Tate & Lyle yesterday said demand for sucralose, its calorie-free sweetener sold under the Splenda name, "remains very strong with current production capacity fully utilised". The pre-close trading statement helped lift the shares 9p to 549½p.

They have risen from 300p last May as investors have caught on to the potential of sucralose. Tate is extending its first sucralose factory, in Alabama, and is building a second in Singapore. In February, Tate won a contract to supply sucralose for Diet Coke.

The group said yesterday that the good performance from sucralose had offset lower sweetener margins in Europe and the higher price Tate is having to pay for export licences required to sell sugar it refines in the UK outside the EU.

Results for the year to end-March will be announced on June 2, and analysts are expecting profits before exceptional items of about £240m, up from £227m last year.