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Tate & Lyle PLC: Preliminary Announcement of Results.

Business Editors

LONDON--(BUSINESS WIRE)--June 5, 2003

Tate & Lyle PLC a world leader in carbohydrate ingredients, today announced preliminary results for the year ended March 31, 2003.

For the year ended March 31, 2003

PRELIMINARY RESULTS TO 2003 2003 2002 2002
 MARCH 31 $ million(A) GBP million GBP million $million(A)
----------------------------------------------------------------------
 Audited Audited

Total sales $4,877m GBP3,167m GBP3,944m $6,074m
Profit before tax,
 exceptional items and
goodwill amortization $351m GBP228m GBP159m $245m
Profit before taxation GBP288m GBP187m GBP159m $245m
Diluted earnings per
 share before
 exceptional items and
 goodwill amortization 51.7 cents 33.6p 22.1p 34.0 cents
Diluted earnings per
 share 42.7 cents 27.7p 24.6p 37.9 cents
Dividend per share 28.2 cents 18.3p 17.8p 27.4 cents


(A) US dollar conversions provided at the average rate for the period of $1.54 = GBP1

-- Profit before tax, exceptional items and goodwill amortization

increased by 43%

-- Profit before tax increased by 18%

-- Diluted earnings per share before exceptional items and

goodwill amortization increased by 52% to 33.6p (51.7cents)

-- Diluted earnings per share increased by 13% to 27.7p

(42.7cents)

-- Amylum integration benefits net of costs exceeded GBP25

million ($39 million)

-- Interest cover increased from 3.3 times to 7.6 times

(underlying 6.8 times)

-- Net debt reduced by GBP168 million ($259 million) to GBP471

million ($725 million)

-- Proposed dividend of 18.3p (28.2cents) per share, an increase

of 2.8%

"The year to March 31, 2003 saw another significant improvement in profitability building on the progress made in the year to March 31, 2002.

With profit last year having benefited from GBP11 million ($17 million) of unusual income, profit growth in the current year will be primarily dependent on our ability to improve efficiency, to further reduce our cost base and to continue the development of the market for our value added and branded products. This is the challenge which our new management team has accepted."

Sir David Lees

Chairman

Copies of the Annual Report for year ended March 31, 2003 will be available to shareholders shortly, and will be obtainable from The Company Secretary, Tate & Lyle PLC, Sugar Quay, Lower Thames Street, London EC3R 6DQ.

Chairman's Statement

Overview

The year to March 31, 2003 saw another significant improvement in profitability building on the progress made in the year to March 31, 2002. The margin on sales increased and the Group's return on net operating assets of more than 14% is starting to look respectable although there is more to go for. The balance sheet is stronger as a result of a good cash flow performance and net debt of GBP471 million ($725 million) was less than half of what it was two years ago and is lower than it has been at any time in the last ten years. Interest cover at 6.8 times, excluding unusual interest credits, was also much improved.

Results

Profit before tax, exceptional items and goodwill amortization increased to GBP228 million ($351 million), GBP159 million ($245 million) in 2002, with a stronger performance from Amylum and the full year benefit from the disposal of our loss making US sugar businesses. Profit before tax after exceptional items and goodwill amortization was GBP187 million ($288 million) compared with GBP159 million ($245 million) last year. Exceptional items in the year to March 31, 2003 amounted to a net GBP33 million ($51 million) charge, compared with a credit of GBP8 million ($12 million) last year, and include an operating exceptional charge of GBP39 million ($60 million) primarily to write down the US and Mexican citric acid assets to their estimated recoverable value. Goodwill amortization was GBP8 million ($12 million) for both years.

Diluted earnings per share before exceptional items and goodwill amortization for the year to March 31, 2003 were 33.6p (51.7cents) up from 22.1p (34.0cents last year). Diluted earnings per share after exceptional items and goodwill amortization were 27.7p (42.7cents) compared to 24.6p (37.9cents) last year. There was a strong cash inflow of GBP189 million ($291 million); (2002 - GBP318 million; $490 million) after payment of dividends of GBP84 million ($129 million). Net debt at March 31, 2003 was GBP471 million ($725 million) compared with GBP639 million ($984 million). Interest cover, excluding unusual interest credits, improved to an underlying 6.8 times (2002 - 3.3 times).

Dividend

Although we have maintained the dividend for the last two years the Board has felt unable to recommend an increase with a cover of less than 1.5 times and with relatively high net debt. In the year just ended the key financial ratios have all improved and the Board therefore feels it appropriate to resume the progressive dividend policy to which it is committed in principle.

The total dividend proposed for the year is 18.3p (28.2cents) up from 17.8p (27.4cents) in 2002 and is covered 1.8 times by earnings before exceptional items and goodwill amortization. The proposed final dividend of 12.8p (19.7cents) will be due and payable on August 6, 2003 to all shareholders on the register at July 11, 2003.

Directors

As previously announced, Larry Pillard relinquished his position as Chief Executive at the end of 2002 and became a Non-Executive Director on January 1, 2003. Larry joined Tate & Lyle in 1992, became a Director in 1994 and Chief Executive in 1996. The Board is grateful to him for the contribution he has made to the Group as an Executive over the last 10 years. It is also grateful to John Walker who retired from the Board on April 2, 2003. John joined the Group over 35 years ago and had been a member of the Board since 1993.

Iain Ferguson joined the Board as Chief Executive on May 1, 2003. Iain was an Executive with Unilever for 26 years and his most recent appointment was as Senior Vice President, Corporate Development prior to which he was Executive Chairman of Birds Eye Walls. He has considerable experience of the global food industry and his background in science and technology equips him well to lead Tate & Lyle through the next phase of its development. Stanley Musesengwa was appointed to the Board as an Executive Director on April 2, 2003 having joined Tate & Lyle in 1979. He has held a number of different executive positions in the Group and on May 1, 2003 was appointed to the new role of Chief Operating Officer, reporting to the Chief Executive.

This new management structure, comprising a Chief Executive and a Chief Operating Officer, has been created to ensure that every opportunity is taken to enhance Group-wide operating efficiency while at the same time facilitating the development of our strategy.

Corporate Social Responsibility

The Annual Report will set out our performance and policies as they relate to health and safety, the environment, employees, commercial partners and suppliers, and the communities in which we are involved. It is encouraging to note that in most cases the Group continues to improve its performance and although the Group Safety Index for calendar year 2002 contained in the Annual Report shows some slippage compared with 2001, this is due to a rise in the severity of some accidents rather than a rise in the overall number of incidents, which continue to decrease. The Group successfully met the criteria for entry to FTSE4Good, the UK corporate social responsibility index. Progress in all areas of corporate social responsibility depends on the involvement and commitment of our employees and our appreciation for their efforts is recorded here.

Corporate Governance

In the last year, two further Reports relating to the governance of companies have become available for comment. The Smith Report, which provides guidance to assist Company Boards in making suitable arrangements for their Audit Committees is uncontentious as far as Tate & Lyle is concerned and we will have no difficulty in being compliant with all its main recommendations. The Higgs Report on the Role and Effectiveness of Non-Executive Directors contains a number of suggested changes to the Combined Code on Corporate Governance. Most of these suggestions are uncontroversial but there are a few which the Board believes should be given further consideration by the Financial Reporting Council whose responsibility it is to make amendments to the Combined Code.

In particular the Board believes that further consideration should be given to the Higgs suggestion concerning the relationship between the Senior Non-Executive Director, the major Institutional Shareholders and the other Non-Executive Directors. The Board also believes that further thought should be given to the proposals that the Chairman should not chair the Nominations Committee, that no individual Non-Executive Director should sit on all three principal Board Committees and that it should be exceptional for a Non-Executive Director to serve on a Board for more than six years. Notwithstanding the above, Tate & Lyle continues to be a strong supporter of high corporate governance standards fully recognizing the importance of adherence to the spirit as well as the letter of the law.

