TIDMSNCL
RNS Number : 9000M
Sinclair (William) Holdings PLC
02 June 2010
2 June 2010
WILLIAM SINCLAIR HOLDINGS PLC
("William Sinclair", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2010
William Sinclair Holdings PLC is one of the UK's leading producers of commercial
horticulture and branded garden products. Its 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
· Revenue of GBP21.8 million (six months to 31 March 2009: GBP22.3
million), reflecting a slightly late start to the main selling season this year
· Operating profit of GBP0.44 million (six months to 31 March 2009: profit
of GBP0.19 million)
· Strong balance sheet with net debt GBP2.06 million lower than at 31 March
2009
· Increase in interim dividend to 1.5p (six months to 31 March 2009: 1.0p)
· Trade benefiting from actions taken to ensure availability of ample raw
materials in a tight market
· Interim agreement reached in March on future of Bolton Fell and initial
GBP9 million compensation received in April
· Good weather has enabled an early start to the peat harvest for the next
selling season
Bernard Burns, Chief Executive, William Sinclair Holdings Plc, said: "We have
continued to build on the successes of last year and are delighted with a
stronger first half performance, which has resulted in a profit in a period that
traditionally has been loss making. This improvement has been driven by strong
sales of our market leading peat-free New Horizon product. We have also
benefited from further operational efficiencies and gains from the Metcalf
acquisition coming through. A better peat harvest last year has also meant that
we have not had to buy any expensive imported product. Demand in the UK
commercial growing sector has been strong with the euro's relative strength to
sterling making home grown products more appealing than expensive imports.
"Since the half year end, we have received an advance payment of GBP9 million
compensation from Natural England for Bolton Fell. This opens up a range of
opportunities to further improve our efficiency, accelerate our programmes to
generate more peat-free products and make the company less weather sensitive.
We are working on a number of technology programmes and possible acquisitions
that will reinforce our strong position. While still early in the season,
trading in April was strong with sales and margins ahead on a like for like
basis. Good weather, both in April and May, has allowed an early start to the
peat harvest and we are well positioned for the second half of the year."
For further information:
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
Matthew Moth
Charles Reynolds
www.madano.co.uk
CHAIRMAN'S STATEMENT
I am pleased to report another period of good progress at William Sinclair with
performance for the 6 months ended 31 March 2010 ahead of last year, net debt
down, a first half profit and an increase in our interim dividend.
Trading Review
Turnover during the period was GBP21.8 million. This was a slight decrease from
the previous year but the fall is not significant and merely reflects a slightly
later start to the main selling season. Margins have improved due to a
combination of our self sufficiency in peat this year and internal efficiency
improvements in our logistics.
The profit before tax for the half year was GBP187,000 compared to a loss of
GBP211,000 for the six months to 31 March 2009. This is the first time for many
years that the business has recorded a profit in the first half of our financial
year, a period where seasonality has a tremendous negative effect. This strong
start to the year was mainly due to a strong performance in March reflecting
favourable trading conditions in the run up to Easter and higher than expected
demand from retailers anxious to replenish low stocks.
The balance sheet remains strong with the Group's net debt at 31 March 2010,
when working capital requirements are near their peak, at a modest GBP15.0
million. This was well within our bank facilities and GBP2.0 million lower than
at the same point last year.
The Directors are recommending an interim dividend of 1.5p per share which is an
increase of 50% compared to last year. This is consistent with our intention to
pursue a progressive dividend policy which reflects the underlying long term
prospects of the group.
Bolton Fell advance payment and investment opportunities
We announced on 23 March that we had reached an interim agreement with Natural
England which will lead to the eventual cessation of peat harvesting at Bolton
Fell Moss in Cumbria and the acceleration of our programme for peat bog
regeneration at the site. The advance payment of GBP9 million was received in
April and will be used, initially, to offset bank borrowings. Longer term we
intend to use this cash to facilitate development of an alternative
manufacturing and distribution facility which will lead to an even greater
advantage over our competitors and further reduction in our market leading
carbon footprint.
