WGB.L Regulatory News (WGB)

22 Jun 2005 07:00

Walker Greenbank PLC22 June 2005 For immediate release 22 June 2005 WALKER GREENBANK PLC ("Walker Greenbank" or "the Company") Sells Norwegian subsidiary for NOK 22.24 million Company to return to operating profit at half year Walker Greenbank plc (AIM: WGB), the wallpaper, textiles and furnishingsbusiness whose brands include Sanderson, Harlequin and Zoffany, is pleased toannounce that it has exchanged contracts for the sale of its Norwegiansubsidiary, Borge Holdings AS, to the Swedish company Eco-Borastapeter AB. Theconsideration of NOK 22.24 million (£1.85m) will be paid in cash on completionon 28 June 2005. Borge Holdings AS is the parent company of John O Borge AS, a distributor ofwallcoverings and fabrics in Norway, and its sale is in line with the Company'sstated strategy of disposing of non-core assets. The consideration received fromthe disposal, which marks another important step in the Company's turnaround,will provide additional working capital and be used to reduce Company debt. In the financial year ended 31 January 2005, Borge Holdings AS achieved a profitafter tax of £288,000. The disposal will result in a surplus to net assets of£529,000 before writing off goodwill of £1.9 million previously written off toreserves. John Sach, Walker Greenbank's Chief Executive, said: "This disposal is in linewith the Company's strategy of focussing on the core brands of Sanderson,Harlequin and Zoffany. These brands are not distributed by the Norwegianbusiness, making the business non-core." With the half-year trading period end just six weeks away, Walker Greenbank'sBoard confirms that, following the profitable trading in the first quarter, theCompany continues to perform in line with internal forecasts. The first-half results will show a significant improvement on the same periodlast year, returning the Company to an operating profit compared with anoperating loss of £1.466 million. The Board is pleased to report that therecovery process of returning to profitability has gathered momentum during thepast months. ENDS For further information: Walker Greenbank plc 01908 658078 Ian Kirkham, ChairmanJohn Sach, Chief Executive Buchanan Communications 020 7466 5000 Mark Court/Suzanne Brocks/Elly Williamson This information is provided by RNS The company news service from the London Stock Exchange