Tate & Lyle share slip as fate of sweetener unit still unknown as pound rises due to rate hike

Sometimes no news is bad news.

Tate & Lyle, alongside the release of its results, has not announced a conclusion on the fate of the primary products division of artificial sweetener manufacturing that it put up for sale last month. Tate and Lyle TATE,
-5.45%
stocks fell 5%.

“We are exploring the potential to separate our food and beverage solutions and primary products business by selling a controlling interest in primary products to a long-term financial partner,” the company said, largely reiterating a comment made at the end of April. He said discussions with potential new partners are underway and he has already paid £ 19million ($ 27million) for work on the potential break-up.

The company announced a 12% increase in adjusted earnings per share in the year ending March 31, with revenue edging up 1%, as it expects earnings to decline by share of the current year, due to significantly lower profits in its commodities division and an increased adjusted effective tax rate.

The pound GBPUSD,
+ 0.33%
rose after bullish comments from Bank of England voting member Gertjan Vlieghe, who said a rate hike may be appropriate soon after the first quarter of next year, when the central bank would have a clear vision the dynamics of unemployment and wages after holidays.

The FTSE 100 UKX,
-0.15%
down 0.2%, weighed down by energy producers Royal Dutch Shell RDSB,
-1.98%
and BP BP,
-1.53%.

Johnson Matthey JMAT,
-3.27%
fell 4% as the catalytic converter maker reported online results for the year ending March and said operating performance will improve this year.

Rolls-Royce RR engine manufacturer,
+ 5.09%
saw a 5% jump, after the aircraft manufacturer Airbus AIR,
+ 8.45%
announced that it was increasing the production of jets.

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