Sugar refiner Tate & Lyle has moved to reassure investors that second-half profit targets will be met.

The company said profit for continuing operations for the four months to January 31 is marginally ahead of internal expectations.

Rising corn by-product prices are starting to benefit North American earnings. But falling sweetener prices has put pressure on European income.

Sales of Sucralose have increased but half-year profit will be down on increasing costs of defending Tate's intellectual property and incremental costs of a plant in Singapore.

Investec bank notes that sugar trading may stay loss-making in the second half, despite previous guidance that it would return to profitability.

Tate & Lyle said the EU sugar market remains 'difficult'. It anticipates a reduction in pretax profit of £14 million for the year, compared with the previous forecast of a £16 million reduction.