Interior-furnishings group Walker Greenbank (WGB) is storming ahead, "undoubtedly benefitting" from economic improvement in many of its markets, according to chief executive John Sach. Trading picked up markedly over the course of the year, with sales ending 4 per cent higher at £78.4m, leaving adjusted pre-tax profit up an impressive 15 per cent to £7.3m.
The turnaround was most apparent in the UK: brand sales were down 2 per cent in the first half, up 3 per cent in the second, and so far this year they're running 9 per cent ahead. Growth in the expanding overseas business was robust too, with revenue rising 7 per cent last year (at constant exchange rates) to £23.8m.
But it’s not just a brighter macro environment that’s helping Walker Greenbank: capital spending of £4.7m and new product launches were also crucial for growth. A new rotary/gravure machine made possible the manufacture of highly textured wallpaper, launched in April 2014 under a new brand specifically for overseas markets. Licensing income also jumped 14 per cent to £2.1m, with a huge contribution from the new Scion range specifically launched for licensing.
Investec expects adjusted pre-tax profit of £7.7m in 2015, giving EPS of 9.9p (from £7.3m and 10.7p in 2014).
| WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 191p | MARKET VALUE: | £ 113m | |
| TOUCH: | 188-193p | 12-MONTH HIGH: | 218p | LOW: 102p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 46p* | NET CASH: | £1.49m | |
| Year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 60.4 | 1.6 | 2.1 | 0.5 |
| 2011 | 68.8 | 4.5 | 5.4 | 0.95 |
| 2012 | 74.0 | 4.9 | 6.8 | 1.2 |
| 2013 | 75.7 | 4.9 | 6.9 | 1.48 |
| 2014 | 78.4 | 5.5 | 8.6 | 1.85 |
| % change | +4 | +11 | +25 | +25 |
Ex-div:16 Jul Payment:08 Aug *Includes intangible assets of £7.29m or 12p a share | ||||
