3 Aug 2016 07:00
For immediate release | 3 August 2016 |
WALKER GREENBANK PLC
("Walker Greenbank" or "the Company")
Half Year Trading Update
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings group whose brands include Sanderson, Morris & Co., Harlequin, Zoffany, Scion and Anthology, is pleased to announce a trading update for the six months ended 31 July 2016.
Trading remains in line with the Board's expectations for the full year.
On 15 June 2016 the Company stated in its AGM Statement that sales continued to be impacted by the flood in December last year at Standfast & Barracks, the Company's fabric printing business. With the factory almost back in full production, good progress is being made in fulfilling the backlog of printed fabric orders, both for the Company's own brands and third party customers, and in building up stocks of finished fabric at our Milton Keynes warehouse.
During the half year the Company received two interim insurance payments totalling £12 million in connection with the flood. Further interim insurance payments will be received in due course.
Trading at the Company in the six months to 31 July 2016 has continued broadly in line with the AGM statement, but with some evidence of improving trends now that Standfast & Barracks is almost back to full production.
Brand sales were down 2.1% at the half year in reportable currency, down 4.2% in constant currency, compared with the corresponding period last year. Brand sales in the UK, the Company's largest market, were down 6.1% at the half year. Brand sales overseas were up 4.0% in reportable currency at the half year, down 1.6% in constant currency.
It is too early for the Board to comment in detail on the impact on the Company of the UK's decision to leave the European Union. However, the Board does not expect the Company to be adversely affected by the current weakness of Sterling. Walker Greenbank is an international business, whose products are sold in more than 85 countries worldwide and a large proportion of the Group's activities and earnings are denominated in US Dollars and Euros. As a result, if the current relative weakness of Sterling continues, the Board would expect a modest gain to reported sales and profitability.
Walker Greenbank intends to announce its half year results in mid-October 2016.
For further information:
Walker Greenbank PLC | +44 (0) 844 543 4668 |
John Sach, Chief Executive Mike Gant, Chief Financial Officer | |
Caroline Geary, Company Secretary | |
Investec Bank plc | +44 (0) 20 7597 4000 |
Garry Levin / David Anderson / Alex Wright - Nominated Adviser | |
Henry Reast - Corporate Broking | |
Buchanan | +44 (0) 20 7466 5000 |
Mark Court / Sophie Cowles / Catriona Flint |
About Walker Greenbank
Walker Greenbank PLC is a luxury interior furnishings company that designs, manufactures and markets wallpapers and fabrics together with a wide range of ancillary interior products. The Company's brand portfolio - comprising Sanderson, Morris & Co, Harlequin, Zoffany, Scion and Anthology - spans heritage and contemporary design and its products are sold in more than 85 countries worldwide. The Company derives significant licensing income from the use of its designs in lifestyle products such as bed linen, rugs and tableware.
The Company employs more than 600 people and has showrooms in London, New York, Paris, Amsterdam and Dubai along with partnership showrooms in Moscow and in Shenzhen, China. Its UK manufacturing base, which includes a wallpaper factory in Loughborough and a fabric printing factory in Lancaster, manufactures product both for the Group and for other wallpaper and fabric brands. Continued investment in manufacturing has allowed the Group to offer a wide range of printing techniques.
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/