients. Citrus has returned to modest growth, helped by a recovery to more normal orange oil prices. The synthetic aroma business (c20% of the group) also grew, with ingredients for meat alternative proteins/snacks a growing area. Only one area declined, herbs, spices & florals, with lower demand for essential oils from the carbonated beverage market (due to COVID). Gross margins stepped up through the course of last year on this improving mix, and 1H21 margins will be higher than 1H20. We are expecting the group to deliver a healthy double digit improvement in EBIT for 1H21E, with PBT likely to be c£9m (excl exceptional items), which would represent growth of c50%. As the operational fit-out of the new HQ is continuing apace, the transition to the new site will commence in a phased way from the end of this month. The first departments to move will be administrative, followed by the laboratories, with commissioning of the new plant and equipment to commence later in the calendar year. With the capex spend continuing, there was a cash outflow in 1H, resulting in half year net debt of £5m, still comfortably within the group’s borrowing facilities (of £27m). We increased our full year forecasts in January on positive commentary on momentum though 1H, so we make no further adjustment today. Incorporating higher peer EV/EBITDA multiples and rolling to a 12m forward basis, our TP rises to 1070p. We reiterate our Buy recommendation.