LONDON (Alliance News) - Walker Greenbank PLC said Tuesday it expects to report a slight increase in revenue for its 2019 financial year but warned core UK market remains "both challenging and uncertain".
Shares in Walker Greenbank were down 13% in morning trading at 74.06 pence each.
The luxury interior furnishings company said the downward trend in its Brand product sales remain unchanged in the new financial year and it will "seek to mitigate" the impact of the "difficult trading environment" through cost savings initiatives.
Total sales for the year ended January 31 are expected to increase 1.1% to GBP113.3 million. Walker Greenbank said the slight increase represents a "generally difficult marketplace" but was offset by increased overseas third-party manufacturing orders and a "very strong" performance from its Licensing unit.
Total Brand sales during the period, excluding licensing, were down 4.1%, with UK Brand sales down 6.2%. International Brand sales were down 1.6% but Brand sales in the US - the firm's second largest market - increased 6.6% in the period.
Walker Greenbank attributed the UK decrease on a "weak" consumer environment leading to a "further deterioration" in sales during the key autumn selling season.
The company's high-margin licence income performed "very strongly" in the period, benefiting from contract with high-street fashion retailer H&M. Total licence income for the period is expected to almost double to GBP6.0 million, ahead of management's expectations.
Walker Greenbank's wallpaper and fabric manufacturing operations saw a reduction in orders from its own brands and UK third parties but this was offset by "strong growth" in third party overseas manufacturing orders.
The company also noted its search for a new chief executive officer is ongoing.
Walker Greenbank expects to announce its results for the 12 months ended January 31 on April 10.
