Walker Greenbank PLC (AIM: WGB), the luxury interior design and furnishings group, announces its interim results for the six-month period ended 31 July 2020.
Six months ended 31 July
Adjusted underlying profit before tax*
Adjusted underlying EPS*
Statutory (loss) / profit before tax
Statutory (loss) / profit after tax
Net funds/(debt) excluding impact of IFRS16 'Leases'
Net (debt) including impact of IFRS16 'Leases'
The interim results reflect the impact of Covid-19 on the Group, including the temporary closure of manufacturing sites and the effect of UK and international lockdowns on market demand:
· Group revenue down 30.6 % at £38.8 million (H1 2019: £55.9 million)
· Adjusted underlying profit before tax* of £0.4 million (H1 2019: £4.9 million) including £3.2 million furlough grants from UK and US governments
· Resilient performance from core licensing income, down 7.2% in both reportable and constant currency
· Measures taken to improve liquidity resulted in cash headroom against available banking facilities of £19.5 million at 31 July 2020 compared with £13.8 million at 31 January 2020
· Net debt following the adoption of IFRS 16 'Leases' reduced to £2.6 million (H1 2019: £7.7 million on an equivalent basis). Excluding the impact of IFRS 16 net funds increased to £4.5 million (H1 2019: net funds of £0.9 million)
· An interim dividend is not being proposed (H1 2019: 0.52p); the Board remains committed to future dividend payments when conditions allow
· Better than expected trading performance in July, August and September 2020; given the ongoing impact of Covid-19, the outlook remains cautious at the start of the autumn selling period
Strategic and Operational Highlights
· Continued progress on the strategic development of the Company, particularly focused on efficiency, agility and productivity
· Walker Greenbank plc to be renamed Sanderson Design Group plc to better convey the activities of the Group. The new name, which is expected to change in December this year, highlights design as being at the heart of all we do and leverages the international recognition of the Sanderson brand as well as helping drive internal efficiencies
· Exciting collaborations include a licensing deal between the Scion brand and major retailer NEXT for a range of homeware, nursery and fashion items; Zoffany's Palladio collection of wallpapers, and Morris & Co's Queen Square collaboration with Ben Pentreath
· Year-to-date efficiency and cost-savings expected to deliver a saving of £1.2 million in the current financial year with annualised savings of £3.0 million
*Excludes accounting charges relating to the LTIP, defined benefit pension charge and non-underlying items, see note 7 to the financial statements below.
Dianne Thompson, Non-executive Chairman of Walker Greenbank, said: "The first half results reflect both the impact of Covid-19 on the business and its end markets as well as the exceptional commitment and adaptability of all our colleagues at the Company, for which I thank them.
"At the start of our key autumn selling period, we remain cautious on the outlook for the months ahead. The Board believes that the actions taken by the leadership team have given the business a strong foundation on which to withstand the impact of Covid-19 and to build for future growth."