Share Name Share Symbol Market Type Share ISIN Share Description
William Sinclair Holdings LSE:SNCL London Ordinary Share GB0009665661 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 9.375p 0.00p 0.00p - - - 0 05:30:11
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Household Goods & Home Construction 46.2 2.0 24.0 0.4 1.62

Interim Results

11/06/2012 7:00am

UK Regulatory (RNS & others)


William Sinclair (LSE:SNCL)
Historical Stock Chart

5 Years : From Sep 2013 to Sep 2018

Click Here for more William Sinclair Charts.

TIDMSNCL

RNS Number : 0363F

Sinclair (William) Holdings PLC

11 June 2012

11 June 2012

WILLIAM SINCLAIR HOLDINGS PLC

("William Sinclair", the "Company" or the "Group")

Unaudited Interim Results for the six months ended 31 March 2012

William Sinclair Holdings PLC is one of the UK's leading producers of commercial horticulture and branded garden products. William Sinclair's well established brands include J Arthur Bower's, Silvaperl and New Horizon - the leading brand in the fast growing peat free garden compost and organic plant foods sector. William Sinclair's customers include national accounts such as The Garden Centre Group, Sainsbury's, Wilkinson, Homebase and B&Q as well as an extensive range of independent garden centres.

Highlights

   --      Profit before tax of GBP0.38 million (2011: GBP0.65 million) 
   --      Revenue maintained at GBP26.2 million (2011: GBP26.1 million) 
   --      Interim dividend increased to 1.9p per share (2011: 1.8p) 
   --      Bolton Fell compensation claim referred to the Lands Tribunal 
   --      Regeneration of peat bog at Bolton Fell underway 
   --      Integration of YHS composting business complete 

Bernard Burns, Chief Executive said:

"The Company's growth strategy remains on track via both organic and acquisition opportunities. With industry leading product quality and customer service levels, William Sinclair continues to set industry standards and increase its customer base.

"In light of the economic conditions management continues to take the necessary decisions to ensure costs remain tightly controlled and operational efficiencies are identified. As a consequence, the outlook for the business remains in line with market expectations."

For further information:

   William Sinclair Holdings Plc                          Tel:  01522 537561 

Bernard Burns, Chief Executive

Peter Williams, Finance Director

   Westhouse Securities                                          Tel:  0207 601 6100 

Adam Lloyd

Paul Gillam

CHAIRMAN'S STATEMENT

For the 6 months ended 31 March 2012 (unaudited)

During the six months to 31 March 2012 William Sinclair performed in line with the Board's expectations. The interim dividend has been increased to 1.9p per share (2011: 1.8p) reflecting the Board's established policy of dividend progression.

Trading Review

Due to the seasonality of William Sinclair's operations, profits are heavily weighted to the second half of the year. The key selling season is the Spring months and this year we had a late start to the season. The warm, dry conditions finally arrived in the second half of March and this generated strong consumer demand. Because of the low levels of stock held by retailers, this led, in turn, to high despatch volumes towards the end of the period.

Turnover during the period was GBP26.2 million, in line with the previous year. The Board believes this to be a satisfactory performance during the current economic environment. Margins have been squeezed a little by the increase in oil prices which affects our transport and our packaging costs and also by the cost of harvesting peat last summer. We had to buy in small quantities of peat for our professional customers due to the restrictions agreed with Natural England on harvesting at our Bolton Fell bog. These factors combined to bring about a small reduction in pre-tax profits which are GBP0.38 million (2011: GBP0.65 million).

With transport accounting for approximately 25% of the Company's total cost base, the management team continues to focus on maximising efficiencies in this area.

Acquisitions

The acquisition in November 2011 of the business and certain assets of Yorkshire Horticulture Supplies, the composting operation based in Doncaster, has made a limited contribution to overall performance so far as activity for this business is also heavily weighted towards the summer months. The integration of the acquisition has progressed well and it is now fully operational within Freeland Horticulture.

In line with the Company's growth strategy additional acquisition opportunities continue to be considered.

Peat Policy

The various arguments associated with peat harvesting and replacement have been heavily covered in the media during the last six months with features on BBC1's "Countryfile" and Radio 4's "You and Yours", as well as almost all of the UK's national newspapers.

William Sinclair has taken a leading position in the debate and considers the government's current peat free policy, which is based on a voluntary approach, to be untenable. The Board believes that there can be no voluntary exit from peat by the horticultural industry when the government's own impact assessment evaluates the cost to the industry at GBP533 million (source: DEFRA).