In addition, we have an acquisition policy targeting growth in existing areas of
expertise and securing peat reduced and peat free competitive advantage.
Business Review
Although the poor peat harvest in 2009 caused severe shortages throughout the
industry our own self sufficiency, helped by some early success with our
synthetic peat from Freeland and encouraging progress with a peat drying
project, gave us a considerable advantage.
The award winning New Horizon peat free range continues to lead the market in
its sector. A Spring campaign by government to persuade consumers not to use
peat based product was also a factor leading to a 44% growth in sales of this
product range.
The volatility of the euro versus the pound has given UK growers an advantage,
including, in particular, over the Dutch and our commercial customers are busier
as a result.
The severe winter weather resulted in the Freeland operation delaying supply of
material to a number of large civil projects. This market sector is already
depressed by the recession. Horticulture operations coped well in spite of
difficulties with transport and we benefited from a drier spell from March
onwards. The improved weather since the beginning of March has boosted activity
at Freeland and indications are that volumes will increase further with
contracts linked to the Olympics.
Outlook
Trading in April was strong with sales and margins ahead on a like for like
basis. Good weather, both in April and May, has allowed an early start to the
peat harvest and, if normal or better conditions prevail throughout the summer,
the Directors are confident that progress can be maintained.
Bill Simpson
Chairman
+----------------------------------+-------+---------+----------+----------+
| Consolidated Income Statement | | Six | Six | Year |
| for the six months ended 31 | | months | months | ended |
| March 2010 (unaudited) | | ended | ended | 30 Sept |
| | | 31 | 31 | 2009 |
| | | March | March | |
| | | 2010 | 2009 | |
+----------------------------------+-------+---------+----------+----------+
| |Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Revenue | | 21,840 | 22,305 | 46,275 |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Operating expenses | | 21,396 | (22,118) | (44,407) |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Group operating profit | | 444 | 187 | 1,868 |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Finance revenue | | 12 | 19 | 71 |
+----------------------------------+-------+---------+----------+----------+
| Finance costs | | (103) | (284) | (442) |
+----------------------------------+-------+---------+----------+----------+
| Other finance costs - pension | | (166) | (130) | (266) |
+----------------------------------+-------+---------+----------+----------+
| Share of post tax (loss) / | | | | |
| profit of joint ventures | | - | (3) | 9 |
| accounted for using the equity | | | | |
| method | | | | |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Profit / (loss) before taxation | | 187 | (211) | 1,240 |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Tax (charge) / credit | 1 | (51) | 60 | (77) |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Profit / (loss) for the period | | 136 | (151) | 1,163 |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Equity holders of the parent | | 124 | (167) | 1,128 |
| company | | | | |
+----------------------------------+-------+---------+----------+----------+
| Minority interests | | 12 | 16 | 35 |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| | | 136 | (151) | 1,163 |
+----------------------------------+-------+---------+----------+----------+
| All results relate to continuing | | | | |
| operations. | | | | |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Earnings / (loss) per share | | | | |
| (pence) | | | | |
+----------------------------------+-------+---------+----------+----------+
| Basic EPS on profit for the | 3 | 0.7p | (1.0)p | 6.8p |
| period | | | | |
+----------------------------------+-------+---------+----------+----------+
| Diluted EPS on profit for the | | 0.7p | (1.0)p | 6.8p |
| period | | | | |
+----------------------------------+-------+---------+----------+----------+
| | | | | |
+----------------------------------+-------+---------+----------+----------+
| Dividend per share | 2 | 1.5p | 1.0p | 3.5p |
+----------------------------------+-------+---------+----------+----------+
+----------------------------------+-----+---------+---------+---------+
| Consolidated Statement of | | Six | Six | Year |
| Comprehensive Income | | months | months | ended |
| for the six months ended 31 | | ended | ended | 30 Sept |
| March 2010 (unaudited) | | 31 | 31 | 2009 |
| | | March | March | |
