TIDMSNCL
RNS Number : 9090Y
Sinclair (William) Holdings PLC
05 January 2011
5 January 2011
WILLIAM SINCLAIR HOLDINGS PLC
("William Sinclair", the "Company" or the "Group")
Audited Preliminary Results for the 12 months ended 30 September
2010
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-exceptional profit before tax doubles to GBP2.52 million
(2009: GBP1.24 million)
-- Profit before tax up 66% to GBP2.06 million (2009: GBP1.24
million)
-- Net debt eliminated leaving net cash of GBP1.81 million (2009
net debt of GBP7.04 million)
-- Recommending a final dividend of 3.5p per share making a
total for the year of 5.0p (2009: 3.5p)
-- GBP9 million advance payment received from Natural
England
-- Step change in company performance achieved
-- Market share improved
-- Technological breakthrough and industry first with
"SuperFyba" peat alternative
-- High stock levels built for the season ahead
Bernard Burns, Chief Executive said:
"The doubling of our profits demonstrates the successful
execution of our growth strategy. Our focus on customer service and
product innovation and our extensive reserves of raw material have
allowed us to win exciting new contracts and we are proud to supply
premium brands to some of the most prestigious customers in the
country.
"The recession has benefited William Sinclair with customers
spending more time in their gardens as a more economical pastime
than overseas holidays. We anticipate this trend will continue.
"The Group made a step change during 2010. Having built the
necessary financial platform we were able to accelerate our growth
strategy and, with our strong balance sheet and ambitious
management team, we see further scope for expansion, both
organically and by acquisition. We expect the Group to continue to
perform strongly."
For further information:
William Sinclair Holdings PLC Tel: 01522 537561
Bernard Burns, Chief Executive
Peter Williams, Finance Director
Arbuthnot Securities Tel: 020 7012 2000
Andrew Kitchingman
Ben Wells
CHAIRMAN'S STATEMENT
I am pleased to report a further, significant, improvement in
the Group's profitability for the year ended 30 September 2010. We
have successfully continued with our strategy of profitable growth,
organically and by acquisition and, with further improvements in
operating efficiency our pre-tax profits, before exceptional item,
have increased by 103%.
Our internal objective of becoming the most efficient producer
of peat and peat substitute growing media and fertiliser products
to the retail and commercial sectors has seen us make improvements
in peat harvesting techniques and in developing equipment to dry
peat. These technological innovations reduce our exposure to
adverse weather and improve yield and transport costs. This is
partly responsible for the 59% improvement in our operating profits
before exceptional items.
These successes have generated a pre-tax profit of GBP2.5
million before exceptional item, for the 12 months ended 30
September 2010, well ahead of the GBP1.2 million profit in the
previous period. The exceptional item of GBP0.46 million relates to
the impairment of our Oswaldtwistle site, currently held for
re-sale.
Sales revenue in the year was GBP48.5 million which was an
increase of GBP2.2 million (4.7%) on the previous year. Much of
this increase was from growing media sales to retail customers
where we increased our share of a market which held up well in
recessionary conditions. Strong sales growth at Freeland was helped
by sales of top soils to Olympic sites which more than compensated
for sales reductions to a badly recession affected construction
industry.
We are very pleased to be recommending a final dividend of 3.5p
per share making a total for the year of 5.0p, a 43% uplift on the
previous period.
In June 2010 Freeland launched a synthetic peat substitute
(SuperFyba) which will be used to continue to reduce our dependence
on peat. This uses garden waste that previously went to landfill
and reinforces our position as the industry's leader in
environmental issues whilst reducing the impact of adverse weather
conditions. Further investment in 2011 will increase availability
of this material.
In April 2010 we received a GBP9 million advance payment from
Natural England as part of our agreement to cease peat harvesting
at Bolton Fell in Cumbria. Our full claim was submitted in October
2010 and is for a substantially higher figure. Whilst these
negotiations are often protracted, we expect the matter to be fully
resolved before the end of November 2013 when our activities on
site must be complete.
Since the year end we have announced two small acquisitions
which the Board believes will add approximately GBP5 million of
sales in a full year and will increasingly be earnings enhancing.
This is part of our programme to reduce costs and grow revenues and
profitability both by acquisition and by organic means.
