Walker Greenbank

LN: WGB

£44.4m market cap

62p last close

Walker Greenbank is a luxury interior furnishings group combining specialist design skills with high-quality upstream manufacturing facilities. Leading brands include Harlequin, Sanderson, Morris & Co, Scion, Anthology, Zoffany and Clarke & Clarke.

Investment summary

Year-end comments confirmed FY19 results should be in line with management estimates. Strong Licensing performance is likely to have contributed meaningfully to this outcome and towards an ungeared balance sheet position. A strong H2 Brands/Licensing performance is a factor and an important contributor to EBIT. Also, we believe that Brands/International y-o-y revenue performance improved in H2 though Brands/UK product sales remain soft; the full-year decline was similar to that for H1 (-6.2% vs -5.9% respectively). We have reduced earnings estimates by 20–25% for FY20 and FY21 due to weak UK market trends, although in the absence of fresh guidance we have assumed that DPS is maintained at FY18 levels ahead of FY19 results, which are scheduled for 10 April.

Y/E Jan
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 92.4 13.4 10.4 12.9 4.8 3.2
2018A 108.8 15.9 12.5 14.4 4.3 6.3
2019E 113.0 13.0 9.5 10.8 5.8 3.2
2020E 106.8 11.0 7.3 8.6 7.3 4.8
Last updated on 18/03/2019
Industry outlook

The UK interior furnishings industry has experienced uncertainty for many years under the influence of economic shifts and fashion changes. Many brands have failed to grow, while significant production capacity has been closed down, with manufacture for the volume segment largely moved overseas. Success continues to be delivered by businesses able to differentiate themselves from competition by consistently offering innovative and high-quality design and products.

Last updated on 18/03/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (£m) 0.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (15.0) (25.2) (56.0)
Relative* (16.7) (31.1) (57.3)
52-week high/low 140.0p/62.0p
*% relative to local index
Key management
Terry Stannard Chairman
Mike Gant FD

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