Without compulsion (a ban or tax on peat) or incentives (subsidies on peat substitutes) the Board does not expect the volume of peat used in horticulture to reduce by any appreciable amount in the foreseeable future. With extensive peat reserves and also having the leading peat alternative product in the horticulture industry, William Sinclair is ideally positioned to compete in any event.

Bolton Fell

In December 2011 William Sinclair announced that it believed that its compensation claim for its interests at the Bolton Fell site in Cumbria would need to be referred to the Lands Tribunal. The referral took place in May 2012 and the Company will update shareholders on further progress in due course.

The Company has to date received a GBP9 million interim payment which remains on the balance sheet and has not been taken to the Consolidated Income Statement.

Outlook

Domestic gardening activity during April and most of May was severely held back by the cold, wet weather. However, some of this shortfall is being recovered as temperatures increase and demand for the Company's growing range of high quality products has strengthened during the last two weeks.

Inflationary pressures experienced earlier in the year have eased and, by achieving further improvements in operating efficiencies, combined with having the best delivery records and levels of service in the industry, the Board, at this early stage of the season, expects the Company will perform in line with market forecasts.

Bill Simpson

Chairman

 
 Consolidated Income Statement                    Six months   Six months       Year 
  for the six months ended 31 March                    ended        ended      ended 
  2012 (unaudited)                                  31 March     31 March    30 Sept 
                                                        2012         2011       2011 
                                          Notes      GBP'000      GBP'000    GBP'000 
 
 Revenue                                              26,184       26,097     54,263 
 Operating expenses                                 (25,673)     (25,340)   (50,894) 
 
 Group operating profit                                  511          757      3,369 
 
 Finance income                                            3            2         39 
 Finance costs                                          (42)         (46)       (85) 
 Other finance costs - pensions                         (94)         (66)      (141) 
 
 Profit before taxation                                  378          647      3,182 
 
 Tax charge                                 1           (95)        (182)      (789) 
 
 Profit for the period                                   283          465      2,393 
                                                 ===========  ===========  ========= 
 
 Profit for the period is attributable 
  to: 
 Equity holders of the parent company                    260          448      2,350 
 Minority interests                                       23           17         43 
                                                 -----------  -----------  --------- 
 
                                                         283          465      2,393 
                                                 ===========  ===========  ========= 
 All results relate to continuing 
  operations. 
 
 Earnings per share (pence) 
 Basic EPS on profit for the period         3           1.5p         2.7p      13.9p 
 Diluted EPS on profit for the 
  period                                                1.5p         2.7p      13.4p 
 
 Dividend per share                         2           1.9p         1.8p       6.2p 
 
 
 Consolidated Statement of Comprehensive    Six months   Six months       Year 
  Income                                         ended        ended      ended 
  for the six months ended 31 March           31 March     31 March    30 Sept 
  2012 (unaudited)                                2012         2011       2011 
                                               GBP'000      GBP'000    GBP'000 
 
 Profit for the period                             283          465      2,393 
                                           -----------  -----------  --------- 
 
 Other comprehensive income 
 Actuarial (loss)/gain on defined 
  benefit pension scheme                       (2,734)        1,800    (1,107) 
 Tax on items taken directly to 
  or transferred from equity                       684        (468)        476 
                                           -----------  -----------  --------- 
 
 Other comprehensive income, net 
  of tax                                       (2,050)        1,332      (631) 
                                           -----------  -----------  --------- 
 
 Total comprehensive income for 
  the period                                   (1,767)        1,797      1,762 
                                           ===========  ===========  ========= 
 
 Attributable to: 
 Equity holders of the parent company          (1,790)        1,780      1,719 
 Minority interests                                 23           17         43 
 
                                               (1,767)        1,797      1,762 
                                           ===========  ===========  ========= 
 
 
Consolidated       Equity     Share      Capital 
Statement           share   premium   redemption   Revaluation       Other   Retained               Minority     Total 
of Changes in     capital   account      reserve       reserve    reserves   earnings     Total    interests    equity 
Group 
Shareholders' 
Equity 
(Unaudited) 
                  GBP'000   GBP'000      GBP'000       GBP'000     GBP'000    GBP'000   GBP'000      GBP'000   GBP'000 
 
