Treatt has delivered FY20 profits ahead of expectations after a strong close to the year. It reports PBT of £14.8m vs our forecast of £14m, with the difference arising from a stronger gross margin. EPS was ahead by c11% to 19.7p and the FY dividend +9% to 6.00p. Revenues were as previously reported, up c3% to £109m (cont. operations). However, the success of the new strategy is clearly apparent in the gross margin uplift from 25.4% to 29.2%. Operating expenses were also higher, reflecting new staff additions in the science and commercial teams. During the year, Citrus contributed a lower percentage of revenue with the shortfall more than offset by increased sales of higher-margin value-add products in Health & Wellness and Fruit & Vegetables. Also within the Citrus category, the group secured new value-added business within the fast growing alcoholic seltzer category. Whilst Covid added a layer of uncertainty and complication for all businesses, Treatt coped well, ensuring all facilities remained operational and service levels to customers were maintained. At the peak lockdown, there was some impact on the rate of new product introductions, but this is now recovering. The category worst affected by the closure of the hospitality channel was Tea which had grown strongly in 1H, but closed the year just 3% ahead. Capex continued. The new US capacity was operational in FY20 and the UK building is now complete. Covid caused some modest delay, but the aim is to start the relocation in mid-2021 once the fit-out completes. The delay preserved cash and Treatt closed FY20 with £1.1m cash. FY21 starts with good momentum, but we leave forecasts unchanged as we are only 7 weeks into the year and still face uncertainty from Covid/Brexit.