2010
ANNUAL REPORT AND ACCOUNTS
Walker Greenbank PLC 
Luxury interior 
furnishings group 
2010
ANNUAL REPORT AND ACCOUNTS
Walker Greenbank PLC 
Luxury interior 
furnishings group 
Walker Greenbank PLC         Annual Report and Accounts 2010
www.walkergreenbank.com
Walker Greenbank PLC 
Chalfont House 
Oxford Road 
Denham 
UB9 4DX 
T: 0845 126 5582   F: 0845 126 5583 Luxury interior
furnishings group
Walker Greenbank PLC is a luxury interiors furnishings group whose 
brands include Harlequin, Sanderson, Morris & Co. and Zoffany. Our  
brands are targeted at the mid to upper end of the premium market.  
They have worldwide distribution including prestigious showrooms  
at Chelsea Harbour, London and the D&D building, Manhattan,  
New York. Half of the brand’s turnover is sourced in-house from  
the Group’s own specialist manufacturing facilities.
front cover: 
a painter’s garden collection, s anderson, d esign: s ummer tree inside front cover: 
wallpaper: florine from amilie collection, Harlequin cus Hions: amilie collection, Harlequin WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
01
Overview
Highlights from 2010
0 .50
p
 
The Group is returning to the dividend list after nine 
years, declaring a dividend of 0.50p per share 
reflecting the underlying strength of the business
£2.42
m
 
Operating profit of £2.42 million (2009:  
£3.56 million) with improvement in the  
second half profitability
17
%
 
Gearing reduced substantially to 17% (2009: 31%) 
£60.38
m
 
Second half revenues were up 1.8% compared with 
the corresponding period last year giving full year 
revenue of £60.38 million (2009: £63.70 million)
£ 1 .5 5
m
 
Profit before taxation of £1.55 million (2009:  
£2.79 million) and earnings per share of 2.10p 
(2009: 2.96p)
Our mid-market brands, Harlequin and 
Sanderson have performed well during 
the economic downturn
Contents
Overview
02 Our business at a glance
04 150 years of producing luxury  
interior furnishings
06 Our brands
10 Chairman’s Statement
12 Chief Executive’s Review
14 Financial Review
16 Directors and Advisers
Directors’ Report
18 Report of the Directors
20 Statement of Directors’ Responsibilities
21 Directors’ Remuneration Report
24 Corporate Governance Statement
Accounts
25 Independent Auditors’ Report on 
Consolidated Financial Statements
26 Consolidated Income Statement
27 Consolidated Statement of 
Comprehensive Income
28 Consolidated Balance Sheet
29 Consolidated Cash Flow Statement
30 Consolidated Statement of Changes  
in Equity
31 Notes to the Consolidated Accounts
Company Accounts
61 Independent Auditors’ Report on 
Company Financial Statements
62 Company Balance Sheet
63 Notes to the Accounts
70 Five Year Record WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
02
Our business at a glance
Walker Greenbank PLC is a luxury interior furnishings group
of companies which design, manufacture, market and distribute
wallcoverings, furnishing fabrics and associated products for
the consumer market.
Our Brands
Harlequin
Harlequin is a core supplier of high quality, design led 
collections to the mid to premium end of the worldwide 
furnishings market.
Sanderson
Founded in 1860 and granted a Royal warrant in 1923, 
Sanderson is one of the most renowned brands in interiors 
worldwide, offering classic, inspirational product often based 
on documents from its extensive archive. It is aimed at the mid 
to upper end of the interiors market.
Morris & Co.
The Morris & Co. business has a heritage that dates back to 
the mid 19th century when it was founded by William Morris, 
the acclaimed designer. Its unique heritage is preserved  
in the modern interpretation of its high quality fabrics and 
wallcoverings.
Zoffany
Zoffany offers a range of products of the highest quality 
including wallpaper, fabrics, trimmings, carpets, paint and 
furniture. The designs are inspired by the rich traditions of  
the past but look equally at home in contemporary interiors. 
LANARK COLLECTi ON,
ZOffAN y WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
03
Overview
Our Manufacturing Our Distribution
Anstey
Anstey Wallpaper Company is the world’s leading 
specialist commission printer. The business 
operates at the premium end of the market, offering 
a unique combination of design, printing and 
finishing of wallcoverings by gravure, rotary, flexo, 
surface, screen and hand block printing methods. 
As well as producing for the Walker Greenbank 
brands it also produces for third party customers.
Standfast
Standfast & Barracks is situated in Lancaster and 
was bought by Walker Greenbank in March 2000. 
The business is acknowledged as a worldwide 
leader in its field. It specialises in high quality rotary, 
flat bed and digital printing, concentrating on very 
high specification for the exclusive furnishing and 
apparel markets, printing on a wide range of fabrics.
USA
Our distribution in the USA is carried out by Walker 
Greenbank Inc. utilising third party showrooms 
supported by Walker Greenbank Inc. offices based in 
New Jersey and our own showroom in Manhattan.
France
Our distribution in France is carried out by Arthur 
Sanderson France through a network of sales agents, 
our own sales force and a showroom in Rue du  
Mail, Paris.
BAKARi COLLECT i ON, 
hARLE q Ui N
vi NTAGE COLLECTi ON,  
SANDERSON 
DESi GN: Sq Ui RREL  
& DOv E WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
04
Sanderson – 150 years of 
producing luxury interior 
furnishings
Arthur Sanderson establishes himself in 
Islington, London, as an importer of French 
wallpapers. Merchandise features 
expensive, luxurious wallpapers, such as 
the panoramic and imitation-leather 
papers manufactured by Paul Balin of 
Paris, for whom Sanderson is the sole 
agent in England.
In January, the showroom occupies 53 
Berners Street; by April 1901 the company 
has also leased 51-55; this confirms 
Sanderson as the largest wallpaper 
showroom in London. The Sanderson family 
home in Chiswick is donated to the town for 
use as a free library in 1898 when the family 
moves to Kensington.
In August, Sanderson goes into 
receivership; three weeks later it 
is purchased by Walker 
Greenbank plc. The Sanderson 
bedlinen license is sold to 
Bedeck Ltd. Walker Greenbank 
invests heavily in product 
development and almost two 
years’ worth of collections are 
launched in the second half of 
2004, culminating in the return of 
new Options collections in 
January 2005.
Arthur Sanderson dies leaving 
the business in the hands of his 
three sons, the business having 
been renamed Arthur Sanderson 
& Sons the previous year. It now 
manufactures wallpaper at 
Chiswick. It is now well 
established as a leader in the 
decorating trade. 
In March Sanderson celebrates its 150th 
anniversary with a special collection of fabrics and 
wallpapers inspired by its archive, a three month-
long exhibition at the Fashion and Textile Museum, 
London and a coffee table book written by Mary 
Schoeser and published by Thames & Hudson.
In August, Sanderson’s new 
headquarters are established in 
Denham as the manufacturing at 
Uxbridge ceases; seven months 
later, in March 2001, there is a 
management buyout.
A textile-printing factory is 
established at Uxbridge, 
producing Sanderson’s own 
range of fabrics, which had been 
commission-printed since 1914. 
These are first called ‘Eton Rural 
Cretonnes’ and later ‘Eton Rural 
Fabrics’. The paint factory of 
Messrs Casson & Co. in Kensal 
Road, London, is purchased and 
the Berners Street showroom is 
expanded again.
1895
2003
1860
1882
2010 2000
1919 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
05
Overview
Arthur Bengough Sanderson 
becomes the holder of a  
Royal Warrant as Purveyor of 
Wallpapers and Paints to King 
George V. This is said to be the 
first Warrant granted for the 
supply of these products.
WestPoint Pepperell is 
aggressively acquired by  
Farley Industries: in the following  
year Sanderson is sold to the 
largest textile manufacturer  
in the Netherlands, Gamma 
Holdings NV.
Sanderson products appear in the Festival of Britain on London’s 
South Bank, where the Royal Festival Hall is decorated exclusively  
with the company’s papers. Imported textiles are introduced; among 
the fabrics are those with designs by Picasso and Gio Ponti. Royal 
Warrants are granted to the firm in 1951 and 1955. Sanderson 
launches a series of exhibitions at Berners Street in 1952, 1954 and 
1956. Dersine Fancy Papers, introduced in 1935, are highly successful 
during the 1950s and 1960s. 
Consumers in this period 
become wealthier, younger and 
more interested in individualistic 
styles. Sanderson becomes part 
of the newly formed Reed 
International’s Decorative 
Products Division. Spectrum 
Paint is introduced.
Morris & Co. goes into voluntary 
liquidation. Sanderson buys the 
wallpaper business together with 
the rights to use the company 
name, acquiring blocks, 
logbooks and existing stock, 
including the entire contents of 
the Hanover Square showroom. 
Due to a massive paper shortage 
and rationing, no new Sanderson 
pattern books are issued from 
1940 until 1950. The Sanderson 
factories meanwhile engage in 
war work.
The company celebrates its 125th 
anniversary with a revamped 
showroom and an exhibition. 
WestPoint Pepperell, Inc. of Georgia, 
USA, purchases Sanderson from 
Reed International.
Sanderson celebrates its 
centenary in a long awaited new 
building at 58-60 Berners Street, 
designed by Slater & Uren (now 
The Sanderson Hotel).
1951
1965
1924
1989
1940
1985 1960 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
06
Our brands
LALi KA COLLECTi ON,
hARLE q Ui N
www.harlequin.uk.com
Despite the tough market conditions suffered in the first  
half of the year, Harlequin has managed to maintain its 
revenues at the same level as last year, having been 10% 
down in the first half, and to continue its position as the 
leading mid-market contemporary brand in the UK.
UK revenues maintained >
Export growth in Far East, Middle East and Australasia >
Growth in licensing revenues > WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
07
Our brands
A PAi NTER’S GARDEN COLLECTi ON,
SANDERSON
www.sanderson-uk.com
Despite the difficult trading conditions in the first half, 
Sanderson and Morris & Co, two globally recognised brands, 
have continued their commitment to invest in product and 
design leading to strong second-half growth of 10%, with  
a year-on-year overall revenue improvement of 2%.
Small growth in European markets was buoyed by strong growth   >
in Scandinavia and Eastern Europe
Strong investment in Sanderson & Morris & Co. in terms of  >
marketing and product
2010 is the 150th anniversary for Sanderson, with Morris & Co’s  >
150th anniversary next year WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
08
Our brands
GUSTAv US COLLECTi ON, ZOff ANy 
DESi GN: ELEONORA
www.zoffany.com
Zoffany, which is positioned at the upper end of the premium 
market, has experienced revenue declines of 18% with the 
second half only marginally better than the first half, where 
the decline was 23%.
Customers appearing to trade down to the benefit of our   >
mid-market brands
Far East, Middle East and Australasia achieved growth >
More mature markets of Europe and USA declined > WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
09
m OSAi C COLLECTi ON, 
ZOffAN y WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
10
Chairman’s 
Statement 
Overview
I am pleased to report that the gradually 
improving trend in revenue seen in the latter 
part of the first half of the year continued to 
gain momentum with the result that second 
half revenues were up 1.8% compared with 
the corresponding period last year. 
We are encouraged by the positive revenue 
performance of the second half, which 
resulted in a considerably improved operating 
profit, although revenue for the year as a 
whole fell 5% and operating profits were 
£2,415,000 (2009: £3,561,000).
We have reduced net debt substantially at the 
year end to £3,114,000 from £6,218,000 in 
2009. This places the Group in a strategically 
strong position in continuing uncertain  
market conditions.
Our mid-market brands Harlequin and 
Sanderson, which account for 80% of our 
brands’ revenues, have performed well during 
the economic downturn. The quality of design 
and value of the products have helped 
Harlequin and Sanderson to grow annual 
revenues. However in a price-conscious 
market, our premium-end brand, Zoffany, 
has, not surprisingly, experienced a significant 
decline in revenues.
Ami Li E COLLECTi ON, 
hARLE q Ui N 
DESi GN: ELODi E WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
11
Overview
I am pleased to report that in the UK, 
currently the largest market for our brands, 
retail performance has been relatively robust 
with annual revenues down only 2%, having 
been down 10% at the half year. We remain 
focused on international expansion where  
we see significant opportunity. However, in 
the year, Continental Europe and the USA 
have experienced much tougher trading 
conditions, being down 20% and 25% 
respectively. Encouragingly, we have grown 
our revenues in the Rest of the World by 14% 
particularly in the Far East and Australasia.
Manufacturing significantly improved its 
second half performance, following a first half 
programme to reduce the cost base and a 
second-half return in customer confidence 
leading to increased revenues. Profitability 
was substantially improved, with a first half 
operating loss before exceptional items of 
£84,000 being turned into a full year operating 
profit before exceptional items of £633,000.
Financials
Revenue decreased 5% to £60,378,000, from 
£63,698,000 over the same period last year. 
The operating profit for the year was 
£2,415,000 (2009: £3,561,000) and the profit 
before tax was £1,552,000 (2009: 2,787,000). 
The profit after tax declined to £1,173,000 
(2009: £1,622,000).
Earnings per share were 2.10p (2009: 2.96p).
 
Interest cover on bank borrowings increased 
to 9.2 times, compared with 5.1 times  
last year.
The Group’s net indebtedness at the year end 
reduced to £3,114,000 (2009: £6,218,000). 
This represents a reduction in gearing to 17% 
(2009: 31%). The cash inflow from operating 
activities was £4,338,000 (2009: £2,830,000), 
reflecting lower interest costs and strong 
working capital management. At the year end, 
the Group had available banking facilities of 
£12,395,000 (2009: £12,773,000) 
representing headroom of £9,281,000 (2009: 
£6,555,000).
Dividend
It has been our intention to return to the 
dividend list at the appropriate time, based  
on the strength of our business and our 
confidence in the future. Our decision to pay a 
final dividend for the year ending 31 January 
2010 marks a major milestone in the 
Company’s recent history, reflecting the 
strength of our cash flows and our modest 
level of debt. 
We are now at the point where we can 
continue to invest in the Company’s  
growth and at the same time pay dividends. 
The Directors have therefore decided to 
recommend the payment of a final dividend  
of 0.50p per share (2009: nil) which will be 
payable on 6 August 2010 to shareholders  
on the register on 9 July 2010. 
People
On behalf of the Board, I would like to thank 
all of our management and employees for 
their loyalty and commitment during a 
challenging year. 
Outlook
Whilst the market in which we operate has 
been difficult during the year, we have 
successfully reduced our cost base, improved 
our manufacturing efficiency, and most 
importantly have halved our net debt. The 
strength of our brands, the excellence of our 
product design and the depth of our 
distribution has returned the Group to second 
half revenue growth. The robust nature of our 
balance sheet allows us to invest in our 
business going forward in order to ensure 
strong medium-term growth. 
We have started our new financial year in line 
with internal projections and we look forward 
to the unique opportunity created by the 
150th anniversary of Sanderson during the 
coming year. Whilst remaining cautious we 
are convinced by the potential of the Group, 
which is in a strong position to exploit 
domestic and international opportunities even 
in uncertain market conditions.
Terry Stannard
Non-executive Chairman
2 June 2010
i ONE COLLECTi ON,
SANDERSON 
DESi GN: LACECAP WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
12
Chief Executive’s 
Review
Strategy
The trading year just completed has been the 
toughest the Group has encountered for 
many years, as a direct consequence of the 
global downturn. However, through strict cost 
control and tight cash management, whilst 
maintaining our commitment to product 
investment and design excellence, we have 
finished the year with a growing momentum 
and in a strategically strong position.
Whilst our turnover and trading profits have 
inevitably declined in the year as a whole we 
remain committed to the five key elements of 
our growth strategy, which comprise: 
Organic growth – to continue to develop  >
the growth opportunities that exist for  
our influential mid market brands in the  
UK retail market by extending their  
market positions;
Geographic expansion – to focus on the  >
distribution and marketing of our brands  
in Europe and the Rest of the World  
where as a Group we are presently 
underdeveloped, and to invest in 
marketing and distribution in the North 
American market, where again our Group 
is currently immature relative to our peers;
Contract sales – to drive the expansion of  >
our developing contracts business through 
further investment in contract specific 
product supported by the strength of our 
brand names, our ability to competitively 
source product and our manufacturing 
capability, predominantly focusing at the 
mid to upper end of the contract market;
Licensing income – to exploit the global  >
recognition of the Sanderson and Morris & 
Co brand names and to develop further 
the licensing opportunities that exist for 
Harlequin in the UK; and
Acquisitions – to evaluate acquisition  >
opportunities that may arise and fit with 
our current brand portfolio and potentially 
provide synergistic and earnings 
enhancing opportunities. 
Overview
As the Chairman has highlighted, the 
gradually improving revenue trend we 
experienced in the latter part of the first half 
has continued, leading to a considerably 
improved performance in the second half.
UK retail brand revenues, currently our most 
important geographic market representing 
51% of external brand revenues, declined by 
2%. We have seen a significant improvement 
in the second half with revenues up 7% 
having suffered a decline of 10% in the first 
half. This was particularly influenced by the 
strength of our mid-market brands of 
Harlequin and Sanderson.
Overall, overseas retail revenues have 
experienced an annual decline of 8%, 
suffering most significantly from very weak 
v OLUm E v COLLECT i ON,
m ORRi S & CO 
USA and continental European markets, 
down 25% and 20% respectively in local 
currency. Revenues in the Rest of the World 
have grown 14% driven by strong 
performances from the Far East, Middle East 
and Australasian markets.
