5 July 2012 – trading update

The poor, wet weather conditions which we have suffered in recent months have hit the company.  Both customer demand for its products and the ability to harvest peat by conventional means have been affected meaning that the financial performance of the company will be lower than in the previous year. 

The company has stated that it continues to have a strong balance sheet and to generate cash.  It expects to maintain its progressive dividend policy.  We believe in the company and although it is disappointing to see the impact the extreme weather conditions have had, we are more interested in the intrinsic value of the business and retain our BUY rating.