COMMENT
Making Money From Gardens

Britons love their gardens - we spend a whopping £4 billion a year on our gardens, and that's just for "hardware" and "software". (Hardware covers such things as tools, sheds and furniture, while software embraces seeds, shrubs and trees.) If conservatories are included too, then our annual spend jumps to a massive £6 billion annually.

Part of the reason why we spend so much money on our gardens is because it helps to add value to our properties. According to National Savings and Investments, one in four people cites a potential increase in their house price as the main reason for spending money on their back yard. But how can investors tap into this passion for gardening?

Investing in garden centres is perhaps one of the most obvious. Wyevale Garden Centres (LSE: WGC), for instance, is a major garden centre operator with 110 outlets nationwide. It reported sales of £193m last year, and this is expected to rise to £202m this year following its recent positive trading update. Wyevale is expected to rake in £25m after tax this year, and profits could improve to £27m in 2006. This values its 515p shares at 15 times earnings.

But if patios, driveways and garden walling are more your style, then it may be worth digging around at Marshalls (LSE: MSLH). It is one of Britain's leading suppliers of landscape products. Sales are expected to come in at £360m this year, slightly lower than in 2004. Profits are expected to dip a little too, but dividends are anticipated to increase 3% to 12.3p per share. This suggests a respectable yield of 4.1% - its shares stand at 302p.

For something more rustic Travis Perkins (LSE: TPK) may be worth a visit. Travis Perkins is perhaps best known as a supplier of building and plumbing materials, but it also supplies fencing, timber gates, gazebos and sheds. It also owns Wickes, which is a major player in the DIY sector. Revenues of £2.8b are forecast for this year, with profits expected to come in at £258m. This values the business at an undemanding 11 times earnings, though the yield on its shares is a little meagre at 2.2%. Its shares are currently at 1,699p.

Finally, yield-hungry investors may care to consider seed and compost supplier William Sinclair (LSE: SNCL). Amongst William Sinclair's many products are J. Arthur Bower's grow bags and John Innes compost. In December, the company announced a slight setback to sales following a below-budget peat harvest. It also expects annual profits in 2005 to be below last year's. That said, a dividend of 3p per share is expected, which implies an above-market yield of 5.9%.

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