| | | 2010 | 2009 | |
+----------------------------------+-----+---------+---------+---------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+-----+---------+---------+---------+
| | | | | |
+----------------------------------+-----+---------+---------+---------+
| Profit / (loss) for the period | | 136 | (151) | 1,163 |
+----------------------------------+-----+---------+---------+---------+
| Other comprehensive income | | | | |
+----------------------------------+-----+---------+---------+---------+
| Revaluation of property | | - | - | 6,165 |
+----------------------------------+-----+---------+---------+---------+
| Actuarial gain on defined | | | | |
| benefit pension scheme | | 1,229 | (3,078) | (5,237) |
+----------------------------------+-----+---------+---------+---------+
| Tax on items taken directly to | | (344) | 862 | (260) |
| or transferred from equity | | | | |
+----------------------------------+-----+---------+---------+---------+
| | | | | |
+----------------------------------+-----+---------+---------+---------+
| Total comprehensive income for | | 1,021 | (2,367) | 1,831 |
| the period | | | | |
+----------------------------------+-----+---------+---------+---------+
| | | | | |
+----------------------------------+-----+---------+---------+---------+
| Attributable to: | | | | |
+----------------------------------+-----+---------+---------+---------+
| Equity holders of the parent | | 1,009 | (2,383) | 1,796 |
| company | | | | |
+----------------------------------+-----+---------+---------+---------+
| Minority interests | | 12 | 16 | 35 |
+----------------------------------+-----+---------+---------+---------+
| | | | | |
+----------------------------------+-----+---------+---------+---------+
| | | 1,021 | (2,367) | 1,831 |
+----------------------------------+-----+---------+---------+---------+
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Consolidated | Equity | Capital | | | | | | |
| Statement of | share | redemption | Revaluation | Other | Retained | | Minority | Total |
| Changes in Group | capital | reserve | reserve | reserves | earnings | Total | interests | equity |
| Shareholders' | | | | | | | | |
| Equity | | | | | | | | |
| (Unaudited) | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| At 1 October | 4,139 | 1,523 | 7,906 | 176 | 1,915 | 15,659 | 220 | 15,879 |
| 2009 | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Profit for the | | | | | | | | |
| six months to 31 | - | - | - | - | 124 | 124 | 12 | 136 |
| March 2010 | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Actuarial gain | | | | | | | | |
| on defined | - | - | - | - | 1,229 | 1,229 | - | 1,229 |
| benefit pension | | | | | | | | |
| scheme | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Tax on items | | | | | | | | |
| taken directly | - | - | - | - | (344) | (344) | - | (344) |
| to or | | | | | | | | |
| transferred from | | | | | | | | |
| equity | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Equity dividends | - | - | - | - | (414) | (414) | | (414) |
| paid | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| At 31 March 2010 | 4,139 | 1,523 | 7,906 | 176 | 2,510 | 16,254 | 232 | 16,486 |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| At 1 October | 4,139 | 1,523 | 3,498 | 176 | 4,878 | 14,214 | 203 | 14,417 |
| 2008 | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Loss for the six | | | | | | | | |
| months to 31 | - | - | - | - | (167) | (167) | 16 | (151) |
| March 2009 | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Actuarial loss | | | | | | | | |
| on defined | - | - | - | - | (3,078) | (3,078) | - | (3,078) |
| benefit pension | | | | | | | | |
| scheme | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Tax on items | | | | | | | | |
| taken directly | - | - | - | - | 862 | 862 | - | 862 |
| to or | | | | | | | | |
| transferred from | | | | | | | | |
| equity | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Equity dividends | - | - | - | - | (166) | (166) | - | (166) |
| paid | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| At 31 March 2009 | 4,139 | 1,523 | 3,498 | 176 | 2,329 | 11,665 | 219 | 11,884 |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| At 1 October | 4,139 | 1,523 | 3,498 | 176 | 4,878 | 14,214 | 203 | 14,417 |
| 2008 | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Profit for the | | | | | | | | |
| year to 30 | - | - | - | - | 1,128 | 1,128 | 35 | 1,163 |
| September 2009 | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Revaluation of | - | - | 6,165 | - | - | 6,165 | - | 6,165 |
| property | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Depreciation | - | - | (31) | - | 31 | - | - | - |
| transfer | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Actuarial loss | | | | | | | | |
