Fabric and wallpaper manufacturer Walker Greenbank (WBG) delivered a solid performance last year, underpinned by a 17.6 per cent hike in US sales which helped to boost overall profits and sales. Furthermore, improved cash flow supported a hefty rise in the dividend and the group returned to a net cash position for the first time since 2000.
All of the growth came from the wallpaper printing business, Anstey, where sales rose 16.6 per cent to £15.7m. Internal sales - wallpaper for the group's own brands - rose 11.8 per cent, while third-party sales grew 15.2 per cent in the UK and 55.7 per cent for the export market. This helped to boost licensing income by 18.2 per cent to £1.88m. However, trading at fabric printing unit, Standfast, was tougher and sales there fell 5.5 per cent to £14.3m. While new print collections helped to boost own-brand sales by 6.8 per cent, third-party sales slipped 12.6 per cent - mainly as a result of weak demand in continental Europe.
Trading in the first 11 weeks of the new financial year has started well, and broker WH Ireland has upgraded its end-January 2014 forecasts to adjusted pre-tax profit of £6.8m, giving EPS of 9.5p. (from £6.4m and 9.4p in 2013).
| WALKER GREENBANK (WGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 99p | MARKET VALUE: | £58m | |
| TOUCH: | 98-100p | 12-MONTH HIGH: | 103p | LOW: 65p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 41p* | NET CASH: | £1.2m | |
| Year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 63.7 | 2.79 | 2.96 | nil |
| 2010 | 60.4 | 1.55 | 2.10 | 0.50 |
| 2011 | 68.8 | 4.46 | 5.36 | 0.95 |
| 2012 | 74.0 | 4.89 | 6.76 | 1.20 |
| 2013 | 75.7 | 4.93 | 6.89 | 1.48 |
| % change | +2 | +1 | +2 | +23 |
Ex-div: 17 Jul Payment: 9 Aug *Includes intangible assets of £6.7m, or 11p a share | ||||
