Sinclair said retail sales were reasonable and new business from a major garden centre company was coming on stream. But professional sales had suffered a drop because of price rises initiated 18 months ago in response to a weather-related shortage of peat.
Chief executive Peter Rush said: "We're delighted with the £21.25m settlement of our claim at Bolton Fell. After four years of negotiations this is a a significant step forward and our strong financial footing will enable us to accelerate the transition to become the UK's most advanced manufacturer of horticultural products."
Some £9m was paid by Natural England for the Cumbrian site in 2010 and £12.3m more will be paid this summer.
Sinclair has a new main site at Ellesmere Port and a new sales force, mainly recruited from Rush's old company, Hozelock. The company is rebranding J Arthur Bowers and Growing Success and is introducing new products.