Walker Greenbank PLC Half Year Trading Update (9632H)
06 Agosto 2019 - 01:00AM
UK Regulatory
TIDMWGB
RNS Number : 9632H
Walker Greenbank PLC
06 August 2019
For immediate release 6 August 2019
WALKER GREENBANK PLC
("Walker Greenbank" or the "Company")
Half Year Trading Update
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings
group, is pleased to announce its pre-close trading update for the
six months ended 31 July 2019. Whist trading conditions continue to
be challenging, performance in the half year was in line with the
Board's expectations.
Total brand sales in the half year were up 0.4 per cent in
reportable currency (down 0.7 per cent in constant currency)
compared with the first half last year.
Brand sales in the UK, the Company's largest market, accounting
for approximately 52 per cent of total brand sales, were down 3.1
per cent whilst international brand sales were up 4.4 per cent in
reportable currency (up 2.0 per cent in constant currency). The
international performance reflects a temporary change in the US
operating model relating to the distribution of the Clarke &
Clarke and Studio G brands in that revenue was recorded on an
agency basis rather than on a distribution basis. As announced on 1
July 2019, Kravet Inc. has been appointed to represent the Clarke
& Clarke and Studio G brands in the US under a distribution
agreement that came into effect on 1 August 2019.
On a like-for-like basis*, international brand sales were down
slightly by 1.5 per cent in reportable currency (down 2.9 per cent
in constant currency) whilst like-for-like brand sales in the US,
the Company's second largest market, were down approximately 2.9
per cent in reportable currency (down 5.6 per cent in constant
currency).
Licensing income performed strongly during the half year and is
expected to be up 25.3 per cent in reportable currency (up 23.5 per
cent in constant currency) including revenue recognition under IFRS
15. Excluding accelerated income under IFRS 15 and income from
apparel contracts, core licensing income was up approximately 12.2
per cent in reportable currency (up 12.4 per cent in constant
currency) compared with the corresponding period last year.
In manufacturing, total third-party sales were down 4.6 per cent
in the first half despite strong growth of approximately 17.2 per
cent in export sales.
The Company progressed a number of efficiency and cost-saving
initiatives during the first half, including the warehouse and back
office integration of the Clarke & Clarke business into the
Style Library portfolio of brands (Sanderson, Morris & Co.,
Harlequin, Zoffany, Scion, and Anthology). This integration work is
substantially complete and the Board expects that this will result
in a saving of approximately GBP2 million on an annualised basis of
which approximately GBP1 million will be delivered in the current
financial year.
The Company continues to focus on working capital management
with the net funds position at the end of the last financial year
maintained at the half year.
The Board's expectations for the full year remain unchanged
although visibility is limited by Brexit and continuing wider
macro-economic uncertainties.
Walker Greenbank intends to announce its half year results in
mid-October 2019, at which time an update will be provided on the
Board's review of the Company's strategy.
* Reported Brand sales in the US were up 13.7 per cent in
reportable currency (up 7.4 per cent in constant currency),
reflecting a temporary change to the Company's US operating model
for Clarke and Clarke sales whereby revenue in the half year was
recorded on an agency basis whereas sales in the prior half year
were recorded on a distribution basis.
For further information:
Walker Greenbank PLC +44 (0) 1895 221068
Lisa Montague, Chief Executive Officer
Mike Gant, Chief Financial Officer
Caroline Geary, Company Secretary
Investec Bank plc (Nominated Adviser and
Broker) +44 (0) 20 7597 5970
David Anderson / Alex Wright - Corporate
Finance
Henry Reast / Richard Short - Corporate Broking
Buchanan +44 (0) 20 7466 5000
Mark Court / Sophie Wills
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, Anthology, 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, Moscow 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
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END
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