TIDMSNCL
RNS Number : 0094F
Sinclair (William) Holdings PLC
05 January 2010
5 January 2010
WILLIAM SINCLAIR HOLDINGS PLC
("William Sinclair", the "Company" or the "Group")
Audited Preliminary Results for the 12 months ended 30 September 2009
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 (formerly Wyevale), Wilkinson, Homebase and B&Q as well as an extensive
range of independent garden centres.
Highlights
* Pre-tax profit was substantially higher at GBP1.24 million, well ahead of the
previous 15 month period (2008: GBP0.52 million)
* Net debt has been significantly reduced to GBP7.0 million (2008: GBP8.7 million)
* Net assets have increased to GBP15.9 million (2008: GBP14.4 million)
* Recommending a final dividend of 2.5p per share making a total for the year of
3.5p (2008: 2.0p)
* Peat stocks are sufficient to meet expected demand in the 2010 season against a
background of predicted industry wide shortages
* Continued progress at the Freeland operation provides even greater ability to
reduce the peat content in our growing media, mitigating the impact of adverse
weather conditions and providing a sustainable competitive advantage
Bernard Burns, Chief Executive said:
'We have made real progress in the last 12 months in delivering on our strategy
to become the most efficient producer of growing media to the retail and
commercial sectors in the UK. Through careful management, we have improved our
performance, eliminated some business risks and made progress in bringing
innovative new products to market.
'Looking to the year ahead, William Sinclair has sufficient peat from its
harvest to meet expected demand for the 2010 season. However, we believe that a
shortage of growing media in the retail market is likely as a result of
the generally poor peat harvest in the UK and Eire, with consequential upward
pressure on prices.
'At the same time traditional peat substitutes such as bark have been diverted
into fuelling biomass power plants, reducing supply available to the
horticulture market. We have made substantial progress in the development of a
sustainable peat substitute through our Freeland subsidiary and plan to start
mass production of it immediately. We expect this to have a positive impact
throughout 2010 and beyond.
'If sterling remains weak as predicted, the UK professional growing market has
the potential for an excellent year as imports will be more expensive. We could
see increased demand from this market segment as UK growers gear up, with the
potential for price increases and better margins.
'I believe that William Sinclair is best placed within the industry to prosper
in this new market and consolidate our position as the lowest cost producer and
market leader of peat substitute growing media. Taking all of these factors
together, we look forward very positively to the coming year.'
For further information:
William Sinclair Holdings PLC Tel: 01522 537561
Bernard Burns, Chief Executive
Peter Williams, Finance Director
Arbuthnot SecuritiesTel: 020 7012 2000
Alastair Moreton
Alasdair Younie
Madano Partnership Tel: 020 7593 4000
Matthew Moth
Charles Reynolds
CHAIRMAN'S STATEMENT
I am pleased to report an improvement in the Group's performance for the year
ended 30 September 2009. We have made significant strides in building our
position as the UK's leading provider of commercial horticulture and branded
garden products.
We have continued to deliver on our strategy of becoming the most efficient
producer of peat and peat substitute growing media and fertiliser products to
the retail and commercial sectors and have substantially further de-risked the
business and made progress in bringing innovative new products to market.
Our success is reflected in pre-tax profits of GBP1.24 million for the 12 months
ended 30 September 2009, well ahead of the previous 15 month period
(GBP0.52million). Residual costs at Metcalf's Oswaldtwistle site, closed in
August 2008, were substantially reduced and improved efficiency elsewhere
increased operating margins. Revenue in the year was GBP46.3 million which was
down by GBP2.3 million (4.8%) on the comparable 12 month period. Sales were
slightly down with retail customers, partly due to re-branding issues with
Metcalf customers and at Freeland due to lower activity in construction. Sales
to professional and Silvaperl customers held up well in the recessionary
conditions. We are very pleased to be recommending a final dividend of 2.5p per
share making a total for the year of 3.5p, a 75% uplift on the previous year.
