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Could be time to cover Walker Greenbank (WGB)     

ainsoph - 08 May 2003 08:14

Recently moved down to the AIM market to save money and interference :-)) .... shares have been in freefall but run by some interesting peeps and with big potential assets that may one day be realised.

Lots of recent cost cutting but the sales maket has been less than kind .... finals due soon and suspect the selling/falls are way overdone .... time to have a punt methinks


ains


started @ 6.25 mid - high of 9.25 on 21/05

ainsoph - 19 May 2003 13:24 - 17 of 32

27 straight buys now .... must be a record. WDBM have moved onto a new bid and MLSB are trying to hold the offer at 9p. All mm's are blue and as soon as MLSB have sold enough we will see 9.5p.

Now up nearly 17% intraday and 13th in the all share riser board. A massive profit of around 40% for those who jumped in at the start :-)



ains

ainsoph - 19 May 2003 14:33 - 18 of 32

big delayed buy 0f 446k ..... over a million now :-)

ainsoph - 19 May 2003 16:27 - 19 of 32

100k buy at just below the touch as we head for the close

ainsoph - 19 May 2003 16:47 - 20 of 32

a million f trade @ 8p ..... difficult to see it as a sell with the price up 17% on the day




ains

ainsoph - 20 May 2003 10:31 - 21 of 32

heavy volume again .... some profit taking but still holding and up 40% since we started

ainsoph - 21 May 2003 10:16 - 22 of 32

well up again today despite the two earlier delayed sells - intraday 5.71% - since we started - nearly 50% :-))





21st May 2003



Walker Greenbank sells Weavestyle and Contract Fabrics for 2.8m





Walker Greenbank PLC, the wallcoverings and furnishing fabrics Group, has agreed
the sale of the fabric weaving businesses of Weavestyle and Contract Fabrics to
Project Riverside OPCO Limited, a private company, for a consideration of 2.8m.



The consideration will be satisfied by payment in cash in full today.



This sale will result in a loss on disposal of 3.5m after impairing goodwill
and related costs. The assets have a book value of 5.1m.



In the financial year ended 31st January 2003 the businesses incurred an
operating loss of 140,000.



This disposal will not affect any of the other businesses in the Group.



David Medcalf, Group Chief Executive, said ' The sale forms part of the Group's
strategy to realise value for its non-core businesses and reduce indebtedness.
The Directors were unable to justify the necessary future capital expenditure
believing that there are better returns available elsewhere within the Group's
operations. The Directors believe the consideration represents fair value in the
current marketplace. The sale will allow management to increase its focus on
bringing the Group's core businesses back to profitability. In addition, the
proceeds from the sale will accelerate the reduction in the Group's
indebtedness.'

ainsoph - 21 May 2003 11:30 - 23 of 32

AFX-Focus) 2003-05-21 10:18 GMT: Walker Greenbank sells fabric weaving ops for 2.8 mln stg

LONDON (AFX) - Walker Greenbank PLC, the wallcoverings and furnishing fabrics group, said it has sold its weaving businesses, Weavestyle and Contract Fabrics, to private company Project Riverside OPCO Ltd for 2.8 mln stg in cash.
This sale will result in a loss on disposal of 3.5 mln stg after impairing goodwill and related costs.

The assets have a book value of 5.1 mln stg. In the financial to end Jannuary 2003 the businesses incurred an operating loss of 140,000 stg.

Chief executive David Medcalf said "The sale will allow management to increase its focus on bringing the group's core businesses back to profitability. In addition, the proceeds from the sale will accelerate the reduction in the group's indebtedness."

newsdesk@afxnews.com

kl

ainsoph - 21 May 2003 11:37 - 24 of 32

worth saying that the whole cap is less than 6 million even after the recent 50% gain ......


ains

ainsoph - 21 May 2003 16:39 - 25 of 32

lowish vol today but still up nearly 6% on day and 48% since we started .... H2 anytime soon



ains

ainsoph - 21 May 2003 17:03 - 26 of 32

Small company round-up: Hot Group, Iomart, Walter Greenbank

Wed 21 May 2003 SHARECAST



Home furnishings group Walter Greenbank is selling its fabric weaving businesses Weavestyle and Contract Fabrics for 2.8m in cash to Project Riverside.

