Fabric group Walker Greenbank saw more than a quarter of its value wiped out after warning on lower profits.
The group warned that profits would be 10% lower than anticipated after sales of its brands, including Sanderson and Zoffany, ‘weakened significantly’.
Last month the company said order intake was growing ahead of last year and on an improving trend in the run-up to the key autumn selling period. ‘Since that announcement, momentum in order intake has not been sustained and brand sales in the UK, excluding Clarke & Clarke, have weakened significantly against management’s expectations. The company is more than half way through the key autumn selling period and, owing to the disappointing UK Brand sales and knock-on effect on manufacturing, the board now expects that profits for the year ending 31 January 2018 are likely to be approximately 10 per cent lower than its expectations,’ said a statement.
‘Whilst the UK remains Walker Greenbank’s largest market, the board is focused on driving the company’s international business where brand sales are ahead of the same period last year. Licensing income continues to grow strongly and the board expects full year licensing income to be up approximately 15 per cent on a like-for-like basis, in line with its expectations.’
The warning saw the group’s share price drop from 210p to 155p yesterday. Today the share prices dropped further, to 146.6p.