Tate & Lyle FD under pressure
Questions raised about the future of John Nicholas as City reacts to Tate & Lyle getting caught out by tax rate
Tate & Lyle FD John Nicholas has come in for criticism after the sugar
giant issued its third profits warning this year, citing an unexpectedly high
corporate tax rate as a major factor.
In a
trading
statement, Tate & Lyle said: ‘Although the overall tax rate for the
group as a whole is forecast at approximately 30% for the year to 31 March 2008,
the restructuring following the disposal of businesses in Western Europe
(together with their associated tax losses) is expected to result in a proforma
effective tax rate for continuing business in the current year of approximately
34%.’
Analysts gave a gloomy assessment of Tate & Lyle’s financial operations
after the news:’For a company struggling for credibility, getting the tax charge
wrong is a huge blow,’ Charlie Mills of Credit Suisse told the FT.
Graham Jones, of Panmure Gordon said: ‘This does not look good for the
finance director who has not been at the company for all that long.’
Nicholas is a relatively new addition to the FTSE 100 corporate, having taken
up his post as FD in July 2006.
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