Tate & Lyle, a world leader in sugar, cereal sweeteners and starches, today announced its preliminary results for the 78 weeks ended March 25, 2000.

———————————————————————-
                       2000           2000         2000        1999
  PRELIMINARY RESULTS
  TO MARCH            78 weeks       52 weeks     52 weeks   52 weeks
 ———————————————————————-
  Sales              (pound)6,183m (pound)4,090m  $6,585  (pound)4,359m
  Profit before tax,
 reorganization costs
 and exceptional
  items              (pound)318m   (pound)225m    $362     (pound)173m
  Profit before
 tax and exceptional
 items               (pound)300m   (pound)209m    $336     (pound)171m
  Profit before
 taxation            (pound)287m   (pound)191m    $308     (pound)184m
  EPS (diluted) before
 exceptional items    45.2p         29.9p         48.1(cent)    28.4p
  EPS (diluted)       40.2p         24.2p         39.0(cent)    30.4p
  Dividends per
 ordinary share       26.9p         21.4p         34.5(cent)    17.2p

———————————————————————-
Results for 52 weeks to March 2000

– Underlying profit before tax up 30%

– Starch – strong performance in US, improvement in Europe

– Extremely adverse conditions in US sugar market

– Disposal proceeds exceed £100 million ($161 million)

– Debt reduced – balance sheet strengthened

– Significant strategic developments since year end

US Dollar equivalents are provided for reader convenience at the average rate for the 52 weeks to March 25, 2000 of £1=$1.61.
The full Preliminary Results are included with this Press Release. They follow the Chairman’s Statement and Chief Executive’s Review.

“Looking forward it would be unwise to assume any immediate improvement in market conditions, particularly as they relate to US sugar. However, there is much we can do to help ourselves, through our own efficiency and cost-reduction measures. Irrespective of the trading environment we will continue to examine alternatives and act aggressively to enhance shareholder value. That is our prime objective.”

Sir David Lees
Chairman

Copies of the Annual Report for the period ended March 25, 2000 will be available to shareholders shortly, and will be obtainable from:

John R Hunter, Company Secretary, Tate & Lyle PLC, Sugar Quay, Lower Thames Street, London EC3R 6DQ

Chairman’s Statement
From the Chairman, Sir David Lees

Change of Financial Year

I explained in my Chairman’s statement in November 1998 that there were advantages in changing our financial year-end from September to March and we have made the change. This means these Results are for the 78-week period to March 25, 2000 compared with the 52-week period to September 25, 1998. In order to assist shareholders, unaudited results for the year ended March 25, 2000, together with comparative unaudited figures for the year ended March 27, 1999 are also included.

Results

Profit before tax for the 78-week period to March 25, 2000 was (pound)287 million after charging reorganization costs of (pound)18 million and exceptional items of (pound)13 million.

Profit before tax, reorganization costs and exceptional items for the year to March 25, 2000 was (pound)225 million compared with (pound)173 million for the year to March 27, 1999. This comparison reflects a strong performance in the 26 weeks to September 25, 1999 compared with considerably weaker results in the equivalent 26 weeks in the previous year. The results are discussed in greater detail in the Chief Executive’s Review on pages 5 to 9.

Diluted earnings per share before exceptional items for the year to March 25, 2000 increased to 29.9p per share from 28.4p per share in the comparable period.

Operating cash flow for the 78-week period was (pound)544 million and net borrowings were (pound)805 million on March 25, 2000 compared with (pound)955 million on September 26, 1998. This reduction in debt reflects considerable concentration on cash management together with a number of successes in the divestment of our non-core businesses and assets where the proceeds realized amounted to (pound)113 million.

Dividend

The total dividend proposed for the 78-week period is 26.9p and is covered 1.7 times by earnings before exceptional items. This total dividend includes a proposed final dividend of 9.1p covering the results for the transitional 26-week period to March 25, 2000 and approximates to 50% of the total dividend for a normal year. This final dividend will be due and payable on August 2, 2000 to shareholders on the register on July 7, 2000.

The Board

Mary Jo Jacobi was appointed to the Board as a non-executive director on October 1, 1999. Mary Jo is currently Managing Director and Global Head of Marketing and Corporate Relations at Lehman Brothers.

Review of Initial Targets

In my first statement in November 1998, I identified a number of initial targets for Tate & Lyle including, in particular, an improvement in profitability and in the Group’s return on invested capital. Profitability has improved since the poor results achieved in the 1998 base period, although over-capacity in the US sugar market has constrained the improvement to levels below what we had planned. Return on invested capital overall has made some progress, notwithstanding the lack of any return from 25% of our assets.

The target of at least maintaining the dividend in real terms has been met. Balance sheet gearing has been reduced and interest cover has improved.

Strategy

The Board of Tate & Lyle is totally committed to a strategy that will achieve a substantial improvement in profitability and return on capital and therefore in shareholder value. To that end, we will:

– Continue to develop higher margin, higher value added and higher growth carbohydrate-based products, building on the Group’s technology strengths in our worldwide starch business;

– Ensure that all retained assets produce acceptable returns;

– Divest businesses which do not contribute to value creation, and/or are no longer core to the Group’s strategy;

– Conclude as rapidly as practicable our review of the strategic alternatives available to us in our US sugar operations;

– Continue to improve efficiency and reduce costs through our Business Improvement Projects which include employee development and training programs.

