As Treatt closes its 1H, it has issued an update indicating it is currently trading in line with expectations. To date, COVID-19 has not had any adverse effect on the trading performance of Treatt. We make no changes to FY estimates. Citrus prices have remained weak through 1H (as expected) and this has continued to influence the top-line performance (citrus revenue was down c15%). The group reports a 5.1% decline overall, but this masks continued strong progress in the key areas of tea (+47.5%), fruit & vegetables (+9.7%) and health & wellness (+19.9%). Actions have been taken to protect all of its employees, with some working remotely where possible, but both manufacturing facilities remain operational. The extended US facility is now fully operational adding valuable extra capacity in time for spring crops. The group closed the half year with net cash of £6.5m and most of its total bank facility (of £25m) remains undrawn. Work is continuing on the construction of the new HQ, but some elements of this project are likely to be delayed. The anticipated cash outflow for 2H may well be slower than expected, but for now we leave our FY UK capex assumption at £32m. The group’s order book/current demand is encouraging as the group moves to its peak trading. This should be better reflected in 2H revenues too as citrus prices firm. Of course, the group has to caveat the outlook due to COVID-19. However, whilst some of the group’s business is driven by new product development, which might be delayed by the current situation, the bulk of revenue is derived from sales of products already in the market. In terms of 1H, we expect a resilient profit performance, despite deflationary pressure on citrus margins. However, this should reverse in 2H, so we anticipate that profits will be 2H weighted this year.