Continued commitment and investment in  
our Contracts business in an extremely 
challenging market environment has seen 
revenue increase in the second half, following 
a first half revenue decline. There has been  
a consistent level of specification activity 
throughout the year but a much higher level of 
conversion into projects in the second half. 
Licensing income has fallen due primarily to 
extremely tough market conditions for some 
of our bed linen retailers, where we have seen 
an annual income decline in excess of 40%. 
Our continued commitment and success in 
developing new licence arrangements 
supported by our globally recognised brands 
has helped mitigate this problem resulting in 
an overall decline of 13%.
External manufacturing has experienced an 
annual decline in revenues of 8%. However 
this is very much a story of two halves, with 
the first half suffering from reduced volumes 
and customer de-stocking and the second 
half benefiting from a first half cost reduction 
programme and a return of customer 
confidence leading to increased revenues and 
substantially improved profitability. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
13
Overview
The brands
Walker Greenbank has continued its strong 
product investment and commitment to 
customer service within its four premium 
interior furnishing brands. We believe we  
have witnessed a shift in consumer sentiment 
in which we have seen revenue growth in our 
mid-market brands of Harlequin and 
Sanderson, despite extremely challenging 
market conditions, whilst Zoffany, which  
is positioned at the upper end of the  
premium furnishings market, has seen  
a revenue decline.
Total revenues have declined year on year by 
3%, having been down by 11% at the half 
year. This represents a second half revenue 
increase of 5%. Year on year operating profits 
before exceptional items were down 12%. 
Harlequin
Despite the tough market conditions suffered 
in the first half of the year, it is pleasing to 
report that Harlequin has managed to 
maintain its revenues at the same level as last 
year, having been 10% down in the first half, 
and to continue its position as the leading 
mid-market contemporary brand in the UK.
UK revenues were flat but export showed a 
small growth, however, significant declines 
were experienced in continental Europe and 
USA mitigated by growth in the Far East, 
Middle East and Australasia. Harlequin has 
grown its licensing income principally with the 
development of a range of product lines in the 
John Lewis Partnership. The mix of the three 
main product categories, woven fabric, 
printed fabric and wallpaper has remained 
broadly unchanged. 
Arthur Sanderson & Sons incorporating 
the Morris & Co brand
Despite the difficult trading conditions in the 
first half, Sanderson and Morris & Co, two 
globally recognised brands, have continued 
their commitment to invest in product and 
design leading to strong second-half growth 
of 10%, with a year-on-year overall revenue 
improvement of 2%. Small growth in 
European revenues was buoyed by strong 
growth in Scandinavia and Eastern Europe 
with the traditional markets of Western Europe 
experiencing tougher market conditions. As 
with Harlequin the Australasian market proved 
strong for Sanderson. There was no 
significant change in product mix with all 
ranges growing but wallpaper and printed 
fabric doing better than woven fabric. We 
have and will continue to invest strongly in 
Sanderson and Morris & Co in product and 
marketing support with particular emphasis 
on the important milestones of Sanderson’s 
150th anniversary in 2010 followed in 2011 
with Morris & Co’s 150th anniversary.
Zoffany
This brand, which is positioned at the upper 
end of the premium market, has experienced 
revenue declines of 18% with the second half 
only marginally better than the first half, where 
the decline was 23%. Zoffany appears to have 
suffered from customers that are trading 
down to the benefit of our mid-market brands 
of Harlequin and Sanderson. Both the UK and 
export markets suffered similar overall 
declines. The Far East, Middle East and 
Australasia achieved growth whilst the more 
mature markets of Europe and USA had 
considerable declines. Woven fabric which 
forms a significant proportion of Zoffany’s 
revenue suffered higher year-on-year 
reductions than printed fabric and wallpaper.
Overseas
USA
The US market continues to be extremely 
challenging. Revenues in our US business  
are down 18%, equating to 28% in constant 
currency. Whilst the second half has shown  
a slight improvement the market remains 
enormously difficult. Despite this the US 
remains an important part of the Group’s 
medium to long-term growth strategy.  
The level of investment in patterning and 
marketing was significantly reduced during 
the year to reflect the difficult market and  
this action has enabled the US business  
to mitigate the very significant reduction  
in revenues. We will continue to invest in 
marketing, patterning and sample support  
as and when we see improvements in  
the market.
Europe
Following continued focus on the organisation 
of our French business we have maintained the 
level of revenue in a difficult European market. 
The Group’s Italian distribution business in 
Rome for Harlequin and Zoffany was sold  
in December 2009 to B&B Distribuzione in 
Milan, which has distributed Sanderson 
successfully for many years. We are confident 
that the amalgamation of all our brands under 
one dedicated distributor will lead to 
significant growth over the coming years in 
the important Italian market. 
Manufacturing
Our manufacturing businesses suffered lower 
volumes in the early part of the year as 
customers reduced product launches and 
stock levels in the face of the recession. We 
reacted quickly in the early part of the year  
to reduce headcount through a redundancy 
programme in order to mitigate these lower 
volumes. This cost reduction combined with 
growing customer confidence and improved 
volumes in the second half has turned a first 
half operating loss before exceptional items of 
£84,000 into a full year operating profit before 
exceptional items of £633,000.
Anstey
Anstey our wallpaper printing factory suffered 
an overall revenue decline of 15% having been 
down 23% at the half year. Its revenues are 
down more significantly in its export markets 
than in the UK being hit most severely by the 
difficulties in the US market. Despite this the 
factory has returned a healthy second half 
profit. Our brands, and our peer group, are 
starting to develop exciting new products to 
expand the overall demand for wallpaper and 
we remain confident about the medium-term 
prospects for Anstey.
Standfast
Standfast, our fabric printing factory, has 
maintained revenues over the same period 
last year having been 13% down at the half 
year. Its cost reduction programme in the  
very early part of the year, followed by its main 
UK competitor going into administration and 
emerging in a significantly reduced form, has 
helped Standfast deliver revenue growth in 
the second half of 13% and a significant 
return to profitability having incurred a first half 
operating loss. Woven fabric has enjoyed 
many years of growth and market dominance, 
however, our brands have seen for the first 
time in the second half of the year the return 
of an appetite for the design and colour that 
only printed fabric can offer. Both Harlequin 
and Sanderson have recently launched some 
of the most successful printed fabric ranges 
for a number of years, which bodes well for 
the future prospects of the Standfast factory.
Summary
It is disappointing that the global recession 
has inevitably set us back this year. However 
the prompt action we took to reduce our  
cost base in the early part of the year and  
the commitment to significantly reduce  
our net debt has placed the Group in a  
strong position. 
We have four world renowned brands within 
our Group and a strong financial base that 
allows us to significantly invest in our business 
going forwards. We remain confident that we 
are well placed to return the Group to its 
growth path. 
 
John Sach
Group Chief Executive
2 June 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
14
Financial Review
i ONE COLLECTi ON, 
SANDERSON
Income statement and 
exceptional items
The Chairman’s Statement and Chief 
Executive’s Review provide an analysis of the 
key factors impacting the revenue and 
operating profit. In addition to the information 
on our brands and production facilities 
included in these reports, the Group has 
included in note 4 of the consolidated 
financial statements, further information on 
our segments.
Exceptional items are both material and their 
nature is sufficient to warrant separate 
disclosure and identification. During the year 
redundancy costs of £332,000 (2009: 
£146,000) were incurred to reduce the cost 
base of the Group during the economic 
downturn. There was net income from an 
insurance claim of £225,000 (2009: costs 
£150,000) for marketing material products 
held at a third party’s premises which were 
destroyed in a fire in the previous year. The 
insurance loss in the previous year arose due 
to the uncertainty over the level of insurance 
settlement recoverable.
Interest
The net interest charge for the year was 
£263,000 (2009: £695,000) including 
amortisation of debt issue costs capitalised. 
The reduced cost reflects the reduced 
average level of borrowings during the year 
and the reduction in interest rates over  
the year.
Net defined benefit pension
The charge during the year was £600,000 
(2009: £79,000). This is a consequence of the 
significant decrease in asset values at the 
start of the financial year compared with that 
at the beginning of the previous year, leading 
to a fall in expected return on assets. 
Current taxation
There is a small corporation tax credit of 
£32,000 arising from recovery of withholding 
tax suffered on overseas licence income in 
the previous year. 
Deferred taxation
Due to the substantial brought forward 
corporation tax losses (£20.1 million), the 
Group does not anticipate paying UK 
corporation tax for the immediate future. 
However, as the majority of the corporation 
tax losses have now been recognised as a 
deferred tax asset, in the current and future 
years there will be a deferred tax charge in 
the Income Statement until such time as  
the losses have been fully utilised at which 
point the Group will incur and pay UK 
corporation tax.
The Group also continues to recognise the 
deferred tax asset arising from the pension 
deficit. As the pension deficit has increased 
during the year an increase in the associated 
deferred tax asset has been recognised in the 
Statement of Comprehensive Income. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
15
Overview
Earnings per share (‘EPS’)
The basic and diluted EPS was 2.10p 
(2009: 2.96p). 
Operating cash flow and net debt
The Group generated net cash inflow from 
operating activities during the year of 
£4,338,000 (2009: £2,830,000) reflecting 
strong working capital controls during the 
year and lower interest costs. 
The Group paid interest of £239,000 (2009: 
£704,000) and capital expenditure of 
£1,067,000 (2009: £1,687,000). The 
depreciation and amortisation charge during 
the period of £1,786,000 (2009: £1,846,000) 
continues to be greater than required capital 
expenditure but the level of capital 
expenditure going forward will increase 
substantially.
The Group made additional payments to the 
Pension schemes of £1,063,000 (2009: 
£1,052,000) to reduce the deficit, part of the 
ongoing planned reduction, along with 
£289,000 (2009: £275,000) of regular 
contributions to fund scheme expenses. 
The Group purchased 610,000 shares at  
a cost of £128,000 in January 2010 to  
satisfy LTIP awards expected to vest in  
future periods.
Net debt in the Group has reduced by 
£3,104,000 to £3,114,000 (2009: £6,218,000) 
representing gearing of 17% (2009: 31%).
The Group utilises facilities provided by 
Barclays Bank Plc. There is a term property 
facility of £3 million (2009: £3,400,000) at the 
year end expiring in July 2017. There is also a 
facility linked to working capital which allows 
the Group to manage more effectively 
seasonal fluctuations in working capital. This 
facility was renewed in March 2010 for a 
further three year term expiring in July 2013. 
The borrowings at the end of the year under 
the working capital facility were £2,467,000 
(2009: £3,868,000), representing headroom 
of £9,281,000 (2009: £6,555,000). The 
headroom is set out below:
Utilisation  
£000
Availability  
£000
Property 2,980 3,000
Inventory – 3,000
Receivables 2,467 6,395
5,447 12,395
Less: Cash and cash 
equivalents (2,333)
Net Debt 3,114 (3,114) 
Headroom 9,281
The total facilities have a current limit of £16.5 
million (2009: £17 million).
All of the Group bank facilities remain secured 
by first fixed and floating charges over the 
Group’s assets. 
Pension deficit
The pension deficit has increased this year. 
The key factors affecting the movement in the 
deficit have been: contributions of £1,352,000 
from the Company to reduce the deficit; an 
increase in the liabilities of the scheme arising 
predominantly from lower discount rates 
during the year; a change to mortality 
assumptions bringing them in line with that 
used in the triennial valuation in April 2009; 
and finally the significant increase in scheme 
assets reflecting the improvement in the 
economic climate compared to the end of the 
previous financial year. The impact of these 
factors is shown as follows:
2010  
£000
Deficit at beginning of period (4,161)
Scheme expenses (289)
Other finance expense (311)
Contributions 1,352
Actuarial gain on scheme assets 2,665
Change in mortality assumptions 495
Actuarial losses from the change 
in discount factor (7,694)
Gross deficit at the end of  
the year (7,943)
Long-Term Incentive Plan
There has been a new award of shares during 
the year under the Long-Term Incentive Plan 
(‘LTIP’) and the award granted in July 2006 
has vested. There has been a charge of 
£145,000 (2009: £373,000) in the Income 
Statement relating to these awards.
Disposals
There were no major disposals during the 
year, however, the Group’s loss making Italian 
distribution business, Whittaker & Woods SRL 
was sold in December for net asset value. 
Going concern
The Directors are confident, after having  
made appropriate enquiries that the Group 
and Company have adequate resources to 
continue trading for the foreseeable future. For 
this reason they continue to adopt the going 
concern basis in preparing the accounts.
Foreign currency risk
All foreign currencies are bought and sold 
centrally on behalf of the Group. Regular 
reviews take place of the foreign currency 
cash flows and unmatched exposures are 
covered by forward contracts wherever 
economically practical.
The Group does not trade in financial 
instruments and hedges are only used for 
anticipated cash flows. There is a hedging 
asset of £175,000 (2009: liability £812,000)  
at the end of the year in relation to US  
dollar position.
Credit risk
The Group no longer seeks credit insurance 
as this was no longer considered a 
commercial solution to reducing credit risk. 
The Board reviews the internal credit limits of 
all major customers and reviews the credit 
risk regularly. The aging profile of trade 
debtors shows that generally customers do 
pay to terms however there have been 
specific bad debts during the year. The 
current economic environment creates a 
significant level of risk and in addition to 
specific provisioning, a provision has been 
required of £172,000 which is a collective 
assessment of the risk. 
Alan Dix
Group Finance Director
2 June 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
16
Directors  
and Advisers
Terry Stannard (60)
Non-executive Chairman (A,R,N)
Terry joined the Board as a Non-executive 
Director in September 2007 and became 
Non-executive Chairman on 31 January 2009 
following the retirement of Ian Kirkham from 
the Board. He has particular expertise in 
international brand-based businesses and his 
executive career included senior roles at 
United Biscuits and the positions of Chief 
Executive of Uniq plc and Terranova Foods 
plc. Since 2001, he has focused on non-
executive appointments at both quoted and 
unquoted businesses. He is currently 
Non-executive Chairman of Gardman 
Holdings Ltd, Antler Ltd and TCS Foods plc 
and holds non-executive director roles at 
Brintons Ltd, Bradford & Sons Ltd, Macphie 
of Glenbervie Ltd and Moloney Ventures Ltd.
Fiona Goldsmith (43)
Non-executive Director (A,R,N)
Fiona joined the Board as a Non-executive 
Director in December 2008. She is a 
Chartered Accountant who started her career 
with KPMG, where for nine years she focused 
on the retail and leisure sectors in various 
roles. She then moved to First Choice 
Holidays plc, where she became European 
Finance Director. From 2004 until October 
2008 she was Finance Director of Land 
Securities Trillium, a division of Land 
Securities Group plc.
John Sach (54)
Chief Executive Officer
John joined the Group in 1994 as Group 
Financial Controller and was appointed to
the Board as Group Finance Director in 1999. 
He was appointed Chief Executive Officer in 
May 2004.
David Smallridge (54)
Executive Director
David joined the Group in 2002 with a wide 
experience as a managing director of
consumer products businesses. He was 
appointed to the Board in December 2004
following his appointment as Managing 
Director of the Group’s four main fabric and
wallcovering brands, Harlequin, Sanderson, 
Morris & Co. and Zoffany.
Alan Dix (51)
Group Finance Director
In July 2005, Alan Dix was appointed Group 
Finance Director. He is a Chartered
Accountant with experience from a broad 
range of industries.
A – Audit Committee
R – Remuneration Committee
N – Nominations Committee
Directors Advisers
Stockbrokers and Advisers
Arden Partners plc
125 Old Broad Street
London EC2N 1AR
Auditors
PricewaterhouseCoopers LLP
10 Bricket Road
St Albans
Herts AL1 3JX
Tax Advisers
BDO LLP
55 Baker Street
London W1U 7EU
Public Relations
Buchanan Communications Ltd
45 Moorfields
London EC2Y 9AE
Solicitors
DLA Piper
Princes Exchange
Princes Square
Leeds LS1 4BY
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire HD8 0LA
Bankers
Barclay’s Bank PLC
Ashton House
497 Silbury Boulevard
Milton Keynes MK9 2LD 17
WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
Directors’ Report  
and Accounts
Directors’ Report 
and Accounts
Directors’ Report
18 Report of the Directors
20 Statement of Directors’ Responsibilities
21 Directors’ Remuneration Report
24 Corporate Governance Statement
Accounts
25 Independent Auditors’ Report on Consolidated  
Financial Statements
26 Consolidated Income Statement
27 Consolidated Statement of Comprehensive Income
28 Consolidated Balance Sheet
29 Consolidated Cash Flow Statement
30 Consolidated Statement of Changes in Equity
31 Notes to the Consolidated Accounts
In this section WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
18
The Directors submit their Annual Report together with the audited 
financial statements of the Company and its subsidiary undertakings 
(‘the Group’) for the year ended 31 January 2010.
Principal activities, Business Review and 
future developments
The principal activities of the Group are the design, manufacture, 
marketing and distribution of wallcoverings, furnishing fabrics and 
associated products for the consumer market. A review of activities 
and the future developments of the Group are given in the Chief 
Executive’s Review on page 12, which, taken with the Chairman’s 
Statement on page 10, the Financial Review on page 14 and the other 
information in the Report of the Directors, represents the Group’s 
Business Review and are incorporated into this report by reference.
The Directors do not expect there to be any significant change in the 
principal activities of the Group in the foreseeable future.
Group result
The profit before taxation amounted to £1,552,000 (2009: £2,787,000). 
The Directors recommend payment of a final ordinary dividend of 0.5p 
per share, amounting to £283,000 (excluding dividends on treasury 
shares and shares held by the employee benefit trust) which will be 
recognised in the financial statements for the following year (2009: no 
dividend paid).
