Trading Statement

RNS Number : 9597Z
Sinclair (William) Holdings PLC
28 July 2008

WILLIAM SINCLAIR HOLDINGS PLC
("William Sinclair" or "the Company")
Trading Update
William Sinclair Holdings Plc is one of the UK's leading producers of commercial horticulture and branded garden products. The Company
provides peat based and non peat growing media and fertiliser products to the retail and commercial sectors.
The Company announced on 24 June 2008 in its 9 month statement to 31 March 2008 that the business was facing a challenging market
despite the satisfactory performance of the recently acquired Joseph Metcalf and Freeland businesses. Demand for the 2008 growing season was
lower than expected as the impact of the earliest Easter since 1913, combined with unusually wet and cold weather in March, suppressed
consumer activity.
Since that announcement two principal factors have affected the Company's performance:

1. The Company has continued to see significantly escalating costs from a number of its suppliers, particularly in the areas of
packaging and products such as fertilizers and oil. Furthermore, certain suppliers have increased prices beyond those provided for in
established price agreements.

2. The peat harvest in late June and the first half of July was very poor due to the adverse weather conditions at that time.

As a result of these factors, the Company now expects profits in the 15 month period to 30 September 2008 to be significantly lower than
market expectations.
Notwithstanding these factors management is taking action to strengthen its position, including putting in place a significant price
increase to restore margins for next financial year. With its production all located in mainland UK and the additional peat volumes from
the recently acquired Joseph Metcalf business, the Company has a strong competitive advantage. In addition, Freeland continues to perform
well and since it quotes primarily on a project basis it is consequently able to pass on supplier price increases more easily.

The Company has a strong balance sheet and the Board continues to have confidence in the strength of the business and its underlying net
asset base. Accordingly, in the absence of unforeseen circumstances, it anticipates paying a final dividend in line with market
expectations.

Bernard Burns, Chief Executive, said:
"Undoubtedly these are challenging economic times. However the poor performance is not a result of sales slow down; sales are in fact
much stronger than at the equivalent period last year. Historically the market has a substantial resilience to recession.
"Our low cost of production and increasing non-peat products ensure William Sinclair is in the most robust position within the industry
to withstand the current prevailing conditions and potentially gain market share."

William Sinclair Holdings Plc Tel: 01522 537561
Bernard Burns, Chief Executive
Peter Williams, Finance Director

Arbuthnot Securities Tel: 020 7012 2000
Alastair Moreton
Alasdair Younie

Madano Partnership Tel: 020 7593 4000
Mark Way
Matthew Moth
www.madano.co.uk

About William Sinclair
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 Wyevale, Wilkinson, Tesco, Homebase and B&Q as well as an extensive range
of independent garden centres.

The Company has strong asset backing, is profitable and is quoted on the Alternative Investment Market

This information is provided by RNS
The company news service from the London Stock Exchange

END

TSTDELFLVDBEBBV

William Sinclair (LSE:SNCL)
Historical Stock Chart
From Jul 2024 to Jul 2024