TIDMWGB
RNS Number : 5510C
Walker Greenbank PLC
11 February 2020
11 February 2020
WALKER GREENBANK PLC
("Walker Greenbank" or the "Company")
Full Year Trading Update
and
Notice of Results
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings
group, announces its full year trading update for the financial
year ended 31 January 2020.
The results for the year are expected to be in line with the
Board's expectations.
Group sales for the year are expected to be approximately
GBP111.0 million, down 2.0% compared with the previous year (2019:
GBP113.3 million), reflecting a generally difficult marketplace
offset by continued strong performances from the Morris & Co.
and Clarke & Clarke brands, core licensing and digital fabric
printing.
Total brand sales, which exclude licensing income, were down
2.7% in reportable currency (down 3.0% in constant currency)
compared with the prior year. In the UK, our largest market, brand
sales were down 3.0% owing to the subdued UK consumer environment.
In the US, our second largest market, brand sales were down 3.8% in
reportable currency (down 6.9% in constant currency) with the
decrease, in part, resulting from the necessary change mid-year in
the distribution of the Clarke & Clarke brands. The new
distribution partnership, with Kravet Inc., which has been extended
to include Canada, is progressing in line with the Board's
expectations. Brand sales in Northern Europe were up 1.1% in
reportable currency (up 2.1% in constant currency).
The Morris & Co brand continued its strong growth, up 22.3%
in constant currency compared with the prior year, reflecting the
continued revival of interest in the Arts & Crafts movement.
The Company has continued to invest in Morris & Co to leverage
this growing interest. The brand grew strongly in all key
territories and grew particularly strongly in Scandinavia, where
the brand's sales were up 28.7%.
The integration of the Clarke & Clarke business is now
complete and positive growth is continuing from the Clarke &
Clarke brands. The Company's focus on cost reduction initiatives,
with approximately GBP1 million of savings delivered during the
second half of the year, has included Clarke & Clarke's support
functions being combined with those of the Group.
As anticipated, the Company's high-margin licensing business
performed well during the year with core licensing income* ahead of
historic levels, up 13.9% to GBP3.5 million (2019: GBP3.1 million),
reflecting a strong performance from bedding, blinds and Japanese
licensees. The reported licence income is expected to be
approximately GBP5.5 million compared with GBP6.5 million in 2019,
the year in which the Morris & Co brand had a significant,
one-off agreement with fashion retailer H&M.
Third party manufacturing sales were up 5.5% at GBP21.1 million
(2019: GBP20.0 million). Digital fabric printing grew strongly, up
12.3%, reflecting demand from both third party customers and Walker
Greenbank's own brands.
Whilst the Company has continued its targeted investment and the
ongoing focus on costs, the balance sheet remains strong. It is
expected that net funds at the year end, excluding the impact of
IFRS 16, will be approximately GBP1.0 million compared with GBP0.4
million at 31 January 2019.
At this very early stage of the current financial year, market
conditions remain generally difficult, particularly in the UK, but
the implementation of the Group's strategy, as set out in the
Company's Interim Results in October 2019, is advancing well.
Further to the Company's announcement of 18 December 2019, good
progress has been made in the recruitment of a full time Chief
Financial Officer and a further update will be provided
shortly.
Notice of Results
Walker Greenbank intends to announce its results for the year
ended 31 January 2020 on Thursday 23 April 2020. A meeting for
analysts will be held at 10am on the day of the results
announcement at the offices of Buchanan, 107 Cheapside, London EC2V
6DN. For further information please contact Buchanan on 020 7466
5000 or email walkergreenbank@buchanan.uk.com.
* Core licensing income excludes the recognition of fixed
minimum guaranteed licensing income under IFRS 15 and income from
apparel collaborations
For further information:
Walker Greenbank PLC +44 (0) 1895 221068
Lisa Montague, Chief Executive Officer
Michael Williamson, Interim 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, Amsterdam, Moscow 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
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END
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