2019 proved to be more challenging than Treatt had expected with the group encountering sharp price deflation in citrus products and forex headwinds. However, despite these issues, it still delivered a solid 5% profit increase over the prior year. The diversification into new higher value added areas, such as tea, health & wellness and fruit & vegetables, has helped the group decouple profits from citrus prices. Revenues from these areas grew by a healthy 16% and they also helped lift the gross margin. Following completion of the US capacity addition, the group has ample headroom to continue to drive these products, as well as invest in new categories such as coffee. The UK relocation project is now underway. With the main contractors appointed, the build has commenced and the group hopes to start the transfer of production and offices at the end 2020 and into 2021. Ahead of the major spend this year, the balance sheet is in good shape with £16m of net cash. With £32m of capex expected in FY20 on the UK project, the group will move into a modest net debt position by the end of the year. With some annualised deflationary impact expected in FY20, we have been prudent on our revenue projections, but we do expect to see growth accelerate into FY21E as the new site comes into operation. This will offer a step change in customer experience and it is also expected to help improve margins as the new technology on the site reduces production costs. We make no changes to forecasts in this note, but we do review our target price to update it for current peer multiples. It increases from 525p to 550p and we reiterate our BUY recommendation.