Strategy

Over the last two years the Group's balance sheet has been significantly strengthened and our businesses are now increasingly focused. The Amylum integration project has delivered net benefits ahead of our original plans. Our value added and branded products now form a larger share of our total business. Our strategy is to continue this trend while never losing sight of the opportunities available to us as a high quality low cost global starch and sweetener business.

Outlook

Most of our businesses continue to perform well although the difficulties experienced in our Eastern Sugar and Citric Acid operations, which worsened as last year progressed, show no sign of abating. Consequently, we expect a more even split of profits in the current year than in the previous year when the first half was particularly strong.

We assess the outturn of the annual US and European sweetener pricing rounds concluded last March as being sufficient to cover cost increases but insufficient to impact on margins. With profits last year having benefited from GBP11 million ($17 million) of unusual income, profit growth in the current year will be primarily dependent on our ability to improve efficiency, to further reduce our cost base and to continue the development of the market for our value added and branded products. This is the challenge which our new management team has accepted.

Sir David Lees

Chairman

Chief Executive's Review

Group Performance

I joined the Group after the year-end and the improved financial results and a much stronger balance sheet reflect the performance of the management team led by Larry Pillard until the end of December 2002, and then by Simon Gifford until the end of April 2003.

Group profit before tax, exceptional items and goodwill amortization of GBP228 million ($351 million) was a GBP69 million ($106 million) or 43% improvement on the GBP159 million ($245 million) for the year to March 31, 2002. Group profit before tax after exceptional items and goodwill amortization was GBP187 million ($288 million) compared with GBP159 million ($245 million) last year. Net debt has been reduced by strong cash generation to GBP471 million ($725 million) at March 31, 2003 from GBP639 million ($984 million) at March 31, 2002. The net debt to Group EBITDA (earnings before interest, tax, depreciation and goodwill amortization) multiple has improved from 2.1 times to 1.4 times and gearing (net borrowings as a percentage of net assets) has reduced from 59% to 45%.

Group Targets

The Group set itself a number of financial and other targets and has made significant progress on all of them in the year to March 31, 2003.

-- Our target to return interest cover to 4.0 times (from a low

of 2.3 times in the year to March 2001) has been exceeded with

cover at 6.8 times after excluding unusual interest credits.

-- The interim target is to restore the overall Group Return on

Net Operating Assets (RONOA) to at least 15%. We achieved

14.2%, up from 10.5% in the year to March 31, 2002 and 8.5% in

the year to March 31, 2001.

-- We have grown the contribution of value added and branded

products as a percentage of Group profit before interest,

exceptional items and goodwill amortization to 52%, exceeding

our target of 50%.

-- We have accelerated the delivery of benefits from the Amylum

integration program with gross benefits this financial year

exceeding GBP35 million ($54 million) against our target of

GBP20 million ($31 million).

-- All businesses have been set a target on both economic and

environmental grounds to reduce energy consumption on a per

unit basis by 3% per year. Overall, the Group has exceeded

this target in each of the last three calendar years.

Focus on Key Activities

We generated GBP60 million ($92 million) in proceeds from the sale of businesses and assets in the year compared with GBP137 million ($211 million) last year and the program to dispose of non-core and underperforming businesses is now largely complete. The majority of the proceeds came from the completion of the sale of Western Sugar early in the year and the sale of the North American molasses and third party liquid storage businesses.

Performance of Main Businesses

Staley, our American cereal sweetener and starch business, achieved margin gains in high fructose corn syrup (HFCS) pricing in the 2002 calendar year and better by-product prices but these were offset by lower citric acid and ethanol margins.

Staley's citric acid division operated well and benefited from cost reduction initiatives. However, these were unable to keep pace with the continuing decline in selling prices due to global oversupply. Whilst the business was profitable for the year, we incurred a trading loss in the second half year. We have taken a GBP39 million ($60 million) operating exceptional charge primarily for the impairment of our citric acid assets in the USA and Mexico. The Mexican factory will close completely before the end of the 2003 calendar year.

Ethanol margins were down, reflecting lower average gasoline prices and oversupply as the industry added new capacity in anticipation of increased demand.

There are early signs that the market for industrial starches is beginning to show some signs of recovery. Specialty food starches were again resilient.

Amylum performed well and improved sales of products with higher margins offset price reductions in the 2002 calendar year. Eaststarch, our starch joint venture in Central and Eastern Europe had a good year, with the four main plants increasing profitability.

Amylum also benefited from the earlier than expected delivery of savings resulting from its integration into the Group. Benefits exceeded GBP35 million ($54 million), against our target of GBP20 million ($31 million), with costs of GBP10 million ($15 million), in line with the target. Whilst the majority of the net benefits accrued directly to Amylum, this is a Group-wide initiative and some benefits are reported in Tate & Lyle Europe, and in Staley. This accelerated progress reflects an excellent performance by the integration team, which is drawn from people throughout the Group.

The 2003/04 financial year will be the final year of the formal integration program and we are confident of reaching our benefits target of GBP50 million ($77 million) per annum. We also anticipate integration costs will not exceed GBP10 million ($15 million).

In the last quarter of the financial year to March 31, 2003, industry pressures meant that both Staley and Amylum were unable to secure margin increases in sweetener prices for the calendar year 2003. Staley recovered higher corn costs and increased margins on basic starch and food ingredient products but citric acid prices continued to decline. In Europe, small pricing gains at Amylum in certain markets and products (such as vital wheat gluten) have been offset by price reductions elsewhere.

Our cane refineries in the UK and Portugal continued to perform well. Redpath, our Canadian refinery, benefited from both good operations and a small stock holding gain due to higher world raw sugar prices.

Performance of Other Businesses

Eastern Sugar, our sugar joint venture in Central Europe, which was profitable in the previous year, incurred losses overall. This was due to the collapse of the sugar regime in the Czech Republic, which caused a significant erosion of sugar selling prices in that country. Whilst we believe this issue will be resolved when the Czech Republic accedes to the EU in May 2004, we do not expect Eastern Sugar to return to profit in the year to March 31, 2004.

Almex, our Mexican joint venture corn wet miller, suffered lower profits due to the continued imposition of a tax on soft drinks containing HFCS. A dispute with the Mexican Government over import duties was satisfactorily resolved.

Occident, our Mexican cane sugar miller, had an improved performance due to increased demand for sugar as a result of the same tax on drinks containing HFCS.

NAT&L, our cane sugar factory in Vietnam, continued to trade profitably but was affected by lower domestic sugar selling prices.

Sugar trading performed strongly and had an exceptional year.

Tate & Lyle Sucralose received the second annual US$10 million license payment under the Global Alliance announced in September 2001.

Tate & Lyle Reinsurance, the Group's captive reinsurance company, had a better year as the prior year included a charge in respect of exposure to the terrorist attacks in the USA on September 11, 2001.

Safety

Tate & Lyle believes that no business activity is of such urgency or importance that it may be carried out in an unsafe manner and our aim is continually to improve our safety record.

We use a Group Safety Index to compare safety performance across the Tate & Lyle Group. This approach highlights good practices and indicates where further work is needed.

The Index covers calendar years and we have a target to reduce it to zero for every Tate & Lyle operation.

In 2002, 63% of locations either repeated or improved on their 2001 safety performance. However, the Group Index for the calendar year 2002 rose slightly compared with 2001. This occurred because although we maintained a pattern of continuously reducing the number of recordable and lost time injuries, serious injuries in three locations resulted in a higher overall severity rate than reported in 2001. All locations have redoubled their efforts to improve our performance in this important area.

Community Involvement

Tate & Lyle has operations in more than 20 countries and we regard our impact on the communities where we work as being an important measure of our performance.

