Walker Greenbank (WGB) has set its sights abroad. The interior furnishings company is aiming to make around 60 per cent of its sales in markets outside the UK within the next three to five years. Currently 46 per cent of sales come from overseas markets, the largest of which is the US. Management said the decision would have been taken regardless of faltering UK sales, but the international expansion looks well timed anyway.
These results include the first contribution from the Clarke & Clarke acquisition made in the second half of last year. Total revenue from the company’s brands was up by a third to £45.2m, of which Clarke & Clarke contributed £10.3m. Sales from brands in the UK, excluding the acquisition, fell 2.6 per cent, but this was compensated for by a 2.7 per cent improvement overseas at constant currency. New licensing agreements for blinds in the UK and bedding in the US and Asia helped boost constant currency revenue in this division by 17.9 per cent to £1.3m.
Analysts at N+1 Singer expect pre-tax profits of £14.3m in the year to January 2018, giving EPS of 15.7p, up from £10.4m and 12.5p in FY2017.
| WALKER GREENBANK (WGB) | ||||
| ORD PRICE: | 239p | MARKET VALUE: | £169m | |
| TOUCH: | 235-242p | 12-MONTH HIGH: | 244p | LOW: 195p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 36 | |
| NET ASSET VALUE: | 80p* | NET DEBT: | 9% | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 41.8 | 4.9 | 6.6 | 0.55 |
| 2017 | 54.3 | 4.1 | 4.7 | 0.69 |
| % change | +30 | -18 | -29 | +25 |
| Ex-div: | 19 Oct | |||
| Payment: | 17 Nov | |||
| *Includes intangible assets of £32m, or 45p a share | ||||
