Sinclair (William) Holdings PLC Trading Update (5277H)

TIDMSNCL

RNS Number : 5277H

Sinclair (William) Holdings PLC

20 May 2014

WILLIAM SINCLAIR HOLDINGS PLC

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

Trading Update

William Sinclair, one of the UK's leading suppliers of growing media, announces a trading update.

Whilst order intake and sales early in the season were encouraging, the extent of the growth in revenues compared to the prior year that had been anticipated to result from a return of more normal weather patterns did not fully meet expectations. Sales to both retail and professional customers have disappointed, as have to a lesser degree margins. As a result, whilst it expects broadly to break-even at the underlying EBITDA level, the Group will report a significant underlying net loss for the year.

As a consequence of this trading performance, Group net debt at the interim period end and subsequently is greater than expected, and the Group does not therefore intend to pay an interim dividend. Whilst large cash inflows are awaited in respect of the claim against Natural England, no settlement of this claim is expected before a court decision later this Autumn, with any award not likely to be paid before the end of the calendar year. The Group continues to enjoy the support of its lenders.

The Group had already recognised the need to refresh its brands and sales organisation, and has taken steps to address these issues. As recently announced, the Horticulture department will soon be led by a new commercial director and his input, taken together with the recently completed re-branding exercise, is expected to result in increased customer demand for next season. The development of Ellesmere Port continues on budget with production on the new equipment due to commence within 12 weeks.

For further information:

www.william-sinclair.co.uk

 
 William Sinclair Holdings   Tel: 01522 780224 
  Plc 
 Peter Rush, CEO             Tel: 07741 249461 
 Peter Williams, Finance     Tel: 07710 982577 
  Director 
 
 
 WH Ireland Limited 
 Andrew Kitchingman   Tel: 0113 394 6619 
 Nick Field           Tel: 0207 220 1666

This information is provided by RNS

The company news service from the London Stock Exchange

END

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