Key Performance Indicators
The KPI’s for the business are primarily financial.
2010 2009
Revenue (decline)/growth (5)% 2%
Operating profit margin before  
exceptional items 4.2% 6.1%
Gearing 17% 31%
Pension deficit as a percentage of 
shareholders’ funds 42% 21%
Earnings per share 2.10p 2.96p
Additional commentary and analysis of strategic objectives of the 
Group are contained in the Chief Executive’s Review and Note 4 of the 
consolidated financial statements. 
Business risks
The Directors have identified a number of financial risks for the Group 
and these are explained and the degree of risk highlighted in note 2  
of the financial statements and in the Financial Review. Where 
commercially appropriate the Group insures against financial loss 
caused by unforeseen events by the means of insurance policies. 
Apart from the impact of an event of a global nature or a significant 
downturn in the UK market there are no other significant business 
risks. Whilst the trading conditions in North America remain difficult, 
this will affect trading of our business in North America but this 
business is not currently a significant profit contributor to the  
overall Group.
Pensions
The Group operates defined benefit and defined contribution schemes 
in the UK and overseas for all qualifying employees. Further 
information on the schemes and details of the valuations are given in 
note 23 to the consolidated financial statements.
Employees
The Group keeps its employees informed on matters affecting them 
and on the progress of the Group by way of informal meetings and 
consultation with employees’ representatives. All Group businesses 
apply the principles of equal opportunity in recruitment, career 
progression and remuneration. Disabled persons are given full and fair 
consideration for employment where an appropriate vacancy occurs, 
having regard to their particular aptitudes and abilities. Whenever 
possible, arrangements are made for the continuing employment of 
persons who have become disabled during service and for appropriate 
training of all disabled employees, who are given equal consideration 
with all other employees in promotion and career development.
Payments to suppliers
The Group agrees terms and conditions for its business transactions 
with suppliers and makes payment in accordance with those terms 
and conditions subject to the supplier meeting its obligations. The 
amount of trade creditors shown in the consolidated balance sheet  
at 31 January 2010 represents 80 days (2009: 92 days) of average 
purchases during the year for the Group.
The Company is a holding company and has no meaningful equivalent 
of creditor days.
Market value of interests in land including buildings
The Directors do not believe there is a significant difference between 
the current market value of the Group’s interests in land including 
buildings and their carrying values in the financial statements.
Political and charitable donations
The Group has not made any political donations (2009: nil). During the 
year the Group made no charitable donations (2009: nil).
Directors
The Board of Directors as at the date of this report and during the  
year ended 31 January 2010 is set out on page 16, together with 
biographical details. Details of the Directors’ service contracts are  
set out in the Directors’ Remuneration Report on page 21.
Report of the Directors WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
19
Report of the Directors
At the forthcoming Annual General Meeting (‘AGM’) A N Dix will retire 
by rotation and being eligible will offer himself for re-election.
Directors’ share interests
The Directors in office at 31 January 2010 and their interests in the 
shares of the Company were as follows:
1p ordinary shares  
31 January 2010  
Number
1p ordinary shares  
31 January 2009  
Number
T Stannard 70,000 35,000
F Goldsmith 45,000 nil
J D Sach 1,054,890 610,000
D H Smallridge 531,742 120,000
A N Dix 407,345 132,000
On 15 April 2010 the following share purchases were made:
J D Sach 38,480 shares
D H Smallridge 28,180 shares
A N Dix 22,190 shares
The share price on 1 February 2009 was 10.25p and on 31 January 
2010 was 22.5p.
Long-Term Incentive Plan
The movement in awards made under the Group’s Long-Term 
Incentive Plan (‘LTIP’) during the year is shown as part of the Directors’ 
Remuneration Report on page 21.
Directors’ interests in material contracts
None of the Directors had any material interest in any contract during 
the year which was significant to the business of the Group.
Research and development
The Group continues to invest in its products to retain and enhance its 
market position. Details of the Group’s expenditure on collection design 
development costs are set out in Note 14 of the financial statements. 
Acquisition of own shares
On 13 November 2009 the Company transferred 1,690,093 ordinary 
shares of 1p each previously held in Treasury into the Company’s 
Employee Benefit Trust. On 8 January 2010 the Company made 
market purchases into treasury of 610,000 ordinary shares of 1p each 
at a price of 21p per ordinary share. The total number of shares held  
in Treasury is 610,000. It is intended that these ordinary shares will  
be used to satisfy future awards made under the Company’s LTIP.
Substantial shareholdings
At 7 May 2010 the Company is aware of the following substantial 
shareholdings in its ordinary share capital, comparatives at 7 June 2009 
are shown. Gartmore Investment Limited 20.09% (2009: 20.2%), 
BlackRock Investment Management 6.12% (2009: 5.8%), Brewin 
Dolphin 4.98% (2009: 4.45%), Barclays Wealth 4.28% (2009: 4.06%), 
British Airways Pension Investment Management 4.14% (2009: 2.91%), 
Royal London Asset Management 3.68% (2009: 3.75%), TD Waterhouse 
Investment Management 3.48% (2009: 2.74%), Axa Framlington 3.42% 
(2009: 3.49%) and Walker Greenbank EBT 3.17% (2009: 4.45%).
Annual General Meeting
The Annual General Meeting will be held on 28 July 2010 as stated in 
the Notice of Meeting separately distributed to shareholders.
Auditors
A resolution to reappoint PricewaterhouseCoopers LLP as auditors of 
the Company will be proposed at the AGM.
So far as each of the Directors in office at the date of this report is 
aware, there is no relevant audit information of which the Group’s 
auditors are unaware. Relevant information is defined as information 
needed by the Group’s auditors in connection with preparing their 
report. Each Director has taken all the steps that he ought to have taken 
to make himself aware of any relevant audit information and to establish 
that the auditors are aware of that information.
 
By order of the Board
Julian Wilson 
Company Secretary 
2 June 2010 
 
Registered Office
Chalfont House
Oxford Road
Denham UB9 4DX
Registered number 61880 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
20
The Directors are responsible for preparing the Annual Report and the 
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements  
for each financial year. Under that law the Directors are required to 
prepare the Group financial statements in accordance with 
International Financial Reporting Standards (‘IFRSs’) as adopted by the 
European Union, and have elected to prepare the parent company 
financial statements in accordance with United Kingdom Generally 
Accepted Accounting Practice (United Kingdom Accounting Standards 
and applicable law). Under Company law the Directors must not 
approve the financial statements unless they are satisfied that they give 
a true and fair view of the state of affairs of the Group and the 
Company and of the profit or loss of the Group for that period. In 
preparing these financial statements, the Directors are required to:
select suitable accounting policies and then apply them  >
consistently;
make judgements and accounting estimates that are reasonable  >
and prudent;
state whether IFRSs as adopted by the European Union and  >
applicable UK Accounting Standards have been followed, subject 
to any material departures disclosed and explained in the Group 
and parent company financial statements respectively;
prepare the financial statements on the going concern basis   >
unless it is inappropriate to presume that the Company will  
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the Company and enable them to ensure that the 
financial statements comply with the Companies Act 2006. They are 
also responsible for safeguarding the assets of the Company and the 
Group and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the 
Company’s website. Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions. 
 
By order of the Board
Julian Wilson 
Company Secretary 
2 June 2010 
 
Registered Office
Chalfont House
Oxford Road
Denham UB9 4DX
Registered number 61880
Statement of Directors’ Responsibilities WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
21
Directors’ Remuneration Report
Introduction
As a company listed on the Alternative Investment Market (‘AIM’), the 
Company is not required to comply with the Directors’ Remuneration 
Report requirements set out in Schedule 8 of the ‘Large and Medium-
sized Companies and Groups (Accounts and Reports) Regulations 
2008’ (‘the Regulations’). Whilst the Company is not required to 
comply with the Regulations, it has used the Regulations as guidance 
and voluntarily presented selected disclosures that reflect the extent of 
the Company’s application of the Regulations. 
Remuneration committee
The members of the Remuneration Committee during the financial year 
were T Stannard (Non-executive Chairman) and F Goldsmith (Non-
executive Director). T Stannard is Chairman of the Remuneration 
Committee. There have been no changes in the composition or 
chairmanship of the Remuneration Committee during the year. The 
Chief Executive is invited to attend meetings of the Committee but no 
Director is involved in any decisions relating to their own remuneration.
None of the Committee members have any personal financial interest 
(other than as shareholders), conflicts of interests arising from cross 
directorships, or day to day involvement in running the business. 
The Committee is responsible for setting the framework and policy for 
the remuneration of the Executive Directors and designated senior 
managers. It determines specific elements of their remuneration, their 
contractual terms and, where necessary, compensation arrangements.
The Committee keeps itself informed of all relevant developments and 
best practice in the field of remuneration and seeks advice from 
external advisors when it considers is appropriate. In determining the 
Directors’ remuneration for the year, including the structure of 
long-term incentive plans for management, the Committee consulted 
BDO LLP about its proposals. BDO LLP also provide taxation advice 
and consultancy services to the Group. 
Remuneration policy
The Group’s remuneration policy is designed to ensure that the 
remuneration packages attract, motivate and retain directors and 
senior managers of high calibre and to reward them for enhancing 
value to shareholders. The Company’s policy is that a substantial 
proportion of the total potential remuneration of the Executive Directors 
and designated senior managers should be performance related  
and aligned to performance measures that benefit all shareholders. 
The performance measurement of the Executive Directors and the 
determination of their annual remuneration package, including 
performance targets, are undertaken by the Remuneration Committee. 
There are four main elements of the remuneration package for 
Executive Directors and other senior management:
basic annual salary and benefits; >
annual bonus payments; >
long-term incentives; and >
pension arrangements. >
The remuneration of the Non-executive Directors comprises only 
Directors’ fees and is determined by the Executive Directors.
Basic salary and benefits in kind
Salary is normally reviewed annually in February, or when 
responsibilities change. In deciding the appropriate levels, the 
Committee takes into account factors which it considers necessary 
including industry standard executive remuneration and relative pay 
levels within the Group. Each Executive Director is provided with health 
care benefits. 
Annual performance related bonus
Each Executive Director’s remuneration package includes a 
performance related bonus. For the year ended 31 January 2010, the 
maximum bonus payable was 55% of basic salary. Consistent with the 
current remuneration package for Executive Directors, 10% of the 
bonus for the year (post taxation) was used by Executive Directors to 
purchase shares in the Company on 15 April 2010 which they will hold 
for at least a two year period. Annual financial performance targets are 
set along with individual objectives.
Long-Term Incentive Plan (‘LTIP’)
All equity based awards are subject to an overall limitation on the 
number of shares issued to 10% of total shares in issue within any 10 
year period. The LTIP was approved by shareholders in 2006 and is 
valid for a 10 year period.
The LTIP seeks to motivate and retain Executive Directors and other 
senior management within the Group, to enable them to potentially 
benefit from improved total shareholder return (‘TSR’) and the profit 
before tax (‘PBT’) performance of the Group. The Committee 
administers the LTIP and the grant of nil cost options under the LTIP. 
The maximum annual value of nil cost options that can be made to an 
individual is equivalent to 150% of basic salary at the date of grant. The 
options granted during the year will only become exercisable (vest) if 
the performance conditions are met, which includes continued 
employment of the individual by the Group.
A full summary of the performance conditions attaching to outstanding 
awards can be found on page 56. To the extent that these 
performance conditions are not met at the end of the vesting period, 
the options will lapse. The performance condition, being the Group’s 
profit before tax for the year ended 31 January 2009, for options 
granted under the LTIP in 2006 was met with 1,918,609 shares vesting 
to the Executive Directors on 25 July 2009 following completion of the 
service condition. 
1,700,000 options were awarded to the Executive Directors in  
May 2009.
Pensions
J Sach is a member of the defined benefit section of the Walker 
Greenbank Pension Scheme and Abaris Holdings Pension Scheme. 
Both schemes were closed to new entrants from April 1997 and April 
1998 respectively. Both schemes were closed to future accrual of 
benefits on 30 June 2002 and 30 June 2005 respectively.
 
J Sach, D Smallridge and A Dix are members of a Group Personal 
Pension Plan sponsored by the Group. For the purposes of 
determining employer contributions to that scheme, annual 
performance related bonuses are not included in the pensionable pay 
of the Executive Directors. 
Directors’ Remuneration Report WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
22
Directors’ contracts
It is the Company’s policy that Executive Directors should have contracts with an indefinite term providing for a maximum of one year’s notice.
In the event of early termination, the Executive Directors’ contracts provide for compensation of an amount equal to the gross salary and benefits 
that they would have received during the balance of the notice period, plus any bonus once declared to which they would have become entitled 
had contractual notice been given.
Non-executive Directors
All Non-executive Directors have service contracts with an indefinite term subject to a six month notice provision. Their remuneration is 
determined by the Board taking into account their duties and the level of fees paid to Non-executive Directors of similar companies. The 
Non-executive Directors do not participate in the Company’s bonus, long-term incentive or share option schemes and no pension contributions 
are made in respect of them. 
Aggregate Directors’ remuneration
The total amounts for Directors’ remuneration were as follows:
Salary  
£000
Annual bonus  
£000
LTIP Awards
1
£000
Benefits  
in kind  
£000
Pension  
contribution  
£000
2010  
Total  
£000
2009  
Total  
£000
Executive Directors
J D Sach 220 121 126 6 33 506 258
D H Smallridge 160 88 117 1 24 390 177
A N Dix 126 50 78 1 13 268 140
Non-executive Directors
T Stannard
2
60 – – – – 60 26
F Goldsmith
3
26 – – – – 26 4
I Kirkham
4
– – – – – – 65
592 259 321 8 70 1,250 670
1 ‘LTIP Awards’ shown above refer to the pre-tax gains made on exercise of nil priced share options following vesting of awards on 25 July 2009. 
2 Appointed Chairman 31 January 2009.
3 Appointed 17 December 2008.
4 Resigned 31 January 2009.
Directors’ pension entitlements
Accrued annual pension benefits for J Sach at the year end were £11,406 (2009: £10,188). 
Directors’ LTIP Awards
Date of grant
Maximum 
awards at 
1/2/09
Granted in 
year
Exercised in 
year
Lapsed in 
year
Maximum 
awards at 
31/1/10
J D Sach 25/07/2006 805,298 – 754,052 51,246 –
24/05/2007 495,283 – – – 495,283
27/05/2009 – 800,000 – – 800,000
Sub-total 1,300,581 800,000 754,052 51,246 1,295,283
D H Smallridge 25/07/2006 745,297 – 697,869 47,428 –
24/05/2007 353,774 – – – 353,774
27/05/2009 – 600,000 – – 600,000
1,099,071 600,000 697,869 47,428 953,774
A N Dix 25/07/2006 498,405 – 466,688 31,717 –
24/05/2007 283,019 – – – 283,019
27/05/2009 – 300,000 – – 300,000
781,424 300,000 466,688 31,717 583,019
On 20 May 2010 further awards were made to the Executive Directors as follows: John Sach 680,000, David Smallridge 495,000 and  
Alan Dix 292,000.
Directors’ Remuneration Report continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
23
0
50
100
150
200
250
300
02/02/2009 01/02/2008 01/02/2007 01/02/2006
Walker Greenbank PLC
FTSE AIM ALL-SHARE
Directors’ Remuneration Report
The award of shares on 24 May 2007 has a four year vesting period 
and is subject to the achievement of a profit before tax of at least  
£3.7 million for the financial year ended 31 January 2011. The award 
begins to vest upon the Company achieving a profit before tax of  
£3.7 million and increases on a sliding scale to achieve maximum 
award at a profit before tax of £4.3 million. The share price on the  
date of grant was 53.0p.
The award of shares on 27 May 2009 has a three year vesting period 
and is subject to a minimum profit before tax hurdle of £3.1 million for 
the financial year ended 31 January 2012. The award begins to vest to 
Executive Directors upon the Company achieving Total Shareholder 
Return at the median of its comparator group operating in the 
Household sector and increases on a sliding scale to achieve 
maximum award if the Company tops its comparator group. The share 
price on the date of grant was 14.25p.
The share price reached a high of 24.00p and a low of 7.00p  
during the financial year end 31 January 2010. The average 
share price during the financial year was 16.77p. The share price  
on 31 January 2010 was 22.50p.
Total Shareholder Return Index for the four financial years 
ending 31 January 2010
Approval
This report was approved by the Directors and signed on its behalf by:
Julian Wilson
Company Secretary
2 June 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
24
As a Company listed on the Alternative Investment Market (AIM) the 
Company is not required to adhere to the Combined Code on 
Corporate Governance (‘the Code’) June 2008. Whilst the Company is 
not required to comply with the Code, it has used the Code as best 
practice guidance and voluntarily presented disclosures that reflect the 
extent of the Company’s application of the Code.
The Board
The Company is supervised by the Board of Directors. The Board 
comprises three Executive Directors and two Non-executive Directors.
The Board considers, after careful review, that the Non-executive 
Directors bring an independent judgement to bear. All Non-executive 
Directors have contracts which contain six month notice clauses. 
These are available for inspection at the Company’s registered office 
and at the Annual General Meeting. All Directors retire by rotation at 
regular intervals in accordance with the Company’s Articles of 
Association and the principles of the Code. The Non-executive 
Directors continue to retire for re-election at least every third year. All 
Directors undergo a performance evaluation before being proposed for 
re-election to ensure their performance continues to be effective, that 
where appropriate they maintain their independence and that they are 
demonstrating continued commitment to the role.
