William Sinclair said half year losses widened and revenues increased as it settled compensation for its ending of peat bog operations at Bolton Fell Moss, Cumbria at £21.25m

The company said loss before taxation widened to £3.7m for the six months ended March 31st 2014 from £1.88m a year earlier, while revenue rose £21.8m from £20.4m.

William Sinclair said trading conditions in the six months to March 2014 were challenging, as had been expected. This was made harder by the refinancing of the company which meant strategic plans were put on hold for four months.

Chief Executive Peter Rush said: "We are delighted with the £21.25m agreement to settle our claim at Bolton Fell. After four years of negotiations this is a significant step forward and our strong financial footing will enable us to accelerate the transition to become the UK’s most advanced manufacturer of horticulture products.

"While there are further milestones to be met the largest investments have been committed and good progress has been made with the more challenging work. Improvements to product quality and efficiency benefits are already being created."

No interim dividend payment will be made this year compared to a 1.5p payment in 2013.