The group said the sale of Weavestyle, which has a book value of 5.1m, would result in a loss on disposal of 3.5m after related costs.

David Medcalf, chief executive, said the sale was part of the Walters strategy to dispose of non-core businesses and pay down some of its debt.

ainsoph - 22 May 2003 13:06 - 27 of 32



WALKER GREENBANK PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 JANUARY 2003


Operating loss of 3.8m (2002: 6.5m loss)

Loss after taxation of 7.4m (2002: 6.6m loss)

Disposal of TWIL for 0.9m in January

Post balance sheet disposal of Riverside for 2.8m cash

2.3m of cash generated from operating activities and debt reduced by
0.6m, the first net cash inflow since 1999

Further cost savings in the year and headcount reduced by 10%

Continued strong performance of Zoffany in the US



Ian Kirkham, Chairman, Walker Greenbank PLC said:

'The aim of returning to profitability has proved to be difficult to achieve
despite significant restructuring. The decline in the market has been
unprecedented and it is difficult to predict when it is going to stabilise. We
believe that the cost savings made this year will protect the group through this
difficult period and if any upturn materialises, the group will see a
significant improvement in results. The focus will remain on cash generation,
debt reduction and disposals of non-core assets in line with our strategic plan.
This strategy will leave the group in a stronger position with the ability to
benefit from any improvement in demand or consolidation opportunities'.



Enquiries:

David Medcalf, Chief Executive
Walker Greenbank PLC Tel: 01509 225 209

John Sach, Group Finance Director
Walker Greenbank PLC Tel: 01908 658078

Richard Evans, Brewin Dolphin Tel: 0161 214 5553

Ian Seaton, Bankside Consultants Tel: 020 7444 4157




Notes to editors

Walker Greenbank PLC designs, manufactures, markets and distributes
wallcoverings, furnishing fabrics and associated products. The Zoffany and
Harlequin brands are recognised worldwide, selling a full range of these items.
The group's manufacturing base includes fabric printing at Standfast and
wallcovering manufacture at Anstey.




Chairman's Statement

Overview

The year ended 31 January 2003 has proved to be another difficult year for the
group. The cautious optimism expressed at the Interim results stage proved to be
ill founded as the UK market weakened further, resulting in a decline in
turnover across the group of 5%.

The wallcoverings sector of the market continues to be extremely challenging,
however, we believe we have gained market share in the fabric sector of the
market and it is our intention to achieve further gains using the existing
strength of our brands. Supporting this process is the ability to generate cash
and maintain liquidity and I am pleased to report that overall indebtedness has
been reduced this year by 592,000.

Despite the declining market, the operating loss, before exceptional operating
items, at 3.8 million was slightly better than the previous year. It was helped
by the reductions to our cost base made in the prior year. During the year we
have continued to reduce our cost base, leading to a further reduction in head
count of 75 people, representing 10% of the workforce. Whilst this has been a
painful and expensive process it will lead to future operational cost savings.


Strategy

The board has concluded that a revised strategic plan should be implemented in
an attempt to accelerate the returns for shareholders. We shall continue to
dispose selectively of non-core businesses and surplus assets with the intention
of further reducing indebtedness. Our ultimate goal is to focus the group on a
series of businesses which have common core competences, appropriate critical
mass and profitable business models.


