13th Apr 2016 08:15
LONDON (Alliance News) - Luxury interior furnishing company Walker Greenbank PLC on Wednesday hiked its dividend payout as annual pretax profit grew on higher revenue.
Pretax profit for the company rose to GBP7.3 million from GBP6.3 million for the financial year to January 31, driven by revenue rising to GBP87.8 million from GBP83.4 million. UK sales grew 3.9% in the year, while the US, now the company's second-largest market, saw sales rise 20%.
The company said it will increase its final dividend to 2.45 pence per share, up 25% year-on-year, taking its total payout also up 25% to 2.89p from 2.31p.
Walker Greenbank, which owns the Sanderson, Scion and Anthology brands, said it signed new UK and global licensing deals over the course of the year and successfully-developed the fourth collection for its Anthology brand.
The company also said the majority of production is on track to be restored at its Standfast & Barracks factory in Lancaster following the damage caused by heavy flooding in December 2015.
"Whilst sales continue to be impacted by last year's flood at Standfast & Barracks the consequential loss of profits will be mitigated by our insurance policy. We remain on track to have reinstated the majority of production at the factory by the end of April 2016," said Terry Stannard, Walker Greenbank's chairman.
"Our new product launches and contract pipeline mean we are confident of the trading outlook in the year ahead. We are particularly encouraged by the launch of the fourth collection from the Anthology brand, which for the first time includes an extensive range of contract-quality woven fabrics, by the launch of the Woodland Walk collection from Sanderson and by a strong trading start from our wallpaper factory in Loughborough," Stannard added.
The company said brand sales are up 0.9% in sterling for the first nine weeks of its current financial year, though UK brand sales have been hit by the issues faced by the Standfast & Barracks factory.
Walker Greenbank shares were up 1.5% to 203.5 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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