For the year ending 31 January 2020, Walker Greenbank reported that group sales are likely to decline 2.0% YoY to around £111.0m. The company’s high-margin licensing business performed well during the year, with core licensing income growing 13.9% to £3.5m—ahead of historical levels.
Total brand sales, which exclude licensing income, decreased 2.7% YoY in reportable currency. The new distribution partnership, with Kravet Inc., which has been extended to include Canada, is progressing in line with the board’s expectations.
The Morris & Co brand continued its strong growth, up 22.3% YoY in constant currency. The brand grew strongly in all key territories and mainly in Scandinavia, where the brand’s sales grew 28.7%. The integration of the Clarke & Clarke business has been completed, and positive growth is continuing from the Clarke & Clarke brands. Third-party manufacturing sales grew 5.5% to £21.1m.
Although the company has continued its targeted investments and ongoing focus on costs, its balance sheet remains robust. The company expects net funds at the year-end, excluding the impact of IFRS 16, to be £1.0m~ compared with £0.4m on 31 January 2019.
The company intends to announce its results for the year ended 31 January 2020 on 23 April 2020.