Results

The operating loss for the year was 3,802,000 (2002: 6,542,000 loss as
restated after exceptional operating costs of 2,600,000) on turnover of
58,261,000 (2002: 61,115,000). Following the strategic disposal of two of the
group's non-core businesses, Riverside and TWIL, exceptional provisions have
been made which have increased the loss before interest to 7,659,000 (2002:
6,599,000 as restated). A provision of 3,507,000 for the impairment of the
Riverside assets forms the largest part but despite the size of this provision
the board believes, owing to the non-core nature of the business and the
considerable future capital investment that would be required for it to remain
competitive, the proceeds which were achieved represent an improvement in
shareholder value.

During the year outstanding tax issues from prior years were resolved and
resulted in a tax credit of 614,000.

As a result of these significant one off provisions the loss per share increased
from 11.69p to 13.04p.


Disposals

Riverside

On 20 May 2003, the sale of the trade and assets of Riverside was completed.
Cash consideration of 2,801,000 was received at completion resulting in an
anticipated loss on disposal of 3,507,000, including 819,000 of goodwill
previously written off to reserves. The proceeds of disposal not only reduce the
group's indebtedness significantly but also will allow the group's management to
focus on the remaining core businesses.


TWIL

On 24 January 2003, Textile Wallcoverings International Limited, part of the
group's US subsidiary, trading as TWIL, was sold for 878,000 resulting in a
loss of 204,000 after provisions and related costs. The sale of this non-core
business has now allowed local management to focus on distribution of the
group's brands in the US and also to downsize the back office function in that
business thereby enhancing future profitability. There will also be a future
cash benefit from the planned disposal of the surplus freehold premises
previously occupied by TWIL.


Balance Sheet

As referred to in the Interim Statement, one of the primary objectives of the
board in these difficult market conditions has been to reduce indebtedness. In
the year, total indebtedness was reduced by 592,000 (2002: 3,146,000 increase)
and the cash inflow from operating activities was 2,289,000 (2002: 1,436,000
outflow). Both will remain key objectives going forward, with continued tight
control being exercised over working capital. Capital expenditure will also
remain at the greatly reduced levels compared to that experienced in the
previous three years. The policy of disposing of non-core assets will be
maintained. The balance sheet also continues to be underpinned by approximately
8,000,000 of freehold properties together with substantial other tangible and
current assets.

The results for the prior year have been restated to take account of the full
impact of adopting Financial Reporting Standard Number 17 'Retirement Benefits',
which changes the way in which the accrual for retirement benefits is
recognised. The balance sheet at 31 January 2003 includes a pension liability at
that date of 11,839,000 (2002: 3,643,000 as restated). This substantially
increased liability reflects the decline in the stock market over this period,
which has resulted in a mark down of the value of pension assets at the balance
sheet date. Clearly, subject to the same assumptions, any improvement in the
stock market in the future should result in an increase in net assets and a
reduction to the pension deficit.

During the year action was taken to limit the exposure on the defined benefit
schemes operated by the group. In June 2002, all active members of the Walker
Greenbank Pension Plan defined benefits scheme were transferred to a new defined
contribution scheme which forms part of the Abaris Holdings Limited Pension
Scheme. These changes will reduce the group's exposure going forward leaving
only deferred members and pensioners in the Walker Greenbank Pension Plan.


Dividends

In view of the financial performance no dividend will be proposed. The directors
intention is that dividends will be restored following a return to sustainable
profitability.


Transfer to AIM

On 18 March 2003 your board announced its intention to transfer the company's
entire issued share capital from the Official List of the London Stock Exchange
to trading on the Alternative Investment Market ('AIM'). Dealings commenced on
AIM on 15 April 2003.


Outlook

The aim of returning to profitability has proved to be difficult to achieve
despite significant restructuring. The decline in the market has been
unprecedented and it is difficult to predict when it is going to stabilise. We
believe that the cost savings made this year will protect the group through this
difficult period and if any upturn materialises, the group will see a
significant improvement in results. The focus will remain on cash generation,
debt reduction and disposals of non-core assets in line with our strategic plan.
This strategy will leave the group in a stronger position and with the ability
to benefit from any improvement in demand or consolidation opportunities.