At 1 October 
 2011               4,256       150        1,523         7,841         176      3,905    17,851          281    18,132 
                ---------  --------  -----------  ------------  ----------  ---------  --------  -----------  -------- 
Profit for the 
 six months to 
 31 
 March 2012             -         -            -             -           -        260       260           23       283 
Depreciation 
 transfer               -         -            -          (98)           -         98         -            -         - 
Actuarial 
 losses 
 on defined 
 benefit 
 pension 
 scheme                 -         -            -             -           -    (2,734)   (2,734)            -   (2,734) 
Tax on items 
 taken 
 directly to 
 or 
 transferred 
 from 
 equity                 -         -            -             -           -        684       684            -       684 
Total 
 comprehensive 
 income                 -         -            -          (98)           -    (1,692)   (1,790)           23   (1,767) 
                ---------  --------  -----------  ------------  ----------  ---------  --------  -----------  -------- 
Share based 
 payments               -         -            -             -           -        191       191            -       191 
Equity 
 dividends 
 paid                   -         -            -             -           -      (749)     (749)            -     (749) 
Transactions 
 with 
 owners                 -         -            -             -           -      (558)     (558)            -     (558) 
 
At 31 March 
 2012               4,256       150        1,523         7,743         176      1,655    15,503          304    15,807 
 
 
At 1 October 
 2010               4,139         -        1,523         7,822         176      2,806    16,466          248    16,714 
                ---------  --------  -----------  ------------  ----------  ---------  --------  -----------  -------- 
Profit for the 
 six months to 
 31 
 March 2012             -         -            -             -           -        448       448           17       465 
Depreciation 
 transfer               -         -            -          (95)           -         95         -            -         - 
Actuarial 
 gains 
 on defined 
 benefit 
 pension 
 scheme                 -         -            -             -           -      1,800     1,800            -     1,800 
Tax on items 
 taken 
 directly to 
 or 
 transferred 
 from 
 equity                 -         -            -             -           -      (468)     (468)            -     (468) 
Total 
 comprehensive 
 income                 -         -            -          (95)           -      1,875     1,780           17     1,797 
                ---------  --------  -----------  ------------  ----------  ---------  --------  -----------  -------- 
Share based 
 payments               -         -            -             -           -        140       140            -       140 
Equity shares 
 issued               117       150            -             -           -          -       267            -       267 
Equity 
 dividends 
 paid                   -         -            -             -           -      (596)     (596)            -     (596) 
Transactions 
 with 
 owners               117       150            -             -           -      (456)     (189)            -     (189) 
 
At 31 March 
 2011               4,256       150        1,523         7,727         176      4,225    18,057          265    18,322 
 
 
At 1 October 
 2010               4,139         -        1,523         7,822         176      2,806    16,466          248    16,714 
                ---------  --------  -----------  ------------  ----------  ---------  --------  -----------  -------- 
 
Profit for the 
 year to 30 
 September 
 2011                   -         -            -             -           -      2,350     2,350           43     2,393 
Depreciation 
 transfer               -         -            -         (195)           -        195         -            -         - 
Actuarial 
 losses 
 on defined 
 benefit 
 pension 
 scheme                 -         -            -             -           -    (1,107)   (1,107)            -   (1,107) 
Tax on items 
 taken 
 directly to 
 or 
 transferred 
 from 
 equity                 -         -            -           214           -        262       476            -       476 
Total 
 comprehensive 
 income                 -         -            -            19           -      1,700     1,719           43     1,762 
                ---------  --------  -----------  ------------  ----------  ---------  --------  -----------  -------- 
Equity shares 
 issued               117       150            -             -           -          -       267            -       267 
Share based 
 payments               -         -            -             -           -        263       263            -       263 
Deferred tax            -         -            -             -           -         38        38            -        38 
Equity 
 dividends 
 paid                   -         -            -             -           -      (902)     (902)         (10)     (902) 
                ---------  --------  -----------  ------------  ----------  ---------  --------  -----------  -------- 
Transactions 
 with 
 owners               117       150            -             -           -      (601)     (334)         (10)     (344) 
 
At 30 
 September 
 2011               4,256       150        1,523         7,841         176      3,905    17,851          281    18,132 
 
 
 
Consolidated Statement of Financial 
 Position                                        As at      As at     As at 
 as at 31 March 2012 (unaudited)              31 March   31 March   30 Sept 
                                                  2012       2011      2011 
                                      Notes    GBP'000    GBP'000   GBP'000 
Non-current assets 
Property, plant and equipment                   19,561     19,969    19,607 
Intangible assets                                1,948      2,031     1,998 
                                                21,509     22,000    21,605 
                                             ---------  ---------  -------- 
Current assets 
Inventories                                     13,091     13,958    13,083 
Trade and other receivables                     24,557     24,117     8,409 
Deferred tax asset                                 453          -         - 
Cash and cash equivalents                          849        596     3,448 
                                                38,950     38,671    24,940 
                                                        ---------  -------- 
 