We maintain strong and diverse community involvement and we work alongside community partners with whom we enjoy shared objectives. It is in our interests to operate in strong, safe and healthy communities and if we can help achieve this it improves the quality of life for employees as well as our neighbors. I also believe that levels of commitment and motivation are increased if employees hold Tate & Lyle in high esteem.

The community involvement policy is reviewed annually by the Board. The programs are managed locally.

Conclusion

I am delighted to have joined Tate & Lyle at this important point in its development. Over the last three years, the Group has substantially improved its cost structure and focused on its core activities. The program to dispose of non-core and underperforming businesses is now largely complete.

On behalf of the Board, I would like to thank employees around the Group for their efforts during the last year that resulted in the improved profitability. I look forward to working with them and the Board to build on this solid platform and to continue the drive for efficiency and growth.

Iain Ferguson

Chief Executive

Operating and Financial Review

Summary of Financial Results

Total sales decreased by GBP777 million ($1,197 million) to GBP3,167 million ($4,877 million). Discontinued activities and exchange rate translation on continuing activities reduced sales by GBP552 million ($850 million) and GBP111 million ($171 million) respectively. Sugar trading sales reduced by GBP154 million ($237 million). Sales from other continuing activities increased by GBP40 million ($62 million).

Profit before interest, tax, exceptional items and goodwill amortization increased by 18% from GBP216 million ($333 million) to GBP254 million ($391 million) due mainly to improvements at Amylum and the completion of the disposal of the loss-making US sugar businesses early in the year. Profit before interest and tax after exceptional charges of GBP33 million ($51 million), 2002- credits of GBP8 million ($12 million), and the goodwill amortization charge of GBP8 million ($12 million) in both years, was GBP213 million ($328 million), compared with GBP216 million ($333 million) in the year to March 31, 2002.

Interest costs reduced from GBP57 million ($88 million) to GBP26 million ($40 million). Of this reduction, GBP8 million ($12 million) was due to unusual interest income on tax and duty. Interest cover improved from 3.3 times to 7.6 times, or 6.8 times excluding the unusual credits.

Profit before tax, exceptional items and goodwill amortization was GBP228 million ($351 million), an improvement of 43%. Profit before tax included unusual income of GBP11 million ($17 million). We reported GBP5million ($8 million) of this, relating to interest received on tax refunds and exchange gains on foreign currency balances, in the results for the six months to September 30, 2002. In the second half of the financial year this was reduced by a GBP1 million ($1 million) exchange loss on foreign currency. The balance was a GBP7 million ($10 million) credit for a refund of duty in Mexico, of which GBP4 million ($6 million) was interest received. Profit before tax, after exceptional items and goodwill amortization was GBP187 million ($288 million) compared with GBP159 million ($245 million) in the year to March 31, 2002.

Diluted earnings per share before exceptional items and goodwill amortization for the year to March 31, 2003 were 33.6p (51.7cents), 2002 - 22.1p (34.0cents). Diluted earnings per share after exceptional items and goodwill amortization were 27.7p (42.7cents), 2002 - 24.6p (37.9cents in 2002).

The Board is recommending a 0.5 pence (0.8cents) per share increase in the final dividend to bring the total dividend for the year to 18.3 pence (28.2cents) per share. The proposed dividend is covered 1.8 times by earnings before goodwill amortization and exceptional items, an improvement from 1.2 times in the previous year. Earnings after exceptional items and goodwill amortization covered the dividend 1.5 times (2002 - 1.4 times).

Net debt reduced by GBP168 million ($259 million) from GBP639 million ($984 million) to GBP471 million ($725 million), assisted by GBP60 million ($92 million) proceeds from disposals.

Exceptional Items and Goodwill Amortization

Exceptional items totaled a net charge of GBP33 million ($51 million). An impairment charge of GBP39 million ($60 million) was taken as an operating exceptional item primarily to write down the assets of the US and Mexican citric acid operations to their recoverable values, following continued global pressure on selling prices. The Mexican factory will be closed completely before the end of the calendar year 2003.

The balance was an exceptional non-operating net profit of GBP6 million ($9 million). Included within this was a GBP14 million ($22 million) profit following the disposal of the US sugar businesses in November 2001 and April 2002 and a GBP12 million ($18 million) anticipated loss on a planned disposal, which was after a GBP9 million ($14 million) charge for goodwill previously written off to reserves.

Amortization of capitalized goodwill totaled GBP8 million ($12 million) in the both the current and prior year.

Segmental Analysis of Profit Before Interest

The following paragraphs refer to profit before interest and exceptional items but after the amortization of capitalized goodwill. The segmental analysis of continuing and discontinued activities for the year to March 31, 2002 has been restated to reflect disposals of companies completed since the publication of last year's Annual Report. Exchange rate translations reduced Group profit before interest by GBP10 million.

Sweeteners & Starches - Americas: continuing activities

Profits before exceptional items and interest fell by GBP4 million to GBP135 million. Exchange rate translation reduced profits by GBP11 million.

Staley

Despite continuing difficult market conditions in Staley's cereal sweetener and starch business, growth was experienced in nearly all major product lines, particularly in higher value added food ingredients. Higher corn costs were covered by price increases, and cost reduction initiatives continue to enhance results.

Food ingredients generated improved results, particularly through working closely with our customers on product development. Increased sales were made to export markets and benefits were seen from further integration with Amylum in Europe, especially from unifying research and development.

US sweetener market volumes remained similar to the prior year, and the trend continued of bottled water and fruit-flavored beverage sales increasing at the expense of carbonated soft drinks. Price increases for the 2002 calendar year resulted in stronger overall sweetener margins. The paper industry showed signs of recovery towards the end of the year and margins on industrial starches improved.

Corn costs rose during the year following a drought which reduced the crop, but this was partially mitigated by higher corn oil and corn gluten meal prices. In the 2003 calendar pricing round we recovered the higher net corn costs through selling price increases. Ethanol selling prices fell sharply in the year both in response to lower average gasoline prices and as the industry added new capacity. Industry production has increased in anticipation of increased demand from the banning of methyl tertiary butyl ether (MTBE), the alternative fuel oxygenate, in California (now deferred until January 2004) and the impact of the US Energy Bill.

Manufacturing operations continued to perform well, and both fixed and unit costs were reduced. Energy costs were lower and rising natural gas prices underscored the importance of our conservation program. A small potato starch plant was closed.

Much of the process development on 1,3-propanediol, which uses corn as a feedstock, is complete. We continue to work with DuPont to move this fermentation project to the next stage of development, providing we can anticipate an adequate return on further investment. We are also building a xanthan gum production facility, scheduled for commissioning in 2004.

In Mexico, high fructose corn syrup (HFCS) sales were significantly lower at Almex, our joint venture, as the tax on soft drinks containing HFCS remains in place. Although the industry is suffering from inefficient plant utilization, prices on the rest of the product portfolio increased. A long-running dispute with the government over import duties was resolved and a refund of GBP7 million has been recognized in the accounts for the year ended March 31, 2003, of which GBP3 million is included in profit before interest, with the balance reducing the interest charge. Access into Mexico for US HFCS under the North American Free Trade Agreement remains unresolved between the Mexican and US governments.

There remains significant over-supply to the global citric acid market. Prices continued to decline under pressure from Asian imports, and again we managed only a small operating profit, despite making further significant cost reductions. Our Mexican plant will close by the end of the calendar year, and an impairment charge has been taken against this and the US operation. We anticipate a modest exceptional charge for the closure, which will be booked in the year to March 31, 2004. Plant closures have been announced by competitors in Ireland, China and the Czech Republic. We announced that part of our UK factory will be converted to produce AstaXin(R), a natural source of astaxanthin, which is widely used in the aquaculture industry. Despite these signs of industry rationalization the market is likely to remain difficult in the near term, and we do not expect to make a profit from citric acid in the year to March 31, 2004.

