Compost manufacturer reports strong trading and announces £9m advance payment from Defra to cease peat harvesting at its Bolton Fell site.
William Sinclair confirmed it has now received £9m from Defra as an advance initial payment for the future cessation of peat harvesting at Bolton Fell Moss in Cumbria. The news, revealed in its trading update, follows the announcement on March 23 that the company had reached an interim agreement with Natural England over the future of its peat bog operations at the site.

The Lincoln-based manufacturer reported positive trading for the six months to March 31, with a 44% increase in sales of its New Horizon peat-free compost. Like-for-like sales of peat-base composts increased just 1% compared with the same period a year earlier. William Sinclair states that the figures contrast with recent reports from industry analysts suggesting consumer demand in the market was down by as much as 15% on Easter in 2009.

Mass production of a sustainable peat substitute material, developed by Freeland Horticulture, has started and William Sinclair expects this to continue to have a positive impact on business throughout March 2010 and beyond.

William Sinclair chief executive Bernard Burns said: "William Sinclair is best placed within the industry to prosper in this changing market and consolidate our position as market leader of peat substitute growing media. We continue to look forward very positively to this financial year."

The company's interim results will be announced on Wednesday, June 2.