Assets held for sale                             1,645      1,651     1,645 
                                             ---------  ---------  -------- 
 
Total assets                                    62,104     62,322    48,190 
                                             =========  =========  ======== 
 
Current liabilities 
Trade and other payables                      (14,519)   (16,225)   (9,249) 
Financial liabilities - borrowings            (10,300)    (9,618)     (641) 
Corporation tax payable                          (194)      (383)     (490) 
                                             ---------  ---------  -------- 
                                              (25,013)   (26,226)  (10,380) 
                                             ---------  ---------  -------- 
 
Non-current liabilities 
Financial liabilities - borrowings                   -      (513)     (162) 
Deferred tax liabilities                             -      (851)     (231) 
Provisions                                       (131)      (242)     (121) 
Defined benefit pension plan 
 deficit                                      (12,153)    (7,168)  (10,164) 
Receipt from Natural England            6      (9,000)    (9,000)   (9,000) 
                                             ---------  ---------  -------- 
                                              (21,284)   (17,774)  (19,678) 
 
Total liabilities                             (46,297)   (44,000)  (30,058) 
                                             =========  =========  ======== 
 
 
 Net assets                                     15,807     18,322    18,132 
                                             =========  =========  ======== 
 
 
Capital and reserves 
Equity share capital                             4,256      4,256     4,256 
Share premium account                              150        150       150 
Capital redemption reserve                       1,523      1,523     1,523 
Revaluation reserve                              7,743      7,727     7,841 
Other reserves                                     176        176       176 
Retained earnings                                1,655      4,225     3,905 
                                             ---------  ---------  -------- 
 
 Group shareholders' equity                     15,503     18,057    17,851 
 
Minority interests                                 304        265       281 
                                             ---------  ---------  -------- 
 
Total equity                                    15,807     18,322    18,132 
                                             =========  =========  ======== 
 
 
 

Consolidated Cash Flow Statement

for the six months ended 31 March 2012 (unaudited)

 
                                                Six months  Six months      Year 
                                                     ended       ended     ended 
                                                  31 March    31 March   30 Sept 
                                                      2012        2011      2011 
                                                   GBP'000     GBP'000   GBP'000 
 
Net cash flow from operating activities           (10,352)     (9,389)     3,611 
 
Net cash flow from investing activities              (953)     (1,578)   (2,047) 
 
Net cash flow from financing activities            (1,110)     (1,078)   (1,745) 
 
 (Decrease) / increase in cash in the 
 period                                           (12,415)    (12,045)     (181) 
                                                ==========  ==========  ======== 
 
Opening cash and cash equivalents                    3,448       3,629     3,629 
 
(Decrease) / increase in cash and cash 
 equivalents                                      (12,415)    (12,045)     (181) 
                                                ----------  ----------  -------- 
 
Closing cash and cash equivalents                  (8,967)     (8,416)     3,448 
                                                ==========  ==========  ======== 
 
 
Notes to the consolidated Cash Flow Statement 
 
Cash flow from operating activities 
Group operating profit                                 511         757     3,369 
Amortisation of intangible assets                       50          76       199 
Depreciation of property, plant and equipment        1,002         930     1,866 
Negative goodwill on acquisition                         -        (31)      (60) 
Impairment of assets held for sale                       -           -         6 
Profit on disposal of property, plant 
 and equipment                                           -           -      (51) 
Share based payments                                   191         140       263 
Difference between pension contributions 
 paid and amounts recognised in the income 
 statement                                           (839)       (699)     (685) 
Increase in inventories                                (8)     (2,621)   (1,824) 
Increase in trade and other receivables           (16,148)    (14,793)       915 
Increase in trade and other payables                 5,270       6,969       (7) 
Increase in provisions                                  10          10     (115) 
                                                ----------  ----------  -------- 
 
Cash generated from operations                     (9,961)     (9,262)     3,876 
Income taxes paid                                    (391)       (127)     (265) 
                                                ----------  ----------  -------- 
 
                                                  (10,352)     (9,389)     3,611 
                                                ==========  ==========  ======== 
 
                                                Six months  Six months      Year 
                                                     ended       ended     ended 
                                                  31 March    31 March   30 Sept 
                                                      2012        2011      2011 
                                                   GBP'000     GBP'000   GBP'000 
 
 
Cash flow from investing activities 
Interest received                                        3           2        39 
Sale of property, plant and equipment                    -           1        52 
Purchase of property, plant and equipment            (579)       (667)   (1,241) 
Payments to acquire intangible fixed 
 assets                                                  -           -      (50) 
Acquisitions in the period (Note 4)                  (377)       (914)     (847) 
 
