Walker Greenbank slides into the close as it warns on profit

Shares in AIM-listed interior furnishings group Walker Greenback tumbled on Tuesday as the company sneaked in a profit warning just before the close.

In a trading update released just ahead of the market close, the group warned that full-year adjusted pre-tax profit is likely to fall "materially short" of the board's expectations as the improving trend highlighted at its AGM has deteriorated.

Walker said it has reduced its expectations for licensing income in the current year.

At the annual general meeting on 27 June, Walker said it was encouraged by the potential of recently signed licence agreements.

"One of these agreements had significant potential, highlighting the prospects for the company's high-margin licensing activities and the value of its design archives.

"Since the AGM, the company has gained new information on the potential profit contribution from this large licensing agreement and, as a result, the board has materially revised down its expectations for licensing income in the current year."

In addition the group said that the month of July has proved to be particularly disappointing, with orders received to date tracking below the company's expectations. As result, it is now looking towards its key autumn trading period with "renewed caution".

Walker Greenbank said it expects adjusted pre-tax profit for the year to be materially short of its expectations.

"The board now anticipates that adjusted profit before tax for the year ending 31 January 2019 is likely to be in the range of £9.5m-£10m," it said.

The shares fell 25% to 80p.