Walker Greenbank

LN: WGB

£51.5m market cap

71.5p 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

A narrower focus on core business strengths driven with greater operational intensity is an appealing proposition under a revised strategy and new senior management team. More detail will emerge here, but an intention to regain revenue momentum will be a clear marker to watch. H120 results were in line with pre-close comments and our earnings estimates are unchanged at this stage. They – and we suspect the company valuation – have yet to fully factor in renewed strategic impetus.

Y/E Jan
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 112.2 15.7 12.3 14.1 5.1 7.3
2019A 113.3 12.9 9.1 10.2 7.1 4.1
2020E 109.8 11.6 7.4 8.3 8.7 5.3
2021E 112.8 12.0 7.8 9.1 8.0 4.6
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 04/12/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (£m) 0.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (9.9) (11.6) (9.4)
Relative* (9.0) (12.1) (17.2)
52-week high/low 92.0p/56.2p
*% relative to local index
Key management
Lisa Montague CEO
Mike Gant CFO

Content on Walker Greenbank