Since the year end two important transactions have been announced both of which, in their different ways, exemplify our strategy. The divestment of Bundaberg, which will realize (pound)162 million, illustrates well our strategic intent to retain only those assets that produce acceptable returns.

The acquisition of the minority shareholdings in Amylum and Staley, for a total consideration of (pound)274 million, will result in the creation of one wholly-owned world-wide starch business able to focus on the combined technological strengths of the two companies. The acquisition provides considerable opportunity for servicing our global customers more effectively and for cost efficiencies through the application of world best practice.

Outlook

Looking forward it would be unwise to assume any immediate improvement in market conditions, particularly as they relate to US sugar. However, there is much we can do to help ourselves, through our own efficiency and cost-reduction measures. Irrespective of the trading environment we will continue to examine alternatives and act aggressively to enhance shareholder value. That is our prime objective.

Sir David Lees
Chairman
June 7, 2000

Chief Executive’s Review
From Larry Pillard, Chief Executive

Change of Year End

In the review that follows, in order to provide meaningful comparisons, I will focus on the unaudited results for the 52 weeks to March 25, 2000, and the comparable period to March 27, 1999.

Group Performance

The year has seen an improvement, principally arising from strong results in the six months to September 1999. Profits before tax, reorganization costs and exceptional items in the year rose by 30% from (pound)173 million ($279 million) to (pound)225 million ($362 million). The second half was disappointing, with underlying profits slightly below those in the corresponding six-month period, mainly because of continuing adverse market conditions in the US sugar market.

Faced with these difficult market conditions, we have recognized the urgent need to take action to improve returns. In US Sugar, a fundamental review of strategic options is well under way, and a new management team is in place. I expect to be able to report to you on the actions we are taking as a result of this review at the next results in November.

Elsewhere in the Group, we have been active in focusing on key activities and reorganizing for efficiency.

Focus on Key Activities

We have continued to concentrate on adding value to carbohydrates. In parallel with the release of these preliminary results we also announce agreements to sell Bundaberg and to buy the minority stakes in Amylum and Staley.

The acquisition of the minorities in Amylum and Staley marks a significant strategic change for the Group, enabling us to focus on the development of the combined businesses of Amylum and Staley as leading value-added processors of carbohydrates. Both Amylum and Staley are world-class businesses, with compatible skills, technologies and markets. We will now be able to achieve full transfer of these skills and technologies and create an integrated approach to product development and marketing. This approach offers powerful prospects for better servicing the needs of our customers around the world and increasing the contribution of value-added products within Tate & Lyle. The full integration of Amylum into the Tate & Lyle Group will give rise to widespread savings and efficiencies and product development opportunities. The elimination of duplication between Amylum and the rest of the Tate & Lyle Group in areas including IT, sales and marketing, purchasing, supply chain, finance and administration, operations and engineering, and human resources, will greatly reduce costs.

Under recently reconfirmed marketing arrangements which require all raw sugar production to be sold through a single organization, the Bundaberg businesses are not likely, within a realistic timetable, to be able to earn the enhanced returns available from vertical integration with other Group businesses which were envisaged at the time of the initial investment. We have therefore taken the opportunity to sell these businesses. Taken together these two transactions underline our determination to realize value for Group shareholders and to focus on value-added growth markets.

We have also sold several businesses and assets that were either not earning acceptable returns for shareholders or, in the case of our Argentine corn wet milling business Industrias de Maiz, where better returns could be earned from disposal than were likely to be earned in the future. Proceeds from disposals in the year totaled (pound)102 million ($164 million) and included also a US animal feed joint venture, two sites in London and several smaller businesses. Further disposals, including the sale of the US Grains animal feed business, were agreed after the year-end, and more are planned. Goodwill associated with businesses being considered for disposal has been written off in this year. In summary, the impact in the profit and loss account of these items is a net exceptional charge of (pound)18 million ($29 million) after writing off (pound)67 million ($108 million) goodwill previously charged to reserves. Shareholders’ funds have therefore benefited by (pound)49 million ($79 million).

Reorganizing for Efficiency

Considerable progress has been made in reorganizing the Group to reduce its cost base and increase efficiency.

This year we launched the UK Business Improvement Project to combine and simplify activities, increasing efficiency and reducing costs. This builds on the excellent benefits being achieved in North America from a similar project. In North America, we achieved payback on a cash cost of (pound)20 million ($32 million) in under two years. We are currently achieving savings in excess of (pound)25 million ($40 million) per annum and further benefits will continue to accrue. Expenditure on the UK project is expected to total (pound)15 million ($24 million), of which (pound)6 million ($10 million) has already been incurred, with cash payback expected in less than two years.

Other reorganizations begun during the year included:

– a project to improve workforce skills at Tate & Lyle Sugars in the UK;

– rationalization at Amylum, including the closure of a small French starch plant;

– a reconfiguration of production at Tate & Lyle North American Sugar’s Brooklyn and Baltimore refineries;

– the outsourcing of information technology activities in the UK, which will take effect during summer 2000.

Reorganization costs for the Group as a whole were (pound)16 million ($26 million) in the year as against (pound)2 million ($3 million) in the comparable period.

Performance of Main Businesses

Improved margins in high fructose corn syrup (HFCS) in the 1999 calendar year and increased profits from value added products led to higher profits at Staley in the year to March 2000. The HFCS market continued to grow at around 4% per annum fuelled by increased demand from the soft drinks industry. No significant additional HFCS capacity was brought on line during the year. Sales increases in both HFCS and starch led to better capacity utilization and, together with continued cost control, to lower costs. Specialty starch products for both industrial and food ingredient applications showed good growth. Staley’s excellent safety record was maintained.

