StockMarketWire.com - Luxury furnishings group Walker Greenbank booked a 21% fall in annual profit, citing a difficult marketplace in the UK in the lead up to the Covid-19 crisis.

Since the end of its financial year through January, product sales had slumped 35% in the pandemic's wake.

Pre-tax profit for the year through January slid to £4.4m, down from £5.6m on-year. Revenue fell 1.6% to £111.5m.

Walker Greenbank said it had renewed five-year bank facilities to 2024 comprising a £12.5m revolving credit facility and an uncommitted £5m accordion.

In light of the Covid-19 outbreak, an additional £2.5m overdraft facility had been agreed with lenders, while covenant waivers had been agreed with Barclays.

The company's fabric and wallpaper printing factories together with showrooms in the UK, New York and Paris had reopened, with a phased return of staff as demand built up ahead of the autumn selling season.

'Covid-19 has significantly impacted the start of the company's current financial year,' chairman Dianne Thompson said.

'Whilst our factories were temporarily closed, our warehouses in Milton Keynes and New Jersey remained open and we have continued to fulfil customer orders throughout the year to date.'

'With the phased reopening of our factories, and lockdowns being progressively released in our target markets, there are initial signs of trade improving, albeit at a level below last year.'

'In the first five months of our financial year, product sales were approximately 35% below the same time last year.'

'Online and international product sales channels have performed better than our UK average.'

'Product sales in the past four weeks have been approximately 31% below the same time last year but ahead of management expectations.'

'This reflects a steadily improving trend since the start of April.'




At 9:25am: [LON:WGB] Walker Greenbank PLC share price was +0.5p at 37p



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