Walker Greenbank (WGB); interim results and CEO change: sales decline in a difficult marketplace

Published on 10-10-2018 06:49:10
Author Sparks Team

WGB announced its results for the six months ended 31 July 2018. Sales declined 1.4% to £54.7m with good growth from a few segments amid a generally difficult marketplace. Statutory profit from operations declined 12.2% to £4.3m.

The company commenced in-house paint tinting and distribution in partnership with PPG. It launched direct business models in Moscow and Germany. It also extended its direct-to-consumer offerings with the addition of paint and bedding through its website.

Licensing income grew 37.4% in constant currency (up 35.4% in reportable currency) with £2.0m driven by apparel and Japanese licensees. Third-party manufacturing sales grew 10.7%, helped by export growth and digital printing. Brand sales in the US grew 5.8% in constant currency to £6.9m (down 0.7% in reportable currency). Adjusted underlying profit before tax declined 28.3% to £4.3m, and underlying EPS declined 32.6% to 4.73p. Interim dividend remain unchanged at 0.69p per share. Net debt declined to £3.4m (31 July 2017: £5.2m).

Separately, the company announced that John Sach has stepped down as CEO. Christopher Rogers, a Non-executive Director, will become the Interim Executive Chairman. Terry Stannard, the Non-executive Chairman, will become a Non-executive Director. Search for the new CEO has commenced.

Terry Stannard, the Non-executive Chairman, commented: “The sales performance in the first nine weeks of the second half has seen some modest improvement. In the UK the trend has been less negative and, in total, sales to overseas markets have been broadly similar to the same period last year. Subject to this trend being sustained over the key Autumn selling period, the board expects the outturn for the year ending 31 January 2019 to be in line with its expectations.”

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