Strong trading overseas more than offset a challenging UK market at interior furnishings business Walker Greenbank (WGB) - so half-year adjusted pre-tax profit rose 13 per cent year on year to £3.06m.
Brand sales, which exclude manufacturing income, grew 2.2 per cent to £30.2m in the period, with operating profit rising 11 per cent to £2.83m - helped by strong trading in the US, the group's second largest market, and in western Europe. The rest of the world segment did well, too, and sales there rose 5.8 per cent, helped by double-digit growth in the Far East, the Middle East and Australasia. Together, revenue from these export markets grew 6.5 per cent to £12.2m and now generate 40 per cent of total brand sales. In the UK, though, sales slipped 1.7 per cent to £17m, but have picked up in the second half.
Elsewhere, licensing revenue jumped 26 per cent to just over £1m, while manufacturing revenue rose 4 per cent to £16m. In manufacturing, the group invested £1.75m in a wallpaper printing machine that will increase capacity, boost efficiency and allow for the production of textured wallpapers.
Broker WH Ireland expects full-year adjusted pre-tax profit of £6.8m, giving EPS of 9.5p (from £6.4m and 9.4p in 2013).
| WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 146p | MARKET VALUE: | £86m | |
| TOUCH: | 145-147p | 12-MONTH HIGH: | 164p | LOW: 66p |
| DIVIDEND YIELD: | 1% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 42p* | NET DEBT: | 9% | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 38.3 | 1.94 | 2.47 | 0.23 |
| 2013 | 39.1 | 2.04 | 2.71 | 0.28 |
| % change | +2 | +5 | +10 | +22 |
Ex-div: 23 Oct Payment: 22 Nov *Includes intangible assets of £7.02m, or 12p a share | ||||
