Walker Greenbank PLC Half Year Trading Update (5570W)

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RNS Number : 5570W

Walker Greenbank PLC

02 August 2018

 
 For immediate release                     2 August 2018 
 
 

WALKER GREENBANK PLC

("Walker Greenbank" or "the Company")

Half Year Trading Update

Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings group, announces its pre-close trading update for the six months ended 31 July 2018. Trading in the half year continues to reflect the difficult marketplace described by the Company in the trading update announced on 24 July 2018.

Total brand sales in the half year were down 5.7 per cent in reportable currency (down 5.1 per cent in constant currency) compared with the first half last year.

Brand sales in the UK were down 6.8 per cent whilst international brand sales were down 4.4 per cent in reportable currency (down 3.0 in constant currency). Brand sales in the US, our second largest market after the UK, were down 1.6 per cent in reportable currency (up 4.9 per cent in constant currency).

Licensing income again performed strongly during the half year, up approximately 40.4 per cent in reportable currency compared with the first half last year (up 42.6 per cent in constant currency). Licence income during the first half was driven by apparel and by a strong performance from our Japanese licensees.

Whilst the Board materially revised down its expectations for licensing income in the current year, as detailed in the trading update issued on 24 July 2018, a number of new licence agreements were signed in the first half and licensing income in the current financial year will represent a substantial upward step change compared with last year.

In manufacturing, third-party sales were up 11.1% in the first half, helped by strong export growth.

The Board's expectations for the full year remain unchanged following the trading update issued on 24 July 2018, which stated that adjusted profit before tax* for the year ending 31 January 2019 is likely to be in the range of GBP9.5 million to GBP10.0 million.

The Company intends to issue its half year results in early October 2018.

* Excludes accounting charges relating to share-based incentives, defined benefit pension charge and non-underlying items.

For further information:

 
 Walker Greenbank PLC                          [phone] 
 John Sach, Chief Executive 
  Mike Gant, Chief Financial Officer 
 Caroline Geary, Company Secretary 
 
 Investec Bank plc (Nominated Adviser 
  and Broker)                                  [phone] 
 Garry Levin / David Anderson / Alex Wright 
  - Corporate Finance 
 Henry Reast - Corporate Broking 
 
 Buchanan                                      [phone] 
 Mark Court / Sophie Wills / Catriona 
  Flint 
 

Notes for editors:

About Walker Greenbank

Walker Greenbank PLC is a luxury interior furnishings company that designs, manufactures and markets wallpapers, fabrics and paints. In addition, the Company derives significant licensing income from the use of its designs on a wide range of interior products such as bed linen, rugs and tableware.

Walker Greenbank's brands include Sanderson, Morris & Co, Harlequin, Zoffany, Scion, Clarke & Clarke and Studio G.

The Company has a strong UK manufacturing base, comprising a wallpaper factory in Loughborough and a fabric printing factory in Lancaster. Both factories manufacture for the Company and for other wallpaper and fabric brands.

Walker Greenbank employs more than 600 people and its products are sold in more than 85 countries worldwide. It has showrooms in London, New York, Chicago, Paris, Amsterdam, Moscow and Dubai along with a partnership showroom in Shenzhen, China.

Walker Greenbank trades on the AIM market of the London Stock Exchange under the ticker symbol WGB.

For further information please visit: www.walkergreenbank.com

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August 02, 2018 02:01 ET (06:01 GMT)