Walker Greenbank (WGB)

Business description

Walker Greenbank is a luxury interior furnishings group combining specialist design skills with high-quality upstream manufacturing facilities. Leading brands include Harlequin, Sanderson, Morris & Co, Scion, Anthology, Zoffany and Clarke & Clarke.

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 87.8 11.8 8.9 11.6 12.4 12.2
2017A 92.4 13.4 10.4 12.9 11.2 7.3
2018E 110.7 16.6 12.9 14.5 9.9 10.2
2019E 115.2 17.3 13.4 15.1 9.5 7.6

Last updated on 16/11/2017

Investment summary

Order variability was referenced in H1 results, but latterly intake patterns have weakened. This has affected UK premium brands, following through into manufacturing activity also. We have reflected this in lower earnings estimates (c 10% for this year and next, with a smaller reduction for FY20) ahead of greater clarity on consumer behaviour in this segment. This news has been received harshly – judging by a sharp negative share price reaction – but feels overdone in our view.

Last updated on 16/11/2017

Industry outlook

The UK interior furnishings industry has experienced uncertainty for many years under the influence of economic shifts and fashion changes. Many brands have failed to grow, while significant production capacity has been closed down, with manufacture for the volume segment largely moved overseas. Success continues to be delivered by those businesses that are able to differentiate themselves from competition by consistently offering innovative and high-quality design and products.

Last updated on 02/11/2017

Key management

Terry Stannard, Chairman
Terry Stannard, Chairman
John Sach, CEO
Mike Gant, FD

Company address

Bradboure Drive
Tilbrook
Milton Keynes
MK7 8BE
United Kingdom
+44 (0) 845 126 5582
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