The Board meets at least nine times each year and has a formal 
schedule of matters reserved to it. It is responsible for overall Group 
strategy; approval of major capital expenditure projects; approval of 
the annual and interim results; annual budgets; dividend policy; and 
Board structure. It monitors the exposure to key business risks and 
reviews the strategic direction of all trading subsidiaries, their annual 
budgets, their performance in relation to those budgets and their 
capital expenditure.
All Directors receive regular and timely information on the Group’s 
operational and financial performance. Relevant information is 
circulated to the Directors in advance of meetings. All Directors have 
direct access to the advice and services of the Company Secretary 
and are able to take independent professional advice in the 
furtherance of their duties, if necessary, at the Company’s expense.
Nomination Committee
The Nomination Committee is chaired by T Stannard and comprises 
F Goldsmith, the other Non-executive Director and the Chief Executive.
It makes recommendations to the Board on all new Board 
appointments. The Company’s Articles of Association stipulate that 
one third of the Directors or the nearest whole number below one  
third shall retire each year. The Company requires all Directors to 
submit themselves for re-election at least every three years. New 
Articles of Association will be proposed for adoption at the Annual 
General Meeting.
Remuneration Committee
The Remuneration Committee is chaired by T Stannard Non-executive 
Chairman and F Goldsmith the other Non-executive Director. The 
Remuneration Committee is responsible for making recommendations 
to the Board in relation to all aspects of remuneration for Executive 
Directors and designated senior managers. The Remuneration 
Committee believes that the presence of the Chief Executive is 
important when determining the remuneration of the other  
Executive Directors.
In framing its policy the Remuneration Committee takes into account 
any factors which it deems necessary, including industry standard 
executive remuneration, differentials between executive and  
employee remuneration and differentials between executives.  
The remuneration of the Non-executive Directors is determined  
by the Executive Directors.
Audit Committee
The Audit Committee is chaired by F Goldsmith and comprises 
T Stannard, the other Non-executive Director. Although all the 
Committee members are considered to be appropriately experienced 
to fulfill their role, F Goldsmith is considered as having significant, 
recent and relevant experience in line with the Code. Further details of 
each of the independent Directors are set out on page 16. The Audit 
Committee meets at least twice each year. It considers any matter 
relating to the financial affairs of the Group and to the Group’s external 
audit that it determines to be relevant. In particular the Committee 
overviews the monitoring of the adequacy of the Group’s internal 
controls, accounting policies and financial reporting and provides a 
forum through which the Group’s external auditors report to the 
Non-executive Directors.
Internal control
The Board acknowledges that it is responsible for the Group’s system 
of internal control and for reviewing its effectiveness. 
The Board intends to keep its risk control procedures under constant 
review particularly with regard to the need to embed internal control 
and risk management procedures further into the operations of 
business, both in the UK and overseas, and to deal with areas of 
improvement which come to management’s and the Board’s attention.
As might be expected in a group of this size, a key control procedure  
is the day to day supervision of the business by the Executive 
Directors, supported by the senior managers with responsibility  
for key operations.
The Executive Directors are involved in the budget setting process, 
regularly monitor key performance indicators and review management 
accounts on a monthly basis, noting and investigating any major 
variances. All significant capital expenditure decisions are approved by 
the Board as a whole.
The Group’s significant risks, together with the relevant control and 
monitoring procedures, are subject to regular review to enable the 
Board to assess the effectiveness of the system of internal control. 
During the course of its reviews the Board has not identified nor been 
advised of any failings or weaknesses which it has determined to  
be significant.
The Group’s system of internal control is designed to manage rather 
than eliminate the risk of failure to achieve business objectives, and 
can only provide reasonable and not absolute assurance against 
material misstatement or loss.
Relations with shareholders
The Group encourages two way communications with both its 
institutional and private investors and responds in a timely fashion 
 to all queries received. All shareholders receive notice of the Annual 
General Meeting at which all Committee chairmen will be available  
for questions.
Corporate Governance Statement WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
25
Accounts
We have audited the group financial statements of Walker Greenbank 
plc for the year ended 31 January 2010 which comprise the 
Consolidated Income Statement, the Consolidated Statement of 
Comprehensive Income, the Consolidated Balance Sheet, the 
Consolidated Cash Flow Statement, the Consolidated Statement of 
Changes in Equity, and the related notes. The financial reporting 
framework that has been applied in their preparation is applicable law 
and International Financial Reporting Standards (‘IFRSs’) as adopted 
by the European Union.
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities, 
the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view. 
Our responsibility is to audit the financial statements in accordance 
with applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing 
Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for 
the company’s members as a body in accordance with Chapter 3 of 
Part 16 of the Companies Act 2006 and for no other purpose. We do 
not, in giving these opinions, accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown or 
into whose hands it may come save where expressly agreed by our 
prior consent in writing.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or error. This includes an 
assessment of: whether the accounting policies are appropriate to the 
group’s circumstances and have been consistently applied and 
adequately disclosed; the reasonableness of significant accounting 
estimates made by the directors; and the overall presentation of the 
financial statements.
Opinion on financial statements
In our opinion the group financial statements:
give a true and fair view of the state of the group’s affairs as at 31  >
January 2010 and of its profit and cash flows for the year then 
ended;
have been properly prepared in accordance with IFRSs as adopted  >
by the European Union; and
have been prepared in accordance with the requirements of the  >
Companies Act 2006.
Opinion on other matter prescribed by the Companies
Act 2006
In our opinion the information given in the Directors’ Report for the 
financial year for which the group financial statements are prepared is 
consistent with the group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the 
Companies Act 2006 requires us to report to you if, in our opinion:
certain disclosures of directors’ remuneration specified by law are  >
not made; or
we have not received all the information and explanations we  >
require for our audit.
Other matter
We have reported separately on the parent company financial 
statements of Walker Greenbank plc for the year ended  
31 January 2010.
Owen Mackney (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
St Albans
2 June 2010
Independent Auditors’ Report
To the members of Walker Greenbank Plc WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
26
Note
2010  
£000
2009  
£000
Revenue 4 60,378 63,698
 Profit from operations before exceptional items 2,522 3,857
 Exceptional items:
 – redundancy expenses 5 (332) (146)
 – net proceeds from insurance recovery/(costs from insurance event) 5 225 (150)
Profit from operations 4–6 2,415 3,561
Net defined benefit pension charge 8 (600) (79)
Net borrowing costs 9 (263) (695)
Net finance costs (863) (774)
Profit before taxation 1,552 2,787
 Deferred tax – exceptional 12 – (320)
 Deferred tax – other 12 (411) (788)
 Current taxation 12 32 (57)
Total tax (charge)/credit 12 (379) (1,165)
Profit for the year 1,173 1,622
Earnings per share – Basic and diluted 13 2.10p 2.96p
The notes on pages 31 to 59 form an integral part of the consolidated financial statements.
Consolidated Income Statement
Year ended 31 January 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
27
Accounts
Note
2010  
£000
2009  
£000
Profit for the year 1,173 1,622
Other Comprehensive Income:
Actuarial gains/(losses) on scheme assets 23 2,665 (7,458)
Changes in actuarial mortality assumptions 23 495 –
Actuarial (losses)/gains on scheme liabilities 23 (7,694) 5,458
Currency translation differences 175 (350)
Cash flow hedges 987 (702)
Recognition of deferred tax asset relating to pension scheme liability 1,059 211
Other comprehensive expense for the year, net of tax (2,313) (2,841)
Total comprehensive expense for the year attributable to the owners of the parent (1,140) (1,219)
The notes on pages 31 to 59 form an integral part of the consolidated financial statements.
Consolidated Statement of Comprehensive Income
Year ended 31 January 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
28
Note
2010  
£000
2009  
£000
Non-current assets
Intangible assets 14 5,687 5,877
Property, plant & equipment 15 8,160 8,734
Deferred income tax assets 16 5,806 5,158
Trade and other receivables 17 – 12
19,653 19,781
Current assets
Trade and other receivables 17 10,309 12,552
Inventories 18 13,238 13,887
Derivative financial instruments 21 175 –
Cash and cash equivalents 19 2,333 1,050
26,055 27,489
Total assets 45,708 47,270
Current liabilities
Trade and other payables 20 (13,548) (15,118)
Derivative financial instruments 21 – (812)
Borrowings 22 (2,867) (400)
(16,415) (16,330)
Net current assets 9,640 11,159
Non-current liabilities
Borrowings 22 (2,580) (6,868)
Retirement benefit obligation 23 (7,943) (4,161)
(10,523) (11,029)
Total liabilities (26,938) (27,359)
Net assets 18,770 19,911
Equity
Share capital 25 590 590
Share premium account 457 457
Foreign currency translation reserve (165) (340)
Accumulated losses (22,794) (20,491)
Other reserves 40,682 39,695
Total equity 18,770 19,911
The notes on pages 31 to 59 form an integral part of the consolidated financial statements.
J D Sach     A N Dix
Director     Director
These accounts were approved by the Directors on 2 June 2010.
Consolidated Balance Sheet
At 31 January 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
29
Accounts
Note
2010  
£000
2009  
£000
Cash flows from operating activities
Cash generated from operations 28 4,592 3,536
Interest paid (239) (704)
Interest received – 35
Income tax received 50 –
Income tax paid (65) (37)
4,338 2,830
Cash flows from investing activities
Purchase of intangible fixed assets (272) (420)
Purchase of property, plant & equipment (795) (1,267)
Proceeds from sale of subsidiary 32 – –
Proceeds on sale of property, plant and equipment – 7
(1,067) (1,680)
Cash flows from financing activities
Purchase of treasury shares (128) (83)
Net repayment of borrowings (1,845) (2,064)
(1,973) (2,147)
Net increase/(decrease) in cash, cash equivalents and bank overdrafts 1,298 (997)
Cash, cash equivalents and bank overdrafts at beginning of year 1,050 2,017
Exchange (losses)/gains on cash and bank overdrafts (15) 30
Cash, cash equivalents and bank overdrafts at end of year 29 2,333 1,050
The notes on pages 31 to 59 form an integral part of the consolidated financial statements.
Consolidated Cash Flow Statement
Year ended 31 January 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
30
Share capital  
£000
Share 
premium 
account  
£000
Accumulated 
losses  
£000
Other Reserves
Translation 
reserve  
£000
Total  
£000
Capital 
reserve  
£000
Merger 
reserve  
£000
Hedge 
reserve  
£000
Balance at 1 February 2008 590 457 (20,655) 43,457 (2,950) (110) 10 20,799
Profit for the year – – 1,622 – – – – 1,622
Other comprehensive income:
Actuarial losses on scheme assets – – (7,458) – – – – (7,458)
Other actuarial gains on scheme liabilities – – 5,458 – – – – 5,458
Deferred tax relating to pension scheme 
liabilities – – 211 – – – – 211
Currency translation differences – – – – – – (350) (350)
Cash flow hedging reserve – released to income 
statement – – – – – 110 – 110
Cash flow hedging reserve – recognised in 
equity during the year – – – – – (812) – (812)
Total comprehensive income/(expense) – – (167) – – (702) (350) (1,219)
Transactions with owners:
Reserve for long-term incentive plan – – 414 – – – – 414
Purchase of treasury shares – – (83) – – – – (83)
31 January 2009 590 457 (20,491) 43,457 (2,950) (812) (340) 19,911
Balance at 1 February 2009 590 457 (20,491) 43,457 (2,950) (812) (340) 19,911
Profit for the year – – 1,173 – – – – 1,173
Other comprehensive income:
Actuarial gains on scheme assets – – 2,665 – – – – 2,665
Changes in actuarial mortality assumptions – – 495 – – – – 495
Other actuarial losses on scheme liabilities – – (7,694) – – – – (7,694)
Deferred tax relating to pension scheme liability – – 1,059 – – – – 1,059
Currency translation differences – – – – – – 175 175
Cash flow hedging reserve – released to income 
statement – – – – – 812 – 812
Cash flow hedging reserve – recognised in 
equity during the year – – – – – 175 – 175
Total comprehensive income/(expense) – – (2,302) – – 987 175 (1,140)
Transactions with owners:
Reserve for long-term incentive plan – – 127 – – – – 127
Purchase of treasury shares – – (128) – – – – (128)
Balance at 31 January 2010 590 457 (22,794) 43,457 (2,950) 175 (165) 18,770
Consolidated Statement of Changes in Equity
Year ended 31 January 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
31
Accounts
1. Accounting policies and general information
General information
Walker Greenbank PLC is a luxury interior furnishings group whose brands include Harlequin, Sanderson, Morris & Co. and Zoffany. The brands 
are targeted at the mid to upper end of the premium market. They have worldwide distribution including prestigious showrooms at Chelsea 
Harbour, London and the D&D building, Manhattan, New York. Half of the brand’s turnover is sourced in-house from the Group’s own specialist 
manufacturing facilities of Standfast & Barracks, the fabric printing business situated in Lancaster, and Anstey Wallpaper Company situated in 
Loughborough. The manufacturing businesses produce for other interior furnishing businesses both in the UK and throughout the world. The 
Company is a public limited company which is listed on the Alternative Investment Market of the London Stock Exchange and is registered and 
domiciled in the UK.
Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by 
the European Union and International Financial Reporting Interpretation Committee (‘IFRIC’) interpretations and the Companies Act 2006 
applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost convention, 
as modified by the valuation of derivative financial instruments at fair value, and with the accounting policies set out below which have been 
consistently applied to all periods presented unless otherwise indicated.
In preparing these financial statements the Group has applied the IFRS’s adopted by the European Union and the IFRIC interpretations where the 
effective date is relevant to the financial year commencing on 1 February 2009 or ending 31 January 2010.
Since the Group’s previous annual financial report for the year ended 31 January 2009 the following pronouncements are now effective and have 
been adopted by the Group:
IAS 1 (revised) ‘Presentation of financial statements’ – adoption of this standard has resulted in presentational changes to the primary financial  >
statements. Under IAS 1 (revised), entities can choose to present one performance statement (the Statement of Comprehensive Income) or 
two performance statements (the Income Statement and the Statement of Comprehensive Income). The Group has elected to produce two 
statements: the Income Statement and Statement of Comprehensive Income.
IFRS 8 ‘Operating segments’ – adoption of this standard has resulted in changes to the reportable segments of the Group, as further  >
explained in note 4.
The Group has also adopted a number of other standards, amendments and interpretations which are effective in the year ended 31 January 
2010 but the initial application of these has not had an effect on either the current or prior periods.
The Group has not applied the following new standards, amendments and interpretations for which adoption is not mandatory for the year ending 
31 January 2010 and/or which have not yet been endorsed by the EU. The Group has not concluded its evaluation of the impact of these 
pronouncements but at this stage does not expect there to be any material impact on the financial statements.
IFRS 1 (revised) ‘First time adoption’ >
Amendment to IFRS 1 (revised) ‘First time adoption – additional exemptions’ >
Amendment to IFRS 1 (revised) ‘First time adoption – fair value hierarchy exemption’ >
Amendment to IFRS 2 ‘Share-based payments ‘group cash-settled share-based payment transactions’ >
IFRS 3 (revised) ‘Business combinations’ >
IFRS 9 ‘Financial instruments’ >
Amendment to IAS 24 ‘Related party disclosures’ >
IAS 27 (revised) ‘Consolidated and separate financial statements’ >
Amendment to IAS 32 ‘Financial Instruments: disclosure and presentation – classification of rights issues’ >
Amendment to IAS 39 ‘Financial instruments: recognition and measurement – eligible hedged items’ >
IFRS Annual improvements (2009) >
IFRIC 12 ‘Service concession arrangements’ >
Amendment to IFRIC 14 ‘Prepayment of minimum funding requirements’ >
IFRIC 16 ‘Hedges of a net investment in a foreign operation’ >
IFRIC 17 ‘Distributions of non cash assets to owners’ >
IFRIC 18 ‘Transfer of assets from customers’ >
IFRIC 19 ‘Extinguishing financial liabilities with equity instruments’ >
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires 
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of 
judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in 
note 3.
The financial statements of the Company as an entity continue to be prepared under United Kingdom Generally Accepted Accounting Practice 
and are presented separately from the consolidated financial statements (pages 62 to 69).
Notes to the Consolidated Accounts WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
32
1. Accounting policies continued
Basis of Consolidation
The consolidated financial information incorporates the financial statements of the Company and all its subsidiary undertakings made up to 31 
January each year. Subsidiaries are entities where the Company has the power to govern the financial and operating policies, generally 
accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently 
exercisable or convertible are considered when assessing whether the Group controls another entity.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date on 
which control is transferred to or from the Group, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring accounting policies used into line with those used by 
the Group.
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured as the aggregate of the fair 
values, at the date of exchange, of the assets given, liabilities incurred or assumed, and equity instruments issued by the Group, in exchange for 
control of the acquirer. The identifiable assets, liabilities and contingent liabilities assumed in a business combination are measured initially at their 
fair values at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 
‘Non Current Assets Held for Sale and Discontinued Operations’, which are recognised and measured at fair value less costs to sell.
Goodwill arising on acquisition is recognised as an asset in accordance with the policy described below.
All inter-company transactions and balances are eliminated on consolidation. Profits and losses resulting from inter-company transactions that are 
recognised in assets, such as inventory, are eliminated in full. Unrealised losses are also eliminated unless the transaction provides evidence of an 
impairment of the assets transferred.
