Tate & Lyle, the world's biggest sugar company, has unveiled a sharp increase in profits, crediting a round of disposals and cost cuts.

The company said on Friday that pre-tax profits for the year to late March climbed to £159m, an increase of 40% compared with the previous year.

The figure came in ahead of the £151m to £153m range forecast by analysts.

The company added that it had cut its net debts to £639m, from £963m one year earlier.

Tate & Lyle chairman Sir David Lees said the company is facing the current financial year "with increased confidence."

Corn syrup loses its fizz

Tate & Lyle's performance last year was hit hard by an increase in energy costs and disappointing results from its US sugar operations, Domino Sugar and Western Sugar.

These companies have now been sold, along with eight smaller underperforming subsidiaries.

The company said it had also exceeded its annual target of cutting energy consumption of 3% for the second consecutive year.

Tate & Lyle said its sweetener and starch businesses performed strongly during the year, while flat demand from the fizzy drinks industry weighed on sales of fructose corn syrup.

Tate & Lyle shares were unchanged at 344p in early trade in London.