Importantly, William Sinclair has also continued to make significant steps to
capitalise on its position as the most environmentally responsible manufacturer
in the horticultural market. The peat content of many of our growing media has
been reduced through the development of a unique means of using material that
would otherwise go to landfill and the J. Arthur Bower's 70L Multi-Purpose
Compost now displays an independently calculated carbon footprint - a first in
the gardening market.
The weather always plays a major part in our operations and this year was no
different. Good weather early in the year boosted sales and helped with the
harvest but heavy rain, particularly in the north of the country, made peat
extraction much more difficult during the summer months.
We are well placed with sufficient peat to meet demand for the next season but
we believe an industry wide shortfall is inevitable and will lead to higher
consumer prices. Our ever increasing ability to reduce the peat content in our
growing media, particularly through our Freeland operation, will allow us to
further mitigate for any adverse weather conditions and gives us an important
competitive advantage.
The Executive Directors have spent a considerable amount of time in discussion
with Natural England about the compensation that would be due to us when the
Bolton Fell peat bog is declared a Special Area of Conservation. These
discussions are continuing and we hope to satisfactorily conclude this matter
within the next few months. A phased cessation of harvesting is the most likely
outcome. This has been a period of concern for our employees at Bolton Fell and
we are grateful to them, and indeed to all our employees, for their patience
during this uncertain time.
The Group balance sheet is much changed from last year with the expected
increase in the pension deficit being more than covered by increased profits and
the property revaluations carried out at the year end. We have a very strong
relationship with our bank, Lloyds Banking Group. Our net debt has fallen and we
continue to operate within our agreed facilities.
With our local peat sources and the industry's lowest cost base we are in a
strong position to make further progress in the year ahead.
Bill Simpson
Chairman
4 January 2010
CHIEF EXECUTIVE'S STATEMENT
The year ended 30 September 2009 was a volatile one for the horticultural
industry as the economic downturn hit. We are pleased that through careful
management we have made real progress and delivered an acceptable performance
this year with excellent prospects and a strong platform for the coming year.
A strong selling season in 2009
The excellent weather in March created strong consumer demand and pressure on
manufacturers to deliver quickly. During March and April we benefited from
strategic changes we had made to our logistics capability. We achieved a 50%
increase in our peak despatch performance from our Cumbria facility when
compared with the previous four years and our customers generally enjoyed a
faster delivery performance from us than from any of our major competitors. In a
market characterised by extreme seasonality this is a critical competitive
advantage that will also stand us in good stead in the coming years.
The selling season was excellent and with good weather, people spent more time
in their garden as foreign holidays or house moves were postponed in response to
the recession. Grow your own vegetable products were particularly popular.
During 2008 the Group experienced severe inflation in raw material prices caused
by a strong global demand for fertiliser, fuelled by legislative changes aimed
at promoting bio fuels. This was exacerbated by a poor peat harvest in the
British Isles. We therefore had to secure raw materials at premium prices and
this year, for the first time in many years, we were forced to buy peat
wholesale at a higher cost to meet demand. This held back overall profitability.
We experienced some changes in the timing of demand as concerns surrounding the
availability of bank credit led some customers to cut the level of stock held in
the first few months of the year.
Our "New Horizon" grow bag was again awarded Which magazine's "Best Buy" and New
Horizon product featured favourably in the BBC Gardener's World hour long
special "For peat's sake" screened on 27 April on BBC2.
Our specialist soil business, Freeland, secured contracts to supply the Olympic
stadium with topsoil and is well placed to win further contracts connected to
the Olympic project. This success mitigated the general downturn in civil
construction projects seen in the UK which fed through to Freeland in the last
quarter of the year. Our Silvaperl business is partially exposed to the
construction industry as it produces a range of insulation materials included in
fireplaces and it has experienced a marked reduction in demand for that range of
products.
The harvest in 2009
The harvest season started well with extraction beginning in April for the first
time in many years and we remained ahead of the harvest forecast until the end
of June. However, in July and August, because of heavy and frequent rainfall, we
harvested virtually nothing in a period in which we normally achieve over 50% of
our annual volume. This resulted in the volume of the harvest overall being less
than we had hoped for, although the quality was excellent. This was a clear
improvement on the 2007-08 harvest, where volumes were substantively lower and
quality lower by comparison.