| on defined | - | - | - | - | (5,237) | (5,237) | - | (5,237) |
| benefit pension | | | | | | | | |
| scheme | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Tax on items | | | | | | | | |
| taken directly | - | - | (1,726) | - | 1,466 | (260) | - | (260) |
| to or | | | | | | | | |
| transferred from | | | | | | | | |
| equity | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Eliminate | | | | | | | | |
| deferred tax on | - | - | - | - | (20) | (20) | - | (20) |
| share based | | | | | | | | |
| payments | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| Equity dividends | - | - | - | - | (331) | (331) | (18) | (349) |
| paid | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| At 30 September | 4,139 | 1,523 | 7,906 | 176 | 1,915 | 15,659 | 220 | 15,879 |
| 2009 | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+------------------+---------+------------+-------------+----------+----------+---------+-----------+---------+
+------------------------------------------+----------+----------+----------+
| Consolidated Balance Sheet | | | |
| as at 31 March 2010 (unaudited) | As at | As at | As at |
| | 31 March | 31 March | 30 Sept |
| | 2010 | 2009 | 2009 |
+------------------------------------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+
| Non-current assets | | | |
+------------------------------------------+----------+----------+----------+
| Property, plant and equipment | 20,929 | 16,761 | 20,348 |
+------------------------------------------+----------+----------+----------+
| Intangible assets | 1,606 | 1,697 | 1,644 |
+------------------------------------------+----------+----------+----------+
| Investments accounted for using the | - | 212 | - |
| equity method | | | |
+------------------------------------------+----------+----------+----------+
| | 22,535 | 18,670 | 21,992 |
+------------------------------------------+----------+----------+----------+
| Current assets | | | |
+------------------------------------------+----------+----------+----------+
| Inventories | 10,220 | 10,269 | 8,638 |
+------------------------------------------+----------+----------+----------+
| Trade and other receivables | 18,364 | 18,953 | 7,950 |
+------------------------------------------+----------+----------+----------+
| Assets held for sale | 2,151 | - | 2,151 |
+------------------------------------------+----------+----------+----------+
| Cash and short term deposits | 499 | 1,214 | 955 |
+------------------------------------------+----------+----------+----------+
| | 31,234 | 30,436 | 19,694 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Total assets | 53,769 | 49,106 | 41,686 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Current liabilities | | | |
+------------------------------------------+----------+----------+----------+
| Trade and other payables | (11,691) | (11,125) | (7,061) |
+------------------------------------------+----------+----------+----------+
| Financial liabilities - borrowings | (14,000) | (16,038) | (6,166) |
+------------------------------------------+----------+----------+----------+
| Corporation tax payable | (488) | (3) | (437) |
+------------------------------------------+----------+----------+----------+
| | (26,179) | (27,166) | (13,664) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Non-current liabilities | | | |
+------------------------------------------+----------+----------+----------+
| Financial liabilities - borrowings | (1,482) | (2,221) | (1,825) |
+------------------------------------------+----------+----------+----------+
| Deferred tax liabilities | (970) | - | (626) |
+------------------------------------------+----------+----------+----------+
| Provisions | (241) | (219) | (231) |
+------------------------------------------+----------+----------+----------+
| Defined benefit pension plan deficit | (8,411) | (7,616) | (9,461) |
+------------------------------------------+----------+----------+----------+
| | (11,104) | (10,056) | (12,143) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Total liabilities | (37,283) | (37,222) | (25,807) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
| Net assets | 16,486 | 11,884 | 15,879 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Capital and reserves | | | |
+------------------------------------------+----------+----------+----------+
| Equity share capital | 4,139 | 4,139 | 4,139 |
+------------------------------------------+----------+----------+----------+
| Capital redemption reserve | 1,523 | 1,523 | 1,523 |
+------------------------------------------+----------+----------+----------+
| Revaluation reserve | 7,906 | 3,498 | 7,906 |
