William Sinclair's shares have plunged after the gardening products supplier admitted its financial performance will be lower than in the previous year as a result of exceptionally heavy rainfall.
The company previously warned that the wet weather during April and most of May has meant demand was below its normal levels, and now says there is only a small chance of recovery following continued heavy rainfall through June and into July.
The firm said its peat bogs have felt the full effects of the high rainfall and the peat harvest has suffered as a consequence. A prolonged period of dry weather is now required to enable the company to return to full harvest operations, it said.
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The peat drying technologies recently introduced by the company are being used to supplement its conventional harvest and it intends to deploy additional drying capacity to further mitigate the impact of the rain.
Sinclair was keen to emphasise that the company continues to have a strong balance sheet, to generate cash, and expects to maintain its progressive dividend policy.
The share price fell 11.04% to 08:44.
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