Growing media supplier William Sinclair today issued a trading update stating that sales and margins have disappointed and it expects to report a loss for the year.
Whilst order intake and sales early in the season were encouraging, said the firm, the revenue growth that had been anticipated to result from a return of more normal weather patterns, against the previous year's results, did not fully meet expectations.

"Sales to both retail and professional customers have disappointed", said Sinclair, "as to a lesser degree, have margins." As a result, whilst the group expects to break-even at the underlying EBITDA level, it has confirmed that it is also likely to 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 now greater than expected, and Sinclair does not intend to pay an interim dividend.

The announcement follows a downturn in revenue of around £1.7m for the year ended September 30, 2013. The company also reported a pre-tax loss of £1.2m against 2012's £0.4m loss.

Whilst large cash inflows are awaited in respect of Sinclair's claim for compensation against Natural England for ceasing to harvest at Bolton Fell, no settlement of this claim is expected before a court decision by the Lands Tribunal later this Autumn. It is unlikely that any award will be paid before the end of the calendar year. The group added that it "continues to enjoy the support of its lenders".

In a bid to refresh its brands and sales organisation, Sinclair has appointed a new commercial director, Richard Carr, to lead the horticulture. The firm believes the input of Mr Carr, formerly of Hozelock, together with the recently completed re-branding exercise, will result in increased customer demand for next season.

Meanwhile, the development of Sinclair's Ellesmere Port site continues on budget, with production on the new equipment due to commence within 12 weeks.