+------------------------------------------+----------+----------+----------+
| Other reserves | 176 | 176 | 176 |
+------------------------------------------+----------+----------+----------+
| Retained earnings | 2,510 | 2,329 | 1,915 |
+------------------------------------------+----------+----------+----------+
| | | | |
| Group shareholders' equity | 16,254 | 11,665 | 15,659 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Minority interests | 232 | 219 | 220 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Total equity | 16,486 | 11,884 | 15,879 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
Consolidated Cash Flow Statement
for the six months ended 31 March 2010 (unaudited)
+------------------------------------------+----------+----------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | 30 Sept |
| | 31 March | 31 March | 2009 |
| | 2010 | 2009 | |
+------------------------------------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Net cash flow from operating activities | (6,032) | (7,331) | 3,068 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Net cash flow from investing activities | (1,398) | (574) | (623) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Net cash flow from financing activities | (873) | (927) | (1,624) |
+------------------------------------------+----------+----------+----------+
| | | | |
| (Decrease) / increase in cash in the | (8,303) | (8,832) | 821 |
| period | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Opening cash and cash equivalents | (4,500) | (5,321) | (5,321) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| (Decrease) / increase in cash and cash | (8,303) | (8,832) | 821 |
| equivalents | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Closing cash and cash equivalents | (12,803) | (14,153) | (4,500) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Cash flow from operating activities | | | |
+------------------------------------------+----------+----------+----------+
| Group operating profit | 444 | 187 | 1,868 |
+------------------------------------------+----------+----------+----------+
| Amortisation of intangible assets | 24 | 15 | 48 |
+------------------------------------------+----------+----------+----------+
| Depreciation of property, plant and | 810 | 645 | 1,335 |
| equipment | | | |
+------------------------------------------+----------+----------+----------+
| Profit on disposal of property, plant | (5) | (80) | (14) |
| and equipment | | | |
+------------------------------------------+----------+----------+----------+
| Negative goodwill taken to the income | - | - | (60) |
| statement | | | |
+------------------------------------------+----------+----------+----------+
| Difference between pension contributions | | | |
| paid and amounts recognised in the | 13 | (67) | (517) |
| income statement | | | |
+------------------------------------------+----------+----------+----------+
| (Increase) / decrease in inventories | (1,582) | 1,752 | 3,383 |
+------------------------------------------+----------+----------+----------+
| (Increase) / decrease in debtors | (10,414) | (10,742) | 45 |
+------------------------------------------+----------+----------+----------+
| Increase / (decrease) in creditors | 4,668 | 949 | (3,039) |
+------------------------------------------+----------+----------+----------+
| Increase in provisions | 10 | 10 | 22 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Cash generated from operations | (6,032) | (7,331) | 3,071 |
+------------------------------------------+----------+----------+----------+
| Income taxes paid | - | - | (3) |
+------------------------------------------+----------+----------+----------+
| | | | |
| | (6,032) | (7,331) | 3,068 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | 30 Sept |
| | 31 March | 31 March | 2009 |
| | 2010 | 2009 | |
+------------------------------------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Cash flow from investing activities | | | |
+------------------------------------------+----------+----------+----------+
| Interest received | 12 | 19 | 71 |
+------------------------------------------+----------+----------+----------+
| Sale of property, plant and equipment | 19 | 248 | 287 |
+------------------------------------------+----------+----------+----------+
| Purchase of property, plant and | (1,429) | (841) | (1,209) |
| equipment | | | |
+------------------------------------------+----------+----------+----------+
| Payments to acquire intangible fixed | - | - | (56) |
| assets | | | |
+------------------------------------------+----------+----------+----------+
| Purchase of shares in subsidiary | - | - | 60 |
| undertakings | | | |
+------------------------------------------+----------+----------+----------+