It is pleasing to report that we now have sufficient peat to meet our needs in
2009-10 without the need to purchase from third parties. We believe that all our
competitors suffered a poor harvest, many significantly worse than ours, and
this, coupled with the weakness of Sterling against the Euro, is likely to lead
to growing media prices increasing for consumers in 2010.
More than 50% of the horticultural peat sold in the UK market each year is
imported from Eire and the Baltic states. A weak pound is positive for our
business. Unlike William Sinclair, all major competitors have a substantial
proportion of their overhead or raw material supply base within the Euro zone.
In addition, our customers in the professional area will suffer less competition
from Dutch growers.
Bolton Fell
We have conducted negotiations throughout the year with Natural England
regarding the potential compulsory purchase of our peat bog and factory at
Bolton Fell in Cumbria. A voluntary agreement could be reached in the spring of
2010 as the Group seeks no more than its legal entitlement to compensation. We
have been assured that funds are available to facilitate this. This will
probably involve a five year exit from the facility with reducing annual
harvests allowing an efficient transfer of production to an alternative site.
Several suitable alternatives have been identified and are being evaluated.
Environmental performance
Our environmental aspirations have progressed well this year. We dilute our peat
more than any of our major competitors, but without compromising quality, and on
a bag for bag basis our carbon footprint is the smallest.
We have made substantial progress in the development of a sustainable peat
substitute through our Freeland subsidiary which we expect to begin to have a
positive impact through 2010 and beyond. In addition we have reduced the weight
of packaging per bag sold and continue to reduce the miles per bag driven to get
our product to the consumer.
On the periphery of the business, planning permission on the development of a
wind farm on one Scottish site has been delayed pending the results from a bird
impact study. This should be resolved this year. We are in discussions with
developers concerning wind farms on two other sites.
Bank facility and balance sheet issues
Throughout the banking crisis our relationship with Lloyds Banking Group has
remained excellent. We have adequate headroom on our facility and Lloyds have
been very supportive when we have discussed investment opportunities with them.
We have in recent years insured all our major debtors. However, insurance cover
has been reduced or withdrawn on a number of major accounts over the last twelve
months and we manage the debt of these customers very closely. Our maximum
exposure to uninsured debt has been with our largest customer and has not been
above GBP500,000 in the year. We have had no significant bad debts.
There has been a substantial revaluation of the property in our balance sheet
this year. The larger part of this revaluation stems from the decreasing
availability of peat. As planning permissions to harvest peat are increasingly
difficult to obtain, and a greater proportion of the peat supply is being
imported at substantial cost from abroad, peat reserves and permissions held
within the UK become increasingly valuable.
The increase in our pension deficit reflects the substantial drop in bond rates
and as a consequence the discount rate used to calculate the present value of
the scheme's future liabilities. The return achieved in the year on the scheme
assets was significantly ahead of the expected return, reflecting the strong
performance of the stock market in the middle of 2009.
Capital structure and net debt
The Group's capital structure is as follows:
+--------------------+------------------------------+----------+---------+
| | | 2009 | 2008 |
+--------------------+------------------------------+----------+---------+
| | | GBP000 | GBP000 |
+--------------------+------------------------------+----------+---------+
| | | | |
+--------------------+------------------------------+----------+---------+
| Net debt | | 7,036 | 8,690 |
+--------------------+------------------------------+----------+---------+
| Group | | 15,659 | 14,214 |
| shareholders' | | | |
| equity | | | |
+--------------------+------------------------------+----------+---------+
| | | | |
+--------------------+------------------------------+----------+---------+
| Capital employed | | 22,695 | 22,904 |
+--------------------+------------------------------+----------+---------+
The Group's ratio of debt to capital employed has fallen from 37.9% to 31.0% as
a function of the successful year's trade and good working capital management.
This leaves the Group back within its target of borrowing not more than 35% of
capital employed.
