24 Jul 2018 16:27
For immediate release
| 24 July 2018 |
|
WALKER GREENBANK PLC
("Walker Greenbank" or "the Company")
Trading Update
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings group, announces the following trading update in respect of the financial year ending 31 January 2019.
At the time of the Annual General Meeting ("AGM") on 27 June 2018, the Company stated that it was encouraged by the potential of recently signed licence agreements. One of these agreements had significant potential, highlighting the prospects for the Company's high-margin licensing activities and the value of its design archives.
Since the AGM, the Company has gained new information on the potential profit contribution from this large licensing agreement and, as a result, the Board has materially revised down its expectations for licensing income in the current year.
Licensing income in the current year will still represent a substantial upward step change compared with last year.
Additionally the Company stated at its AGM that trading in the half year continued to reflect a difficult marketplace. The improving trend in trading noted at the AGM has since deteriorated with July being particularly disappointing and orders received to date are tracking below Company expectations. As a result, the Board now looks towards its key autumn trading period with renewed caution.
As a result of the above it is now apparent that adjusted profit before tax* for the full year will fall materially short of the Board's expectations. The Board now anticipates that adjusted profit before tax for the year ending 31 January 2019 is likely to be in the range of £9.5 million - £10.0 million.
The Company will provide a further update on its performance in the six months ending 31 July 2018 when it announces its pre-close trading update in early August 2018.
* Excludes accounting charges relating to share-based incentives, defined benefit pension charge and non-underlying items.
For further information:
Walker Greenbank PLC | +44 (0) 1895 221068 |
John Sach, Chief Executive Mike Gant, Chief Financial Officer | |
Caroline Geary, Company Secretary | |
Investec Bank plc (Nominated Adviser and Broker) | +44 (0) 20 7597 5970 |
Garry Levin / David Anderson / Alex Wright - Corporate Finance | |
Henry Reast - Corporate Broking | |
Buchanan | +44 (0) 20 7466 5000 |
Mark Court / Sophie Wills / Catriona Flint |
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 Sanderson, Morris & Co, Harlequin, Zoffany, Scion, Clarke & Clarke and Studio G.
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 600 people and its products are sold in more than 85 countries worldwide. It has showrooms in London, New York, Chicago, Paris, Amsterdam and Dubai along with a partnership showroom in Shenzhen, China.
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