Profits soar at Walker Greenbank

“Another excellent year” is how Walker Greenbank ’s chief executive John Sachs describes the company’s 2011-12 results and not without good reason. Operational gearing is the key behind the impressive performance where sales rose almost 8 per cent and operating profits (before an exceptional gain) jumped 24 per cent to £5.56m. Greater quantities of wallpaper and fabrics sold to more countries dramatically improved margins.

So while UK turnover from the company's brands only grew 5 per cent to £33.8m last year, overseas revenues raced ahead 11 per cent to £22m. Customers in Russia and Sweden were keen buyers and so, perhaps surprisingly given the eurozone crisis, the company did good business in France, too. Sales were significantly higher in the Middle East – thanks in part to a big hotel contract in Dubai – and in the Far East – notably Japan and China. Only the US operation put in a lacklustre performance, but is now showing signs of improvement. Licensing income continues to grow, too.

In 11 weeks trading since the financial year-end, brand sales are 7 per cent ahead of the same period last year. Broker Seymour Pierce forecasts current year revenues of £77.7m and adjusted pre-tax profits up from £5.7m to £6m. On this basis underlying EPS (with no tax charge) rise modestly to 10.5p. It's worth noting that the company still has £12.6m of tax losses to use up.

visible-status-Standard story-url-walkergreenbank_result_170412.xml