William Sinclair warns of chilly start to Spring

AIM-listed gardening products supplier William Sinclair said the exceptionally cold weather over the last month has resulted in a delay to the start of the key Spring selling season but it it remains confident of achieving its full potential.

AIM-listed gardening products supplier William Sinclair said the exceptionally cold weather over the last month has resulted in a delay to the start of the key Spring selling season but it it remains confident of achieving its full potential.

"The slow start was confirmed by the UK gardening industry which reported very low sales levels in March as consumers remained indoors contemplating their frozen gardens," the peat and horticultural product supplier explained.

"However, with warmer conditions forecast this week the board has confidence that gardening activity will soon begin in earnest and that with good weather the selling season as a whole can still achieve its full potential for the company."

William Sinclair, which issued three profit warnings in 2012 after its peat harvest was devastated by record summer rainfall, added that it has already invested in extensive infrastructure to accommodate the significant uplift in activity that should occur when the season does get underway.

"The late start of the season this year may mean it is compressed into a shorter period. This should favour the company as our industry leading logistics cope better than those of some of our competitors," it said.

The company said it remains confident that the horticulture industry is relatively recession resistant.

"Unfortunately, the exact timing of sales over the important Spring season does depend on the weather. There is now significant pent up consumer demand which the company expects to meet as Spring finally arrives."

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020