With group sales up 11 per cent in the six months to July, Walker Greenbank (WGB) is on track to record its sixth consecutive year of double-digit revenue growth. The market has come to expect that sort of achievement from the interior furnishings group, however, and sent the shares up just 1 per cent in response to these interim results.
Demand for Walker's "quintessentially British products" remained buoyant in both the UK and international markets, thanks in large part to a 16 per cent leap in worldwide sales of the Harlequin brand. Strong sales to third-party suppliers also helped boost profits in the manufacturing division by 15 per cent to £1.8m. But the standout performance came from the US, where the completion of Walker's flagship New York showroom contributed to a 30 per cent surge in like-for-like sales - although the gain reduces to 20 per cent on a constant-currency basis.
One slight disappointment was flat sales for Walker's heritage Sanderson brand, due to weaker trading in Russia. But trading here has since begun to recover, according to chief executive John Sach. Branded sales in the 10 weeks since the period-end are also up 7.5 per cent, which bodes well for busy autumn trading.
Brokerage Investec expects full-year pre-tax profits of £8.8m and EPS of 11.6p, up from £8.1m and 11.2p in the year to January 2015.
WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 205p | MARKET VALUE: | £123m | |
| TOUCH: | 202-207p | 12-MONTH HIGH: | 244p | LOW: 152p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 48p* | NET DEBT: | 2% | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 41.1 | 2.3 | 3.38 | 0.35 |
| 2015 | 45.8 | 2.9 | 4.04 | 0.44 |
| % change | +11 | +26 | +20 | +26 |
Ex-div: 22 Oct Payment: 13 Nov *Includes intangible assets of £7.1m, or 12p a share. | ||||