The annual HFCS pricing in respect of the calendar year 2000 has now been completed. Pricing is broadly in line with calendar 1999 levels but with higher net corn costs HFCS margins are expected to be lower in the current financial year. However, Staley will continue to benefit from its expanding value-added food ingredient portfolio and also from cost reduction initiatives, and this will mitigate the effects of the lower HFCS margins.

Tate & Lyle Citric Acid increased its capacity in the UK and in Brazil and doubled capacity in the US. Worldwide demand for citric acid is growing at around 5% annually, driven by growth in beverage demand. Tate & Lyle Citric Acid is now serving world markets through its plants situated on three continents. A coordinated approach to production scheduling and flexibility in sourcing sales has led to much reduced inventory levels.

Cost reduction continues to benefit the citric business and margins should improve as a result. Further low-cost capacity expansion is planned to maintain our position as the number one global citric acid producer in this growing, but competitive, industry.

The North American sugar businesses had mixed results. In Canada, results improved, with increased sales and lower manufacturing costs. In the US, market conditions deteriorated significantly towards the year-end and losses were incurred. An oversupply of beet and cane sugar, following unusually large crops, drove down selling prices to their lowest level since 1979. The Brooklyn refinery remains operational despite the continuation of a strike which began last summer. Cost reductions are being realized from integrating production between the Baltimore and Brooklyn refineries. Sugar syrup is now being transported by barge from Baltimore for finishing at Brooklyn, enabling the Baltimore refinery to move to efficient seven-day-a-week operation.

We are not expecting any significant improvement in US sugar market conditions in the financial year to March 2001, and a fundamental change to the market will be required to restore profitability to acceptable levels.

Amylum’s performance improved from last year’s low levels, due to cost reductions and the final commissioning of the Nesle plant last year. Better market conditions led to higher sales volumes and a gradual increase in selling prices. The oversupply of potato starch has disappeared and this market is now in balance, benefiting prices in the starch market. Production levels at the Nesle plant are improving and benefits are being realized from reconfiguration and our ground-breaking use of wheat as a raw material instead of maize. A small starch plant in France (Amylum Aquitaine) was closed during the year as part of the continuing rationalization plan. Asian imports depressed prices in the monosodium glutamate market. Amylum’s joint ventures in Central and Eastern Europe performed strongly, growing volumes and benefiting from cost reductions. Amylum is expected to make further progress in the year to March 2001, although increased energy costs are likely to restrain improvements in performance.

Our European sugar business performed well, providing strong cash flow, although profits fell slightly. The market in the UK continues to be competitive, particularly in the retail sector, and the strong pound attracted imports, putting UK prices under pressure and reducing export margins. The strength of the pound is likely to reduce margins further in the new financial year despite operating cost reductions. The packaging of our value-added UK branded retail sugars was redesigned. New products launched included 5kg and 10kg Granulated, Finer Fondant Icing, Rough Cubes, Marzipan made with Lyle’s Golden Syrup flavor and Organic Sugar. Further new products will be launched during the current year helping to maintain the profile of the Tate & Lyle brand in the UK. In Portugal profits were slightly down as increased beet sugar supply affected the market, but the Group’s cane refining business retained its market share.

Performance of Other Businesses

The Group’s animal feed businesses in North America and Europe were refocused into a single business devoted to liquid feeds and the storage of related products. As a result several animal feed businesses have been sold or are currently being offered for sale.

The performance of Tate & Lyle Bundaberg in Australia was affected by the low world raw sugar price, mitigated by tight control on costs.

The businesses in Zambia and Zimbabwe performed well in local currency terms but failed to make progress in sterling terms as a result of currency depreciation. The political situation in Zimbabwe is of concern, but is not yet affecting our business.

In sugar trading we made an investment in port storage to strengthen our access to supplies from the southern central area of Brazil. This is the key point of origin for world supplies of raw sugar with a high sugar content. We also opened new markets for white sugar sales. Performance in existing markets was satisfactory.

Sucralose

Further approvals granted in the period included the important Japanese market where initial sales have been encouraging. Johnson & Johnson, our US partner is increasing sales in the US market, where a new plant is nearing completion. We continue to discuss options for best serving markets with our partner.

Economic Value Added

We have further extended the application of Economic Value Added (EVA) techniques throughout the Group. EVA is the residual profit after deducting the full cost of capital employed from after-tax operating profit. EVA improved by (pound)18 million ($29 million) as a result both of the increase in underlying profit and a reduction of over (pound)39 million ($63 million) in our EVA capital base.

In addition to being a simple measure of true economic performance, EVA is a key tool to assist employees at all levels in making the best value-adding decisions. We continue our extensive EVA training initiatives and over 300 employees now have incentives linked to the achievement of annual improvement in EVA performance. We believe strongly that extending the use of EVA performance improvements in bonus schemes will best align employees’ interests with those of the shareholders.

Employees

The year has seen major changes in the way the Group operates. The Group’s employees have responded to the challenges this presents with initiative and determination, and we thank those employees and their families for their support.

The Future

As we enter a new year, the focus of the Group will continue to be on the development of higher value added products, principally within the starch business. There are excellent prospects for growth in this segment and we are taking advantage of new technologies and other developments, such as in fermentation. We have industry-leading businesses and R&D teams in this area. We will also continue to drive down costs in our aim to become the lowest cost producer in bulk commodity products such as HFCS and in the value-added segment. The starch business should provide attractive and growing returns for shareholders looking forward.