The Group statement of financial position shows an improvement
of GBP0.8 million compared to last year but the accounting
treatment of the GBP9 million received from Natural England means
that no benefit for this is included.
William Sinclair already has good listings for next year with an
increasing number of retail customers and this, combined with the
recent acquisitions and our efficiency and material advantages,
should allow us to make further strong progress in the year
ahead.
Bill Simpson
Chairman
CHIEF EXECUTIVE'S STATEMENT
The Group made excellent progress in the year ended 30 September
2010. Group profitability grew substantially and we consolidated
our position as one of the leading companies within the
horticulture market. The prospects for the coming year are very
encouraging.
The 2010 selling season
Across the horticulture industry, consumer demand during the
traditionally busy spring period was satisfactory and, due to a
number of key strategic decisions, William Sinclair performed
particularly strongly.
Following the introduction of new harvesting techniques in 2010,
William Sinclair achieved high stock levels that enabled us to meet
all customer demand this year. Our sales also benefited from
reduced competition in the retail market, with many smaller
competitors facing shortages of raw materials.
With our ongoing investment programme, William Sinclair is now
firmly regarded as being the market leader in peat free products.
This was reflected by a particularly strong performance by our peat
free New Horizon compost as sales grew during the year by 39%
(compared with growth of 23% for the peat free market in general)
and the product was once again awarded "Best Buy" status by "Which"
magazine.
Our excellent delivery service made William Sinclair the "go to"
supplier as customers switched purchasing to us during the peak
season. Our market research shows that, within the growing media
retail sector, William Sinclair gained market share from both its
main rivals.
Freeland, our subsidiary with a core business supplying
specialist soils to large civil engineering projects, had another
strong performance and secured a number of additional contracts
relating to the 2012 Olympics, which offset a contraction within
the construction industry.
In addition, Freeland established a number of manufacturing
sites outside the home counties, meaning the business is now
strategically placed to become a nationwide supplier of specialist
soil materials.
Bolton Fell
In April we announced the signing of an agreement with Natural
England committing the Group to a cessation of peat harvesting at
the Bolton Fell site by November 2013.
That process has already begun and an area of the bog that we
had intended to harvest was handed over to Natural England
immediately.
As part of the agreement, a GBP9 million pre-payment was
received by the Group in April 2010. This payment has not had a
direct impact on our income statement but is shown as a non current
item on our statement of financial position. Our cash position has
significantly improved as a consequence.
In keeping with the agreement, a claim was submitted to Natural
England in October 2010. The value of the claim calculated by
independent specialist advisors is substantially greater than the
pre-payment received. The directors believe that the eventual
settlement, which could take two years to reach, is likely to
generate a further substantial payment for William Sinclair.
Environmental performance
During June 2010 Freeland made a technological breakthrough and
launched a synthetic peat substitute called "SuperFyba". Made from
recycled material, SuperFyba has taken four years to develop and
has required a GBP1.5 million investment program.
The material has many attractive attributes: it is lightweight,
has low electrolyte levels, is sterile and affordable. Its physical
properties are closer to peat than any other high volume
alternative currently available and this industry first has been
well received by both customers and environmentalists.
Over 100 customers are conducting trials with the material and
it is evident that demand will exceed supply for some time. We plan
to bring a second production unit on line in the current financial
year.
The 2010 harvest
The peat harvest fell short of Group expectations, although
markedly above that achieved in either of the two preceding
years.
As another example of our ongoing investment program, William
Sinclair has developed and commissioned equipment for the drying of
peat. A significant volume of peat was produced in the year using
this new technology.
We believe that the combination of this technology and the
development of "SuperFyba" (neither process is affected by adverse
weather), should ensure that the Group will no longer be forced to
buy scarce peat during poor harvest years in the foreseeable
future.
Bank facilities and pension scheme
Our relationship with the Group's bank Lloyds Banking Group
remains excellent and they have continued to be supportive
throughout the year. The receipt of the pre-payment from Natural
England as compensation for Bolton Fell will allow the Group to
reduce its loan facility, subject to acquisitions and the progress
of our search for a "super site" as we outgrow our current
facilities at Lincoln. Our search for a suitable location is
ongoing.