Operating Review


The Brands

With strong growth in the US, Zoffany, the group's exclusive brand, managed to
improve its profit worldwide. The home market, however, still suffered a 6%
decline year on year, driven by continued weakness in the contract market for
hotel refurbishments, even after having previously extended the brand to
associated products such as furniture, paint and carpets. The full year effect
of redundancies made in the second half of the year are anticipated to
compensate for this shortfall and should result in a much greater return on
sales in the year to come.

UK sales of Harlequin, the group's mid-market brand, increased by 4% despite a
contracting market. The decision to sell through third party distributors in
Europe instead of direct to the customer, which was made at the end of the
previous year, resulted in significantly lower sales albeit from a much reduced
cost base. This and the impact of a very strong pound for much of the year,
resulted in export sales being 25% lower than in the previous year. In the
second half, a new management team was appointed and the approach on export
sales has been reviewed. The board is expecting an improvement in Harlequin's
results in the forthcoming year.


Manufacturing

Standfast maintained the same level of profitability as in the previous year.
Sales increased in the first half, but in the second half, customer de-stocking
and a general downturn in the market resulted in sales falling short of
expectations. To re-align the business to this new level of activity,
redundancies were made in the autumn, removing approximately 420,000 of
annualised costs. Despite difficulties in producing camouflage fabrics at the
start of the year, new management and new production practices enabled the
company to tender successfully for this business at the end of the year. We are
confident of securing a significant amount of additional work in this area which
will complement the existing core printing business for the furnishings market.

Although improved manufacturing margins were achieved in the Anstey wallpaper
factory, the redundancies made in the previous year proved insufficient to stem
the trading losses following another sales decline experienced in the year.
Despite the losses, a significant amount of cash was generated by the business.
Anstey will remain under close scrutiny by the board and it is well placed for
any upturn in the market.


Overseas

Both the US and Norwegian subsidiaries reported strong profit growth moving from
399,000 in the previous year to 1,018,000 this year, after accounting for the
loss on disposal of TWIL. The Zoffany brand in the US has increased its market
share in a competitive market whilst Borge in Norway continues to strengthen its
prominent market position.


Discontinued Operations

The combined operations of Contract Fabrics and Weavestyle reported a decline in
sales of 9.5%. Despite improvements in the manufacturing margins following cost
savings arising from a reorganisation and a redundancy programme implemented at
the end of the previous year, the sales decline resulted in a return to losses
for the business.

The majority of the Weavestyle business is directed towards the consumer market
and has broadly held up with reported sales lower by 3.5%. The Contract Fabrics
business, which sells from stock for commercial applications such as office
refurbishments, suffered a decline of 14% in a very difficult market. The
non-core nature of this business coupled with the significant capital
expenditure that would be required in the near future to maintain
competitiveness together with the dependence on a small number of customers, led
your board to conclude that an early disposal of this business was very much in
the shareholders' interests. The disposal in May 2003 avoids any further
exposure to this business and the board believes that the proceeds of sale
delivers a reasonable return against asset values in the current environment.



ainsoph - 22 May 2003 13:18 - 28 of 32

Some profit taking now ......



ains

gravy - 22 May 2003 22:56 - 29 of 32

Another profits warning actually, I see you are totally
on your own on this thread and i can see why.
You just cannot accept a company is bad news and moved on.
I know you have been long in these for so many years I
have lost count but you can always do your usual stunt and
claim you bought at 6p and sold at 9p just before the warning :-))

Change your ways ainsoph and people will stop exposing you.

Gravy

ainsoph - 23 May 2003 15:44 - 30 of 32

duh


Interesting situation ..... I sold a few but hold a few and bought a few back .... An underlying strength and note the big mm buy



ains

ainsoph - 23 May 2003 16:26 - 31 of 32

Director buy of 100k

mjr1234 - 28 Jun 2005 10:58 - 32 of 32

This is looking very interesting again.
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