The strong cash flow of the European sugar business has for many years funded much of the growth of the Group and it continues to do so.

In pursuit of shareholder value we are vigorously addressing the US sugar and other strategic issues and we will report to you in November on progress and action taken.

Larry Pillard

Chief Executive

June 7, 2000

The Tate & Lyle Group, with headquarters in the UK, operates in over 50 countries with revenues of over (pound)4 billion. It produces and processes sugar from cane and beet, and processes cereals (predominantly maize and wheat) into sweeteners and starches and other products. US operations include A E Staley Manufacturing and Tate & Lyle Citric Acid, Decatur, IL; PM Ag Products, Chicago, IL; Western Sugar, Denver, CO; and Domino Sugar, New York.

Tate & Lyle ordinary shares trade on the London Stock Exchange and may be accessed on Bloomberg under the symbol Tate LN, on the Reuter Equities 2000 Service under TATE.L and on Quotron under TATEU.EU. In the US its ADRs trade on the NASD OTC Bulletin Board under TATYY (each ADR is equal to four ordinary shares).

                              TATE & LYLE
                      GROUP PROFIT AND LOSS ACCOUNT
              Results for the 78 weeks ended March 25, 2000

Audited Audited Unaudited
2000 1998 2000
78 weeks 52 weeks 52 weeks
ended ended ended
March 25 Sept 26 March 25
(pound) million (pound) million $ million
———————————————————————-
Sales 6,183 4,467 6,585
Less share of
sales of joint
ventures and
associates (537) (350) (567)

————– ————– ————–
Group sales 5,646 4,117 6,018
============== ============== ==============

Operating profit
before reorganization
costs and
exceptional items 370 218 407
Reorganization
costs (18) – (26)
————– ————– ————–

Operating profit
before exceptional
items 352 218 381
Exceptional items – (15) –
————– ————– ————–

Group operating
profit 352 203 381
Share of profits
of joint ventures
and associates 68 31 76
————– ————– ————–

Total operating
profit: group
and share
of joint
ventures and
associates 420 234 457

Exceptional write
downs on planned
sales of
businesses (50) – (80)
Exceptional profit
on sale of
businesses 25 – 40
Exceptional profit
on sale of
fixed assets 12 13 12
————– ————– ————–

Profit before
interest 407 247 429
Net interest
payable (102) (68) (105)
Share of joint
ventures’ and
associates’
interest (18) (14) (16)
————– ————– ————–

Profit before
taxation 287 165 308
UK taxation (7) (5) (13)
Overseas
taxation (82) (39) (89)
————– ————– ————–

Profit after
taxation 198 121 206
Minority
interests (14) 3 (27)
————– ————– ————–

Profit for the
period 184 124 179
Dividends paid
and proposed (124) (78) (159)
————– ————– ————–

Retained earnings 60 46 20
============== ============== ==============

Earnings per
share
– basic 40.3p 27.4p 39.1(cent)
– diluted 40.2p 27.1p 39.0(cent)
Dividends per
ordinary share 26.9p 17.0p 34.5(cent)

——————————————————- ———— –
Pre Exceptional
Profit before
taxation
((pound)million) 300 167 $336
Diluted earnings
per share
(pence) 45.2 27.2 48(cent)
——————————————————- ———— –

TATE & LYLE
GROUP PROFIT AND LOSS ACCOUNT
Results for the 78 weeks ended March 25, 2000

Unaudited 1Unaudited
2000 1999
52 weeks 52 weeks
ended ended
March 25 March 27
(pound) million (pound)million
————————————-

Sales 4,090 4,359
Less share of
sales of joint
ventures and
associates (352) (373)
————– ————–

Group sales 3,738 3,986
============== ==============

Operating profit
before
reorganization
costs and
exceptional
items 253 222
Reorganization
costs (16) (2)
————– ————–

Operating profit
before
exceptional items 237 220
Exceptional items – (5)
————– ————–

Group operating
profit 237 215
Share of profits
of joint
ventures and
associates 47 37
————– ————–
Total operating
profit: group
and share of
joint
ventures and
associates 284 252
Exceptional write
downs on planned
sales of
businesses (50) –
Exceptional
profit on sale
of businesses 25 –
Exceptional profit
on sale of
fixed assets 7 18
————– ————–

Profit before
interest 266 270
Net interest
payable (65) (73)
Share of joint
ventures’ and
associates’
interest (10) (13)
————– ————–

Profit before
taxation 191 184
UK taxation (8) (1)
Overseas taxation (55) (48)
————– ————–

Profit after
taxation 128 135
Minority interests (17) 4
————– ————–
Profit for the
period 111 139
Dividends paid
and proposed (99) (79)
————– ————–

Retained
earnings 12 60
============== ==============

1Restated: a(pound)5 million gain on the disposal of fixed assets,
previously included in operating profit in the March and September
1999 Interim Reports, is now treated as exceptional.

