Walker Greenbank

LN: WGB

£52.5m market cap

74p 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 weaker UK market had been well trailed, but good performances from licensing activities and manufactured product for some UK and export customers served to substantially mitigate group revenue pressures in H1. Nevertheless, a lower Brands contribution led to c 22% lower y-o-y group adjusted EBIT in the period. Net debt reduced to just £3.4m at the period end. Following H119 results, our full-year earnings estimates look attainable and are unchanged as are our dividend expectations. Group strategy has been clearly stated, although a change in management may give rise to some shift in emphasis within Brands. We expect a year end trading update in the near future.

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 5.7 3.7
2018A 108.8 15.9 12.5 14.4 5.1 7.4
2019E 108.4 13.0 9.5 10.8 6.9 6.0
2020E 109.8 13.3 9.6 10.9 6.8 5.2
Last updated on 21/02/2019
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 21/02/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 5.2
Forecast gearing ratio (%) 8
Price performance
%
1m
3m
12m
Actual (15.4) (4.6) (48.4)
Relative* (18.3) (8.3) (48.0)
52-week high/low 144.0p/64.0p
*% relative to local index
Key management
Terry Stannard Chairman
Mike Gant FD

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