North American Sugar

Redpath, in Canada, had an exceptional year, once again achieving record sales with strong growth in the industrial sector. Food manufacturers continue to relocate production from the USA to Canada where the cost base is lower.

Profits improved due to the higher sales volumes, lower energy costs and improved productivity. The increase in the world price of raw sugar resulted in a stockholding gain of GBP2 million compared with a GBP2 million loss in the previous year.

Occident, our joint venture cane sugar business in Mexico, achieved a significant improvement in operating profit despite an adverse movement in exchange rates. Record sugar production from the campaign that ended in June 2002 exceeded 340,000 tonnes. Technical performance of all three mills has improved under new operational management.

In Mexico, sugar has replaced HFCS in soft drinks since the imposition of the tax on HFCS-containing soft drinks. This has increased domestic demand for sugar, with the consequence of firmer pricing. The prospects for the coming year are good with the probability that most of the production will be sold onto the higher price domestic market with very little exported at world prices.

A new sugar blending operation in Mexico was commissioned, in association with Redpath's Canadian blending operation, and Occident has begun to export sugar-containing products to the USA.

Sweeteners & Starches - Europe: continuing activities

Profit before exceptional items and interest increased by 23% from GBP87 million to GBP107 million. Exchange rate translation increased profits by GBP1 million.

Amylum

Amylum's cereal sweetener and starch business accounted for the majority of the improvement in the sector.

The integration and cost reduction project delivered benefits exceeding GBP35 million, well ahead of the GBP20 million target. Costs of GBP10 million were in line with expectations. The benefits were primarily generated by lower manning levels, and purchasing and manufacturing efficiencies.

Volumes improved for both sweeteners and starches. Wheat costs fell following good harvests and increased imports into the EU from Russia and the Ukraine. Maize prices were also reduced due to improved crops and the initial impact of imports from countries listed for the first wave of accession to the EU. By-product selling prices were also lower. Small pricing gains in certain markets and products (such as vital wheat gluten) were offset by price reductions elsewhere.

Monosodium glutamate pricing continued to improve and even though Orsan reported a small loss for the year, it was less than in prior years. Progress towards completing the sale of Orsan France, particularly as regards obtaining competition authority approvals, remains satisfactory.

Manufacturing costs decreased despite increased local taxes and higher insurance and post retirement costs. Energy costs reduced and forward cover mitigated price increases in the second half of the year.

The Eaststarch joint venture businesses in Central and Eastern Europe had an excellent year with higher volumes and improved selling prices aided by lower maize costs. Greater stability in Turkey and improved operating efficiencies were the primary drivers, including the benefits of the integration program. The imposition of sweetener quotas in Turkey will limit a repeat performance in the coming year.

Tate & Lyle Europe

The UK and Portuguese sugar businesses continued to perform satisfactorily. The UK operations benefited from the strengthening of the euro. Energy costs were higher following the expiry of a medium-term contract in the year to March 31, 2002.

Lyle's Golden Syrup sales grew in new export markets and franchises with United Biscuits for McVitie's Lyle's Golden Syrup Cream Biscuits and McVitie's Lyle's Black Treacle Cream Biscuits were established. Lyle's Coffee Syrups consolidated their leading position in the UK retail market and Tate & Lyle Sugars' product range was rationalized to concentrate on higher added-value lines.

Capital expenditure was below depreciation with the businesses contributing strong cash flow to the Group.

As part of the integration program, an outsourcing agreement for the provision of IT services in the UK was terminated, and this function has been re-absorbed by existing support functions within the Group at substantially lower cost.

Eastern Sugar

The Eastern Sugar Group, our European beet sugar joint venture, experienced a difficult year and made losses overall. This was in contrast to a successful previous campaign and profitable year to March 31, 2002. In the Czech Republic, the developing sugar regime collapsed in November 2002 following a successful challenge in the constitutional court and selling prices plummeted. The Government is taking steps to stabilize selling prices at more normal levels but the volume of sugar in the hands of traders may hinder its effort. We do not anticipate a return to profit in the short term prior to the Czech Republic's accession to the EU.

The Slovakian business had a satisfactory year. Domestic sales in Hungary were weak as imports of sugar, sugar substitutes and sugar-containing products took market share.

Hungary, Slovakia and the Czech Republic will accede to the EU in May 2004 and will enter the EU sugar regime. Preparations continue in all countries for accession.

Sweeteners & Starches - Rest of the World: continuing activities

Profits before exceptional items and interest increased from GBP4 million to GBP11 million. Exchange rate translation reduced profits by GBP1 million.

Sugar trading profits were exceptionally strong and improved mainly through sales of Brazilian raw sugar.

Building on the successful implementation of specialist trading software in the previous year, a thorough review of sugar trading risk management policies and procedures was undertaken and recommended actions successfully implemented towards the end of the year.

Asian Sugar Businesses

Nghe An Tate & Lyle (NAT&L), the Group's cane sugar business in Vietnam, achieved a further record production of 95,870 tonnes of sugar in the financial year, 13% higher than the previous year. NAT&L is now the largest sugar producer in Vietnam and its quality is recognized in the marketplace. Selling prices were under pressure as Vietnam achieved surplus production over local demand.

The remaining investment in Chinese sugar factories, which were sold during the year, did not have a material impact on operating profit.

Animal Feed and Bulk Storage: continuing activities

Profits before exceptional items and interest on continuing activities fell from GBP10 million to GBP4 million.

We announced in February 2002 that we would pursue the sale of the worldwide molasses and storage businesses. However, negotiations did not produce an offer for the business as a whole that reflected its contribution to the Group, and the business was withdrawn from sale as a single entity in September 2002. We examined other opportunities to maximize returns from the business, including partial disposals, and sold the North American molasses and third party liquid storage businesses during the year.

In the business retained, and in contrast to the prior year, international freight rates increased significantly. This was as a result of the tensions over Iraq and instability in Venezuela. The limited availability of Thai molasses and difficult feed markets in both the UK and Germany were contributory factors to the reduction in profitability. The costs of the disposal process prior to withdrawing the business as a whole from sale were charged against operating profit in the year to March 31, 2003.

Other Businesses and Activities: continuing activities

This segment, which includes head office activities, reduced costs from GBP22 million to GBP10 million, primarily because of the negative impact in the prior year on our captive reinsurance company of the terrorist attacks of September 11, 2001. Exchange rate translation reduced losses by GBP1 million.

Tate & Lyle Sucralose

The global commercialization of sucralose, the no calorie sweetener made from sugar, continues with sales growth exceeding expectations. This business is operated under a Global Alliance Agreement with McNeil Nutritionals, a Johnson & Johnson company. Sucralose is now used as an ingredient in over 2,000 products worldwide. It was introduced as an ingredient to the UK market last year and is being used in a number of carbonated beverages, flavored waters, alcoholic beverages and dairy products.

Meanwhile, national approvals were granted in the Republic of Ireland and Netherlands, in advance of the anticipated adoption of the EU Sweeteners Directive.

A GBP7 million ($10 million) license fee was received from McNeil Nutritionals under the Global Alliance Agreement.

Tate & Lyle Process Technology (TLPT)

TLPT, the Group's sugar technology company, improved its profitability having previously disposed of its chemical and filter businesses. TLPT have developed technology for the transformation of raw sugar to liquid sugar that could find a ready market with the worldwide beverage manufacturers.

Tate & Lyle Reinsurance

The Group's Bermuda-based captive reinsurance company reported an underwriting profit for the year ended March 31, 2003. The previous year's results were adversely affected by increased claims from third-party business and in particular our exposure to the terrorist attacks of September 11, 2001. Conditions improved in the third-party insurance market and, together with good results from internal exposures to the rest of the Group, led to a positive underwriting result.

