Walker Greenbank PLC Full Year Trading Update (4150Q)
19 February 2019 - 6:01PM
UK Regulatory
TIDMWGB
RNS Number : 4150Q
Walker Greenbank PLC
19 February 2019
19 February 2019
WALKER GREENBANK PLC
("Walker Greenbank" or the "Company")
Full Year Trading Update
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings
group, announces a trading update for the year ended 31 January
2019 (the "Period").
The results for the Period are expected to be in line with
management's expectations.
Group sales for the year are expected to be GBP113.3 million, up
1.1% compared with the prior year (2018: GBP112.1 million*),
reflecting a generally difficult marketplace offset by increased
overseas third-party manufacturing orders and a very strong
performance from licensing.
Total Brand product sales, excluding licensing, were down 4.1%
in reportable currency (down 3.9% in constant currency) compared
with the prior year. Brand sales in the UK, our largest market,
were down 6.2% as the modest improvement seen in the first nine
weeks of the second half of the year was not sustained as a result
of the weak UK consumer environment leading to a further
deterioration in sales during the key autumn selling season.
International brand sales were down 1.6% in reportable currency
(down 1.1% in constant currency).
Brand sales in the US, our second largest market, were up 6.6%
in reportable currency (up 8.7% in constant currency). Sales in
Western Europe were down 3.0% in reportable currency (down 3.9% in
constant currency) and sales in the Rest of the World were down
7.9% in reportable currency (down 7.4% in constant currency).
The Company's high-margin licence income performed very
strongly, benefiting particularly from apparel contracts including
a very successful agreement with global fashion brand H&M.
Total licence income in the Period is expected to be in excess of
GBP6.0 million (2018: GBP3.3 million*), which is ahead of
management's expectations and driven by the H&M agreement.
The Company's wallpaper and fabric manufacturing operations
experienced a reduction in orders from the Company's own brands and
from UK third parties though this was mitigated by strong growth in
overseas third-party manufacturing orders and continued growth in
digital fabric printing.
Cash and working capital have been well controlled and the
Company is expected to have a debt-free balance sheet at the year
end, 31 January 2019. The Group continued to invest for growth with
capital expenditure of almost GBP3.0 million during the Period.
As the Company commences its new financial year our core market
in the UK remains both challenging and uncertain and the trend in
Brand product sales remains unchanged. The focus of the Company is
to seek to mitigate some of the impact of this difficult trading
environment through cost saving initiatives.
After the very strong performance in the Period, licensing
income in the current financial year is anticipated to be closer to
historic levels. Agreements with apparel retailers are generally
for one season only.
The ongoing recruitment of a new Chief Executive Officer
continues to progress well and a further announcement will be made
in due course.
Walker Greenbank intends to announce its results for the year
ended 31 January 2019 on 10 April 2019.
* The prior period has been restated for IFRS 15 Revenue from
Contracts with Customers
For further information:
Walker Greenbank PLC +44 (0) 1895 221068
Christopher Rogers, Interim Executive
Chairman
Mike Gant, Chief Financial Officer
Caroline Geary, Company Secretary
Investec Bank plc (Nominated Adviser
and Broker) +44 (0) 20 7597 5970
David Anderson / Alex Wright - Corporate
Finance
Henry Reast / Richard Short - Corporate
Broking
Buchanan +44 (0) 20 7466 5000
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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END
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