Employee Share Ownership Plans (‘ESOPs’) controlled by the Group are also included by consolidation. Until shares held by the ESOP vest 
unconditionally in and are transferred to employees, the consideration paid for those shares is deducted from consolidated equity. No gain or loss 
is recognised in the statement of comprehensive income on the purchase, sale, issue or cancellation of shares, including transfers to and from 
treasury shares. Dividends receivable on shares held by the ESOP are excluded from the income statement, and are excluded from amounts 
recognised as dividends payable by the Group.
Foreign currencies
For the purpose of the consolidated financial statements, the results and financial position are expressed in sterling, which is the functional 
currency of the Company, and the presentation currency for the consolidated financial statements.
Transactions in foreign currencies, which are those other than the functional currency of an entity, are recorded at the rate ruling at the date of the 
transaction. Monetary assets and liabilities denominated in foreign currency are translated at the balance sheet date. All unhedged exchange 
differences are recognised in the income statement for the period and classified as other operating income or charges.
The assets and liabilities of the Group’s overseas subsidiaries on consolidation are translated at the rates of exchange ruling at the balance sheet 
date. The income and expenses are translated at the weighted average rate during the period. Differences on translation are recognised in a 
separate foreign currency translation reserve within equity. On disposal of an overseas subsidiary, the cumulative exchange differences for that 
subsidiary are recognised in the income statement as part of the profit or loss on disposal.
Intangible Assets – Goodwill
Goodwill arising on acquisition is initially measured at cost, being the excess of the fair value of the consideration for the acquisition over the 
Group’s interest in the net fair value of the acquired entity’s identifiable assets, liabilities and contingent liabilities at the date of acquisition. 
Goodwill is not amortised, but reviewed for impairment annually, any impairment is recognised immediately in the income statement and is not 
subsequently reversed. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those 
cash-generating units that are expected to benefit from the business combination in which the goodwill arose.
On disposal of a subsidiary or cash generating unit the attributable amount of goodwill is included in the determination of the profit or loss  
on disposal.
Intangible Assets – Archive
The Arthur Sanderson and William Morris archive comprises a historic record of unique designs that are used to generate a significant royalty 
income in the business. The archive is valued at historical cost. The Directors believe that the archive has an indefinite useful life and is therefore 
not subject to amortisation. The carrying value of this asset is reviewed annually and provision made for any impairment in the carrying value  
if required.
Intangible Assets – Software assets
Acquired computer software licences are capitalised at the cost incurred to bring the asset into use, including where relevant directly attributable 
internal costs incurred in preparing the software for operation. The costs are amortised to their estimated residual value over their estimated 
useful life which range from three to six years.
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
33
Accounts
1. Accounting policies continued
Intangible Assets – Collection design
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects relating to the design of new collections 
are recognised as intangible assets when the following criteria are fulfilled:
It is technically feasible to complete the new collection so that is will be available for use or sale. >
Management intends to complete the new collection and use it or sell it. >
There is an ability to use or sell the new collection. >
It can be demonstrated how the new collection will generate probable future economic benefits. >
Adequate technical, financial and other resources to complete the development and to use or sell the new collection are available. >
The expenditure attributable to the new collection during its development can be reliably measured. >
Any costs relating to design of new collections that do not meet these criteria are recognised as an expense as incurred. Any such costs 
recognised as an expense in previous periods are not recognised as an asset in a subsequent period. Capitalised collection design costs are 
recognised as intangible assets and are amortised to their estimated residual value at 25% on a straight line basis over the life of the asset, and 
are tested for impairment if any impairment trigger events are identified in accordance with IAS 36.
Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and any recognised impairment loss. Historical cost 
comprises the purchase price and costs directly incurred in bringing the asset into use. The assets’ residual values and useful lives are reviewed 
annually and adjusted if appropriate, at each balance sheet date.
Depreciation is charged on a straight line basis on the original costs (excluding freehold land) after deduction of any estimated residual value.  
The principal annual rates are:
Freehold buildings 2%
Leasehold improvements Over the length of the lease
Plant, equipment and vehicles between 5% and 33%
Computer hardware 33%
Government grants received for property, plant and equipment are classified within the cost of property, plant and equipment and released to the 
income statement over the life of the asset.
Impairment of non-financial assets
Intangible assets with finite useful lives and property, plant and equipment are tested for impairment if events or changes in circumstances 
(assessed at each reporting date) indicate that the carrying amount may not be recoverable. When an impairment test is conducted, the 
recoverable amount is assessed by reference to the higher of the value in use (net present value of expected future cash flows of the relevant 
cash generating unit), or the fair value less cost to sell.
Goodwill and other intangible fixed assets with an indefinite useful life are tested for impairment at least annually.
If a cash generating unit is impaired, provision is made to reduce the carrying amount of the related assets to their estimated recoverable amount. 
Impairment losses are allocated firstly against goodwill, and secondly on a pro rata basis against intangible and other assets.
Non-financial assets other than goodwill that suffer impairment are reviewed for possible reversal of the impairment at each reporting date.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials, on a first-in, first-out basis, and direct labour, 
plus attributable production overheads based on a normal level of activity. Net realisable value is based on estimated selling prices less 
anticipated costs of disposal. Provision is made for any slow moving and obsolete inventory.
Marketing materials
Marketing materials consist of patterning books and other marketing assets used to support the sale of the Group’s products. They are 
recognised at the lower of cost and net realisable value. Cost comprises direct materials plus costs of production. Net realisable value is based 
on estimated recoveries from customers and distributors for those pattern books expected to be sold, less anticipated costs of disposals. As 
books are sold or otherwise utilised, their cost is charged to the income statement as an expense. An impairment allowance is made for any slow 
moving and obsolete marketing materials including those expected to given away free of charge. The Group’s policy is to classify marketing 
materials on the balance sheet within trade and other receivables. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
34
1. Accounting policies continued
Financial assets and liabilities – measurement basis
Financial assets and liabilities are recognised on the date on which the Group becomes a party to the contractual provisions of the instrument 
giving rise to the asset or liability. Financial assets and liabilities are initially recognised at fair value plus transaction costs. Any impairment of a 
financial asset is charged to the consolidated income statement when incurred. Financial assets are derecognised when the Group’s rights to 
cash inflows from the asset expire: financial liabilities are derecognised when the contractual obligations are discharged, cancelled or expire.
Non-derivative financial assets are classified according to the purpose for which the asset was acquired. The Group’s financial assets are 
classified as either:
‘trade and other receivables’ – these are non derivative financial assets with fixed or determinable payments that are not quoted in an active  >
market. They arise when the Group provides goods directly to a debtor, or advances money, with no intention of trading the loan or receivable. 
Subsequent to initial recognition loans and receivables are included in the balance sheet at amortised cost using the effective interest method 
less any amounts written off to reflect impairment, with changes in carrying amount recognised in the consolidated income statement within 
administrative expenses.
‘cash and cash equivalents’ – these comprise of deposits with an original maturity of three months or less with banks and financial institutions,  >
bank balances, bank overdrafts and cash in hand.
A provision for impairment of trade and other receivables is established when there is objective evidence that the Group will not be able to collect 
all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will 
enter bankruptcy or financial reorganisation, default or delinquency in payments, and the unavailability of credit insurance at commercial rates for 
debtors are considered indicators that the trade receivable may be impaired. The amount of the provision is the difference between the asset’s 
carrying amount and the net present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of 
the asset is reduced through the use of a provision account, and the amount of the loss is recognised in the income statement within 
administrative expenses. When a trade receivable is uncollectible, it is written off against the provision account for trade receivables. Subsequent 
recoveries of amounts previously written off are credited against administrative expenses in the income statement.
The Group’s non-derivative financial liabilities are classified as ‘Other liabilities’. ‘Other liabilities’ are financial liabilities with fixed or determinable 
payments that are not quoted in an active market. They arise when the Group receives goods or services directly from a creditor or supplier, or 
borrows money, with no intention of trading the liability. This category includes:
‘trade and other payables’ – these are typically non-interest bearing and following initial recognition are included in the balance sheet at  >
amortised cost;
‘bank loans and overdrafts’ – these are initially recorded at fair value based on proceeds received net of issue costs. Finance charges are  >
accounted for on an accruals basis and charged to the consolidated income statement using the effective interest rate method;
‘borrowings’ – these are recorded initially at the fair value, net of direct issue costs, and are subsequently stated at amortised cost. Finance  >
charges, including premiums payable on settlement, or redemption and direct issue costs, are accounted for on an accruals basis in the 
income statement, using the effective interest method, and are included within the carrying amount of the instrument to the extent that they 
are not settled in the period in which they arise.
The Group does not have any non-derivative financial assets or liabilities classified as ‘at fair value through profit and loss’.
Borrowing costs are capitalised as an increase to the carrying value of software or property, plant and equipment on major projects where their 
impact is material.
Derivative financial instruments and hedge accounting – measurement basis
The Group’s activities expose it to the financial risks of changes in exchange rates, and the Group uses forward exchange rate contracts to 
manage these exposures. The use of derivative financial instruments is governed by the Group’s policies approved by the Board of Directors, 
which provide written principles on the use of derivative financial instruments.
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items. The Group also 
documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions 
are highly effective in offsetting changes in fair values or cash flows of hedged items. The effective portion of changes in the fair value of 
derivatives that are designated and qualify as cash flow hedges is recognised in equity.
The gain or loss relating to the ineffective portion is recognised immediately in the income statement within ‘other operating income/(expense)’. 
Amounts accumulated in equity are released to the income statement when the hedged item effects the income statement, and are also classified 
in the income statement within ‘other operating income/(expense)’.
Derivatives that do not qualify for hedge accounting under IAS 39 are classified as ‘financial assets or liabilities at fair value through the profit or 
loss’. They are initially recognised at fair value, with fair value being remeasured at each reporting date. The fair value of the derivative is based on 
market price of comparable instruments at the balance sheet date. Changes in fair value are included in the consolidated income statement within 
finance costs.
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
35
Accounts
1. Accounting policies continued
The Group has no embedded derivatives that are not closely related to the host instrument.
Cash & cash equivalents
Cash and cash equivalents represent only liquid assets with original maturity of 90 days or less. Cash and cash equivalents include cash in hand, 
deposits held at call with banks and bank overdrafts. Bank overdrafts that cannot be offset against other cash balances are shown within 
borrowings in current liabilities on the balance sheet.
For the purposes of the cash flow statement it is the Group’s policy to classify interest income and expense, and other finance costs, within ‘cash 
flows from operating activities’.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that the Group will be required to 
settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance 
sheet date, and are discounted to present value where the effect is considered material.
Leases
Leases are classified as finance leases where the terms of the lease transfer substantially all the risks and rewards of ownership to the Group.  
All other leases are classified as operating leases.
Assets used by the Group which have been funded through finance leases are capitalised in property, plant and equipment and the resulting lease 
obligations are included in liabilities. The assets are depreciated over their useful lives and the interest element of the rental obligations is charged 
to the income statement over the period of the lease, and represents a constant proportion of the balance of capital repayments outstanding.
Operating lease rentals are charged to the income statement on a straight-line basis over the period of the lease. Rent free periods receivable on 
entering an operating lease are released on a straight-line basis over the term of the lease.
Employee benefits – pension obligations
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
For defined benefit retirement schemes, the funding of benefits is determined using the projected unit credit method, with full actuarial valuations 
being carried out triennially.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for 
unrecognised service cost, and as reduced by the fair value of the scheme assets. Any asset resulting from this calculation is limited to past 
service cost, plus present value of available refunds and reductions in future contributions to the plan.
The defined benefit obligation is calculated annually by qualified independent actuaries using the projected unit credit method. The present value 
of the defined benefit obligation is determined by discounting the future cash outflows using interest rates of high quality corporate bonds that 
have terms to maturity approximating to the terms of the related pension liability.
Scheme expenses met by the Group, expected returns on plan assets, and interest on pension scheme liabilities are classified within ‘Net defined 
benefit pension costs’ on the consolidated income statement.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in full in the period in which 
they occur. They are recognised outside the income statement and presented in the statement of comprehensive income.
Past service costs are recognised immediately to the extent that the benefits are already vested, and otherwise are amortised on a straight-line 
basis over the average period until the benefits become vested.
Employee benefits – share based payments under long-term incentive plans (‘LTIP’)
The Group issues equity-settled share-based payments to certain employees which must be measured at fair value and recognised as an 
expense in the income statement with a corresponding increase in equity. The fair values of these payments are measured at the dates of grant, 
taking into account the terms and conditions upon which the awards are granted. The fair value is recognised over the period during which 
employees become conditionally entitled to the awards, subject to the Group’s estimate of the number of awards which will lapse, either due to 
employees leaving the Group prior to vesting or due to non-market based performance conditions not being met. The total amount recognised in 
the income statement as an expense is adjusted to reflect the actual number of awards that vest.
Employee benefits – short-term bonus plans
The Group recognises a liability and an expense for bonuses where contractually obliged or where there is a past practice that has created a 
constructive obligation. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
36
1. Accounting policies continued
Share capital
Ordinary shares are classified as equity. Costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of 
tax, from the proceeds.
Treasury shares
Consideration paid including any directly attributable incremental costs (net of income taxes) on the purchase of the Company’s equity share 
capital (treasury shares) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. Where 
such shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related 
income tax effects, is included in equity attributable to the Company’s equity shareholders.
Revenue
The Group revenue is measured at fair value of the consideration received or receivable and represents amounts recoverable by the Group for 
goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Revenue comprises:
Sale of goods – sales of goods are recognised when the Group has transferred to the buyer the significant risks and rewards of ownership,  >
which is usually at the point of delivery of the goods.
Royalty revenue – royalties are received from licence holders under the terms of various agreements, and are recognised on an accruals basis  >
in accordance with the substance of the relevant agreement.
Deposits received from customers in advance of the delivery of goods or services are recognised as deferred income. Amounts receivable from 
customers which represent the recovery of expenses incurred by the Group for design and set-up costs, delivery, and marketing materials are not 
considered to be revenue, and are credited to the relevant expense within the income statement.
Exceptional items
Items that are both material and whose nature is sufficient to warrant separate disclosure and identification are disclosed within the financial 
statements and classified within their relevant income statement category.
Taxation including deferred tax
The tax expense represents the sum of the current tax and deferred tax charges or credits.
Current tax is based on the taxable profit for the year. Taxable profits differs from the net profit as reported in the income statement because it 
excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or 
deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet 
date. Current tax includes withholding taxes from sales and licensing income in overseas territories.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial 
statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability 
method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent 
that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities 
are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other 
assets and liabilities in a transaction that effects neither the tax profit nor the accounting profit.
IAS 12 ‘Income taxes’ requires that the measurement of deferred tax should have regard to the tax consequences that would follow from the 
manner of expected recovery or settlement at the balance sheet date of the carrying amount of its assets and liabilities. In calculating its deferred 
tax liability the Group’s policy is to regard the depreciable amount of the carrying value of its property, plant and equipment to be recovered 
through continuing use in the business, unless included within assets held for resale, where the policy is to regard the carrying amount as being 
recoverable through sale.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries except where the Group is able to 
control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that 
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax 
is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred 
tax is also dealt with in equity. Deferred tax relating to retirement benefit obligations is also recognised in equity where the tax relief arises from 
contributions paid to fund deficits arising in previous periods that were recognised in equity.
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
37
Accounts
1. Accounting policies continued
Segmental reporting
Walker Greenbank is a designer, manufacturer and distributor of furnishings, fabrics and wallpaper. The Group predominantly manages its 
operations as three reportable segments which are the brands, manufacturing and overseas.
Reportable segments consist of one or more operating segments. Aggregation of operating segments into reportable segments occurs when 
aggregation criteria, as laid down in IFRS 8 ‘Operating Segments’ are satisfied, including similar economic characteristics or when operating 
segments are less than quantitative limits as laid down in IFRS 8. After applying aggregation, segmental information is disclosed in a manner 
consistent with the internal reporting to the chief operating decision maker (‘CODM’). The Group considers its CODM to be the Board of 
Directors, who are responsible for allocating resources and assessing performance of the operating segments.
Interest received
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
2. Financial risk management
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate 
risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial 
markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to 
hedge certain risk exposures.
Risk management is carried out at Board level under policies approved by the Board of Directors. Executive Directors identify, evaluate and where 
appropriate hedge financial risks in close co-operation with the Group’s operating units.
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the 
US dollar and the euro. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a 
currency that is not the entity’s functional currency.
The Group’s policy is, where possible to allow the Group entities to settle liabilities in their functional currency with the cash generated from their 
operations in that currency. Where the Group entities have liabilities denominated in a currency other than their functional currency (and have 
insufficient reserves of that currency to settle them) cash already denominated in that currency will, where possible be transferred from elsewhere 
in the Group.
To manage the foreign exchange risk arising on future transactions, it is the Group’s policy to enter into forward currency contracts to hedge  
the exposure.
For the year ended 31 January 2010, the average sterling to US dollar translation rate applied by the Group including the impact of hedging 
contracts was £1 : US$1.88. If the rate had been £1 : US$1.78 lower with all other variables held constant, profit before tax would have been 
higher by £149,000. If the rate had been £1 : US$1.98 higher with all other variables held constant, profit before tax would have been lower  
by £134,000.
For the year ended 31 January 2010, the average sterling to euro translation rate applied by the Group including the impact of hedging contracts 
was £1 : €1.12. If the rate had been £1 : €1.02 lower with all other variables held constant, profit before tax would have been lower by £110,000.  
If the rate had been £1 : €1.22 higher with all other variables held constant, profit before tax would have been higher by £92,000.
The sensitivity of movements in other currencies is not considered material to the performance of the Group.
