Walker Greenbank posts solid results, remains cautious on year ahead

The AIM-traded firm said its total statutory profit from operations was ahead 78.6% to £14m, due to a full year's earnings contribution from Clarke & Clarke.

Adjusted underlying profit before tax was up 20.2% at £12.5m.

Walker Greenbank said its licensing income grew 21.6% in constant currency to £3.1m, as a result of range extensions into new product categories, while underlying profit from operations rose 25.8% to £12.4m.

Adjusted earnings per share were 6.2% higher at 14.52p, with the board declaring a final dividend 20.3% higher at 3.68p per share, giving total dividend growth of 21.1% to 4.37p per share for the year.

On the operational front, the board highlighted the launch of in-house paint tinting and distribution for its Sanderson and Zoffany brands, in partnership with global paint manufacturer PPG.

A direct business model was also launched in Moscow in February, post year-end, including a new showroom, with Germany to follow in the first half of the current year.

“Trading to date in the current financial year reflects a difficult marketplace particularly in the UK,” said chairman Terry Stannard.

“In the first nine weeks of the current financial year, brand sales were down 8.3% in the UK and down 3.8% overseas in constant currency, down 6.1% in reportable currency.”

Stannard said the company’s board was focused on delivering growth-based strategic initiatives including targeted investment, cost savings where appropriate and a greater emphasis on brand sales overseas.

“Additionally, our high margin licensing business is expected to continue to show strong growth.

“However, trading to date in the current financial year makes us cautious about the outlook; as a consequence, the board expects that profits for the full year will be ahead of last year's but below current Board expectations.

“We will provide a further update on trading at our annual general meeting in June 2018.”