Gardening products supplier William Sinclair reported a 54% increase in full year pre-tax profit and said momentum in gaining market share is expected to continue.
William Sinclair, which supplies customers including Sainsburys, Morrisons, Wilkinson, Homebase and B&Q, said pre-tax profit rose to £3.2m for the year ended 30 September 2011 from £2.1m the year before. Revenue increased to £54.3m from £48.5m previously.
The group, whose brands include J Arthur Bower's, Silvaperl and New Horizon, said operating profit before exceptional items rose 13.6%.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
William Sinclair made two related acquisitions during the financial year and these, combined with a strong performance from our Silvaperl business, boosted sales, the group said.
Latest Videos FromMoneyWeek
The harsh winter of 2011 increased demand from consumers replacing plants damaged and destroyed by the severe frosts. Strong consumer demand continued in March and April but fell sharply in May, June and July as UK consumers reacted to high fuel prices and concern about public sector job security. Two large customers, Monro Group and Focus DIY, became insolvent during the year.
The group initiated tight costs controls across the group to mitigate these factors.
Commenting on the group's results chief executive Bernard Burns said, "Prudent action has been taken to mitigate against the insolvency of large customers, delays in planning permissions and a UK economy which is stalling. The right decisions made have delivered results to be proud of."
Otherwise the group's soil specialist division, Freeland Horticulture, saw sales surge partly due to the Olympic development and other construction projects.
"With strongly developing strategic advantages in key areas of the market that provide promising growth prospects, we are in the best position possible to manage any further deterioration in consumer spending during 2012."
Underlining confidence for future trading, the board are recommending a final dividend of 4.4p, giving a total for the year of 6.2p, up 1.2p per share.
--
cj
