There's a lot to get excited about at interior furnishings group Walker Greenbank (WGB). Last year, the home of the Morris & Co, Sanderson and Zoffany brands enjoyed strong sales growth. Combined with operational leverage, that lifted adjusted pre-tax profits by 11 per cent to £8.1m.
In the UK, which accounts for half of the business, sales grew 10 per cent to £38.5m as consumer confidence rose and contract manufacturing took off. Trading overseas was good, too, with brand sales up 5 per cent at constant exchange rates.
Walker Greenbank makes all of its own wallpaper and printed fabric. Big investment here in previous years is paying dividends in the form of high-tech manufacturing efficiency and new customers, which drove divisional sales up 8 per cent. The group is now supplying the apparel market, making products for Liberty, Burberry (BRBY) and Barbour.
In the US, the company's flagship Manhattan showroom, which was closed for half the year, has reopened and like-for-like sales growth so far this year is in double digits. In fact, trading across the entire group is strong, with brand sales up 8 per cent. This year, investors can expect further product launches and possibly an acquisition.
Analysts at Investec expect pre-tax profit of £8.8m this year, giving EPS of 12p, up from £8.1m and 11p.
| WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 194p | MARKET VALUE: | £116m | |
| TOUCH: | 191-197p | 12-MONTH HIGH: | 213p | LOW:151p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 45p* | NET CASH: | £2,000 | |
| Year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 |
| 2015 | 83.4 | 6.3 | 8.6 | 2.31 |
| % change | +6 | +15 | - | +25 |
Ex-div: 15 Jul Payment: 7 Aug *Includes intangible assets of £7.2m, or 12p a share | ||||
