Walker Greenbank (LON:WGB)
Progress from organic and acquired operations was clearly visible in H118, slightly tempered by subdued UK Brands performance at the period end. Strong dividend growth, prospective cash generation and international developments all send positive signals for future prospects. Save for slightly improved dividend expectations, our headline estimates are unchanged and we believe Walker Greenbank offers investors above-average growth exposure.
Positive H1 signals
H118 results showed good growth in revenue and EBIT at both divisional and group levels. Trading highlights included a strong maiden first half contribution from Clarke & Clarke, further development of Brands’ activities in international markets and confirmation that Standfast & Barracks has put post-flood disruption firmly behind it. The 25% y-o-y uplift in DPS provided a positive marker regarding management’s view of future prospects. Walker Greenbank’s net debt position was slightly better than at the end of January 2017 and the company is on track to significantly reduce borrowings by the end of FY18 on our estimates.
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