Net debt comprises the balance of a fixed term loan taken out in January 2008 to
fund the acquisition of Joseph Metcalf Limited and a fixed term loan taken out
in October 2004 for the purchase of additional freehold storage land in Lincoln
together with cash balances, overdrafts and finance leases as follows:
+--------------------+------------------------------+----------+---------+
| | | 2009 | 2008 |
+--------------------+------------------------------+----------+---------+
| | | GBP000 | GBP000 |
+--------------------+------------------------------+----------+---------+
| | | | |
+--------------------+------------------------------+----------+---------+
| Cash and cash | | 955 | 883 |
| equivalent | | | |
+--------------------+------------------------------+----------+---------+
| Overdrafts | | (5,455) | (6,204) |
+--------------------+------------------------------+----------+---------+
| Loans | | (2,536) | (3,215) |
+--------------------+------------------------------+----------+---------+
| Finance leases | | - | (154) |
+--------------------+------------------------------+----------+---------+
| | | | |
+--------------------+------------------------------+----------+---------+
| Net debt | | (7,036) | (8,690) |
+--------------------+------------------------------+----------+---------+
Outlook
We believe that there will be a shortage of growing media in the retail market
in 2010 as a result of this year's poor peat harvest in the UK and Eire. In
addition, the building of biomass power plants has reduced the availability of
peat alternatives; it is becoming financially more attractive to burn bark than
to bag it. This will lead to price increases and consequently higher margins.
If sterling remains weak, as predicted, the UK professional growing market has
the potential for an excellent year as imports will be more expensive. We could
see increased demand from this area of the market as UK growers gear up with the
potential for price increases and better margins. All of this is good for
William Sinclair's prospects.
Defra and Natural England appear set on their objective to dramatically reduce
the quantity of peat used in the horticultural market, as a step towards the UK
carbon emission reduction targets agreed at Kyoto. From January 2010 we plan
mass production of our peat substitute material through Freeland and this will
reduce the consequences of this directive and also the effects on the business
of adverse weather. We are ahead of our competition in developing and adopting
such innovative new technology and mass production of our new material is an
important step in our strategy to de-risk the business and insulate us from the
vagaries of the British weather and the resulting peat harvest.
I believe that William Sinclair is best placed within the industry to prosper in
this new market and consolidate our position as the lowest cost producer and
market leader of peat substitute growing media.
Taking all of these factors together, we look forward very positively to the
coming year.
Bernard Burns
Chief Executive
4 January 2010 WILLIAM SINCLAIR HOLDINGS PLC
Group Income Statement
for the year ended 30 September 2009
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | 12 months | | 15 months | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | |30 September | | 30 | |
| | | | 2009 | | September | |
| | | | | | 2008 | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | Before | Exceptional | Total |
| | | | | Exceptional | Items | |
| | | | | Items | (Note 7) | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | Notes | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Revenue | | | 46,275 | 54,771 | - | 54,771 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Operating expenses | | | (44,407) | (53,367) | (361) | (53,728) |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Group operating profit | | | 1,868 | 1,404 | (361) | 1,043 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Finance revenue | | | 71 | 89 | - | 89 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Finance costs | | | (442) | (829) | - | (829) |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Other finance | | 3 | (266) | 217 | - | 217 |
| (cost)/income - pensions | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Share of post tax profits | | | 9 | 1 | - | 1 |
| of joint venture accounted | | | | | | |
| for using the equity | | | | | | |
| method | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Profit before taxation | | | 1,240 | 882 | (361) | 521 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Tax (expense) / credit | | | (77) | (344) | 105 | (239) |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Profit for the period | | | 1,163 | 538 | (256) | 282 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| All results relate to | | | | | | |
| continuing operations. | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Profit for the period is | | | 1,128 | 466 | (256) | 210 |
| attributable to: | | | | | | |
| Equity holders of the | | | | | | |
| parent company | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Minority interests | | | 35 | 72 | - | 72 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | 1,163 | 538 | (256) | 282 |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Earnings per share (pence) | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Basic EPS on profit for | | 5 | 6.8p | | | 1.3p |
| the period | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
| Diluted EPS on profit for | | 5 | 6.8p | | | 1.3p |
| the period | | | | | | |
+----------------------------+--+-----------+--------------+-------------+-------------+----------+
