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.

"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