(Alliance News) - Walker Greenbank PLC on Tuesday said its sales slipped in its most recently ended financial year amid weak trading performance in the UK and the US.
The luxury interior furnishings supplier said it expects its results for the year to the end of January to be in line with expectations, with sales down 2.0% on the prior year to GBP111.0 million. Walker Greenbank explained that a decline reflects a "generally difficult" marketplace.
More positively, the company said it has experienced continued "strong" performances from the Morris & Co and Clarke & Clarke brands. Morris & Co grew by 22% in constant currency during the year, driven by strong sales in Scandinavia.
The Clarke & Clarke business was mostly focused on cost reductions, Walker Greenbank said, with about GBP1 million of savings delivered during the second half of the year.
Total brand sales - which exclude licensing income - were down 2.7% compared with the prior year.
In the UK, Walker Greenbank's largest market, brand sales were down 3.0%, owing to the "subdued" UK consumer environment.
In the US, the company's second largest market, brand sales were down 3.8%, while sales in Northern Europe were up 1.1%.
Walker Greenbank's high-margin licensing business performed well during the year, it said, with core licensing income up 14% to GBP3.5 million, thanks to a "strong" performance from bedding, blinds and Japanese licensees.
The Uxbridge-based company said it expects reported licence income to be GBP5.5 million compared with GBP6.5 million a year prior.
Looking ahead, Walker Greenbank said, at this "very early" stage of the current financial year, market conditions remain "generally difficult", particularly in the UK.
The company said it will report its annual results on April 23.
AIM-listed Walker Greenbank shares were trading 2.8% higher in London on Tuesday at 73.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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