The company decided to discontinue writing non-Group risks with effect from January 1, 2003 and is now in the process of running-off the existing third party liabilities. To date a third of these liabilities have been commuted.

The Group continues to believe it can minimize the effect of higher insurance costs as well as provide stability by continuing the policy of retaining risk and premium in its own reinsurance company.

Discontinued Activities

During the year, the major operating profit impacts were caused by the sales of Western Sugar and the North American molasses and third party liquid storage businesses.

The US sugar businesses lost GBP18 million in the year to March 31, 2002. Western Sugar was sold in April 2002 and contributed a small operating profit in the year to March 31, 2003.

The US and Canadian molasses and third party liquid storage businesses made a loss prior to their disposal in March 2003.

Interest, Tax and Dividend

Interest

The net Group interest charge was GBP26 million compared with GBP57 million in the year to March 31, 2002. Interest income includes GBP4 million from the loan notes issued to the purchasers of Domino and Western. During the year, interest receivable and similar income benefited from a number of unusual items totaling GBP8 million. These included recoveries of tax interest and, in the joint ventures, from interest refunds on duty.

Average net debt of Tate & Lyle PLC and its subsidiaries was GBP530 million, a reduction of GBP294 million on GBP824 million the previous year. The reduction in net debt accounted for GBP20 million of the GBP31 million reduction in the net interest charge. The interest rate for subsidiaries in the year when measured against average net debt was 5.5% (2002 - 6.7%). Interest cover based on profit before exceptional items, goodwill amortization and interest of Tate & Lyle PLC and its subsidiaries improved from 3.3 times to 7.6 times. Excluding the unusual interest receipts, interest cover was 6.8 times.

Profit before Tax

Profit before tax but after exceptional items and goodwill amortization was GBP187 million, compared with GBP159 million in the prior year. Exchange rate movements reduced profit before tax by GBP9 million.

Taxation

The Group taxation charge was GBP57 million (2002 - GBP39 million). The effective rate of tax,

on profit before exceptional items and goodwill amortization, was 30.7% (2002 - 32.1%).

Dividend

A final dividend of 12.8p will be recommended as an ordinary dividend to be paid on August 6, 2003 to shareholders on the register on July 11, 2003. This is an increase of 0.5p per share. An unchanged interim dividend of 5.5p was paid on January 14, 2003. Earnings before exceptional items and goodwill amortization covered the proposed total dividend by 1.8 times.

Disposals

We received GBP60 million proceeds from the disposal of businesses and assets during the year to March 31, 2003, compared with GBP137 million in the previous year.

The sale of Domino, the US cane sugar refiner, was completed in November 2001. Under the terms of an earn-out clause in the sale agreement, we received deferred proceeds of GBP8 million in the year.

As reported in last year's Annual Report, Western, the US beet sugar business, was sold to the Rocky Mountain Sugar Growers Co-operative. Sales proceeds total GBP51 million, GBP17 million of which have been received. Loan notes are outstanding of GBP34 million, which will be repaid through installments by January 2007. In anticipation of disposal, Western's assets were written down in previous financial years, and GBP9 million of this was reversed as a profit on disposal.

The conditional sale of Orsan France, the monosodium glutamate business, was announced in November 2002 and satisfactory progress is being made to completion. The anticipated loss on disposal charged in these accounts is GBP12 million, of which GBP9 million results from goodwill previously written off to reserves.

In December 2002, the Group sold Well Pure, the Hong Kong holding company for the Group's majority interests in two cane sugar factories in China. The company was bought by a group of private Chinese investors and a profit on disposal was made.

In December 2002 and March 2003 respectively, the molasses and third party liquid storage terminals in the USA and Canada, were sold, but both still remain subject to closing balance sheet adjustments. Proceeds received were GBP18 million and a further GBP10 million was recovered from retained receivables.

Retirement Benefits

The charge for retirement benefits, calculated under SSAP24, was GBP24 million, an increase of GBP11 million over the prior year. The pension charge has increased by GBP6 million on the assumption that the main UK scheme will no longer record a surplus when the actuarial valuation at March 31, 2003 is completed.

The UK Tate & Lyle Group Pension Scheme fund was valued at March 31, 2001 and a valuation as at March 31, 2003 is currently underway. The results of the 2001 actuarial valuation indicated no need to resume contributions at that stage, but informal valuations were performed during the year to March 31, 2003, all of which indicated that the fund had gone into deficit. Annual cash contributions of around GBP8 million recommenced with effect from April 1, 2002, and GBP32 million of supplementary contributions have been made in the year to March 31, 2003 to the fund to eliminate estimated shortfalls, making a total contribution of GBP40 million. The valuation of the fund at March 31, 2003 has still to be completed, but it is not anticipated that the fund will record a surplus. Accordingly the Group has not recognized any amortization of the surplus indicated by the March 31, 2001 valuation, and this has increased the pension charge by GBP6 million in the year to March 31, 2003.

From April 1, 2002, the UK defined benefit scheme was closed to new members, and a defined contribution scheme has been established.

SSAP24 spreads pension surpluses and deficits over the service lives of employees. Under SSAP24 the net pension liability reduced by GBP41 million to a net asset of GBP9 million and the US healthcare provision reduced by GBP12 million to GBP118 million.

Under FRS17 the current service cost charged against profit each year is calculated using corporate bond yields, and any change in yields generates volatility in the pensions charge. The use of market values in the balance sheet is likely to give rise to volatile changes in the amounts reported as pension assets and liabilities.

If the accounts had been prepared under FRS17, the net position for all Group defined benefit pension schemes at March 31, 2003 would have been a deficit of GBP196 million, a movement of GBP146 million from the deficit of GBP50 million that would have been recorded under the new standard at March 31, 2002, but an improvement of GBP54 million from the deficit of GBP250 million at 30 September 2002. The potential US healthcare liability would have reduced from GBP117 million at March 31, 2002 and GBP111 million at September 30, 2002 to GBP104 million at March 31, 2003.

After taking account of deferred tax, the Group's net assets at March 31, 2003 would have reduced by GBP138 million from GBP1,044 million under SSAP24 to GBP906 million if the financial statements had been prepared under FRS17.

Profit before interest would have increased by GBP5 million, compared with a GBP9 million reduction in the previous year, and the net interest charge would have increased by GBP4 million.

The total charge to profit under FRS17 would have been GBP23 million compared with GBP24 million under SSAP24.

Cash Flow and Balance Sheet

Cash Flow and Debt

Operating cash flow totaled GBP323 million compared with GBP445 million in the previous year. There was an operating working capital inflow of GBP36 million but, after the reduction in pension provisions due to supplementary contributions of GBP42 million, there was a net GBP6 million working capital outflow (2002 - GBP143 million inflow). A net GBP97 million (2002 - GBP140 million) was paid to providers of finance as dividends and interest. Net taxation paid reduced from GBP35 million to GBP7 million, reflecting a number of refunds in the year in the UK and USA. Contributions to the Group's pension funds, both regular and supplementary, increased from GBP3 million in the previous year to GBP61 million.

Plant replacement, improvement and expansion expenditure of GBP75 million was below underlying depreciation of GBP110 million. Investment expenditure was GBP15 million, being primarily an injection of funds into the Tate & Lyle Employee Benefit Trust which purchases shares to satisfy options granted under the Executive Share Option Scheme. Disposals of fixed assets and businesses generated cash of GBP60 million. Exchange translation, and other non-cash movements, increased debt by GBP21 million.

The Group's net borrowings fell from GBP639 million to GBP471 million.

The ratio of net borrowings to earnings before interest, tax, depreciation and amortization ("EBITDA") (before exceptional items) has improved from 2.1 times to 1.4 times and the gearing ratio reduced to 45% at March 31, 2003 (2002 - 59%). During the year net debt peaked at GBP605 million in April 2002 (April 2001 during the year ended March 31, 2002 - GBP959 million).

