Outlook10 Jun 2013 12:57
Ellesmere Port provides very substantial financial and operational efficiencies for William Sinclair and a clear development plan of the flagship site is in place. Costs associated with the development, which are being closely managed, will continue to impact the Company's financial performance for the next two years as some operations will require duplicated overheads. These costs will reduce upon completion of the site and quickly be recovered by the efficiency gains already proven by the planned relocation of Silvaperl.
This year the weather has negatively impacted the Company's sales during much of the important growing season, which is now nearing its end. Although May has been a good month for us revenues for the full year are likely to be only a little ahead of 2012. As a consequence our profit before tax will be significantly lower than our previous expectations. In spite of these short term, unfavourable conditions, the mid to long-term prospects for the Company remain strong with the underlying business in excellent health.
With normal weather patterns we will see consumer demand returning as there is strong customer loyalty towards William Sinclair's horticulture products. This loyalty, combined with our significant peat reserves, a unique peat alternative technology; reduced manufacturing costs via our flagship site, rigorous cost management and a highly experienced management team, will ensure that the Company is well positioned to further improve profitability.
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