Walker Greenbank looking at positive year, despite flooding

Walker Greenbank was looking at positive growth in at the end of its financial year, updating the market on Wednesday ahead of its preliminary results.

The AIM-traded luxury interior furnishings group said its sales for the year were expected to be up 5.8% on the previous year, at £88.2m.

Adjusted profit before tax and exceptional items was likely to be in line with market expectations, the company's board said.

Brand sales in the year to 31 January 2016 were up 6.4% in constant currency (5.7% in reportable currency), with sales in the UK - Walker Greenbank's largest market - up 4.8%.

In the US, brand sales grew by 11.9% in constant currency, and by 10.5% in Western Europe (20.1% and 0% in reportable currency, respectively).

Walker Greenbank's brand sales in the rest of the world grew 5.4% in constant currency (3.1% in reportable currency).

The group suffered a destructive flood at its Standfast & Barracks manufacturing operation during the period, but said it was working closely with an insurer to receive an interim payment in respect of loss of profits and damage to assets.

"The company's manufacturing operations performed well during the period, although the flooding at Standfast & Barracks affected the final secen weeks of trading", the board said in a statement.

"Progress towards restoring production at Standfast & Barracks is proceeding on track, and it is expected that digital printing will begin to resume later this month", it continued.

Walker Greenbank's brands include Sanderson, Morris & Co., Harlequin, Zoffany, Sicon and Anthology.

Its board intended to issue the preliminary results on 13 April 2016.