WGB.L Share News (WGB)

With expensive home improvements low on most householders' list of priorities, luxury wallpaper and fabrics group Walker Greenbank posted a sharp drop in profits as revenues fell.In the six months to July 31, the firm reported a pre-tax profit of £568,000 compared with £1.72m over the same period the previous year. Revenue fell to £29.1m from £33m. Walker Greenbank said its 'mid-market' brands Harlequin, Sanderson and Morris & Co performed better than its premium brand Zoffany, which posted a 21% fall in sales.'Customers appear to be trading down or deferring investment,' the firm said.Chairman Terry Stannard said that sales trends appeared to be improving and that the firm was well placed to profit from any upturn.'We have seen a gradually reducing shortfall in brand revenues each month since the end of March and a return to profitability in our manufacturing in the second quarter,' he said.'This has continued into the opening weeks of the second half and, whilst we are cautious about the stability of the marketplace, we remain comfortable that we will meet market expectations.'