| Sale of share of joint interest | - | - | 224 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | (1,398) | (574) | (623) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Cash flow from financing activities | | | |
+------------------------------------------+----------+----------+----------+
| Interest paid | (103) | (284) | (442) |
+------------------------------------------+----------+----------+----------+
| Dividends paid to minority interests | - | - | (18) |
+------------------------------------------+----------+----------+----------+
| Dividends paid to equity shareholders | (414) | (166) | (331) |
+------------------------------------------+----------+----------+----------+
| Repayment of borrowings | (356) | (327) | (679) |
+------------------------------------------+----------+----------+----------+
| Repayment of capital element of finance | - | (150) | (154) |
| leases | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | (873) | (927) | (1,624) |
+------------------------------------------+----------+----------+----------+
Reconciliation of net cash flow to movement in net debt
+------------------------------------------+----------+----------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | 30 Sept |
| | 31 March | 31 March | 2009 |
| | 2010 | 2009 | |
+------------------------------------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| (Decrease) / increase in cash and short | (456) | 331 | 821 |
| term deposits | | | |
+------------------------------------------+----------+----------+----------+
| Cash (outflow) / inflow from change in | (7,491) | (8,686) | 833 |
| borrowings | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Movement in net debt in the period | (7,947) | (8,355) | 1,654 |
+------------------------------------------+----------+----------+----------+
| Net debt at 1 October 2009 | (7,036) | (8,690) | (8,690) |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Net debt at 31 March 2010 | (14,983) | (17,045) | (7,036) |
+------------------------------------------+----------+----------+----------+
Notes to the financial information
1. Taxation
The taxation charge / (credit) on ordinary activities is calculated by applying
the Directors' best estimate of the full year effective tax rate to the profit /
(loss) before taxation.
2. Dividend
A final dividend of 2.5p per share was paid on 18 March 2010 to shareholders on
the register on 19 February 2010. An interim dividend of 1.5p per share will be
paid on 3 August 2010 to shareholders on the register on 9 July 2010.
3. Earnings per share
Basic earnings per share have been calculated by reference to 16,554,046 (2009:
16,554,046) shares in issue.
4. 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 2009. These policies are expected to
be followed in the financial statements for the year ending 30 September 2010.
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 2009 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 2010.
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.
5. Bolton Fell
On 22 March 2010 the Group signed an agreement with Natural England to
facilitate the cessation of peat harvesting from its site at Bolton Fell in
Cumbria and to accelerate the process of peat bog regeneration. Under the
arrangement Natural England agreed to pay the Group an advance payment of GBP9
million pending subsequent negotiation of the full extent of compensation due to
the Group and have the option to acquire the shares in Boothby and Penicuik Peat
Company Limited which holds the majority of the title to the Bolton Fell moss
site. This initial payment was made in April 2010 and is not reflected in the
financial statements produced above because certain legal conditions had yet to
be fulfilled as at 31 March 2010.
William Sinclair's professional advisors calculate the value of the compensation
due to the Group to be substantially greater than the GBP9 million advance
payment. In the event that compensation cannot be agreed between the parties
before 30 November 2011 the matter can be referred by either side to the Lands
Tribunal for a decision. In such circumstances it is possible that payment of
further compensation could be delayed by a further year or more.
Under the agreement William Sinclair will implement a phased withdrawal of peat
harvesting from Bolton Fell and will greatly accelerate its existing programme
of regeneration. William Sinclair's own team will be 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 Group
does not expect this agreement to have a significant effect on its 2010 harvest
from the site.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSLFWFFSSESM
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