The Group's pension deficit has increased by GBP140,000 over the
year due to changes in the actuarial assumptions used, the
investment returns achieved and the movement in bond rates. The
increase is after a repayment contribution of GBP600,000 which was
made in the year in line with the ten year deficit reduction plan
agreed with the scheme trustees and the Pension Regulator. Both the
pension trustees and the Sinclair directors are confident that the
plan will address the pension deficit without disrupting the
Group's accelerated growth strategy.
Acquisitions and distribution agreements
The Group announced in November 2010 the acquisition of the
assets and trade of Growing Success Organics (GSO) and, in early
December, an aggregate business. The total cost of the two
acquisitions was GBP1.1 million. The acquired businesses should
contribute approximately GBP5 million of turnover in a full year.
The integration of these businesses is progressing well with
minimal disruption and sales of GSO via our substantial sales
network are already increasing. We expect these businesses to be
modestly earnings enhancing during the current financial year with
a fuller benefit being achieved in the following year.
Capital structure and net debt
The Group had no net debt at the year end. This was primarily as
a result of the receipt from Natural England in April 2010 but also
reflects a successful year's trade and good working capital
management. The Group has a target of borrowing not more than 35%
of capital employed which currently stands at GBP16.5 million.
The Group's 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 and overdrafts as detailed in Note 2.
Clearly the GBP9 million receipt from Natural England has
improved the Group's cash position. This item is shown in the
statement of financial position as a non current item. Finance
costs for the year are significantly lower as a result of the
strong cash position.
Outlook
The performance of the Group has been strong and evidence
suggests that the horticulture industry, despite the public sector
spending cuts, is recession resistant.
Growing media is relatively inexpensive and our customers'
profile is largely over 45 years old - many already drawing index
linked pensions. Hobby gardening is increasingly a popular and less
expensive alternative to foreign holidays.
With our strong balance sheet and growing market share the Group
is again demonstrating its ability to benefit during the recession
whilst being well placed to increase market share in our current
markets. The combination of our peat drying technology to protect
the Group from adverse weather, the development of SuperFyba and a
number of operational improvements within the business confirms
that William Sinclair is on track to become the leading supplier of
horticultural products in the UK. The Board expects the Group to
continue to grow and to perform strongly.
Bernard Burns
Chief Executive
Group Income Statement for the year ended 30 September 2010
2010 2009
Before Exceptional
Exceptional Item
Item Note 6 Total Total
Notes GBP000 GBP000 GBP000 GBP000
Revenue 48,456 - 48,456 46,275
Operating
expenses (45,490) - (45,490) (44,407)
Provision against
assets held for
resale 6 - (460) (460) -
_____________ _____________ _____________ ____________
Group operating
profit 2,966 (460) 2,506 1,868
Finance income 57 - 57 71
Finance costs (183) - (183) (442)
Other finance
cost - pensions (317) - (317) (266)
Share of post tax
profits of joint
venture
accounted for
using the equity
method - - - 9
_____________ _____________ ____________ ____________
Profit before
taxation 2,523 (460) 2,063 1,240
Tax
(expense)/credit (479) 75 (404) (77)
_____________ _____________ _____________ ____________
Profit for the
year 2,044 (385) 1,659 1,163
============ ============ =========== =========
All results relate to continuing operations.