                                                     (953)     (1,578)   (2,047) 
                                                ==========  ==========  ======== 
 
 
Cash flow from financing activities 
Interest paid                                         (42)        (46)      (81) 
Dividends paid to minority interests                     -           -      (10) 
Dividends paid to equity shareholders                (749)       (596)     (902) 
Repayment of borrowings                              (319)       (703)   (1,019) 
Issue of new shares                                      -         267       267 
 
                                                   (1,110)     (1,078)   (1,745) 
                                                ==========  ==========  ======== 
 

Reconciliation of net cash flow to movement in net debt

 
                                          Six months  Six months      Year 
                                               ended       ended     ended 
                                            31 March    31 March   30 Sept 
                                                2012        2011      2011 
                                             GBP'000     GBP'000   GBP'000 
 
 
(Decrease) / increase in cash and short 
 term deposits                              (12,415)     (3,054)     (181) 
Cash (outflow) / inflow from change in 
 borrowings                                      319     (8,288)     1,019 
                                          ----------  ----------  -------- 
 
Movement in net debt in the period          (12,096)    (11,342)       838 
Net cash at 1 October                          2,645       1,807     1,807 
 
Net (debt)/cash at period end                (9,451)     (9,535)     2,645 
                                          ==========  ==========  ======== 
 

Notes to the financial information

   1.     Taxation 

The taxation charge on ordinary activities is calculated by applying the Directors' best estimate of the full year effective tax rate to the profit before taxation.

   2.     Dividend 

A final dividend of 4.4p per share (2011: 3.5p) was paid on 15 March 2012 to shareholders on the register on 17 February 2012. An interim dividend of 1.9p per share (2011: 1.8p) will be paid on 7 August 2012 to shareholders on the register on 13 July 2012.

   3.     Earnings per share 

Basic earnings per share have been calculated by reference to a weighted average of 17,024,046 (2011: 16,825,200) shares in issue during the period.

   4.     Acquisitions in the period 

In November 2011 the Group acquired the business and certain assets of Yorkshire Horticultural Supplies. These assets have been included in the balance sheet within tangible fixed assets, intangible fixed assets and inventories as appropriate. The fair value of the consideration paid is under GBP400,000.

   5.     Basis of preparation 

The financial information set out in the interim report has been prepared in accordance with accounting policies under International Financial Reporting Standards as adopted by the European Union ('IFRS') as detailed in the financial statements for the year ended 30 September 2011. These policies are expected to be followed in the financial statements for the year ending 30 September 2012.

The interim report has been approved by the Board of Directors and is neither audited nor reviewed. The interim financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

The financial information for the year ended 30 September 2011 is extracted from the audited accounts for that period. Those accounts have been delivered to the Registrar of Companies. The auditors' report on them was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

The Group does not consider that any standards or interpretations issued by the International Accounting Standards Board (IASB), but not yet applicable, will have a significant impact on the financial statements for the year ending 30 September 2012.

A copy of this interim report will be posted to shareholders shortly and will be available to view on the Company's website at www.william-sinclair.co.uk.

   6.     Bolton Fell 

In accordance with the agreement signed in March 2010 between Natural England and William Sinclair, the Group submitted a formal claim for its interests at Bolton Fell in Cumbria in October 2010. Natural England submitted a detailed but incomplete response in June 2011 and subsequently made a settlement offer of GBP12 million. This offer was rejected by the Board.

No subsequent agreement has been reached with Natural England over the level of compensation and as a consequence the matter has now been referred to the Upper Chamber of the Lands Tribunal.

William Sinclair's professional advisors have prepared a revised claim for submission to the Tribunal. The value of the compensation claim is substantially greater than the GBP12 million offer. The Lands Tribunal is expected to set a timetable for resolution of the difference but it is anticipated that the whole process will take more than a year to complete.

Under the agreement William Sinclair has implemented a phased withdrawal of peat harvesting from Bolton Fell and is accelerating its programme of regeneration. William Sinclair's own team is working closely with environmental experts from Natural England and other agencies to set out new plans to regenerate the peat bog in a practical and structured way. The 2011 peat harvest from the site was adversely affected by the restrictions and the 2012 harvest will be further restricted.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCSSLFIAFESELM

1 Year William Sinclair Chart

1 Year William Sinclair Chart

1 Month William Sinclair Chart

1 Month William Sinclair Chart
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:41 V:gb D:20180924 01:22:11