Treatt has updated the market on its first 4 months of FY21 trading. It had already remarked on a strong start to the year in the FY20 announcement, but this has accelerated, with profits for this 4–mth period strongly ahead. Whilst it is still early in the year, this very good trading to date and the visibility provided through the order book gives the group the confidence to report that it expects to materially exceed current market consensus (of PBT £15.1m for FY21). It does however flag that a degree of uncertainty remains from COVID – this has impacted some (hospitality-led) elements of its business, but to date this has been more than offset elsewhere (off-trade). FX and commodity risks remain, but these are always factors and Treatt has typically managed them well. Through FY20, despite challenges posed by COVID, the group continued to deliver on its strategy, growing its sales of value added ingredients. This was apparent in the improved EBIT margins (+180bps to 13.8%) last year. We had prudently not assumed a further margin improvement in FY21E, but we now believe this is likely given the group’s comment and it is one element in our upgrade. We also lift our FY revenue growth expectations from 5.5% to 13%. The growth YTD is broadly spread; the group reports further new contract wins plus strong organic growth in existing contracts, with its fruit & vegetables, health & wellness, citrus and tea all performing well. The group also flags continued progress in the global alcoholic seltzer market. Hence, our FY21E PBT increases by £3m to £18m. EPS lift from 19.9p to 23.8p (+20%). For FY22E, we assume continued progress. PBT increases by 25% to £20m with EPS of 26.7p (from 21.3p). Progress on the new HQ continues and the timetable is unchanged from that previous reported.