Tate & Lyle


Please find below some definitions of key terms and ratios that you may find useful. If you have any queries feel free to e-mail



An American Depositary Receipt (ADR, also known as an ADS) is a negotiable certificate that represents a non-U.S. company's publicly traded shares or debt. Depositary Receipts are created when a broker purchases the non-U.S. company's shares in the home stock market and delivers those shares to the depositary's local custodian bank. The custodian then instructs the depositary bank, such as The Bank of New York, to issue Depositary Receipts to the investor. Depositary Receipts trade as freely as any other U.S. security. They are priced and quoted in U.S. dollars, trade on either an exchange or over-the-counter market and settle according to U.S. standards. Depositary Receipts can also trade in markets outside the U.S. and can be used to raise capital in the U.S. or in markets outside of the U.S.

Tate & Lyle's ADR programme is administered by the Bank of New York. Each ADR represents four Tate & Lyle PLC ordinary shares.


Bid/Offer Spread

The difference between the price the market maker (q.v.) is willing to buy the stock at (the bid price) and the price the market maker is willing to sell the stock at (the offer price).



The part of a company's after-tax earnings which is distributed to shareholders, generally in a cash payment. Tate & Lyle currently pays dividends twice a year: the interim, for the six months to September, is paid in January, and the final, for the six months to March, is paid in August.


Dividend yields are used as a measure of the income return on shares. They are calculated by adding together the dividends paid during one year divided by the share price and multiplied by 100 to get a percentage. Dividend yields are sometimes said to be "historic" (i.e. based on those already paid) or "forecast" (based on what stockbrokers' analysts expect dividends for the next year to be).


The number of times a company's after-tax earnings would pay the dividend. For example, a company with earnings of 20p per share and a dividend of 10p would have dividend cover of 2 times.

Dividend Cover before goodwill amortisation and exceptional items

                 = EPS (basic)
       Total ordinary dividend/share


Earnings ("Profit for the period")

Earnings are defined as profit after tax, minority interests, and payment of any preference share dividend, but before payment of dividends on ordinary shares.

Earnings per Share (EPS)

These are a Company's earnings divided by the weighted average of the number of ordinary shares in issue in the financial period in question to give earnings per share (usually expressed in pence).

Enterprise Value

The market value of a company plus the value of its outstanding debt.



The ratio of a company's debt to its equity (shareholders funds).

        Net borrowing
      Total net assets


Interest Cover - Tate & Lyle PLC and its subsidiaries

= Operating profit before goodwill amortisation and exceptional items
                                         Net interest payable


Market Capitalisation (or Market Value)

This is the total value of a Company as per the current share price quoted on a stock exchange. Market capitalisation is calculated by multiplying the total number of shares in issue by the share price.

Market Maker

An individual or firm that trades on their own account in one or more shares at quoted bid and ask prices.


Price/Earnings Ratios (P/E ratio)

A traditional measure of valuing a company. The historic price/earnings ratio is calculated by dividing the Company's earnings in the last 12 month period by the latest closing share price. Forecast price/earnings ratios are calculated with reference to analysts' forecast earnings for a company.


Return on Net Operating Assets

  = Profit before interest, tax and exceptional items
                   Average net operating assets

Net operating assets are calculated as:
Total net assets
Add back: Net borrowings
Deduct unallocated assets – dividends & tax


Volume weighted average price (Market VWAP)

This is the average price that shares have been bought and sold at during a day's trading.

Contact: Investor Relations Tel: 020 7626 6525

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