WILLIAM SINCLAIR HOLDINGS PLC
Group Statement of Recognised Income and Expense
for the year ended 30 September 2009
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | 12 months | 15 months |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | Notes | 2009 | 2008 |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | GBP000 | GBP000 |
+----------------------------+--+-----------+--------------+------------+------------+
| Income and expense | | | | | |
| recognised directly in | | | | | |
| equity | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Revaluation of property | | | 6 | 6,165 | - |
+----------------------------+--+-----------+--------------+------------+------------+
| Actuarial losses on | | | | (5,237) | (2,467) |
| defined benefit pension | | | | | |
| plans | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | 928 | (2,467) |
+----------------------------+--+-----------+--------------+------------+------------+
| Tax on items taken | | | | (260) | 691 |
| directly to or transferred | | | | | |
| from equity | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Net income recognised | | | | 668 | (1,776) |
| directly in equity | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Profit for the period | | | | 1,163 | 282 |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Total recognised income | | | | 1,831 | (1,494) |
| and expense for the period | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Attributable to: | | | | 1,796 | (1,566) |
| Equity holders of the | | | 4 | | |
| parent company | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Minority interests | | | | 35 | 72 |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | 1,831 | (1,494) |
+----------------------------+--+-----------+--------------+------------+------------+
WILLIAM SINCLAIR HOLDINGS PLC
Group Balance Sheet
at 30 September 2009
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | 2009 | 2008 |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | Notes | GBP000 | GBP000 |
+----------------------------+--+-----------+--------------+----------+----------+
| Non-current assets | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Property, plant and | | | 6 | 20,348 | 16,733 |
| equipment | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Intangible assets | | | | 1,644 | 1,712 |
+----------------------------+--+-----------+--------------+----------+----------+
| Investments accounted for | | | | - | 215 |
| using the equity method | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | 21,992 | 18,660 |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Current assets | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Inventories | | | | 8,638 | 12,021 |
+----------------------------+--+-----------+--------------+----------+----------+
| Trade and other | | | | 7,950 | 8,119 |
| receivables | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Assets held for sale | | | | 2,151 | - |
+----------------------------+--+-----------+--------------+----------+----------+
| Cash and short-term | | | | 955 | 883 |
| deposits | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | 19,694 | 21,023 |
+----------------------------+--+-----------+--------------+----------+----------+
| Total assets | | | | 41,686 | 39,683 |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Current liabilities | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Trade and other payables | | | | 7,061 | 10,176 |
+----------------------------+--+-----------+--------------+----------+----------+
| Financial liabilities - | | | | 6,166 | 6,997 |
| borrowings | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Corporation tax payable | | | | 437 | 3 |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | 13,664 | 17,176 |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Non-current liabilities | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Financial liabilities - | | | | 1,825 | 2,576 |
| borrowings | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Deferred tax liabilities | | | | 626 | 830 |
+----------------------------+--+-----------+--------------+----------+----------+
| Provisions | | | | 231 | 209 |
+----------------------------+--+-----------+--------------+----------+----------+
| Defined benefit pension | | | | 9,461 | 4,475 |
| plan deficit | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | 12,143 | 8,090 |
+----------------------------+--+-----------+--------------+----------+----------+
| Total liabilities | | | | 25,807 | 25,266 |
+----------------------------+--+-----------+--------------+----------+----------+
| Net assets | | | | 15,879 | 14,417 |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Capital and reserves | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Equity share capital | | | 4 | 4,139 | 4,139 |
+----------------------------+--+-----------+--------------+----------+----------+
| Capital redemption reserve | | | 4 | 1,523 | 1,523 |
+----------------------------+--+-----------+--------------+----------+----------+
| Revaluation reserve | | | 4 | 7,906 | 3,498 |
+----------------------------+--+-----------+--------------+----------+----------+
| Other reserves | | | 4 | 176 | 176 |
+----------------------------+--+-----------+--------------+----------+----------+
| Retained earnings | | | 4 | 1,915 | 4,878 |
+----------------------------+--+-----------+--------------+----------+----------+
| Group shareholders' equity | | | | 15,659 | 14,214 |
+----------------------------+--+-----------+--------------+----------+----------+
| Minority interests | | | | 220 | 203 |
