Production at the Alternative Investment Market (Aim)-traded interior furnishings group Walker Greenbank (WGB) is back to full steam after its factory flooded in December 2015. Sales were up at the full-year mark (see table), helped by a £5.1m payout from insurance proceeds compensating for the temporary loss of business while repairs were made. The shares were up on the day, suggesting that shareholders are comfortable with the progress the company has made in its flood recovery.
The purchase of fabric designer Clarke & Clarke in October last year pushed around £3m of one-off costs through the consolidated income statement, but against this the company contributed £1m in profit in the first 18 weeks of ownership: in line with expectations. Further acquisitions could be in the pipeline this year as the group actively searches for complementary businesses, especially those which can move it further into international markets. New distribution agreements for bedding in the US and China contributed to a 13 per cent constant currency increase in licencing income.
Analysts at Investec expect adjusted pre-tax profits of £14.3m for the year to January 2018 and EPS of 16p, compared with £10.4m and 12.9p in FY2017.
| WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 214p | MARKET VALUE: | £0.15bn | |
| TOUCH: | 211-217p | 12-MONTH HIGH: | 223.5p | LOW: 157p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 74p | NET DEBT: | 10% | |
| Year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 75.7 | 4.9 | 6.9 | 1.48 |
| 2014 | 78.4 | 5.5 | 8.6 | 1.85 |
| 2015 | 83.4 | 6.3 | 8.6 | 2.31 |
| 2016 | 87.8 | 7.3 | 9.8 | 2.89 |
| 2017 | 92.4 | 7.0 | 8.6 | 3.61 |
| % change | +5 | -4 | -13 | +25 |
Ex-div: 21 Jul Payment: 11 Aug *Includes intangible assets of £32m, or 45p a share | ||||