Funding and Liquidity Management

The Group funds its operations through a mixture of retained earnings and borrowing facilities, including capital markets and bank borrowings.

In order to ensure maximum flexibility in meeting changing business needs the Group seeks to maintain access to a wide range of funding sources. The Group has a euro medium term note program and a US commercial paper program. At March 31, 2003 the Group's long term credit ratings from Moody's and Standard and Poor's were Baa2 and BBB respectively.

Capital markets borrowings include the EUR300 million 5.75% bonds and the EUR150 million Floating Rate Note which mature in 2006 and 2007 respectively. During the year the Group issued GBP200 million 6.50% Eurosterling bonds which mature in 2012 which further extends the maturity profile of Group debt.

The Group ensures that it has sufficient undrawn committed bank facilities to provide liquidity back-up for its US commercial paper and other short term money market borrowing for the foreseeable future. During the year the Group arranged committed bank facilities of US$510 million with a core of highly rated banks. These new facilities have a maturity date of five years and they refinanced existing undrawn committed bank facilities with shorter maturity dates.

These facilities are unsecured and contain common financial covenants for Tate & Lyle and its subsidiary companies that the interest cover ratio should not be less than 2.5 times and the ratio of net debt to EBITDA should not be greater than four times. The Group monitors compliance against all its financial obligations and it is Group policy to manage the consolidated balance sheet so as to operate well within covenanted restrictions at all times.

The majority of the Group's borrowings are raised through the Group treasury company and are then on-lent to the business units on an arms-length basis.

The Group manages its exposure to liquidity risk by ensuring a diversity of funding sources and debt maturities. Group policy is to ensure that, after subtracting the total of undrawn committed facilities, no more than 30% of gross debt matures within 12 months and at least 50% has a maturity of more than two and a half years. At the end of the year after subtracting total undrawn committed facilities there was no debt maturing within 12 months and all debt had a maturity of two and a half years or more (2002 - 0% and 51%). The average maturity of the Group's gross debt was 5.4 years (2002 - 3.2 years).

At the year end the Group held cash and current asset investments of GBP172 million (2002 - GBP135 million) and had undrawn committed facilities of GBP348 million (2002 - GBP461 million). These resources are maintained to provide liquidity back-up and to meet the projected maximum cash outflow from debt repayment and seasonal working capital needs foreseen for at least a year into the future at any one time.

Funding not Treated as Debt

In respect of all financing transactions, the Group seeks to optimize its financing costs. The following items are not included in net debt under UK accounting conventions.

At Amylum, the Group receives cash from selling amounts receivable from customers. The facility allows the sale of up to $85 million (GBP53 million) of receivables, and was fully utilized at both March 31, 2003 and March 31, 2002. Where financially beneficial, operating leases are undertaken in preference to purchasing assets. Commitments under operating leases to pay rentals in future years totaled GBP209 million (2002 - GBP166 million) and related primarily to railcar leases in the USA.

Net debt of joint ventures and associates totaling GBP60 million at March 31, 2003 (2002 - GBP145 million) was not consolidated in the Group balance sheet. Of Tate & Lyle's GBP29 million share of net debt of joint ventures and associates, GBP9 million was subject to recourse to the Group.

Simon Gifford

Group Finance Director

About Tate & Lyle

Tate & Lyle is a world leader in carbohydrate ingredients. Our core competence is to take basic carbohydrates - corn, wheat or sugar - and add value to these raw materials through technology. As a result of continuous innovation we offer an ever-wider product portfolio of versatile and functional ingredients. These products include Cereal Sweeteners, Starches, Sugars and Citric Acid. Our products have wide applications in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries.

With headquarters in London, the Group has 7,000 employees and 50 plants in 24 countries. Sales in the 53 weeks to March 31, 2002 totaled GBP3.9bn. Tate & Lyle ordinary shares trade on the London Stock Exchange under TATE.L. In the US, ADRs trade on the NASD OTC Bulletin Board under TATYY (each ADR is equal to four ordinary shares). Additional information can be found at the website www.tateandlyle.com

TATE & LYLE GROUP PROFIT AND LOSS ACCOUNT

Year to March 31, 2003

 Year to March 31, 2003
 Continuing Discontinued Total Year to
 activities activities GBP March 31,
 GBP GBP million million 2002
 million GBP
 million
-----------------------------------------------------------

Group sales 2 758 91 2 849 3 616
Share of sales of
 joint ventures and
 associates 318 - 318 328
 -------------------------------------------------
Total sales (Note 2) 3 076 91 3 167 3 944
 -------------------------------------------------

Group operating
 profit
 -------------------------------------------------
 Before goodwill
 amortization and
 operating
 exceptional items 220 (1) 219 180
 Goodwill
 amortization (8) - (8) (8)
 Operating
 exceptional items
 - impairment of
 assets (Note 4) (39) - (39) -
 -------------------------------------------------

Group operating
 profit 173 (1) 172 172

Share of operating
 profits of joint
 ventures
and associates 35 - 35 36
 -------------------------------------------------
 -
Total operating
 profit 208 (1) 207 208

Non-operating
 exceptional items
 (Note 4):
 Write-downs on
 planned sales of
 businesses (12) - (12) -
 Profit/(loss) on
 sale of
 businesses 4 15 19 (5)
 (Loss)/profit on
 sale of fixed
 assets (1) - (1) 13
 -------------------------------------------------
 -
Profit before
 interest 199 14 213 216
 --------------------------

Interest receivable
 and similar income 31 47
Interest payable and
 similar charges (60) (102)
Share of net interest
 receivable/(payable)
 of
joint ventures and
 associates 3 (2)
 -----------------------
Profit before
 taxation (Note 3) 187 159

Taxation (57) (39)
 -----------------------

Profit after taxation 130 120

Minority interests -
 equity 2 (2)
 -----------------------
Profit for the period 132 118
Dividends paid and
 proposed (86) (85)
 -----------------------
Retained profit for
 the period 46 33
 -----------------------

Earnings per share (Note 5)
 Basic 27.8p 24.7p
 Diluted 27.7p 24.6p
 ---------------------

----------------------------------------------------------------------
Before goodwill amortization and exceptional
 items
Profit before taxation 228 159
Diluted earnings per share (Note 5) 33.6p 22.1p
----------------------------------------------------------------------


TATE & LYLE SUMMARIZED GROUP BALANCE SHEET



 As at As at
 March 31, March 31,
 2003 2002
 GBP million GBP million
----------------------------------------------------------------------

Fixed assets
Intangible assets 154 158
Tangible assets 1 176 1 303
Investments 235 238
 -------------- -------------
 1 565 1 699
 -------------- -------------

Current assets
Stocks 310 400
Debtors 398 467
Investments and cash at bank and in hand
 (Note 6) 172 135
 -------------- -------------
 880 1 002

Creditors - due within one year
Borrowings (Note 6) (100) (151)
Other (493) (502)
 -------------- -------------
Net current assets 287 349
 -------------- -------------

Total assets less current liabilities 1 852 2 048

Creditors - due after more than one year
Borrowings (Note 6) (543) (623)
Other (4) (3)
Provisions for liabilities and charges (261) (341)
 -------------- -------------
Total net assets 1 044 1 081
 ============== =============

Capital and reserves
Called up share capital 123 123
Share premium account and other reserves 487 489
Profit and loss account 402 431
 -------------- -------------

Shareholders' funds 1 012 1 043
Minority interests 32 38
 -------------- -------------
 1 044 1 081
 ============== =============


TATE & LYLE STATEMENT OF GROUP CASH FLOWS

 Year to Year to
 March 31, March 31,
 2003 2002
 GBP million GBP million
----------------------------------------------------------------------

