Soft furnishing supplier warns of worsening sales; focus on reducing cost base

17th April | furnishings | The parent company of luxury soft furnishing brands Zoffany, Harlequin and Sanderson says it will continue to drive manufacturing efficiencies in light of falling revenues.

Walker Greenbank’s overall sales for the year to January 31st climbed 2% to £63.7m, but the numbers mask a 3% fall in the second half of 2008, and a further contraction in revenue in the early part of 2009.

‘With 10 weeks of the current financial year complete, total revenues are 15% below the same period last year,’ said Terry Stannard, WG chairman.

‘Our brand revenues are 10% below last year and manufacturing revenues to third parties are 28% below, reflecting an element of destocking.

‘Revenues in the first half will therefore be significantly down on a buoyant period last year, though the impact of this reduction will to some extent be mitigated by our focus on costs and efficiency.’

Stannard added that he believed the group would be well positioned to take advantage of an upturn in its markets.