Interest rate risk
As the Group has no significant interest bearing assets its revenue and cash generated from operations are substantially independent of changes 
in market interest rates.
The Group’s interest rate risk arises from borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. The 
Group’s borrowings at variable rate are denominated in either UK pounds or euros. The Group regularly analyses its interest rate exposure 
calculating the impact on profit and loss of a defined interest rate shift. Based on the calculations the Board consider refinancing, renewal of 
existing positions, alternative financing and hedging.
In July 2007 the Group entered into a financing contract with Barclays Bank PLC which was renewed in March 2010, variable interest rates were 
negotiated on all the loans. The Board continues to monitor the interest rates monthly.
For the year ended 31 January 2010, had benchmark interest rate levels been 0.5% higher/lower than actual experience, with all other variables 
held constant, the profit before tax of the Group would have been lower/higher by £51,000 due to the change in interest rate expense on variable 
rate borrowings. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
38
2. Financial risk management continued
Credit risk
Credit risk arises from the Group’s trade receivables, cash held with banks, and derivative financial instruments. It is the risk that the counterparty 
fails to discharge its obligation in respect of the instrument. Cash at bank and derivative financial instruments are predominantly held with the 
Group’s major relationship bank, Barclays Bank PLC, and the Group considers this credit risk to be minimal.
The Group does not have any significant credit risk exposure to any single company or group of companies within trade receivables, as the  
nature of the Group’s operations mean that trade receivables consist of a large number of customers spread across diverse industries and 
geographical areas.
Prior to accepting new customers an independent credit check is obtained. Based on this information individual credit limits and payment terms 
are established. If no independent credit ratings are available, customers are asked to pay on a proforma basis until creditworthiness can be 
established. The utilisation of credit limits is regularly monitored. Credit limits may only be exceeded with the authorisation from key management, 
this is dependent on the amount expected to exceed the limit and the Group’s trading history with that customer.
There is no difference between the carrying amount and the maximum credit risk exposure.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its debt instruments.  
It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The maturity profile of the Group’s debt and 
other financial liabilities is disclosed in note 22.
During the year the Group had facilities with Barclays Bank PLC. A significant element of the facility is linked to working capital, which allows the 
Group to manage its cash more effectively during the seasonal fluctuations in working capital associated with the industry. This element of the 
facility was due to expire in July 2010 but was renewed in March 2010 and will now expire in July 2013.
Management monitors rolling forecasts of the Group’s cash and loan facility utilisation on a monthly basis. The Group ensures that it has 
adequate facilities available to cover both its short-term and medium-term commitments. In addition, the Group’s liquidity management policy  
is to project cash flows in major currencies and consider the level of liquid assets necessary to meet these liabilities as they fall due.
Capital risk management
The Group’s objectives when managing capital are:
To safeguard the entity’s ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other  >
stakeholders, and
To provide an adequate return for shareholders by pricing products and services commensurately with the level of risk. >
The Group sets the amount of capital in proportion to risk. The Group manages the capital structure and makes adjustments to it in light of 
changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the 
Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, buy back issued shares, or sell 
assets to reduce debt.
The Group monitors capital on the basis of the average net debt to adjusted capital ratio (or ‘gearing ratio’). The ratio is calculated as average net 
debt divided by adjusted capital. Average net debt is calculated as the total debt less cash and cash equivalents during the year. Adjusted capital 
comprises all components of equity (i.e. share capital, share premium, retained earnings, and other reserves) other than amounts recognised in 
equity relating to cash flow hedges and forward currency contracts.
During the year to 31 January 2010, the Group’s strategy, which was unchanged from the previous year, was to reduce the average gearing ratio. 
The average gearing ratios for 2010 and 2009 were as follows:
Year ended
31 January 
2010  
£000
31 January 
2009  
£000
Average net debt 8,565 11,233
Total equity 18,770 19,911
(Less)/add: amounts recognised in equity relating to currency contracts (175) 812
Adjusted capital 18,595 20,723
Average net debt to adjusted capital ratio 46% 54%
Year end net debt to adjusted capital ratio 17% 31%
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
39
Accounts
2. Financial risk management continued
The Group considers the average debt to adjusted equity ratio to be too high currently, and will continue to reduce debt and the pension deficit by 
cash generated from operations until the ratio is at a level considered appropriate.
The gearing ratio at the year end is lower than the average gearing ratio as the level of trade debtors is lower at the year end than the average 
during the year due to the seasonal nature of trading in the months of December and January.
Fair value estimation
The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates at the balance sheet date provided by 
relationship banks. Under the revisions to IFRS 7 these amounts are classified within level two of the fair value hierarchy.
The carrying value less impairment provision of trade and other receivables and payables and cash and cash equivalents are assumed to 
approximate their fair values.
3. Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning future events. The resulting accounting estimates will seldom precisely equal the 
related actual results. The Group applies its best endeavours in setting accounting estimates, and uses historical experience and other factors, 
including input from experienced and specialist management. Estimates and assumptions are periodically re-evaluated and the resulting 
accounting balances updated as new information including actual outcomes become apparent.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within 
the next financial year are discussed below.
a) Retirement benefit obligations
The Group recognises its obligations to employee retirement benefits. The quantification of these obligations is subject to significant estimates 
and assumptions regarding life expectancy, discount and inflation rates, wage and salary changes, the rate of increase in pension payments, and 
the market values of equities, bonds and other pension assets. In making these assumptions the Group takes advice from a qualified actuary 
about which assumptions reflect the nature of the Group’s obligations to employee retirement benefits. The assumptions are annually reviewed to 
ensure their appropriateness.
The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present 
value of estimated future cash outflows expected to be required to settle pension obligations. In determining the appropriate discount rate, the 
Group considers the interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and 
that have terms to maturity approximating the terms of the related pension liability. Details of the estimates and assumptions applied, and carrying 
amounts of retirement benefit obligations and pension assets, are set out in note 23.
b) Impairment of non-financial assets
The Group tests annually whether goodwill or its indefinite life intangible asset has suffered any impairment, in accordance with its accounting 
policy and of other intangibles and property, plant and equipment whenever impairment triggers are apparent. The recoverable amounts of cash 
generating units have been determined based on value in use (‘VIU’) calculations. These calculations require use of estimates of future revenue, 
margins, and other operating and administrative expenses, and of discount rates. Further disclosures relating to the estimates and assumptions 
applied, and carrying amounts of the non-financial assets, are set out in note 14 and 15.
The Group makes provision for impairment in the carrying amount of its inventories and marketing materials. The nature of the Group’s products 
are exposed to changes in taste and attitudes from time to time, which can affect the demand for those products. The Group has skilled and 
experienced management who utilise historical sales information, and exercise their judgement, in making estimates about the extent of 
provisions necessary based on the realisable value of inventory and expected future benefit to the Group of marketing materials taking into 
account the estimated price and volume of future sales or usage less the further costs of sale and holding costs. Further disclosures relating to 
the effect on the income statement of the establishment and reversal of such provisions against inventory are included in note 7. Details of the 
carrying amount of marketing materials is disclosed in note 17 and of inventories in note 18.
c) Deferred tax recognition
Following the completion of the Group’s recovery programme and return to sustained profitability over recent years, the Group has considered  
it appropriate to partially recognise at the balance sheet date deferred tax assets resulting from historical trading losses and other temporary 
differences including pension deficits. The amount of deferred tax recognised is based on estimates of the timing and amount of future taxable 
profits of companies within the Group, which in turn relies upon estimates of future operating profits and the occurrence, timing and tax treatment 
of significant items of income and expenditure including contributions to pension schemes and the vesting of share-based payment awards. 
Further disclosures relating to the effect on the income statement of the recognition of deferred tax assets are included in note 12, and the 
amount of deferred tax asset recognised and other relevant disclosures are included in note 16. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
40
3. Critical accounting estimates and assumptions continued
d) Share based payment awards
The Group has granted awards to Executive Directors and Senior Management which include vesting conditions relating to the future financial 
performance of the Group as measured by Profit before tax (‘PBT’) and the relative performance of the Group’s Total shareholder return (‘TSR’) 
against comparator companies. The fair value of the awards granted is charged against the income statement over the vesting period; the 
amount of that charge is dependent upon the Group’s estimates of how many awards will ultimately vest, which is linked directly to its estimates 
regarding future PBT and TSR achievement. Further disclosures relating to performance targets are included in the Directors’ Remuneration 
Report on pages 21 to 23 and the effect on the financial statements of share awards is included in note 25.
4. Segmental analysis
Walker Greenbank is a designer, manufacturer and distributor of luxury interior furnishings, fabrics and wallpaper. The Board of Walker Greenbank 
PLC predominantly manages the operations of the Group as two divisions which are the Brands and Manufacturing, which has been the basis of 
segmentation information disclosed in previous financial years. Following the adoption of the principles set out in IFRS 8 ‘Operating Segments’ 
the Group has identified its operating segments and applied aggregation criteria, as set out in IFRS 8, and has determined that the reportable 
segments of the Group are as follows:
Brands – comprising the design, marketing, sales and distribution, and licencing activities of Harlequin, Sanderson, Zoffany and Morris & Co  >
brands operated from the UK in the retail and contract sectors of the market.
Manufacturing – comprising the wallcovering and printed fabric manufacturing businesses operated by Anstey and Standfast respectively. >
Overseas – comprising the marketing, sales and distribution operations of the Group’s foreign based subsidiaries in Europe and the   >
United States.
This is the basis on which the Group presents its operating results to the Board of Directors of the parent company, which is considered to be  
the Chief Operating Decision Maker (‘CODM’) for the purposes of IFRS 8. Additional revenue-only data is also reported to the CODM and is 
disclosed on the basis explained below. Other Group wide activities and expenses, predominantly related to corporate head office costs, defined 
benefit pension costs, long-term incentive plan expenses, taxation and eliminations of intersegment items, are presented within ‘Eliminations  
and unallocated’.
Segment information for the comparative period year ended 31 January 2009 has been restated to ensure consistent form of presentation 
following adoption of IFRS 8 principles.
a) Principal measures of profit and loss – income statement segmental information
Year ended 31 January 2010
Brands  
£000
Manufacturing  
£000
Overseas 
£000
Eliminations 
& unallocated 
£000
Total  
£000
Revenue – external 41,757 11,936 6,685 – 60,378
Revenue – internal 1,397 10,168 – (11,565) –
Total revenue 43,154 22,104 6,685 (11,565) 60,378
 Operating profit/(loss) before exceptional items 4,616 633 5 (2,732) 2,522
 Exceptional items (refer note 5):
 – redundancy expenses (78) (182) (72) – (332)
 – net proceeds from insurance recovery 225 – – – 225
Profit/(loss) from operations 4,763 451 (67) (2,732) 2,415
Net borrowing costs – – – (263) (263)
Net pension charge – – – (600) (600)
Profit before taxation 4,763 451 (67) (3,595) 1,552
Tax charge – – – (379) (379)
Profit for the year 4,763 451 (67) (3,974) 1,173
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
41
Accounts
4. Segmental analysis continued
Year ended 31 January 2009
Brands  
£000
Manufacturing  
£000
Overseas  
£000
Eliminations  
& unallocated  
£000
Total  
£000
Revenue – external 42,766 12,963 7,969 – 63,698
Revenue – internal 1,942 10,992 – (12,934) –
Total revenue 44,708 23,955 7,969 (12,934) 63,698
 Operating profit/(loss) before exceptional items 5,240 931 (8) (2,306) 3,857
 Exceptional items (refer note 5):
 – redundancy expenses – (146) – – (146)
 – net costs of insurance event (150) – – – (150)
Profit/(loss) from operations 5,090 785 (8) (2,306) 3,561
Net borrowing costs – – – (695) (695)
Net pension charge – – – (79) (79)
Profit before taxation 5,090 785 (8) (3,080) 2,787
Tax charge – – – (1,165) (1,165)
Profit for the year 5,090 785 (8) (4,245) 1,622
The segmental income statement disclosures are measured in accordance with the Group’s accounting policies as set out in note 1. Operating 
profit before and after exceptional items is regularly reported to the CODM and accordingly is disclosed above.
Intersegment revenue earned by Manufacturing from sales to Brands is determined on normal commercial trading terms as if Brands were any 
other third party customer. Intersegment revenue earned by Brands for sales to Overseas, via the corporate head office, is also principally based 
on commercial trading terms.
All defined benefit pension costs, and long-term incentive plan expenses, are recognised for internal reporting to the CODM as part of group wide 
activities and are included within ‘Eliminations and unallocated’ above. Other costs, such as group insurance, rent and auditor’s remuneration 
which are incurred on a group-wide basis are recharged by the head office to segments on a reasonable and consistent basis for all periods 
presented, and are included within segment results above.
b) Additional segmental revenue information
The segmental revenues of the Group are also reported to the CODM in more detail. One of the analyses presented is by strategic objective of  
the Group although profitability measures on this basis are not reported. These are the external retail sales in each major geographical area,  
the contract sector revenues throughout the world including those in the Group’s overseas subsidiaries, licence revenue and external 
manufacturing revenues.
Revenue by strategic objective
2010  
£000
2009  
£000
United Kingdom retail 24,723 25,221
Continental Europe retail 9,030 10,186
North America retail 4,664 5,572
Rest of the World retail 3,657 3,196
Contract (includes all global revenues) 5,265 5,285
Licence 1,103 1,275
Manufacturing 11,936 12,963
60,378 63,698
Revenue of the Brands reportable segments – revenue from retail operations in all territories where the sale is sourced from the United Kingdom 
Brands operations, including sales to overseas subsidiaries, together with contract and license revenue:
Brand Revenue Analysis
2010  
£000
2009  
£000
Harlequin 19,236 19,220
Sanderson incorporating Morris & Co 15,243 14,877
Zoffany 8,675 10,611
43,154 44,708 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
42
4. Segmental analysis continued
Revenue of the Manufacturing reportable segments – including revenues from internal sales to the Group’s Brands:
Manufacturing Revenue Analysis
2010  
£000
2009  
£000
Standfast 12,511 12,613
Anstey 9,593 11,342
22,104 23,955
Revenue of the Overseas reportable segments – revenue of the Group’s overseas subsidiaries from retail operations which also includes contract 
and licence revenue:
Overseas Revenue Analysis
2010  
£000
2009  
£000
United States of America 5,095 6,228
France 1,017 972
Italy 573 769
6,685 7,969
c) Other income statement segmental information
The following additional items are included in the measures of profit and loss reported to the CODM and are included within a) above:
 
Year ended 31 January 2010
Brands  
£000
Manufacturing  
£000
Overseas  
£000
Eliminations 
& unallocated  
£000
Total  
£000
Depreciation 552 689 76 7 1,324
Amortisation 408 54 – – 462
Impairment losses – trade receivables 210 15 12 – 237
Reversal of prior period impairment losses – trade receivables (1) (54) – – (55)
Impairment losses – inventory 1,025 86 – – 1,111
Share-based payment charges – – – 145 145
Year ended 31 January 2009
Brands  
£000
Manufacturing  
£000
Overseas 
£000
Eliminations  
& unallocated  
£000
Total  
£000
Depreciation 625 733 104 7 1,470
Amortisation 358 18 21 – 376
Impairment losses – trade receivables 267 25 12 – 304
Reversal of prior period impairment losses – trade receivables – (5) – – (5)
Impairment losses – inventory 603 4 29 – 636
Reversal of prior period impairment losses – inventory – (95) – – (95)
Share-based payment charges – – – 373 373
d) Principal measures of assets and liabilities – balance sheet segmental information
Segment assets consist primarily of goodwill, intangible assets, property, plant and equipment, trade and other receivables including inter 
segment receivables, and inventories. Segment liabilities consist primarily of trade and other payables including inter segment payables. 
Unallocated assets and liabilities consists primarily of cash, deferred tax assets, borrowings, derivative financial instruments, and retirement 
benefit obligations and elimination of inter segment balances. Segment assets and liabilities and unallocated assets and liabilities are measured in 
accordance with the Group’s accounting policies as set out in note 1.
Year ended 31 January 2010
Brands  
£000
Manufacturing  
£000
Overseas 
£000
Eliminations  
& unallocated 
£000
Total  
£000
Assets 26,171 15,216 827 3,494 45,708
Liabilities (11,124) (4,127) (1,642) (10,045) (26,938)
Total net assets 15,047 11,089 (815) (6,551) 18,770
Capital expenditure – intangible assets 236 36 – – 272
Capital expenditure – property, plant and equipment 601 147 47 – 795
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
43
Accounts
4. Segmental analysis continued
Year ended 31 January 2009
Brands  
£000
Manufacturing  
£000
Overseas 
£000
Eliminations  
& unallocated 
£000
Total  
£000
Assets 27,181 15,841 2,315 1,933 47,270
Liabilities (11,135) (5,003) (3,255) (7,966) (27,359)
Total net assets 16,046 10,838 (940) (6,033) 19,911
Capital expenditure – intangible assets 275 145 – – 420
Capital expenditure – property, plant and equipment 418 632 57 – 1,107
e) Additional entity-wide disclosures
Revenue by geographical location of customers
2010  
£000
2009  
£000
United Kingdom 39,969 41,026
Continental Europe 9,750 10,987
United States of America 6,442 7,893
Rest of the World 4,217 3,792
60,378 63,698
No single customer of the Group accounts for 10% or more of total revenue. Within the sub-totals for Continental Europe and Rest of the World 
shown above there are no individual countries that account for 10% or more of total revenue.