 ------------ -----------
Operating profit 172 172
Depreciation of tangible fixed assets 110 121
Operating exceptional items - impairment of
 assets 39 -
Amortization of goodwill 8 8
Change in working capital (6) 143
Write-downs against fixed asset investments - 1
 ------------ -----------
Net cash inflow from operating activities 323 445

Dividends from joint ventures and associates 10 7

Returns on investment and servicing of
 finance
 ------------ -----------
Interest paid (51) (109)
Interest received 30 48
Dividends paid to minority interests in
 subsidiary undertakings (2) (1)
 ------------ -----------
 (23) (62)

Taxation paid (7) (35)

Capital expenditure and financial investment
 ------------ -----------
Purchase of tangible fixed assets (75) (76)
Sale of tangible fixed assets 1 15
Purchase of fixed asset investments (15) (12)
Sale of fixed asset investments 4 12
 ------------ -----------
 (85) (61)

Acquisitions and disposals
 ------------ -----------
Sale of subsidiaries 55 103
Net overdrafts of subsidiaries sold - 2
Refinancing of existing joint ventures - (3)
Sale of interests in joint ventures and
 associates - 7
 ------------ -----------
 55 109

Equity dividends paid (84) (85)

 ------------ -----------
Net cash inflow before financing and
 management
of liquid resources 189 318
 ============ ===========


Reconciliation of cash flow to net debt
----------------------------------------------------------------------

Net cash inflow before financing and
 management of liquid resources 189 318

Changes in debt not involving cash flow:
- Reduction on disposal of subsidiaries - 1
- Exchange movements (19) 7
- Amortization of bond discount (2) (2)

 ------------ -----------

Reduction in net debt 168 324
Net debt at start of period (639) (963)

 ------------ -----------
Net debt at end of period (Note 6) (471) (639)
 ============ ===========


TATE & LYLE STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES



 Year to Year to
 March 31, March 31,
 2003 2002
 GBP million GBP million
----------------------------------------------------------------------

Profit for the period
- Group 116 99
- Joint ventures and associates 16 19
 ------------ --------------
 132 118

Exchange difference on foreign currency
 net investments (66) (3)
Taxation on exchange difference on
 foreign currency net investments (21) 1
 ------------ --------------
Total recognized gains and losses for
 the period 45 116
 ------------ --------------


GROUP RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS



 Year to Year to
 March 31, March 31,
 2003 2002
 GBP million GBP million
----------------------------------------------------------------------

Opening shareholders' funds 1 043 1 008

Movements during the period
Total recognised gains and losses for the
 period 45 116
Dividends (86) (85)
Issues of shares 1 -
Goodwill on disposals transferred to the
 profit and loss account 9 4
 ------------ ------------
 (31) 35
 ------------ ------------
Closing shareholders' funds 1 012 1 043
 ------------ ------------


TATE & LYLE NOTES TO STATEMENTS

For the year to March 31, 2003

1. Basis of preparation

(a) Audited information

The financial information contained in this announcement is derived from the Group's financial statements for the year ended March 31, 2003 on which the Company's auditors, PricewaterhouseCoopers LLP, have issued an unqualified audit opinion. Subject to their adoption by shareholders, the Group's financial statements will be filed with the Registrar of Companies following the Company's Annual General Meeting on July 31, 2003.

(b) Accounting policies

The Group's accounting policies are unchanged compared with the year ended March 31, 2002.

(c) Discontinued activities

Discontinued activities represents the results of businesses now sold that were individually significant to their segment and include Western, the US beet sugar producer, and the North American molasses and third party liquid storage businesses, which were sold in 2003, and Domino, the US cane sugar refiner, the African and Thai sugar assets and the storage businesses in East Africa and the Caribbean, which were sold in 2002.

TATE & LYLE NOTES TO STATEMENTS (continued)

For the year to March 31, 2003

2. Segmental analysis of sales


 Continuing Discontinued
 activities activities Total
Year to March 31, 2003 GBP million GBP million GBP
 million
----------------------------------------------------------------------

Sweeteners and starches
 - Americas 1 137 10 1 147
 - Europe 1 331 - 1 331
 - Rest of the world 354 - 354
 ------------- -------------- ---------
 2 822 10 2 832
Animal feed and bulk storage 227 81 308
Other businesses and activities 27 - 27
 ------------- -------------- ---------
 3 076 91 3 167
 ============= ============== =========

----------------------------------------------------------------------

----------------------------------------------------------------------
Year to March 31, 2002
----------------------------------------------------------------------

Sweeteners and starches
 - Americas 1 269 428 1 697
 - Europe 1 323 - 1 323
 - Rest of the world 422 50 472
 ------------- -------------- ---------
 3 014 478 3 492
Animal feed and bulk storage 248 130 378
Other businesses and activities 39 35 74
 ------------- -------------- ---------
 3 301 643 3 944
 ============= ============== =========


Comparative figures have been reclassified to include within discontinued activities the results of businesses that are now discontinued but in the previous year were classified as ongoing activities.

Included in the analysis of total sales are the following amounts relating to joint ventures and associates. In the year to March 31, 2002, the Group sold its investments in African and Thai cane sugar and included their results for that year in discontinued activities. In the year under review, all sales in joint ventures and associates arose from continuing activities.

 Year to Year to
 March 31, March 31,
 2003 2002
 GBP million GBP million
----------------------------------------------------------------------

Sweeteners and starches
 - Americas 145 155
 - Europe 167 149
 - Rest of the world 2 20
 --------------- --------------
 314 324
Animal feed and bulk storage 4 4
Other businesses and activities - -
 --------------- --------------
 318 328
 =============== ==============


TATE & LYLE NOTES TO STATEMENTS (continued)

For the year to March 31, 2003

3. Analysis of profit before taxation


 Before
 Continuing Discontinued exceptional
 activities activities items
Year to March 31, 2003 GBP million GBP million GBP million
----------------------------------------------------------------------

Sweeteners and starches
 - Americas 135 1 136
 - Europe 107 - 107
 - Rest of the world 11 - 11
 ------------- ------------- ------------
 253 1 254
Animal feed and bulk storage 4 (2) 2
Other businesses and
 activities (10) - (10)
 ------------- ------------- ------------
 247 (1) 246

Net interest expense (26)
 ------------
Profit before taxation 220
 ------------



 After
 Exceptional exceptional
 items items
Year to March 31, 2003 GBP million GBP million
----------------------------------------------------------------------

Sweeteners and starches
 - Americas (25) 111
 - Europe (12) 95
 - Rest of the world 4 15
 ------------------- --------------
 (33) 221
Animal feed and bulk storage 1 3
Other businesses and activities (1) (11)
 ------------------- --------------
 (33) 213

Net interest expense - (26)
 ------------------- --------------
Profit before taxation (33) 187
 ------------------- --------------


Included within exceptional items above is an operating exceptional charge of GBP39 million, taken primarily to write down the assets of the US and Mexican citric acid businesses to their recoverable values. The operating exceptional item is disclosed within Sweeteners and starches - Americas (GBP38 million) and Other businesses and activities (GBP1 million).

 Before
 Continuing Discontinued exceptional
 activities activities items
Year to March 31, 2003 GBP million GBP million GBP million

----------------------------------------------------------------------

Sweeteners and starches
 - Americas 139 (18) 121
 - Europe 87 - 87
 - Rest of the world 4 1 5
 ----------- ---------- -----------
 230 (17) 213
Animal feed and bulk storage 10 3 13
Other businesses and activities (22) 4 (18)
 ----------- ---------- -----------
 218 (10) 208

Net interest expense (57)
 -----------
Profit before taxation 151
 -----------


 After
 Exceptional exceptional
 items items
Year to March 31, 2003 GBP million GBP million
----------------------------------------------------------------------

Sweeteners and starches
 - Americas 1 122
 - Europe 4 91
 - Rest of the world 1 6
 --------------- ----------------
 6 219
Animal feed and bulk storage (1) 12
Other businesses and activities 3 (15)
 --------------- ----------------
 8 216

Net interest expense - (57)
 --------------- ----------------
Profit before taxation 8 159
 --------------- ----------------


Comparative figures have been reclassified to include within discontinued activities the results of businesses that are now discontinued but in the previous year were classified as continuing activities.

