In spite of some strong currency headwinds, it's been a good six months for interior furnishings group Walker Greenbank (WGB). Group sales rose by a steady 5 per cent, delivering a 7 per cent improvement in operating profits to £3.4m, excluding accounting charges relating to a management share-award scheme.
In the UK – the group’s largest market – so-called 'brand' sales, which exclude licensing income, jumped 10 per cent to £18.7m. This was down to improved consumer confidence, as well as a resurgence in the contracts market, whereby Walker Greenbank sells its wares to large hotel groups and cruise operators.
International sales were down 1.2 per cent in reported currencies, but strip out foreign exchange movements and sales rose 3.6 per cent. Constant-currency revenues in the Middle East rose an impressive 32 per cent, boosted by the opening of a new showroom in Dubai. Chief executive John Sach admits the performance in the US – where dollar sales rose 3 per cent – was “disappointing on the surface”. But a sluggish second quarter can be attributed to a refurbishment of the New York showroom, which is due to reopen in October.
Analysts at Investec expect pre-tax profits of £7.7m for the current financial year, giving EPS of 10.8p, up from £7.3m and 10.7p respectively.
| WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 206p | MARKET VALUE: | £ 123m | |
| TOUCH: | 204-208p | 12-MONTH HIGH: | 218p | LOW: 133p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 45p* | NET DEBT: | 8% | |
| Half-year to 31 July | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 39.1 | 2.0 | 2.7 | 0.28 |
| 2014 | 41.1 | 2.3 | 3.4 | 0.35 |
| % change | +5 | +15 | +25 | +25 |
Ex-div:16 Oct Payment:07 Nov *Includes intangible assets of £7.2m or 12p a share | ||||