Non-current assets by geographical territory
2010  
£000
2009  
£000
United Kingdom 13,468 14,157
Continental Europe 208 213
United States of America 171 241
13,847 14,611
Non-current assets included above comprise intangible assets and property, plant and equipment.
5. Exceptional items
Items that are both material and whose nature is sufficient to warrant separate disclosure and identification are disclosed within the financial 
statements and classified within their relevant income statement category. In the current period, ‘Redundancy expenses’ of £332,000 (2009: 
£146,000) incurred to reduce the cost base of the Group during the economic downturn and ‘Net proceeds from insurance recovery’ of £225,000 
(2009: costs from insurance event £150,000) for marketing material products held at third party’s premises which were destroyed in a fire in the 
previous year have been presented as exceptional in accordance with the Group’s accounting policy for exceptional items. The insurance loss in 
the previous year arose due to the uncertainty over the level of insurance settlement recoverable. ‘Redundancy expenses’ are classified within 
administration expenses, proceeds from insurance recovery are classified within other operating income/(expense) and costs from insurance 
event are presented within distribution expenses.
6. (a) Analysis of operating profit by function of expense
2010 
£000
2009 
£000
Turnover 60,378 63,698
Cost of sales (24,359) (25,567)
Gross profit 36,019 38,131
Net operating expenses:
Distribution costs (10,539) (11,603)
Administration expenses (22,526) (23,329)
Other operating (expense)/income (539) 362
Net operating expenses (33,604) (34,570)
Operating profit 2,415 3,561
The corresponding amounts for distribution costs and administration expenses have been amended to ensure a consistent classification for all 
periods presented. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
44
6. (b) Analysis of revenue by category
2010  
£000
2009  
£000
Sale of goods 59,275 62,423
Licence royalty income 1,103 1,275
60,378 63,698
6. (c) Analysis of expense by nature
2010  
£000
2009  
£000
Changes in inventories of finished goods and work in progress 616 1,093
Raw materials and consumables used 19,008 19,405
Employee benefit expense 18,153 18,828
Depreciation and amortisation charges 1,786 1,846
Transportation expenses 1,590 2,068
Advertising costs 610 981
Operating lease payments 1,854 1,712
Other expenses 13,807 14,566
Total cost of sales, distribution costs and administrative expenses 57,424 60,499
7. Group operating profit
2010  
£000
2009  
£000
Group operating profit is stated after charging/(crediting):
Depreciation of property, plant and equipment 1,324 1,470
Amortisation of intangibles 462 376
Cost of inventories recognised as expense in cost of sales 19,624 20,498
Impairment of inventories 1,111 636
Reversal of impairment of inventories – (95)
Impairment of trade receivables 237 304
Reversal of impairment of trade receivables (55) (5)
Net foreign exchange (gains)/losses 766 (472)
Operating lease rentals:
	 •	H i r e	o f	m o t o r	v e h i c l e s	a n d	p l a n t	a n d	m a c h i n e r y 459 494
	 •	L a n d	a n d	b u i l d i n g s 1,395 1,218
Loss/(profit) on disposal of fixed assets – 6
Income from sub leases 14 81
2010  
£000
2009  
£000
Auditor’s remuneration:
	 •	F e e s	p ay a b l e	t o	C o m p a n y ’ s	a u d i t o r	f o r	t h e	a u d i t	o f	p a r e n t	C o m p a n y	a n d	c o n s o l i d a t e d	fi n a n c i a l	s t a t e m e n t s 50 50
	 •	A u d i t	o f	C o m p a n y ’ s	s u b s i d i a r i e s	p u r s u a n t	t o	l e g i s l a t i o n 75 75
	 •	O t h e r	s e r v i c e s 12 –
137 125
8. Net defined benefit pension costs
2010  
£000
2009  
£000
Expected return on pension scheme assets 2,306 2,829
Interest on pension scheme liabilities (2,617) (2,633)
Scheme expenses met by Group (289) (275)
Net (charge)/income (600) (79)
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
45
Accounts
9. Net borrowing costs
2010  
£000
2009  
£000
Interest expense:
Interest payable on bank borrowings (218) (685)
Amortisation of issue costs of bank loans (24) (26)
Other interest and similar charges payable (21) (19)
Total borrowing expense (263) (730)
Interest income:
Interest receivable on bank deposits – 35
Net borrowing costs (263) (695)
10. Emoluments of Directors
Salary  
£000
Bonus  
£000
LTIP  
£000
Benefits  
£000
Sub-total 
Aggregate 
emoluments 
£000
Pension  
£000
2010  
Total  
£000
2009  
Total  
£000
Executive Directors:
John Sach 220 121 126 6 473 33 506 258
David Smallridge 160 88 117 1 366 24 390 177
Alan Dix 126 50 78 1 255 13 268 140
Non-executive Directors:
Ian Kirkham (retired 31 January 2009) – – – – – – – 65
Terry Stannard 60 – – – 60 – 60 26
Fiona Goldsmith 26 – – – 26 – 26 4
592 259 321 8 1,180 70 1,250 670
Executive Directors have been granted awards under long-term incentive plans in the form of nil priced share options. During the year the award 
granted in July 2006 vested. The vesting conditions were set in 2006 and comprised a profit before tax target for the year ended 31 January 2009 
and that the participants were employed at the end of the three year vesting period. Accordingly, the gain on exercise of the award, being the 
market value of the shares at the vesting date in July 2009, are included in aggregate emoluments above (‘LTIP’) for the current year, 
notwithstanding that this relates to performance of the Group in a prior period.
In both years, retirement benefits were accruing to one Director under a defined benefit scheme, who is the highest paid Director. Accrued annual 
pension benefits at the year end were £11,406 (2009: £10,188). Benefits are accruing under defined contribution schemes for three Directors 
(2009: three Directors).
Further information on remuneration of Directors is included in the Directors’ Remuneration Report set out on pages 21 to 23.
11. Employee information
2010  
£000
2009  
£000
Wages and salaries 15,339 15,971
Social security costs 1,660 1,659
Other pension costs 677 679
Share based payment awards, including NIC thereon 145 373
Redundancy expense 332 146
Employee benefit expense 18,153 18,828
The average monthly number of employees (including Directors) during the year 
2010 
Number
2009 
Number
Brands, including warehousing 211 232
Manufacturing 271 312
Overseas 28 29
Corporate and administration 19 21
529 594 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
46
11. Employee information continued
Compensation of key management personnel
2010  
£000
2009  
£000
Short-term employee benefits (including short-term incentives) 2,481 2,164
Post employment benefits (including pension costs) 132 126
Share-based payment awards 145 373
2,758 2,663
The Group regards its key management personnel to be its Directors and Senior Management having authority and responsibility for planning, 
directing and controlling the activities of the Group, either directly or indirectly. Share-based payment awards reflects the charge in the income 
statement and does not reflect the market value of shares expected to vest.
12. Tax
2010  
£000
2009  
£000
Current tax:
– overseas, current tax (18) (57)
– overseas, adjustment in respect of prior year 50 –
Current tax 32 (57)
Deferred tax:
– ordinary (422) (788)
– adjustment in respect of prior year 11 –
– exceptional – (320)
Deferred tax (411) (1,108)
Tax charge for the year (379) (1,165)
2010  
£000
2009  
£000
Profit on ordinary activities before tax 1,552 2,787
Tax on profit on ordinary activities at standard rate 28% (2009: 28%) (435) (780)
Non deductible expenditure (22) (59)
Parent and overseas losses and temporary differences not recognised 17 (6)
Exceptional impact of phasing out of Industrial Building Allowances – (320)
Adjustments in respect of prior years 61 –
Tax charge for year (379) (1,165)
Factors affecting current and future tax charges
The Group does not anticipate that UK corporation tax will become payable on profits within the immediate future due to the availability of tax 
losses of approximately £20.1 million (2009: £21.3 million).
13. Earnings per share
Basic and diluted earnings per share (‘EPS’) is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average 
number of shares outstanding during the year, excluding those held in the employee share trust and those held in treasury (note 25), which are 
treated as cancelled.
2010 2009
Earnings  
£000
Weighted 
average 
number  
of shares  
(000s)
Per share 
amount 
pence
Earnings 
£000
Weighted 
average 
number  
of shares 
(000s)
Per share 
amount  
pence
Basic and diluted earnings per share 1,173 55,977 2.10 1,622 54,880 2.96
On 27 July 2009 2,386,794 shares vested under the companies Long-Term Incentive Plan and these were removed from the Walker Greenbank 
PLC Employee Benefit Trust (‘EBT’). On 13 November 2009 1,690,093 shares were transferred from treasury to the EBT. On 8 January 2010 Walker 
Greenbank PLC purchased 610,000 ordinary shares of 1p each in the Company at 21p per ordinary share. Following these transactions Walker 
Greenbank’s issued ordinary share capital with voting rights consists of 59,006,162 (2009: 59,006,162) ordinary shares of which 610,000 (2009: 
1,690,093) ordinary shares are held in treasury and a further 1,852,445 (2009: 2,549,146) ordinary shares are held by the EBT. Shares held in 
treasury or by the EBT are treated as cancelled when calculating EPS. At 31 January 2010 the market value of the treasury shares was £137,250.
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
47
Accounts
14. Intangible assets
Goodwill  
£000
Arthur 
Sanderson & 
William Morris 
Archive  
£000
Collection 
design  
assets  
£000
Software 
assets  
£000
Total  
£000
Cost:
1 February 2008 1,400 4,300 689 4,623 11,012
Additions – – 268 152 420
31 January 2009 1,400 4,300 957 4,775 11,432
Additions – – 227 45 272
31 January 2010 1,400 4,300 1,184 4,820 11,704
Amortisation:
1 February 2008 841 – 251 4,087 5,179
Charge – – 148 228 376
31 January 2009 841 – 399 4,315 5,555
Charge – – 200 262 462
31 January 2010 841 – 599 4,577 6,017
Net book amount:
31 January 2010 559 4,300 585 243 5,687
31 January 2009 559 4,300 558 460 5,877
The Arthur Sanderson and William Morris archive was purchased as part of the acquisition of Arthur Sanderson & Sons on 29 August 2003. It 
comprises an historical record of unique designs that are used to generate royalty income in the business.
Amortisation of £462,000 (2009: £376,000) is included in administrative costs.
Impairment tests for Goodwill & Arthur Sanderson & William Morris Archive
The carrying value of goodwill at the year end of £559,000 (2009: £559,000) is attributable to the manufacturing segment. The Archive is 
attributable to the brands.
The Group tests goodwill and the Archive for impairment annually or more frequently if there are indications that they might be impaired. There 
was no impairment charge recognised in the year (2009: none).
In assessing whether an impairment of goodwill is required the carrying value of the cash generating unit (‘CGU’) or group of CGUs is compared 
with its recoverable amount. The recoverable amount for each CGU and collectively for groups of CGUs that make up the segments of the 
Group’s business have been based on the value in use (‘VIU’).
The Group estimates the VIU using a discounted cash flow model (‘DCF’), where the projected cash flows for separate or collective groups of 
CGUs are discounted using a pre-tax rate of 10.50% (2009: 9.50%). The discount rate used is the same across all segments.
The Group has used formally approved budgets for the first two years (2009: two years) of its VIU calculation, with extrapolation beyond the last 
explicit year using an assumption of growth for future years ranging from 1% to 2% (2009: 1% to 2%) depending upon the CGU being tested. The 
cash flows used in the calculation of the VIU are derived from past experience and are based on operating profit forecasts, which in turn rely upon 
assumptions relating to sales growth, margins and operating and administrative expenses. The cash flows have not included the benefits arising 
from any future asset enhancement expenditure, as this is not permitted by IAS 36. The VIU calculations therefore exclude significant benefits 
anticipated from future capital expenditure. The growth rates included within the assumptions supporting the VIU calculations do not therefore 
represent the Group’s anticipated total forecast growth, but rather only the growth deriving from capital expenditure completed at the balance 
sheet date.
The recoverable amount of the Archive intangible asset is estimated based on VIU, and comprises estimated future cash flows from royalty 
income relating to the Archive. A discount rate of 10.50% (2009: 9.50%) is applied.
The Group does not consider there to be reasonably probable changes to the key assumptions that would result in impairment of either goodwill 
or the Archive as at 31 January 2010. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
48
15. Property, plant and equipment
Land and 
buildings  
£000
Plant, 
equipment 
and vehicles  
£000
Computer 
hardware  
£000
Total  
£000
Cost:
1 February 2008 5,404 14,880 1,295 21,579
Additions – 1,079 28 1,107
Disposals – (361) (27) (388)
Currency movements – 198 38 236
31 January 2009 5,404 15,796 1,334 22,534
Additions – 780 15 795
Disposals – (43) – (43)
Currency movements – (63) (13) (76)
31 January 2010 5,404 16,470 1,336 23,210
Depreciation:
1 February 2008 983 10,573 1,032 12,588
Charge 109 1,220 141 1,470
Disposals – (348) (27) (375)
Currency movements – 83 34 117
31 January 2009 1,092 11,528 1,180 13,800
Charge 109 1,134 81 1,324
Disposals – (29) – (29)
Currency movements – (33) (12) (45)
31 January 2010 1,201 12,600 1,249 15,050
Net book amount:
31 January 2010 4,203 3,870 87 8,160
31 January 2009 4,312 4,268 154 8,734
Depreciation expense of £1,324,000 (2009: £1,470,000) has been charged in administrative expenses.
The net book amount of land and buildings comprises
2010  
£000
2009  
£000
Freehold land 450 450
Freehold buildings 3,753 3,862
Net book amount 4,203 4,312
Land and buildings are stated at historical cost.
The carrying value of assets providing security under the Barclays facility was land and buildings of £4,203,000 (2009: £4,312,000).
16. Deferred income tax assets
A deferred tax asset of £5,806,000 (2009: £5,158,000) is recognised in respect of tax losses and other temporary differences and £411,000 has 
been charged to the income statement during the year as some of the tax losses have been utilised.
2010  
£000
2009  
£000
Taxable temporary differences on property, plant and equipment (581) (872)
Taxable temporary differences on intangible assets (149) (128)
Other temporary differences 40 –
Tax losses 4,272 4,993
3,582 3,993
Pension scheme obligations 2,224 1,165
5,806 5,158
 
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
49
Accounts
16. Deferred income tax assets continued
The movements in deferred tax asset on pension scheme obligations are recognised in the Statement of Comprehensive Income.
At the balance sheet date the Group has unused UK tax losses of £20.1 million (2009: £21.3 million) available for offset against future profits. A 
deferred asset is recognised in respect of £15.3 million (2009: £17.7 million) of such losses as the Group believes that realisation of the related tax 
benefit through future taxable profit is probable and can be readily accessed under existing tax legislation. No deferred tax has been recognised 
on the remaining £4.8 million (2009: £3.6 million) as these losses are not readily available for offset against the Group’s future profits under 
existing tax legislation and therefore the realisation of these losses is not considered probable. In addition, tax losses in overseas subsidiaries of 
£1,518,000 are available for offset of future taxable profits by those subsidiaries, however the realisation of these losses is not considered 
probable. The recognition of deferred tax on losses will be assessed at each reporting date.
Potential deferred tax assets at 31 January 2010 of £2,187,000 (2009: £1,800,000) relating to tax losses and deductible temporary differences 
have not been recognised as it is not considered probable that recovery of the potential deferred tax asset will arise under existing tax legislation. 
2010  
£000
2009  
£000
Tax losses 1,876 1,528
Other deductible temporary differences 311 272
2,187 1,800
There are also capital tax losses at 31 January 2010 of £2,485,000 (2009: £2,485,000) but no deferred tax asset has been recognised as it is not 
considered probable that these losses will be utilised.
17. Trade and other receivables
Current
2010  
£000
2009  
£000
Trade receivables 8,224 9,053
Less: Provision for impairment of trade receivables (408) (423)
Net trade receivables 7,816 8,630
Other receivables 430 1,111
Marketing materials 1,137 1,385
Prepayments 926 1,426
10,309 12,552
Non-current
2010  
£000
2009  
£000
Other receivables – 12
The value of trade receivables providing funding under the Barclays facility was £6,395,000 (2009: £6,721,000).
There is no material difference between the carrying amount and the fair value of the trade and other receivables.
Credit quality of financial assets
(i) Neither past due nor impaired
Included in the Group’s trade receivable balances are debtors with a carrying value of £4,599,000 (2009: £4,849,000) which are neither past due 
nor impaired at the reporting date. The nature of the Group’s business means that it has a long standing relationship with the majority of its 
customers, who either have no experience of historical default or only temporary late payments with full recovery of balances due.
For the Group’s cash at bank, and the receivable leg of derivative financial instruments, the counterparty to the financial instruments is a major UK 
bank, and the Group does not consider there to be any significant credit risk from holding these financial assets. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
50
17. Trade and other receivables continued
(ii) Past due – not individually impaired
Included in the Group’s trade receivable balances are debtors with a carrying value of £3,199,000 (2009: £3,561,000) which are past due at the 
reporting date for which the Group does not consider the receivable for these customers to be individually impaired as there has not been a 
significant decline in credit quality and the Group believes that the amounts are still recoverable. The table below shows the aging analysis of  
the receivables: 
2010  
£000
2009 
 £000
1–30 days past due 1,757 1,653
31–60 days past due 1,224 1,490
61–90 days past due 192 339
91+ days past due 26 79
3,199 3,561
(iii) Past due – individually impaired
As at 31 January 2010, trade receivables of £426,000 (2009: £643,000) were individually determined to be impaired and provided for. The amount 
of the provision was £236,000 (2009: £281,000). The main factors used to assess the impairment of trade receivables is the age of the balance 
and circumstances of the individual customer. It has been assessed that a proportion of the receivables is expected to be recovered.
