Shares in Tate & Lyle jumped nearly 9% after the sweeteners group said that, helped by a good quarter in sugar, it had beaten its own forecasts in the April-to-June period.

The UK-based company said it was "encouraged" by its performance in the period, the first quarter of its financial year, with its sugar division performing "ahead of expectation".

Sales of its Sucralose no-calorie sweetener had also show "strong volume growth", with Tate also trumpeting a cut to £1.07bn in net debt at the end of June, from £1.23bn in March.

The group's debt levels prompted some analysts earlier this year to raise question marks over Tate's dividend.

Dangers ahead? 

The statement was well received in the City, sending Tate shares 27.5p higher to 339p, their highest close since February.

Martin Deboo, at Investec, termed the statment "reassuring", and restated his "buy" rating on the stock.

Graham Jones at Panmure Gordon - who has a price target of 250p on the stock, and a "sell" recommendation - said he would be reviewing his forecasts for the group following its "better than expected" quarter.

However, he added that a corn syrup pricing round due later this year represented a "major uncertainty".

"The risk must be that with extra spare capacity this year, buyers will drive margins lower," he said, adding that Chinese plants were continuing with plans to increase capacity of their own version of Sucralose.