Earnings per share
– basic 24.3p 30.4p
– diluted 24.2p 30.4p
Dividends per
ordinary share 21.4p 17.2p

————————————————— — —————
Pre Exceptional
Profit before
taxation
((pound)million) 209 171
Diluted earnings
per share
(pence) 29.9 28.4
————————————————— — —————

TATE & LYLE
GROUP BALANCE SHEET
Summarized balance sheet as at March 25, 2000

Unaudited Audited Audited Unaudited
March 25, March 25, Sept 26, March 27,
2000 2000 1998 1999
$ million (pound) million (pound) million (pound)million
———————————————————— ———

Fixed
assets
Intangible
assets 2 1 – –
Tangible
assets 2,701 1,678 1,707 1,720
Investments 282 175 185 172
———- ———- ———– ———-
2,985 1,854 1,892 1,892
———- ———- ———– ———-

Current
assets
Stock 771 479 388 486
Debtors 862 535 590 578
Investments
and cash at
bank and
in hand 420 261 243 178
———- ———- ———– ———-
2,053 1,275 1,221 1,242

Creditors –
due within
one year
Borrowings (699) (434) (411) (299)
Other (853) (530) (567) (550)
———- ———- ———– ———-
Net current
assets 501 311 243 393

Total assets
less current
liabilities 3,486 2,165 2,135 2,285

Creditors –
due after
one year
Borrowings (1,018) (632) (787) (865)
Other (19) (12) (11) (11)
Provisions
for
liabilities
and charges (414) (257) (250) (238)
———- ———- ———– ———-
Total
net
assets 2,035 1,264 1,087 1,171
========== ========== =========== ==========

Capital and
reserves
Called up
share
capital 188 117 117 117
Share
premium
account and
other
reserves 717 445 443 442
Profit and
loss account 868 539 371 462
========== ———- ———– ———-

Shareholders’
funds 1,773 1,101 931 1,021
Minority
interests 262 163 156 150
———- ———- ———– ———-
2,035 1,264 1,087 1,171
========== ========== =========== ==========

TATE & LYLE
STATEMENT OF CASH FLOWS
For the 78 weeks ended March 2000

———————————————————— ———
Audited Audited Unaudited
2000 1998 2000
78 weeks 52 weeks 52 weeks
ended ended ended
March 25 Sept 26 March 25
(pound) million (pound)million $ million(pound)
———————————————————— ———

Net cash inflow
from operating
activities 544 395 725

Dividends from
joint ventures
and associates 15 13 19

Returns on
investment and
servicing of
finance
Net interest
paid (101) (69) (100)
Dividends paid
to minority
interests in
subsidiary
undertakings (7) (4) (10)
———— ———– ————
(108) (73) (110)

Taxation paid (80) ( 56) (71)

Capital
expenditure and
financial
investment
Purchase of
tangible
fixed assets (179) (199) (203)
Sale of
tangible
fixed assets 34 19 37
Purchase of
fixed asset
investments1 (11) (2) (17)
Sale of fixed
asset
investments 2 25 3
———— ———– ———-
(154) (157) (180)

Acquisitions and
disposals
Purchase of
businesses and
subsidiaries
(net of cash
acquired) (19) (108) (3)
Sale of
businesses2 9 28 14
Purchase of
interests in
joint ventures
and associates
– (45) –
Refinancing of
existing joint
ventures1 (16) – (13)
Sale of interests
in joint ventures
and associates 68 – 109
Capital
repayments
by joint
ventures 34 – 2
———— ———– ———–
76 (125) 109

Equity dividends
paid (135) (77) (217)
Net cash
inflow/(outflow)
before financing
and management
of liquid
resources 158 (80) 275
============ =========== ===========

1 In addition to(pound)16 million direct equity refinancing of
joint ventures,(pound)4 million increase in loans to joint ventures
represented refinancing in the 78 weeks to March 2000.

2 In addition,(pound)1 million of deposits were transferred out of
the Group as part of the disposal of subsidiaries in 2000.

TATE & LYLE
STATEMENT OF CASH FLOWS
For the 78 weeks ended March 2000
———————————————————————-
Unaudited Unaudited
2000 1999
52 weeks 52 weeks
ended ended
March 25 March 27
million(pound) million
———— ———–

Net cash inflow
from operating
activities 450 427

Dividends from
joint ventures
and associates 12 13

Returns on
investment and
servicing of
finance
Net interest
paid (62) (79)
Dividends paid
to minority
interests in
subsidiary
undertakings (6) (3)
———- ———
(68) (82)

Taxation paid (44) (66)

Capital expenditure
and financial
investment
Purchase of
tangible fixed
assets (126) (158)
Sale of tangible
fixed assets 23 24
Purchase of
fixed asset
investments1 (11) (1)
Sale of fixed
asset
investments 2 24
———- ———–
(112) (111)

Acquisitions and
disposals
Purchase of
businesses and
subsidiaries
(net of cash
acquired) (2) (124)
Sale of
businesses2 9 28
Purchase of
interests in
joint ventures
and associates
– (7)
Refinancing of
existing joint
ventures1 (8) (8)
Sale of interests
in joint ventures
and associates 68 –
Capital repayments
by joint ventures 1 33
———- ———–
68 (78)

Equity dividends
paid (135) (25)
Net cash
inflow/(outflow)
before financing
and management
of liquid
resources 171 78
========== ===========

1 In addition to(pound)16 million direct equity refinancing of
joint ventures,(pound)4 million increase in loans to joint ventures
represented refinancing in the 78 weeks to March 2000.

2 In addition,(pound)1 million of deposits were transferred out of
the Group as part of the disposal of subsidiaries in 2000.

