Storm Desmond hits fabric firm’s profit

December 14, 2015 9:33 am Published by

Storm Desmond hits Walker Greenbank profits

  • 14 December 2015
  • From the section Business

FloodingImage copyright
AP

Image caption

Storm Desmond led to the flooding of thousands of buildings

A fabric and wallpaper manufacturer has issued a profit warning after flooding at its factory caused by Storm Desmond.

Walker Greenbank said profits would be 15% lower this year after its Lancaster factory had to stop printing.

The UK company, which sells upmarket furnishings in 85 countries, hopes the majority of printing will resume at the Standfast & Barracks site in April.

Analysts had forecast pre-tax profits for the company of £8.7m for the year to 31 January.

Electricity was reconnected at the site last week, but the company is still in the early stages of assessing the damage to printing machinery, stock and other business assets.

Walker Greenbank, which is valued at £127m, said its insurance would fully cover the losses and that it expects to recover the profits shortfall.

Its wallpaper brands include Sanderson, Anthology and Morris & Co, which was founded by Victorian artist William Morris in 1861.

Shares in Walker Greenback fell 4% to £2.03 in early trading.

Storm Desmond led to more than 43,000 homes in Lancashire and Cumbria suffering from power cuts earlier this month, while an estimated 5,200 homes were affected by flooding.

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This post was written by FSB News