TIDMWGB
RNS Number : 7131V
Walker Greenbank PLC
11 August 2020
For immediate release 11 August 2020
WALKER GREENBANK PLC
("Walker Greenbank" or the "Company")
Half Year Trading Update
Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings
group, announces its half year trading update for the six months
ended 31 July 2020. As previously reported, Covid-19 has had a
significant impact on the first half of the financial year but the
improving trend seen from April 2020 gained momentum towards the
half year end.
Total Brand sales, before licensing, discounts and rebates, in
the half year were down 28% in reportable currency at GBP31.3
million (down 28% in constant currency) compared with the first
half last year.
Brand product sales, before discounts and rebates, in the UK,
the Company's largest market, were down 31% whilst international
brand sales, before discounts and rebates, were down 24% in
reportable currency (down 25% in constant currency). In the US, the
Company's second largest market, Brand product sales, before
discounts and rebates, were down approximately 32% in reportable
currency (down 33% per cent in constant currency) and in Northern
Europe were down approximately 13% in reportable currency (down 13%
in constant currency).
The half year ended strongly for the Clarke & Clarke brand
both in the UK and the US, where its distributor Kravet Inc, which
started to distribute the brand on 1 August 2019, had its biggest
selling month so far, in July 2020. The Morris & Co brand has
continued to sell strongly in Northern Europe, driven by
Scandinavia. The final fulfilment of a significant hotel contract
order was delivered at the half year end, adding to UK Brand
product sales, particularly of the Anthology brand.
Core licensing income in the first half was impacted to a lesser
extent by Covid-19 than Brand product sales and was down
approximately 10%.
Manufacturing operations, which were temporarily closed during
lockdown, have resumed. The current third-party order book is good
and demand continues to grow, particularly from the US. As a result
of Covid-19, total third-party sales were down 32% in the first
half.
The Company's liquidity remains robust and at the half year end
the Company's cash headroom against its banking facilities had
further increased to GBP19.5 million, compared with headroom of
GBP16.0 million on 26 June 2020 as reported in the Company's
accounts for the year ended 31 January 2020.
Lisa Montague, Walker Greenbank's Chief Executive Officer, said:
"Whilst the first half, as previously reported, has been materially
impacted by Covid-19, there was recovery in the business at the
half year end with the improving trend continuing month on month.
We remain cautious as we look forwards to the second half of the
year; t he Covid-19 pandemic continues to create uncertain
conditions impacting the markets in which the Company operates.
"I am excited by some of the initiatives that we've implemented
in the first half, including the launch on 23 July 2020 of a
Harlequin children's collection using, for the first time, a
digital design book in place of a physical pattern book, with great
initial feedback from our trade partners. This digital acceleration
will help our customers with more rapid response, optimised
inventory replenishment and the greater agility that immediate
sampling data affords us whilst also progressing the Company's
strategic development."
The Company's results for the six months ended 31 July 2020 are
expected to be announced in October 2020.
For further information:
Walker Greenbank PLC +44 (0) 1895 221068
Lisa Montague, Chief Executive Officer
Michael Williamson, Chief Financial Officer
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 and Dubai. Walker Greenbank trades
on the AIM market of the London Stock Exchange under the ticker
symbol WGB.
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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