Profit for the period is attributable to:
Owners of the
parent
company 2,007 (385) 1,622 1,128
Minority
interests 37 - 37 35
_____________ _____________ ____________ ____________
2,044 (385) 1,659 1,163
============ =========== =========== =========
Earnings per
share (pence)
Basic EPS 4 9.8p 6.8p
on profit
for the
year
Diluted 4 9.7p 6.8p
EPS on
profit
for the
year
Group statement of comprehensive income for the year ended 30
September 2010
2010 2009
GBP000 GBP000
Profit for the year 1,659 1,163
------- --------
Other comprehensive income:
Revaluation of property - 6,165
Actuarial losses on defined benefit pension
plans (443) (5,237)
Tax on items taken directly to or transferred
from equity 178 (260)
------- --------
Other comprehensive income for the year, net
of tax (265) 668
------- --------
Total comprehensive income for the year 1,394 1,831
------- --------
Attributable to:
Owners of the parent company 1,357 1,796
Minority interests 37 35
------- --------
Total comprehensive income for the year 1,394 1,831
------- --------
Group statement of financial position at 30 September 2010
2010 2009
Notes GBP000 GBP000
Property, plant and equipment 20,196 20,348
Intangible assets 1,607 1,644
--------------- ---------------
21,803 21,992
--------------- ---------------
Current assets
Inventories 10,929 8,638
Trade and other receivables 9,324 7,950
Cash and cash equivalents 3,650 955
--------------- ---------------
23,903 17,543
--------------- ---------------
Assets held for sale 1,651 2,151
--------------- ---------------
Total assets 47,357 41,686
--------------- ---------------
Current liabilities
Trade and other payables 9,256 7,061
Financial liabilities -
borrowings 744 6,166
Corporation tax payable 328 437
--------------- ---------------
10,328 13,664
--------------- ---------------
Non-current liabilities
Financial liabilities -
borrowings 1,099 1,825
Deferred tax liabilities 383 626
Provisions 232 231
Defined benefit pension plan
deficit 9,601 9,461
Receipt from Natural England 3 9,000 -
--------------- ---------------
20,315 12,143
--------------- ---------------
Total liabilities 30,643 25,807
--------------- ---------------
Net assets 16,714 15,879
--------------- --------------
2010 2009
GBP000 GBP000
Capital and reserves
Equity share capital 4,139 4,139
Capital redemption reserve 1,523 1,523
Revaluation reserve 7,822 7,906
Other reserves 176 176
Retained earnings 2,806 1,915
--------------- ---------------
Group shareholders' equity 16,466 15,659
Minority interests 248 220
--------------- ---------------
Total equity 16,714 15,879
--------------- ---------------
Group statement of changes in equity for the year ended 30
September 2010
Equity Capital
Share redem'n Rev'n Other Retained Minority Total
Capital reserve reserve reserves earnings Total interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October
2008 4,139 1,523 3,498 176 4,878 14,214 203 14,417
Profit for
the year - - - - 1,128 1,128 35 1,163
------ ------ ------ ----- ------ ----- ------ -----
Other
comprehensive
income:
Revaluation
of property - - 6,165 - - 6,165 - 6,165
Actuarial
losses on
defined
benefit
pension
plans - - - - (5,237) (5,237) - (5,237)
Tax on items
taken
directly to
or
transferred
from equity - - (1,726) - 1,466 (260) - (260)
Depreciation
transfer - - (31) - 31 - - -
------ ------ ------ ----- ------ ----- ------ -----
Total other
comprehensive
income - - 4,408 - (3,740) 668 - 668
------ ------ ------ ----- ------ ----- ------ -----
Total
comprehensive
income - - 4,408 - (2,612) 1,796 35 1,831
------ ------ ------ ----- ------ ----- ------ -----
Transactions
with owners:
Eliminate
deferred
tax on share - - - - (20) (20) - (20)
Equity
dividends
paid - - - - (331) (331) (18) (349)
------ ------ ------ ----- ------ ----- ------ -----
Transactions
with owners - - - - (351) (351) (18) (369)
------ ------ ------ ----- ------ ----- ------ -----
At 30
September
2009 4,139 1,523 7,906 176 1,915 15,659 220 15,879
Profit for
the year - - - - 1,622 1,622 37 1,659
------ ------ ------ ----- ------ ----- ------ -----
Other
comprehensive
income:
Actuarial
losses on
defined
benefit
pension
plans - - - - (443) (443) - (443)
Tax on items
taken
directly to
or
transferred
from equity - - 111 - 67 178 - 178
Depreciation
transfer - - (195) - 195 - - -
------ ------ ------ ----- ------ ----- ------ -----
Total other
comprehensive
income - - (84) - (181) (265) - (265)
------ ------ ------ ----- ------ ----- ------ -----
Total
comprehensive
income - - (84) - 1,441 1,357 37 1,394
------ ------ ------ ----- ------ ----- ------ -----
Transactions
with owners:
Share based
payments - - - - 106 106 - 106
Deferred
tax - - - - 6 6 - 6
Equity
dividends
paid - - - - (662) (662) (9) (671)
------ ------ ------ ----- ------ ----- ------ -----
Transactions
with owners - - - - (550) (550) (9) (559)