TATE & LYLE
NOTES TO STATEMENT OF CASH FLOWS
For the 78 weeks ended March 25, 2000

2000 1998
Cash Flow/ 78 weeks 52 weeks
Net Debt Reconciliation ended ended
March 25 Sept 26
(pound) million (pound) million
——————————————————————

Net cash outflow before
financing and management
of liquid resources 158 (80)

Raised on issue of
share capital 4 6
Contributed by minority
interests – 1

Changes in debt not
involving cash flow:
– Assumed on acquisition
of subsidiaries – (3)
– Increase on disposal
of subsidiaries (1) –
– Exchange movements (9) 32
– Amortization of bond
discount (2) (1)
– New finance leases – (1)
————- ————-

Reduction/(increase) in
net borrowings 150 (46)
Net borrowings at start
of period (955) (909)

————- ————-
Net borrowings at end
of period (805) (955)
============= =============

Net CASH inflow from operating activities
———————————————————————-

Operating profit 352 203
Depreciation of tangible
fixed assets 206 135
Change in working capital (13) 56
Provisions against
fixed asset investments (1) 1
————- ————-
544 395
============= =============

BALANCE SHEET
RECONCILIATION 26 Sept
1998 Cash flow
——————————————————— ——– —

Cash at bank and in hand 58 (6)
Overdrafts1 (36) 6
————- ————-
Net cash 22 –
============= =============

1 Included in borrowings due within one year on the balance sheet.

TATE & LYLE
NOTES TO STATEMENT OF CASH FLOWS
For the 78 weeks ended March 25, 2000

2000 1999
Cash Flow/ 52 weeks 52 weeks
Net Debt Reconciliation ended ended
March 25 March 27
(pound) million (pound)million
———————————————————————-

Net cash outflow before
financing and management
of liquid resources 171 78

Raised on issue of
share capital 2 4
Contributed by minority
interests – –

Changes in debt not
involving cash flow:
– Assumed on acquisition
of subsidiaries – 1
– Increase on disposal
of subsidiaries (1) –
– Exchange movements 10 (37)
– Amortization of bond
discount (1) (1)
– New finance leases – (1)
————- ————

Reduction/(increase) in
net borrowings 181 44
Net borrowings at start
of period (986) (1,030)

————- ————
Net borrowings at end
of period (805) (986)
============= ============

Net CASH inflow from operating activities
——————————————————————–

Operating profit 237 215
Depreciation of tangible
fixed assets 136 143
Change in working capital 79 67
Provisions against
fixed asset investments (2) 2
————- ————
450 427
============= ============

BALANCE SHEET
RECONCILIATION 25 March
Exchange 2000
—————————- ——— — ————- — ———

Cash at bank and in hand (1) 51
Overdrafts1 3 (27)
————- ————
Net cash 2 24
============= ============

1 Included in borrowings due within one year on the balance sheet.

TATE & LYLE
STATEMENT OF RECOGNIZED GAINS AND
LOSSES AND RECONCILIATION OF MOVEMENTS
IN SHAREHOLDERS’ FUNDS
For the 78 weeks ended March 25, 2000

STATEMENT OF RECOGNIZED
GAINS AND LOSSES

2000 1998
78 weeks 52 weeks
ended ended
March 25 Sept 26
(pound) million (pound) million
———————————————————————-

Profit for the period 184 124
Currency difference on
foreign currency net
investments 41 (95)
————- ————-
Total recognized gains
for period 225 29
============= =============

RECONCILIATION OF
MOVEMENTS IN
SHAREHOLDERS’ FUNDS

Total recognized gains
and losses for the
period
225 29

Dividends (124) (78)
Issue of shares 4 6
Adjustments to goodwill
arising on
acquisitions prior
to September 1998 (2) (30)
Goodwill transferred
to profit and loss
account 67 11
————- ————-

Net increase/(reduction)
in shareholders’ fund 170 (62)

Opening shareholders’
funds 931 993
————- ————-

Closing shareholders’
funds 1,101 931
============= ============

Basis of preparation

This preliminary announcement is prepared using accounting
policies consistent with those set out in the Annual Report for the
period ended September 26, 1998, except that Financial Reporting
Standards 10, 11, 12, 15 and 16 have been adopted for the first time.
These cover Goodwill, Impairment, Provisions, Tangible Fixed Assets
and Current Tax respectively.

TATE & LYLE
STATEMENT OF RECOGNIZED GAINS AND
LOSSES AND RECONCILIATION OF MOVEMENTS
IN SHAREHOLDERS’ FUNDS
For the 78 weeks ended March 25, 2000

2000 1999
52 weeks 52 weeks
STATEMENT OF RECOGNIZED ended ended
GAINS AND LOSSES March 25 March 27
(pound) million (pound)million
———————————————————————-

Profit for the period 111 139
Currency difference on
foreign currency net
investments (1) 12
————- ————-
Total recognized gains
for period 110 151
============= =============

RECONCILIATION OF
MOVEMENTS IN
SHAREHOLDERS’ FUNDS

Total recognized gains
and losses for the
period
110 151

Dividends (99) (79)
Issue of shares 2 4
Adjustments to goodwill
arising on
acquisitions prior
to September 1998 – (29)
Goodwill transferred
to profit and loss
account 67 11
————- ————-

Net increase/(reduction)
in shareholders’ fund 80 58

Opening shareholders’
funds 1,021 963
————- ————-

Closing shareholders’
funds 1,101 1,021
============= =============

Basis of preparation

This preliminary announcement is prepared using accounting
policies consistent with those set out in the Annual Report for the
period ended September 26, 1998, except that Financial Reporting
Standards 10, 11, 12, 15 and 16 have been adopted for the first time
These cover Goodwill, Impairment, Provisions, Tangible Fixed Assets
and Current Tax respectively.

