Lincoln-based horticulture supplier William Sinclair has slipped into the red during its first half as it invested in a £15m development in Ellesmere Port in Cheshire.Its revenues also took a hit as a result of the unseasonal weather. In the six months to 31 March 2013, sales stood at £20.4m, down from £26.2m a year earlier.
William Sinclair also made a pre-tax loss of £1.8m, compared with a £400,000 profit in the first half of 2011/12.
The £15m development in Cheshire is on track with demolition works completed and restructuring works continuing. The company has also signed an option to acquire an additional 12 acres.
Chief executive Peter Rush said: "Our flagship site at Ellesmere Port is already demonstrating its potential.
"The cost savings and operational efficiencies that the site will generate are now expected to beat previous projections. SuperFyba, after a slow start, is now under better control and will be producing at forecast volumes and quality by the end of June.
"Additionally, we are ready to move the Silvaperl facility, currently at Gainsborough, to Ellesmere Port where savings from bulk buying of ores and more efficient handling of the product will allow significant margin improvements. The relocation of Silvaperl will be complete by the end of the calendar year.
"Turning Ellesmere Port into a fully functioning manufacturing and bagging facility is a project that will take up to three years to complete. Its development is on track leading to the creation of one of the most advanced production facilities in the horticulture industry."
