Adjust for a property write-down last year and garden products and horticulture specialist William Sinclair saw operating profits rise by a solid 13.6 per cent in the year.
That largely reflects a decent performance from the group's peat-alternative business, Freeland, and Silvaperl's lightweight rooting materials, although another key factor was a cut in central costs from £2.33m to £1.42m. That fall reflects a switch from cash to share-based bonuses going forward. In fact, the group's main horticultural business didn't perform particularly well. The £3.81m rise in sales there to £44.86m was mainly due to acquisitions, while divisional operating profit fell from £4.16m to £3.87m. Blame for that decline rests on another poor summer peat harvest, while "very quiet" trading in the third quarter offset strong demand in the spring when consumers replaced plants killed off by an exceptionally cold winter.
Looking forward, management reports satisfactory results to date. But with fuel and contracted-out transport costs accounting for up to a quarter of total costs, brokers are cautious. So, ahead of any revisions, they expect 2011-12 sales of £59.5m and pre-tax profits of £3.3m.
WILLIAM SINCLAIR (SNCL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 155p | MARKET VALUE: | £26.4m | |
| TOUCH: | 150-160p | 12-MONTH HIGH: | 210p | LOW: 143p |
| DIVIDEND YIELD: | 4.0% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 105p† | NET CASH: | £2.65m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008* | 54.8 | 0.52 | 1.3 | 2.0 |
| 2009 | 46.3 | 1.24 | 6.8 | 3.5 |
| 2010 | 48.5 | 2.06 | 9.8 | 5.0 |
| 2011 | 54.3 | 3.18 | 13.9 | 6.2 |
| % change | +12 | +54 | +42 | +24 |
Ex-div:15 Feb Payment:15 Mar Aim: Personal & household goods *15-month period †Includes intangible assets of £2m, or 12p a share | ||||
