Walker Greenbank cuts interim dividend as profit falls

(Sharecast News) - Walker Greenbank cut its interim dividend after drop profits fell on the back of restructuring costs and its acquisition of Clarke & Clarke.


The interior design and furnishings group booked a 10% fall in pre-tax profit to £3.5m for the six months to July 31, as non-underlying expenses increased from £38,000 to £1.1m.

The interim dividend was slashed to 0.52p a share from 0.69p but the firm said it expected to maintain its full year pay-out ratio.

Revenue climbed 2% to £55.9m as license royalty income from the use of Walker Greenbank designs jumped 62% to £3.2m following a strong performances from core bedding, blinds and Japanese licensees.

Non-executive chair Dianne Thompson said trading in the first half of the year was in line with the expectations and continued to "reflect the challenges affecting the consumer sector both in the UK and internationally".

"We have made significant progress with our strategy review and have begun taking steps to increase the focus of the business going forwards to drive sales and increase efficiency," she said, adding that she expected full year results to meet expectations.

Walker Greenbank shares were down 1.61% at 73.30p at 1040 BST.