+----------------------------+--+-----------+--------------+----------+----------+
| | | | | | |
+----------------------------+--+-----------+--------------+----------+----------+
| Total equity | | | | 15,879 | 14,417 |
+----------------------------+--+-----------+--------------+----------+----------+
WILLIAM SINCLAIR HOLDINGS PLC
Group Cash Flow Statement
for the year ended 30 September 2009
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | 12 months | 15 months |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | 2009 | 2008 |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | GBP000 | GBP000 |
+----------------------------+--+-----------+--------------+------------+------------+
| Operating activities | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Group operating profit | | | | 1,868 | 1,043 |
+----------------------------+--+-----------+--------------+------------+------------+
| Adjustments to reconcile | | | | | |
| Group operating profit to | | | | | |
| net cash inflows from | | | | | |
| operating activities | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Depreciation of property, | | | | 1,335 | 1,602 |
| plant and equipment | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Amortisation of intangible | | | | 48 | 35 |
| assets | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Profit on disposal of | | | | (14) | (19) |
| fixed assets | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Negative goodwill taken to | | | | (60) | - |
| the income statement | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Share-based payments | | | | - | 19 |
+----------------------------+--+-----------+--------------+------------+------------+
| Difference between pension | | | | (517) | (78) |
| contributions paid and | | | | | |
| amounts recognised in the | | | | | |
| income statement | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Decrease/(increase) in | | | | 3,383 | (5,198) |
| inventories | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Decrease/(increase) in | | | | 45 | 4,896 |
| trade and other | | | | | |
| receivables | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| (Decrease)/increase in | | | | (3,039) | (2,193) |
| trade and other payables | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Increase in provisions | | | | 22 | 20 |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Cash generated from | | | | 3,071 | 127 |
| operations | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Income taxes | | | | (3) | (77) |
| (paid)/received | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Net cash flow from | | | | 3,068 | 50 |
| operating activities | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Investing activities | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Interest received | | | | 71 | 89 |
+----------------------------+--+-----------+--------------+------------+------------+
| Sale of property, plant | | | | 287 | 148 |
| and equipment | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Purchases of property, | | | | (1,209) | (1,618) |
| plant and equipment | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Payments to acquire | | | | (56) | (129) |
| intangible fixed assets | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Purchase of shares in | | | | 60 | (3,875) |
| subsidiary undertakings | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Cash on consolidation of | | | | - | (1,310) |
| subsidiary undertakings | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Sale of share of joint | | | | 224 | - |
| interest | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Net cash flow from | | | | (623) | (6,695) |
| investing activities | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Financing activities | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Interest paid | | | | (442) | (829) |
+----------------------------+--+-----------+--------------+------------+------------+
| Dividends paid to equity | | | | (331) | (579) |
| shareholders of the parent | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Dividends paid to minority | | | | (18) | (10) |
| interests | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| New loans in the period | | | | - | 3,000 |
+----------------------------+--+-----------+--------------+------------+------------+
| Repayment of borrowings | | | | (679) | (455) |
+----------------------------+--+-----------+--------------+------------+------------+
| Repayment of capital | | | | (154) | (138) |
| element of finance leases | | | | | |
| and hire purchase | | | | | |
| contracts | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Net cash flow from | | | | (1,624) | 989 |
| financing activities | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Increase/(decrease) in | | | | 821 | (5,656) |
| cash and cash equivalents | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Cash and cash equivalents | | | | (5,321) | 335 |
| at the beginning of the | | | | | |
| period | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
| Cash and cash equivalents | | | | (4,500) | (5,321) |
| at the period end | | | | | |
+----------------------------+--+-----------+--------------+------------+------------+
WILLIAM SINCLAIR HOLDINGS PLC
Notes
1. Statutory accounts
The consolidated financial statements of William Sinclair Holdings PLC are
prepared in accordance with International Financial Reporting Standards (IFRS)
and International Financial Reporting Interpretations Committee (IFRIC)
interpretations that are adopted by the European Union and with those parts of
the Companies Act 2006 applicable to those companies reporting under IFRS.
