Growing media supplier William Sinclair faces weeks of financial uncertainty as it urgently searches for strategic options, according to this week’s interim results.

A statement covering the six months to 31 March says the significant capital and operating costs during the commissioning of the new Ellesmere Port plant has left the business with “a significant requirement” to raise additional funds in the next few weeks. The company says it is in discussion with shareholders and other interested parties. Meetings with major stakeholders and other potential investors to establish the market appetite for a significant share placing are also being arranged.

Chairman Rupert King warns: “Significant progress towards a funding solution is needed in the next few weeks and there can be no certainty as to the outcome of any of these discussions.”

He adds that Sinclair can continue to be a significant player in the horticulture market “provided we can raise the required funding”.

The commissioning of Ellsmere Port (left) proved considerably more challenging than the company expected and led to a loss of business, predominantly on the professional side, as it was unable to supply customers at times.  Retail sales were also lost because of customer uncertainty about security of supply and service levels.

King says margins have also been weak as the company has had to defend its business in some areas.

Initial issues with product quality at Ellesmere Port had now been solved and, King reports,  “there is now a consensus among retail customers in particular that the product quality is better than ever”. Service levels from Ellesmere Port were also poor initially but were now at the required level.

Revenue in the period fell £3.1m to £18.7m.  Operational loss was £3.5m (compared to £1.8m in 2014), with exceptional costs of £4.5m.

At the time of writing, shares had fallen to 10p, a 12-month decline of 85%.