14th Dec 2015 07:50
LONDON (Alliance News) - Luxury interior furnishings company Walker Greenbank PLC issued a profit warning on Monday morning as the extent of the damage caused by Storm Desmond to its Lancaster-based printing business became more clear.
The company warned on Friday that its Standfast & Barracks factory in Lancaster has suffered substantial flooding due to the heavy rain last weekend due to the storm which hit parts of northern England and Scotland.
The company said it has now appointed a project manager and specialist contractors to assist with the recovery operation and will restore production from the site via a phased process, starting with digital printing.
The phase nature of the re-start will mean the factory will return to full production until April next year, meaning the company expects its pretax profit for the year to the end of January 2016 will now be around 15% lower than market expectations.
Trading in the following financial year will also take a hit until production is fully restored.
By Sam Unsted; [email protected]; @SamUAtAlliance
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