William Sinclair, one of the UK’s leading suppliers of growing media including J Arthur Bowers, has issued a trading statement warning that "revenues did not fully meet expectations".

In the statement, the company said: "Whilst order intake and sales early in the season were encouraging, the extent of the growth in revenues compared to the prior year that had been anticipated to result from a return of more normal weather patterns did not fully meet expectations. 

"Sales to both retail and professional customers have disappointed, as have to a lesser degree margins. As a result, whilst it expects broadly to break-even at the underlying EBITDA level, the Group will report a significant underlying net loss for the year.

 "As a consequence of this trading performance, Group net debt at the interim period end and subsequently is greater than expected, and the Group does not therefore intend to pay an interim dividend.  Whilst large cash inflows are awaited in respect of the claim against Natural England, no settlement of this claim is expected before a court decision later this Autumn, with any award not likely to be paid before the end of the calendar year.  The Group continues to enjoy the support of its lenders."

The Group added it had already recognised the need to refresh its brands and sales organisation, and had taken steps to address these issues.  The Horticulture department will soon be led by a new commercial director and his input, taken together with the recently completed re-branding exercise, is expected to result in increased customer demand for next season. 

The development of Ellesmere Port continues on budget with production on the new equipment due to commence within 12 weeks.