(Alliance News) - Luxury furnishings firm Walker Greenbank PLC slashed its interim dividend by a quarter Tuesday amid tough market conditions, despite still expecting full-year results to be in line with expectations.
For the six months ended July, pretax profit narrowed 10% to GBP3.5 million from GBP3.9 million the year prior. This was despite revenue rising 2.2% to GBP55.9 million from GBP54.7 million the year before.
Profit performance was hurt by a steep jump in non-underlying costs to GBP1.1 million from GBP38,000 the year prior.
Underlying pretax profit - excluding one-off costs - widened 14% to GBP4.9 million from GBP4.3 million the year prior.
"Trading in the first half of the year was in line with the board's expectations and continues to reflect the challenges affecting the consumer sector both in the UK and internationally," walker Greenbank Chair Dianne Thompson said.
Walker Greenbank proposed a 0.52 pence interim dividend per share, down a quarter on the 0.69p distribution the year prior.
"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," Thompson added. "At this stage of the year, as we enter the autumn selling period, we continue to expect the full year out-turn to meet the board's expectations."
Shares in Walker Greenbank were 1.6% lower at 73.30 pence in London on Tuesday.
By Ahren Lester; ahrenlester@alliancenews.com
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