In the six months to the end of July, Walker Greenbank reported a marginal rise in sales, which is quite a slowdown on the 11 per cent growth reported in the comparable half year in 2011. It would certainly not be surprising if wallpaper manufacturer Walker was going through a lean patch with much of the world in or near to recession. During this trading period, western European sales fell 12 per cent while there was no repeat of last year's bonanza hotel contract in Dubai.
But Walker Greenbank's management clearly doesn't think that the business has gone ex-growth. The company is busy launching cheaper wallpaper ranges and pushing up licensing income - everything from Portmeirion tableware to fabric linings for Barbour jackets with matching handbags. The US and UK operations reported above-average sales growth in the half year; indeed sales in the US jumped 22 per cent, which was the first significant growth there since 2008. UK turnover was 6 per cent better.
Broker WH Ireland forecasts full-year revenues up from £74.1m to £77.2m and adjusted pre-tax profits £300,000 higher at £6m to produce EPS of 8.3p (7.9p in 2012). In the latest half year, adjusted profits were 11 per cent ahead at £2.7m if two accounting charges are ignored.
WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 71p | MARKET VALUE: | £41.9m | |
| TOUCH: | 70-72p | 12-MONTH HIGH: | 75.75p | LOW: 42.75p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 40p* | NET DEBT: | 11% | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 37.4 | 2.04 | 2.61 | 0.20 |
| 2012 | 38.3 | 1.94 | 2.47 | 0.23 |
| % change | +2 | -5 | -5 | +15 |
Ex-div: 24 Oct Payment: 23 Nov Aim: Home furnishings. *Includes intangible assets of £6.4m, or 11p a share | ||||