TATE & LYLE PLC
ANALYSIS OF PROFIT AND SALES

78 weeks ended March 25, 2000
(pound) million (pound) million (pound) million
before exceptional after
exceptional items exceptional
items items

PROFIT BEFORE INTEREST
———————————————————————-

Sweeteners and
starches
– Americas 225 19 244
– Europe 157 9 166
– Rest of the world 16 (13) 3

———— ————- ————-
398 15 413
Animal feed &
bulk storage
25 (28) (3)
Other businesses and
activities
(3) – (3)
———— ————- ————-
420 (13) 407
============ ============= =============

SALES
———————————————————————-

Sweeteners and
starches
– Americas 2,583
– Europe 1,782
– Rest of the world 742

————-
5,107
Animal feed &
bulk storage
927
Other businesses and
activities 149
————-
6,183
=============

Average exchange rates 78 weeks to
March 25, 2000

US dollar 1.63
Belgian Franc 61.3
Euro n/a

The foregoing accounts are not statutory accounts. Consolidated
accounts for the 52 weeks ended September 26, 1998 have been delivered
to the Registrar of Companies, whereas those for the 78 weeks ended
March 25, 2000 will be delivered following the next Annual General
Meeting. The Company’s auditors have made unqualified reports on the
accounts for both periods. Their reports did not contain any
statements concerning accounting records or failure to obtain
necessary information and explanations.

TATE & LYLE PLC
ANALYSIS OF PROFIT AND SALES

52 weeks ended September 26, 1998
(pound) million (pound) million (pound) million
before exceptional after
exceptional items exceptional
items items

PROFIT BEFORE INTEREST
———————————————————————-

Sweeteners and
starches
– Americas 114 1 115
– Europe 85 (4) 81
– Rest of the world 20 1 21
————- ————- ————-

219 (2) 217
Animal feed &
bulk storage
30 – 30
Other businesses and
activities
– – –
———— ————- ————-
249 (2) 247
============ ============= =============

SALES
———————————————————————-

Sweeteners and
starches
– Americas 1,755
– Europe 1,308
– Rest of the world 615
————-

3,678
Animal feed &
bulk storage
675
Other businesses and
activities 114
————
4,467
============

Average exchange rates 52 weeks to
Sept 26, 1998

US dollar 1.65
Belgian Franc 60.8
Euro n/a

The foregoing accounts are not statutory accounts. Consolidated
accounts for the 52 weeks ended September 26, 1998 have been delivered
to the Registrar of Companies, whereas those for the 78 weeks ended
March 25, 2000 will be delivered following the next Annual General
Meeting. The Company’s auditors have made unqualified reports on the
accounts for both periods. Their reports did not contain any
statements concerning accounting records or failure to obtain
necessary information and explanations.

TATE & LYLE PLC
ANALYSIS OF PROFIT AND SALES

52 weeks ended March 25, 2000
(pound) million (pound) million (pound) million
before exceptional after
exceptional items exceptional
items items

PROFIT BEFORE INTEREST
———————————————————————-

Sweeteners and starches
– Americas 156 14 170
– Europe 112 9 121
– Rest of the world 12 (13) (1)

————- ————- ————
280 10 290
Animal feed &
bulk storage 11 (28) (17)
Other businesses
and activities (7) – (7)
————- ————- ————
284 (18) 266
============= =============== ===============

1Restated: a(pound)5 million gain on the disposal of fixed assets,
previously included in operating profit in the March and September
1999 Interim Reports, is now treated as exceptional.

SALES
——————————————————————–

Sweeteners and starches
– Americas 1,702
– Europe 1,167
– Rest of the world 520

————
3,389
Animal feed &
bulk storage 595
Other businesses
and activities 106
————
4,090
============

Average exchange rates 52 weeks to
March 25, 2000

US dollar 1.61
Belgian Franc 62.9
Euro 1.56

TATE & LYLE PLC
ANALYSIS OF PROFIT AND SALES

52 weeks ended March 27, 1999
(pound) million (pound) million (pound) million
before exceptional after
exceptional items exceptional
items items

PROFIT BEFORE INTEREST
———————————————————————-
Sweeteners and starches
– Americas 136 (1) 6 (1) 142
– Europe 87 6 93
– Rest of the world 5 1 6
————- ————— —————

228 (1) 13 (1) 241
Animal feed &
bulk storage 25 – 25
Other businesses
and activities 4 – 4
————- ————- ————-
257 (1) 13 (1) 270
============= ============= =============

(1) Restated: a(pound)5 million gain on the disposal of fixed asset
previously included in operating profit in the March and September
1999 Interim Reports, is now treated as exceptional.