------ ------ ------ ----- ------ ----- ------ -----
At 30
September
2010 4,139 1,523 7,822 176 2,806 16,466 248 16,714
------ ------ ------ ----- ------ ----- ------ -----
Group statement of cash flows for the year ended 30 September
2010
2010 2009
GBP000 GBP000
Operating activities
Group operating profit 2,506 1,868
Adjustments to reconcile Group operating
profit to net cash
inflows from operating activities
Depreciation of property, plant and
equipment 1,812 1,335
Amortisation of intangible assets 47 48
Impairment of assets held for sale 500 -
Profit on disposal of property, plant
and equipment (32) (14)
Negative goodwill taken to the income
statement - (60)
Share-based payments 106 -
Difference between pension contributions
paid and amounts
recognised in the income statement (620) (517)
(Increase) /decrease in inventories (2,291) 3,383
(Increase)/decrease in trade and other
receivables (1,374) 45
Increase/(decrease) in trade and other
payables 2,233 (3,039)
Increase in provisions 1 22
--------------- ---------------
Cash generated from operations 2,888 3,071
Income taxes paid (572) (3)
--------------- ---------------
Net cash flow from operating activities 2,316 3,068
--------------- ---------------
Investing activities
Interest received 57 71
Sale of property, plant and equipment 66 287
Purchases of property, plant and
equipment (1,694) (1,209)
Payments to acquire intangible fixed
assets (48) (56)
Purchase of shares in subsidiary
undertakings - 60
Receipt from Natural England 9,000 -
Sale of share of joint interest - 224
-------------- ---------------
Net cash flow from investing activities 7,381 (623)
-------------- ---------------
Financing activities
Interest paid (183) (442)
Dividends paid to owners of the parent (662) (331)
Dividends paid to minority interests (9) (18)
Repayment of borrowings (714) (679)
Repayment of capital element of finance
leases and hire purchase
contracts - (154)
--------------- ---------------
Net cash flow from financing activities (1,568) (1,624)
--------------- ---------------
Increase in cash and cash equivalents 8,129 821
Cash and cash equivalents at the
beginning of the period (4,500) (5,321)
--------------- ---------------
Cash and cash equivalents at the period
end 3,629 (4,500)
--------------- ---------------
Notes
1 Statutory accounts
The consolidated financial statements of William Sinclair
Holdings PLC are prepared on a going concern basis and in
accordance with International Financial Reporting Standards
(IFRSs), International Financial Reporting Interpretations
Committee (IFRIC) interpretations and Standing Interpretations
Committee (SIC) interpretations as adopted by the European Union
and with those parts of the Companies Act 2006 applicable to those
companies reporting under IFRSs. The consolidated financial
statements are prepared in accordance with the historical cost
convention, as modified by the revaluation of freehold and
leasehold properties.
The Group financial statements are presented in sterling and all
values are rounded to the nearest thousand pounds (GBP000) except
when otherwise indicated.
These results for the year to 30 September 2010 together with
the corresponding amounts for the year to 30 September 2009 are
extracts from the 2010 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 2010,
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 2010 was approved by the Board of directors on 4
January 2011.
The accounting policies used for the 2010 figures are unchanged
on those used for the 2009 comparatives.
The statutory accounts for the period ended 30 September 2009
have been delivered to the Registrar of Companies and the statutory
accounts for the year ended 30 September 2010 will be delivered to
the Registrar of Companies following the Annual General Meeting of
William Sinclair Holdings PLC.
2 Analysis of net cash/(debt)
1 Oct Cash 30 Sept
2009 flow 2010
GBP000 GBP000 GBP000
Cash at bank and in
hand 955 2,695 3,650
Overdrafts (5,455) 5,434 (21)
Loans (2,536) 714 (1,822)
--------------- --------------- ---------------
(7,036) 8,843 1,807
--------------- --------------- ---------------
3 Receipt from Natural England
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 of 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.
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.
Consequently the receipt of GBP9 million is shown as a non current
item.
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
4 Earnings per share
Basic earnings per share amounts are calculated by dividing
profit for the period attributable to owners 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 profit attributable to owners 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:
2010 2009
GBP000 GBP000
Diluted net profit attributable to owners of the
parent 1,622 1,128
------- -------
2010 2009
No. No.
