Walker Greenbank

LN: WGB

£42.6m market cap

-60 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

Reported H120 revenue declined by almost 31% y-o-y; Brands product sales were c 28% lower while third party Manufacturing sales were c 33% down and international sales overall fell by less than their UK equivalents. Significant opex reductions partly mitigated reduced gross margin and the company still managed to report a modest profit for the period. Walker Greenbank’s liquidity position improved at the end of H1 with end July net cash of £4.5m – an uplift of £3.2m from January. By the end of the period, group sales had recovered to flat y-o-y in the month of July which broadly continued into Q3. The company is to be renamed the Sanderson Design Group as part of a wider strategic improvement programme which is underway.

Y/E Jan
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 113.3 12.9 9.0 10.1 5.9 3.4
2020A 111.5 11.0 6.6 7.9 7.6 4.4
2021E N/A N/A N/A N/A N/A N/A
2022E N/A N/A N/A N/A N/A N/A
Industry outlook

The UK interior furnishings industry has experienced uncertainty for many years. Many brands have failed to grow, while manufacture for the volume segment has 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 04/11/2020
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 5.3 23.7 (25.9)
Relative* 6.8 27.3 (8.5)
52-week high/low 91.0p/27.5p
*% relative to local index
Key management
Lisa Montague CEO
Michael Williamson CFO

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