SALES
———————————————————————-

Sweeteners and starches
– Americas 1,795
– Europe 1,300
– Rest of the world 536
————-
3,631

Animal feed &
bulk storage 629
Other businesses
and activities 99
————-
4,359
=============

Average exchange rates 52 weeks to
March 27, 1999

US dollar 1.65
Belgian Franc 59.4
Euro n/a

TATE & LYLE
NET MARGIN ANALYSIS

78 weeks 78 weeks 52 weeks 52 weeks
ended ended ended ended
March 25 March 25 Sept 26 (1) Sept 26 (1)
% % % %
before after before after
exceptional exceptional exceptional exceptional
items items items items
———————————————— ——————–

Sweeteners and
starches
– Americas 8.7 9.4 6.5 6.5
– Europe 8.8 9.3 6.4 6.2
– Rest of
the world 2.2 0.4 3.3 3.3

————— ————- ———– ———-
Sweeteners and
starches average 7.8 8.1 5.9 5.9
————– ————- ———– ———–

Animal feed &
bulk storage 2.7 (0.3) 4.4 4.4
————— ———– ———– ———–
Group 6.8 6.6 5.6 5.5
—————– ———– ———– ———–

2000 2000 1999 1999
52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended
March 25 March 25 March 27 March 27
% % % %
before after before after
exceptional exceptional exceptional exceptional
items items items items
———————————————— ——————–

Sweeteners and
starches
– Americas 9.2 10.0 7.6 7.9
– Europe 9.6 10.4 6.7 7.2
– Rest of
the world 2.3 (0.2) 0.9 1.1

—————- ———— ———– ———–
Sweeteners and
starches average 8.3 8.6 6.3 6.6
—————- ———— ———– ———–

Animal feed &
bulk storage 1.8 (2.9) 4.0 4.0
—————- ———— ———– ———–
Group 6.9 6.5 5.9 6.2
—————- ———— ———– ———–

1 Percentages shown are those previously published, calculated
using profit and sales figures rounded to the nearest (pound)0.1
million.

TATE & LYLE
RATIO ANALYSIS

2000 1998 2000 1999
78 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended
March 25 Sept 26 March 25 March 27
% % % %

Gearing
= net borrowings
net assets

= 805
1,264
= 0.64 or 64% 64% 88% 64% 84%

Interest Cover – Tate & Lyle PLC
and its subsidiaries
= Operating profit
Net interest payable

(pound) (pound) (pound) (pound)
million million million million

Operating profit before
exceptional items 352 218 237 220
Add/(less) exceptional items (13) (2) (18) 13
Operating profit after
exceptional items 339 216 219 233

Interest cover – after
exceptionals 339/102 = 216/68 = 219/65 = 233/73
3.3 times 3.2 times 3.4 times 3.2 times

Interest cover – before
exceptionals 352/102 = 218/68 = 237/65 = 220/73 =
3.5 times 3.2 times 3.6 times 3.0 times

Dividend Cover
= EPS (basic)
Total ordinary dividend/share

After exceptional 40.3 = 27.4 = 24.3 = 30.4 =
26.9 17.0 21.4 17.2
1.5 times 1.6 times 1.1 times 1.8 times

Before exceptional 45.3 = 27.5 = 30.0 = 28.5 =
26.9 17.0 21.4 17.2
1.7 times 1.6 times 1.4 times 1.7 times

Return on Net
Operating Assets
= Profit before interest & tax
Average net operating assets(a)

After exceptional
= 407 x 52 weeks
0.5 x (2,065 + 2,056) 78 weeks

= 13.2% 13.2% 11.9% 12.5% 12.5%

Before exceptional
= 420
0.5 x (2,065 + 2,056)
= 13.6% 13.6% 12.0% 13.4% 11.9%

(a) Total net assets 1,264 1,087 1,264 1,171
Add back:
Net borrowings 805 955 805 986
Unallocated (assets)/
liabilities-dividends & tax (4) 14 (4) 23
Net operating assets 2,065 2,056 2,065 2,180

TATE & LYLE
EARNINGS PER SHARE CALCULATION –
For the 78 weeks ended March 25, 2000

Shares in issue
Opening 456,336,316
Closing 457,594,347
a) Average (weighted by days in issue) 457,096,641

(pound) million
Earnings
Profit after tax 198
Minority interests (14)
Preference dividend –

b) Basic Earnings 184

BASIC EARNINGS PER SHARE is b/a or 40.3 pence/share

Dilutive options and convertible preference
shares outstanding at March 25, 2000

SAYE scheme 2,619,467
Less notional shares repurchased (2,391,928)
Executive scheme 1,518,626
Less notional shares repurchased (1,343,437)
402,728
Add average shares in issue 457,096,641

c) Adjusted number of shares 457,499,369

No adjustments are needed to basic
earnings for the purpose of calculating
diluted earnings per share

DILUTED EARNINGS PER SHARE is b/c or 40.2 pence/share

TATE & LYLE
EARNINGS PER SHARE CALCULATION
BEFORE EXCEPTIONAL ITEMS
For the 78 weeks ended March 25, 2000

Shares in issue
Opening 456,336,316
Closing 457,594,347
a) Average (weighted by days in issue)457,096,641

(pound) million
Earnings before exceptional item
Exceptional costs 13
Tax on exceptional costs 9
Exceptional costs minority interest 1
Exceptional costs net of tax and minorities 23
Basic Earnings after exceptional items 184
b) Basic Earnings before exceptional items 207

BASIC EARNINGS PER SHARE is b/a or 45.3 pence/share

Dilutive options and convertible preference shares
outstanding at March 25, 2000

SAYE scheme 2,619,467
Less notional shares repurchased (2,391,928)
Executive scheme 1,518,626
Less notional shares repurchased (1,343,437)
402,728
Add average shares in issue 457,096,641
c) Adjusted number of shares 457,499,369

No adjustments are needed to basic earnings for the
purpose of calculating diluted earnings per share

DILUTED EARNINGS PER SHARE BEFORE EXCEPTIONAL ITEMS
is b/c or 45.2 pence/share