These results for the year to 30 September 2009 together with the corresponding
amounts for the 15 month period to 30 September 2008 are extracts from the 2009
annual report and do not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006.
The statutory accounts for the year ended 30 September 2009, which have been
audited by PricewaterhouseCoopers LLP, incorporate an unqualified audit report
and do not contain a statement under either section 498(2) or 498(3) of the
Companies Act 2006.
This preliminary announcement of the results for the year ended 30 September
2009 was approved by the Board of directors on 4 January 2010.
The accounting policies used for the 2009 figures are unchanged on those used
for the 2008 comparatives.
The statutory accounts for the period ended 30 September 2008 have been
delivered to the Registrar of Companies and the statutory accounts for the year
ended 30 September 2009 will be delivered to the Registrar of Companies
following the Annual General Meeting of William Sinclair Holdings PLC.
2. Analysis of Net Debt
+--------------------------+------+----------------+----------------+----------------+
| | | 1 Oct 2008 | Cash flow | 30 Sept 2009 |
+--------------------------+------+----------------+----------------+----------------+
| | | GBP000 | GBP000 | GBP000 |
+--------------------------+------+----------------+----------------+----------------+
| | | | | |
+--------------------------+------+----------------+----------------+----------------+
| Cash at bank and in hand | | 883 | 72 | 955 |
+--------------------------+------+----------------+----------------+----------------+
| Overdrafts | | (6,204) | 749 | (5,455) |
+--------------------------+------+----------------+----------------+----------------+
| Loans | | (3,215) | 679 | (2,536) |
+--------------------------+------+----------------+----------------+----------------+
| Finance leases | | (154) | 154 | - |
+--------------------------+------+----------------+----------------+----------------+
| | | (8,690) | 1,654 | (7,036) |
+--------------------------+------+----------------+----------------+----------------+
3. Other finance costs - pensions
The pension finance cost is the difference between the expected return on the
pension scheme's assets and the cost of unwinding the discounted value of future
benefits by one year. Whereas this produced a credit to the income statement of
GBP217,000 in the period ended 30 September 2008 it produced a charge of
GBP266,000 in the year under review. This is a change, from one year to the
next, of GBP483,000.
WILLIAM SINCLAIR HOLDINGS PLC
Notes (continued)
4. Reconciliation of movements in equity
+----------------+----------+-------------+------------+------------+------------+---------+
| Group | Equity | Revaluation | Capital | Other | Retained | Total |
| | Share | reserve | redemption | reserves | earnings | |
| | Capital | | reserve | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------+----------+-------------+------------+------------+------------+---------+
| | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| At 1 July 2007 | 4,139 | 3,566 | 1,523 | 176 | 6,936 | 16,340 |
+----------------+----------+-------------+------------+------------+------------+---------+
| Total | - | - | - | - | (1,566) | (1,566) |
| recognised | | | | | | |
| income and | | | | | | |
| expense for | | | | | | |
| the period | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| Depreciation | - | (68) | - | - | 68 | - |
| transfer | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| Share-based | - | - | - | - | 19 | 19 |
| payment | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| Equity | - | - | - | - | (579) | (579) |
| dividends paid | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| At 1 October | 4,139 | 3,498 | 1,523 | 176 | 4,878 | 14,214 |
| 2008 | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| Total | - | 4,439 | - | - | (2,643) | 1,796 |
| recognised | | | | | | |
| income and | | | | | | |
| expense for | | | | | | |
| the year | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| Depreciation | - | (31) | - | - | 31 | - |
| transfer | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| Eliminate | - | - | - | - | (20) | (20) |
| deferred tax | | | | | | |
| on share based | | | | | | |
| payments | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| Equity | - | - | - | - | (331) | (331) |
| dividends paid | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
| At 30 | 4,139 | 7,906 | 1,523 | 176 | 1,915 | 15,659 |
| September 2009 | | | | | | |
+----------------+----------+-------------+------------+------------+------------+---------+
WILLIAM SINCLAIR HOLDINGS PLC
Notes (continued)
5. Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the
period attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the period.