Basic weighted average number of shares ('000s) 16,554 16,554
Dilutive potential ordinary shares:
Employee share options ('000s) 199 41
------- -------
Diluted weighted average number of shares ('000s) 16,753 16,595
------- -------
5 Segment information
Within the horticulture sector the Board reviews the results of
its Freeland business and certain ancillary businesses separately
from those of its core horticulture business. The revenues and
operating profits of these segments are shown below together with a
reconciliation to the Group results.
External sales Internal sales Total sales
2010 2009 2010 2009 2010 2009
GBP000 GBP000
Revenue
Horticulture 40,919 39,535 133 10 41,052 39,545
Freeland 4,195 3,235 78 136 4,273 3,371
Other 3,342 3,505 - - 3,342 3,505
-------- ------- -------- ------- ------- -------
Total 48,456 46,275 211 146 48,667 46,421
Less intra group
sales elimination - - (211) (146) (211) (146)
-------- ------- -------- ------- ------- -------
Total revenue 48,456 46,275 - - 48,456 46,275
-------- ------- -------- ------- ------- -------
Segment revenue includes transactions between business segments.
These transactions are eliminated on consolidation. Sales between
segments are carried out at arm's length. The revenue from external
parties reported to the executive directors is measured in a manner
consistent with that in the income statement.
2010 2009
GBP000 GBP000
Operating profit
Horticulture 4,004 1,613
Freeland 412 361
Other 423 513
-------- -------
Total segment operating profit 4,839 2,487
Central costs (2,333) (619)
-------- -------
Total Group operating profit 2,506 1,868
Finance income 57 80
Finance costs (183) (442)
Other finance costs - pensions (317) (266)
-------- -------
Total Group profit before tax 2,063 1,240
-------- -------
Central costs include the administration costs of the holding
company such as directors' remuneration, professional fees and
stock exchange costs as well as the impairment of assets held for
sale and no longer used in the horticulture segment.
Operating profit as reported above includes impairment,
depreciation and amortisation charges as follows:
Impairment Depreciation
and amortisation
2010 2009 2010 2009
GBP000 GBP000 GBP000 GBP000
Horticulture - - 1,562 1,156
Freeland - - 243 159
Other - - 44 58
Central costs 500 - 10 10
------- ------- --------- --------
Total 500 - 1,859 1,383
------- ------- --------- --------
Asset and liability information is not reported to the chief
operating decision-maker on a segment basis and therefore has not
been disclosed.
6 Exceptional item
The Group has certain surplus freehold properties for which it
is actively seeking a purchaser. These properties are empty and are
not being used by the Group. Following a review with the Group's
marketing agent the carrying value of the assets has been reduced
by GBP500,000. During the year a potential purchaser of the
properties forfeited deposit monies of GBP40,000 leading to a net
exceptional cost of GBP460 000.
7 Dividends paid and proposed
2010 2009
GBP000 GBP000
Declared and paid during the period:
Equity dividends on ordinary shares:
Final dividend for September 2009: 2.50p (June
2008- 1.00p) 414 166
Interim for September 2010: 1.50p (September
2009 - 1.00p) 248 165
------- -------
Dividends paid 662 331
------- -------
Proposed for approval by shareholders at the
AGM:
Final dividend for September 2010 3.5p (2009
- 2.50p) 579 414
------- -------
Subject to shareholders' approval the final dividend of 3.5p per
share will be paid on 17 March 2011 to shareholders on the register
on 18 February 2011.
8 Subsequent events
The Group has been in negotiations with the directors and owners
of Monro Horticulture Limited with a view to acquiring certain of
the business interests of that company. After the year end the
Group concluded agreements for the purchase of the Growing Success
Organics business and also a premium decorative aggregates
business. The total consideration paid was approximately GBP1.1
million. These acquisitions complement the product range available
to the Group's customers allowing the Group to introduce the
products to a wider customer base. Under the terms of the purchase
contracts agreed with Monro Horticulture Limited the Group acquired
a schedule of specified assets which included stock, trademarks,
machinery and goodwill.
9 Annual General Meeting
The Company intends to post the Report and Accounts to
shareholders on 24 January 2011. The Annual General Meeting of the
Company will be held at The Bentley Hotel, Newark Road, South
Hykeham, Lincoln LN6 9NH on 22 February 2011 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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