There were a number of headwinds and tailwinds in FY18, in which good growth was delivered, but lower earnings expectations have dominated sentiment. Walker Greenbank (LON:WGB) has some strong and unique market positions and is becoming increasingly active in broadening its revenue mix into faster-growing segments. Success here and greater stability in UK demand will translate to rating expansion in our view.
Good step forward despite UK challenges
FY18 ended on a weaker UK trading note but Walker Greenbank still delivered good overall growth from the enlarged business and demonstrated manufacturing stability after previous disruption. At the group level, adjusted PBT (excluding LTIP charges and non-trading items) rose by +20.2% to £12.5m in FY18 and, in the event, was slightly better than our reduced year end estimates. On the same basis fully diluted EPS increased by 11.7%, while full-year DPS was 21.1% higher than the prior year. Net debt was unchanged at £5.3m at the year end and equivalent to just 0.3x reported FY18 EBITDA.
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