The above figures include the amortization of capitalised goodwill charged to the ongoing activities of the sweeteners and starches businesses as follows: Americas GBP4 million (2002 - GBP4 million); Europe GBP4 million (2002 - GBP4 million).

TATE & LYLE NOTES TO STATEMENTS (continued)

For the year to March 31, 2003

4. Exceptional items

 Profit/(loss)
 before Profit/(loss)
 goodwill Goodwill before
 and tax reinstated tax
Year to March 31, 2003 GBP million GBP million GBP million
----------------------------------------------------------------------

 Operating exceptional
 items - impairment
 of assets (39) - (39)
 Write-downs on planned
 sales
 of businesses (3) (9) (12)
 Profit on sale of
 businesses 19 - 19
 Loss on sale of fixed
 assets (1) - (1)
 -------------- ----------- ----------------
 (24) (9) (33)
 -------------- ----------- ----------------


The operating exceptional charge of GBP39 million was taken primarily
 to write down the assets of the US and Mexican citric acid businesses
 to their recoverable values.

Year to March 31, 2002
----------------------------------------------------------------------

 (Loss)/profit on sale
 of businesses (1) (4) (5)
 Profit on sale of fixed
 assets 13 - 13
 -------------- ----------- ----------------
 12 (4) 8
 -------------- ----------- ----------------



 Profit/(loss)
 Tax for the
 period
Year to March 31, 2003 GBP million GBP million
----------------------------------------------------------------------

 Operating exceptional items -
 impairment
 of assets 13 (26)
 Write-downs on planned sales
 of businesses - (12)
 Profit on sale of businesses - 19
 Loss on sale of fixed assets - (1)
 ------------ ----------------
 13 (20)
 ------------ ----------------


The operating exceptional charge of GBP39 million was taken primarily
 to write down the assets of the US and Mexican citric acid businesses
 to their recoverable values.

Year to March 31, 2002
----------------------------------------------------------------------

 (Loss)/profit on sale of
 businesses 15 10
 Profit on sale of fixed assets (3) 10
 ------------ ----------------
 12 20
 ------------ ----------------


5. Earnings per share

Basic earnings per share is calculated by dividing profit after taxation, minority interests and preference dividends of GBP132 million (2002 - GBP118 million), by the weighted average number of ordinary shares in issue during the period of 474.3 million shares (2002 - 478.0 million shares). For this purpose, the weighted average number of ordinary shares in issue excludes an average of 7.7 million shares (2002 - 3.7 million shares) held by an ESOP trust that have not vested unconditionally in the participating employees.

Diluted earnings per share take into account the dilutive effect of share options outstanding under the Company's employee share schemes.

Diluted earnings per share before the amortization of capitalised goodwill and exceptional items is presented in order to assist in the understanding of the underlying performance of the Group's business.

 Year to March 31, 2003 Year to March 31, 2002

 Earnings Earnings
 Earnings Shares per share Earnings Shares per
 GBP millions pence GBP millions share
 million million pence
----------------------------------------------------------------------

Basic 132 474.3 27.8 118 478.0 24.7

Dilutive
 effect of
 share
 options - 2.0 (0.1) - 1.0 (0.1)

 --------- ---------- --------- -------- -------- --------
Diluted 132 476.3 27.7 118 479.0 24.6
Goodwill
 amortization 8 - 1.7 8 - 1.7
Exceptional
 items (note
 4) 20 - 4.2 (20) - (4.2)
 --------- ---------- --------- -------- -------- --------
Diluted
 before
 goodwill
 amortization
 and
 exceptional
 items 160 476.3 33.6 106 479.0 22.1
 ========= ========== ========= ======== ======== ========


TATE & LYLE NOTES TO STATEMENTS (continued)

For the year to March 31, 2003

6. Analysis of net debt

 March 31, March 31,
 2003 2002
 GBP million GBP million
----------------------------------------------------------------------
Investments and cash at bank and in
 hand 172 135
Borrowings due within one year (100) (151)
Borrowings due after more than one year (543) (623)
 ------------ -------------
 (471) (639)
 ============ =============

7. Exchange rates
------------------------------------- -- -
 Average rate Period end
 rate
 Year to Year to
 March 31, March March March
 2003 31, 31, 31,
 2002 2003 2002
----------------------------------------------------------------------

US Dollar GBP1 = $ 1.54 1.43 1.58 1.42
Euro GBP1 = EUR 1.56 1.62 1.45 1.63
Canadian Dollar GBP1 = C$ 2.40 2.24 2.33 2.27


8. Net margin analysis (profit before interest as a percentage of total sales)


 Year to March 31, 2003 Year to March 31, 2002

Before goodwill Continuing All Continuing All
 amortization and activities activities activities activities
 exceptional items % % % %
----------------------------------------------------------------------

Sweeteners and starches
 - Americas 12.2 12.2 11.3 7.4
 - Europe 8.3 8.3 6.9 6.9
 - Rest of the
 world 3.1 3.1 0.9 1.1

Sweeteners and starches
 average 9.2 9.3 7.9 6.3

Animal feed and bulk
 storage 1.8 0.6 4.0 3.4

Group 8.3 8.0 6.8 5.5


After goodwill amortization and exceptional items
----------------------------------------------------------------------

Sweeteners and starches
 - Americas 9.7 7.2
 - Europe 7.1 6.9
 - Rest of the
 world 4.2 1.3

Sweeteners and starches
 average 7.8 6.3

Animal feed and bulk
 storage 1.0 3.2

Group 6.7 5.5


TATE & LYLE NOTES TO STATEMENTS (continued)

For the year to March 31, 2003

9. Ratio analysis


 Year to Year to
 March 31, March 31,
 2003 2002
----------------------------------------------------------------------

Net Borrowings to EBITDA - Tate & Lyle
 PLC and its subsidiaries

 Net borrowings 471 639
---------------------------------------------------- --------------
Pre-exceptional EBITDA 329 301
 = 1.4 times = 2.1 times


Gearing

Gearing = Net borrowings 471 639
---------------------------------------------------- --------------
 Total net assets 1 044 1,081
 = 45% = 59%

Interest Cover - Tate & Lyle PLC and its subsidiaries
 = Operating profit before goodwill amortization and
 exceptional items
 Net interest payable
----------------------------------------------------------------------

 219 180
 -------------- -------------
 29 55
 = 7.6 times = 3.3 times



Dividend Cover before goodwill amortization and
 exceptional items
 = EPS (basic)
----------------------------------------
 Total ordinary dividend/share

 33.7 22.2
 -------------- -------------
 18.3 17.8
 = 1.8 times = 1.2 times



Return on Net Operating Assets
 = Profit before interest, tax and
 exceptional items
---------------------------------------------------------
 Average net operating assets

 246 208
 -------------- -------------
 1 736 1 990
 = 14.2% = 10.5%


Net operating assets are calculated as:
Total net assets 1 044 1 081
Add back:Net borrowings 471 639
Add back unallocated liabilities -
 dividends and tax 144 93
 -------------- -------------
Net operating assets 1 659 1 813
 -------------- -------------

Average net operating assets 1 736 1 990
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Publication:Business Wire
Geographic Code:4EUUK
Date:Jun 5, 2003
Words:10949
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