25 Mar 2020 07:00
25 March 2020 |
WALKER GREENBANK PLC
("Walker Greenbank" or the "Company")
Covid-19 Update
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings group, announces the following update in light of the Covid-19 pandemic, including the measures the Company is taking to protect its employees and mitigate risks to its business.
The safety of our employees is paramount. All of the Company's employees who can work from home are doing so, including customer support teams, and we have taken the decision to temporarily close our two factories in the UK, the Anstey wallpaper factory and the Standfast & Barracks fabric printing factory. Our showrooms in Chelsea Harbour, New York and Paris are also temporarily closed. We intend to continue to supply our customers from our warehouses in the UK and US, which currently remain operational, including supporting customers utilising online distribution capabilities.
Trading in the current financial year started well and was in line with the Board's expectations but Covid-19, and government measures in our key markets to prevent the spread of the virus, is now impacting our trading outlook. It is difficult for us to quantify the likely impact of Covid-19 at this stage. The Company is, therefore, withdrawing financial guidance until visibility on the impact of Covid-19 improves.
Owing to the uncertainty caused by Covid-19, we have been focusing on contingency planning and cost reduction to preserve cash in the business.
The launch of all Spring collections has been postponed, which will have the effect of reducing marketing and associated costs, and the procurement of raw materials for the factories and finished goods has been temporarily frozen, as has discretionary spend and capital expenditure. We are continuing to identify further cost mitigation measures.
It is intended to make use of the UK Government's Coronavirus Job Retention Scheme, both for those employees affected by the temporary closure of the factories and others who are unable to work from home.
The Group had net cash as at 31 January 2020 of approximately £1 million, although this has now moved to a seasonal net debt position. The Group has headroom in its £12.5 million banking facility, an uncommitted £5 million accordion facility and discussions with its bank have been supportive. To further preserve cash, the Board does not intend to propose payment of a final dividend for the year ended 31 January 2020.
We will continue to update the market as the impact of Covid-19 on our business becomes clearer.
For further information:
Walker Greenbank PLC | +44 (0) 1895 221068 |
Lisa Montague, Chief Executive Officer Michael Williamson, Chief Financial Officer Caroline Geary, Company Secretary | |
Investec Bank plc (Nominated Adviser and Broker) | +44 (0) 20 7597 5970 |
David Anderson / Henry Reast / Alex Wright
| |
Buchanan | +44 (0) 20 7466 5000 |
Mark Court / Toto Berger / Charlotte Slater |
Notes for editors:
About Walker Greenbank
Walker Greenbank PLC is a luxury interior furnishings company that designs, manufactures and markets wallpapers, fabrics and paints. In addition, the Company derives significant licensing income from the use of its designs on a wide range of interior products such as bed linen, rugs and tableware.
Walker Greenbank's brands include Zoffany, Sanderson, Morris & Co, Harlequin, Scion and Clarke & Clarke.
The Company has a strong UK manufacturing base, comprising a wallpaper factory in Loughborough and a fabric printing factory in Lancaster. Both factories manufacture for the Company and for other wallpaper and fabric brands.
Walker Greenbank employs more than 650 people and its products are sold in more than 85 countries worldwide. It has showrooms in London, New York, Chicago, Paris and Dubai.
Walker Greenbank trades on the AIM market of the London Stock Exchange under the ticker symbol WGB.
For further information please visit: www.walkergreenbank.com