Diluted earnings per share amounts are calculated by dividing the net profit
attributable to ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the period adjusted for the
dilutive effect of share options outstanding at the period end.
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
+--------------------------------------------------+---------------+--------------+
| | 2009 | 2008 |
+--------------------------------------------------+---------------+--------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+---------------+--------------+
| Diluted net profit attributable to equity | 1,128 | 210 |
| holders of the parent | | |
+--------------------------------------------------+---------------+--------------+
| | 2009 | 2008 |
+--------------------------------------------------+---------------+--------------+
| | No. | No. |
+--------------------------------------------------+---------------+--------------+
| Basic weighted average number of shares ('000s) | 16,554 | 16,554 |
+--------------------------------------------------+---------------+--------------+
| Dilutive potential ordinary shares: | | |
+--------------------------------------------------+---------------+--------------+
| Employee share options ('000s) | 41 | 164 |
+--------------------------------------------------+---------------+--------------+
| Diluted weighted average number of shares | 16,595 | 16,718 |
| ('000s) | | |
+--------------------------------------------------+---------------+--------------+
6. Property revaluation
At 30 September 2009 the Group's freehold and leasehold fixed assets were
revalued by BNP Paribas Real Estate. The net uplift in property values was
GBP6,165,000 reflecting, primarily, the increase in the value of peat bogs
around the country as they become a scarce resource and the wholesale price of
peat rises.
WILLIAM SINCLAIR HOLDINGS PLC
Notes (continued)
7. Exceptional items
+----------------------------------------+--------------+---------------+
| | 12 months | 15 months |
+----------------------------------------+--------------+---------------+
| | 2009 | 2008 |
+----------------------------------------+--------------+---------------+
| | GBP000 | GBP000 |
+----------------------------------------+--------------+---------------+
| Recognised in arriving at operating | - | 361 |
| profit: | | |
| Redundancy costs on restructuring of | | |
| Joseph Metcalf business | | |
+----------------------------------------+--------------+---------------+
The decision was taken in July 2008 to restructure the Joseph Metcalf business.
This followed the failure of negotiations with the local authority to extend
planning permission at the Oswaldtwistle site which would have allowed an
intensification in the use of the site.
8. Dividends paid and proposed
+----------------------------------------+--------------+---------------+
| | 2009 | 2008 |
+----------------------------------------+--------------+---------------+
| | GBP000 | GBP000 |
+----------------------------------------+--------------+---------------+
| Declared and paid during the period: | | |
+----------------------------------------+--------------+---------------+
| Equity dividends on ordinary shares: | | |
| | | |
+----------------------------------------+--------------+---------------+
| Final dividend for September 2008: | 166 | 414 |
| 1.00p (June 2007- 2.50p) | | |
+----------------------------------------+--------------+---------------+
| Interim for September 2009: 1.00p | 165 | 165 |
| (September 2008 - 1.00p) | | |
+----------------------------------------+--------------+---------------+
| Dividends paid | 331 | 579 |
+----------------------------------------+--------------+---------------+
| Proposed for approval by shareholders | | |
| at the AGM: | | |
| | | |
+----------------------------------------+--------------+---------------+
| Final dividend for September 2009: | 414 | 166 |
| 2.50p (2008 - 1.00p) | | |
+----------------------------------------+--------------+---------------+
Subject to shareholders' approval the final dividend of 2.5p per share will be
paid on 18 March 2010 to shareholders on the register on 19 February 2010.
9. Annual General Meeting
The Company intends to post the Report and Accounts to shareholders on 25
January 2010. The Annual General Meeting of the Company will be held at The
Bentley Hotel, Newark Road, South Hykeham, Lincoln LN6 9NH on 25 February 2010
at 11.00 a.m. Copies of this announcement are available from the Company's
registered office, Firth Road, Lincoln, LN6 7AH during normal office hours and
on the Company's website www.william-sinclair.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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