The Directors believe that in the current economic environment there is objective evidence of credit deterioration and an impairment of £172,000 
(2009: £142,000) representing a collective assessment of risk has been made. Due to the nature of Group’s products, there is limited amount of 
stock left in the possession of customers that could act as collateral under terms of trade. As the value of this stock is immaterial, it has not been 
disclosed in the financial statements.
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:
2010  
£000
2009  
£000
Sterling 6,656 7,101
Dollars 152 522
Euros 1,361 2,064
Other 77 66
8,246 9,753
The Group considers that any exposure to concentrations of credit risk will be impacted principally by underlying economic conditions in the 
principal geographical territories in which the Group operates. As at the balance sheet date the carrying value of trade receivables by 
geographical territories was:
2010  
£000
2009  
£000
United Kingdom 5,118 5,284
Continental Europe 1,564 2,117
United States of America 333 833
Rest of the World 801 396
7,816 8,630
Provisions for impairment
Movements on the Group provision for impairment of trade receivables are as follows:
2010  
£000
2009  
£000
At 1 February (423) (186)
Provision for receivables impaired (237) (304)
Receivables written off in the year as uncollectible 193 68
Unused amounts reversed 55 5
Exchange difference 4 (6)
At 31 January (408) (423)
The creation and release of provision for impaired trade receivables have been included within ‘administrative expenses’ in the income statement.
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
51
Accounts
18. Inventories
2010  
£000
2009  
£000
Raw materials 1,335 1,368
Work in progress 1,346 1,069
Finished goods 10,557 11,450
13,238 13,887
The cost of inventories recognised as an expense and included in ‘cost of sales’ amounted to £19,624,000 (2009: £20,498,000)
The value of inventories providing security under the Barclays facility, if it were to be fully drawn, was £7,959,000 (2009: £8,637,000).
19. Cash and cash equivalents
2010  
£000
2009  
£000
Cash at bank and in hand 2,333 1,050
There is a set off arrangement for bank accounts held with the UK clearing bank, and accordingly the amounts stated above represent the net of 
accounts in funds and in overdraft.
20. Trade and other payables
2010  
£000
2009  
£000
Trade payables 8,364 9,973
Corporation tax 38 85
Other taxes and social security 894 1,043
Other creditors and deferred revenue 398 780
Accruals 3,854 3,237
13,548 15,118
21. Derivative financial instruments
2010  
£000
2009  
£000
Forward foreign exchange contracts – cash flow hedges – asset/(liability) 175 (812)
Forward foreign exchange contracts
The Group’s US based subsidiary, Walker Greenbank Inc., sells products to local customers with sales invoiced in US dollars. As the Group’s 
presentation currency is sterling it is exposed to changes in the reported sterling value of these sales. The Group considers that it is highly 
probable that future sales of this nature will continue to arise over at least the next 12 months. During the year Walker Greenbank PLC has 
entered into monthly forward foreign exchange contracts up to July 2011, with a third party, to buy sterling and sell dollars. The Group has 
designated these contracts as cash flow hedges of the foreign currency risk arising from the highly probable future forecast sales transactions.  
As at the reporting date the fair value of the forward foreign contracts deferred in the hedging reserve relating to the benefit on these anticipated 
future transactions is an asset of £175,000 (2009: Liability £820,000). The amounts deferred in equity will be released into the income statement 
in the period or periods during which the hedged forecast transactions effect the income statement, which is expected to be within 18 months of 
the balance sheet date.
The Brands make more purchases from the euro zone than sales made to the euro zone. As the Group’s presentation currency is sterling it is 
exposed to changes in the reported sterling value of the purchases. The Group considers that the level of this exposure will reduce over the next 
12 months. As at the reporting date there were no forward foreign contracts. The fair value of the forward contracts in the hedging reserve last 
year was an asset of £8,100. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
52
22. Borrowings
2010  
£000
2009  
£000
Non-Current:
Term loan 2,580 3,000
Trade receivables loan – 3,862
Stock loan – 6
2,580 6,868
Current:
Term loan 400 400
Trade receivables loan 2,467 –
Stock loan – –
2,867 400
Total borrowings 5,447 7,268
In March 2010, the Group agreed terms to renew the Receivables and Inventory facilities from Barclays Bank PLC. The total facilities from 
Barclays Bank Plc comprises: a variable rate Term Loan secured on the Group’s freehold property which is being repaid on a 10 year profile, and 
Receivables and Inventory Financing Agreements which provide three year variable rate floating loans secured on the eligible trade receivables 
and eligible inventories at any point in time (the working capital facilities). The working capital facilities may be drawn down in either sterling or 
euro. The total Barclays facilities are capped at £16.5 million (2009 £17.0 million); the utilisation of the facilities at the year end was £5,447,000 
(2009: £7,268,000). The term loan bears interest at variable rates based on a margin above the Bank of England base rate. The working capital 
facilities bear finance costs in the form of discount charges which are calculated periodically and vary at margins above the base rate published 
by Bank of England (for sterling loans) or the European Central Bank (for euro loans).
As the Receivables and Inventory facilities had a term of less than one year at the year end, borrowings under these facilities have to be disclosed 
as current debt.
Under the Barclays Bank PLC facilities, the Group is subject to financial covenants which apply to the term loan, being interest cover and debt 
service. The receivables and inventory financing agreements require compliance with a number of operational covenants. Any non-compliance 
with covenants could, if not remedied or waived, constitute an event of default with respect to any such arrangements. The Group has reported to 
its financiers that it was in full compliance with its financial and operational covenants throughout each of the periods presented.
The fair value of current borrowings equal their carrying amount, as the impact of discounting is not significant. The carrying amounts and fair 
value of the non-current borrowings are as follows:
Carrying amount Fair Value
2010  
£000
2009  
£000
2010  
£000
2009  
£000
Property loan 2,580 3,000 2,600 3,000
Trade receivables loan – 3,862 – 3,918
Stock loan – 6 – 6
2,580 6,868 2,600 6,924
The fair values are based on cash flows discounted using a rate based on the borrowing rate of 1.75% (2009: 2.75%).
The table below analyses the Group’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on  
the remaining period to contractual maturity at the balance sheet date. The amounts disclosed in the table are the contractual undiscounted  
cash flows. The maturity profile of undiscounted cash flows on variable interest rate borrowings has assumed interest rates as at the balance 
sheet date.
31 January 2010
Less than  
1 year  
£000
Between  
1 to 2 years  
£000
Between  
2 to 5 years  
£000
Over  
5 years  
£000
Borrowings 2,867 821 1,286 670
Trade and other payables 12,616 – – –
15,483 821 1,286 670
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
53
Accounts
22. Borrowings continued
31 January 2009
Less than  
1 year  
£000
Between  
1 to 2 years  
£000
Between  
2 to 5 years  
£000
Over  
5 years  
£000
Borrowings 494 4,339 1,365 1,510
Derivative financial instruments 812 – – –
Trade and other payables 13,990 – – –
15,296 4,339 1,365 1,510
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
2010  
£000
2009  
£000
Sterling 5,447 7,215
Euro – 53
Total 5,447 7,268
23. Retirement benefit obligations
Defined contribution schemes
The Group contributes to the defined contribution section of the Abaris Holdings Limited Pension Scheme and to a Group Personal Pension Plan 
which is also a defined contribution scheme. Contributions are charged to the income statement as incurred, and amounted to £388,000 (2009: 
£404,000). Active members of the schemes are also able to make contributions.
Defined benefit schemes
The Group operates the following funded defined benefit pension schemes in the UK which offer pensions on retirement and death benefits to 
members: the Walker Greenbank Pension Plan, the Abaris Holdings Limited Pension Scheme and the WG Senior Management Pension Scheme. 
Pension benefits are related to the members’ salary at retirement and their length of service. The schemes are closed to new members and the 
future accrual of benefits. The most recent finalised triennial funding valuation for the defined benefit schemes was April 2006; a funding valuation 
as at April 2009 has been undertaken and was in consultation phase with the Trustees at the balance sheet date. An updated valuation for IAS 19 
financial reporting purposes has been completed at the balance sheet date. The Group’s contributions to the schemes for the year beginning 1 
February 2010 are expected to be £1,380,000.
The principal assumptions applied when valuing the defined benefit schemes were:
2010 2009
Discount rate 5.70% 6.90%
Rate of salary increase 3.30% 3.20%
Rate of increase to LPI pensions in payment 3.20% 3.20%
Rate of increase to pensions (in excess of GMP) in deferment 3.30% 3.20%
Rate of inflation 3.30% 3.20%
Expected return on plan assets 6.50% 6.60%
Members are assumed to commute 25% of their pension (2009: 25%).
The assumptions used in determining the overall expected return on assets of the scheme have been set with reference to yields available on 
government bonds and appropriate risk margins for equities and other classes of assets.
The mortality assumptions applied are based on the Self Administered Pension Scheme with medium cohort effect and a floor of 1% p.a. on 
future mortality improvements (2009: PA92 with medium cohort tables). The mortality assumptions imply the expected future lifetime from age 65 
as follows:
2010 2009
Non-pensioner male currently 45 23.2 23.1
Pensioner male currently 65 21.3 21.9
Non-pensioner female currently 45 26.0 25.9
Pensioner female currently 65 24.1 24.8 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
54
23. Retirement benefit obligations continued
The amounts recorded in the balance sheet are determined as follows:
2010  
£000
2009  
£000
Equities 22,299 22,458
Property – –
Fixed interest 14,379 10,526
Insured annuities 1,598 1,609
Cash and other 311 470
Fair value of plan assets 38,587 35,063
Present value of funded defined benefit obligations (46,530) (39,224)
Net liability in balance sheet (7,943) (4,161)
Reconciliation of opening and closing balances of the present value of the defined benefit obligation
2010  
£000
2009  
£000
Benefit obligation at beginning of year 39,224 44,260
Scheme expenses 289 275
Interest cost 2,617 2,633
Contributions by plan participants – –
Actuarial (gain) – change in mortality assumptions (495) –
Actuarial loss/(gain) – other 7,694 (5,458)
Benefits paid (2,799) (2,486)
Benefit obligation at end of year 46,530 39,224
Reconciliation of opening and closing balances of the fair value of plan assets
2010  
£000
2009  
£000
Fair value of plan assets at beginning of year 35,063 40,851
Expected return on plan assets 2,306 2,829
Actuarial gain/(loss) 2,665 (7,458)
Contributions by employers 1,352 1,327
Contributions by plan participants – –
Benefits paid (2,799) (2,486)
Fair value of plan assets at end of year 38,587 35,063
The amounts recognised in the income statement are:
2010  
£000
2009  
£000
Scheme expenses 289 275
Interest on obligation 2,617 2,633
Expected return on plan assets (2,306) (2,829)
Settlement and curtailments – –
Net defined benefit pension charge/(income) 600 79
The actual return on assets over the period was a gain of £4,971,000 (2009: loss of £4,629,000)
Actuarial gains and (losses) recognised in the Consolidated Statement of Comprehensive Income
2010  
£000
2009  
£000
Actual return on scheme assets higher/(less) than expected return 2,665 (7,458)
Change in mortality assumptions 495 –
Other actuarial (losses)/gains on scheme liabilities (7,694) 5,458
(4,534) (2,000)
Other actuarial losses (2009: gains) on scheme liabilities in the period arise mainly from decreases (2009: increases) in the discount rate used in 
determining the present value of scheme liabilities. The cumulative amount of actuarial losses reported in the Statement of Comprehensive 
Income (including amounts reported in the equivalent statement prior to the adoption of IFRS) before deferred taxation was £20,921,000  
(2009: £16,351,000).
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
55
Accounts
23. Retirement benefit obligations continued
History of schemes’ assets, obligations and experience adjustments
2010  
£000
2009  
£000
2008  
£000
2007  
£000
2006  
£000
Present value of defined benefit obligation (46,530) (39,224) (44,260) (45,508) (47,222)
Fair value of scheme’s assets 38,587 35,063 40,851 39,990 39,189
(Deficit) in the schemes (7,943) (4,161) (3,409) (5,518) (8,033)
Experience adjustments arising on scheme liabilities (7,694) 5,458 2,064 (1,284) *
Experience adjustments arising on scheme assets 2,665 (7,458) (1,364) (1,310) *
* Information not readily available for periods prior to the date of transition to IFRS.
24. Financial instruments by category
The accounting policies for financial instruments have been applied to the line items below:
31 January 2010
Loans and 
receivables 
£000
Assets at  
fair value 
£000
Derivatives 
used for 
hedging  
£000
Total  
£000
Assets as per balance sheet
Derivative financial instruments – – 175 175
Trade and other receivables 8,246 – – 8,246
Cash and cash equivalents 2,333 – – 2,333
Total 10,579 – 175 10,754
31 January 2010
Liabilities at 
fair value 
£000
Other 
financial 
liabilities  
£000
Derivatives 
used for 
hedging  
£000
Total  
£000
Liabilities as per balance sheet
Borrowings – 5,447 – 5,447
Trade and other payables – 12,616 – 12,616
Total – 18,063 – 18,063
31 January 2009
Loans and 
receivables 
£000
Assets at  
fair value 
£000
Derivatives 
used for 
hedging  
£000
Total  
£000
Assets as per balance sheet
Trade and other receivables 9,753 – – 9,753
Cash and cash equivalents 1,050 – – 1,050
Total 10,803 – – 10,803
31 January 2009
Liabilities at 
fair value 
£000
Other  
financial 
liabilities  
£000
Derivatives 
used for 
hedging  
£000
Total  
£000
Liabilities as per balance sheet
Derivative financial instruments – – 812 812
Trade and other payables – 7,268 – 7,268
Borrowings – 13,990 – 13,990
Total – 21,258 812 22,070 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
56
25. Share capital
Ordinary shares of 1p each: Number of shares £
Authorised share capital:
1 February 2009 and 31 January 2010 85,000,000 850,000
Allotted, called up and fully paid:
1 February 2009 and 31 January 2010 59,006,162 590,062
All holders of ordinary shares have the right to vote at general meetings of the Company and to distributions from dividends or on winding up of 
the Company.
On 27 July 2009 2,386,794 shares vested under the Company’s Long-Term Incentive Plan and these were removed from the Walker Greenbank 
PLC Employee Benefit Trust (‘EBT’). On 13 November 2009 1,690,093 shares were transferred from treasury to the EBT. On 8 January 2010 
Walker Greenbank PLC purchased 610,000 ordinary shares of 1p each in the Company at 21p per ordinary share at a total cost of £128,100. 
Following these transactions Walker Greenbank’s issued ordinary share capital with voting rights consists of 59,006,162 (2009: 59,006,162) 
ordinary shares of which 610,000 (2009: 1,690,093) ordinary shares are held in treasury and a further 1,852,445 (2009: 2,549,146) ordinary  
shares are held by the EBT with a cost of £380,534 (2009: £601,202). Shares held in treasury or by the EBT are treated as cancelled when 
calculating EPS.
The market value of shares held by the EBT at 31 January 2010 was £416,800 (2009: £261,287).
The total number of shares held in treasury at the year end represented 1.0% (2009: 2.9%) of the issued shares. The market value of these shares 
at 31 January 2010 was £137,250 (2009: £173,235).
The shares held by the trust and the treasury shares are held for the purpose of satisfying awards under long-term incentive plans to Executive 
Directors and senior management.
Long-Term Incentive Plans (‘LTIPs’)
The Group operates a Long-Term Incentive Plan. Up to the balance sheet date, there have been three awards under this plan, in which Executive 
Directors and senior management of the Group participate. The first award vested during the year. The LTIP has previously been approved by the 
shareholders at an Annual General Meeting.
Awards under the scheme are granted in the form of nil-priced share options, and are to be satisfied either using market-purchased shares or  
by the issuing of new shares. The awards vest in full or in part dependent on the satisfaction of specified performance targets at the end of the 
vesting period applying to each plan. The number of awards that vest is dependent upon either the Profit before tax (‘PBT’) achieved for the 
relevant year or the Group’s Total Shareholder Return (‘TSR’) during the vesting period within a comparator group. Details are set out below:
Award Two Award Three
Grant date of awards 24 May 2007 27 May 2009
Grant date fair value of award (pence per award) 53.00 7.92
Vesting date of awards 24 May 2011 25 May 2012
Maximum number of awards 1,415,093 2,150,000
Vesting condition based on PBT TSR with PBT floor
Relevant date for determination of vesting conditions Year ending 31 January 2011 TSR as at 27 May 2012.  
 PBT for year ending  
 31 January 2012
Further details of vesting conditions are set out in the Directors’ Remuneration Report on pages 21 to 23.
The fair value at grant date of Award Two was estimated based on the share price of the Group at grant date. Award Three includes vesting 
conditions that are market based, and allowance for these are included within the fair value at grant date. The weighted average fair value of 
options granted during the period determined using the Monte-Carlo valuation model was 7.92 per option. The significant inputs into the model 
were weighted average share price of £0.1425 at the grant date, exercise price shown above, dividend yield of 0%, an expected option life of three 
years, and an annual risk-free interest rate of 2%. The volatility measured at the standard deviation of continuously compounded share returns is 
based on statistical analysis of daily share prices over the last three years. See note 11 for the total expense recognised in the income statement 
for share options granted to Directors and employees.
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
57
Accounts
25. Share capital continued
Movements in the number of awards outstanding, assuming maximum achievement of vesting conditions, are as follows:
2010  
Number
2009  
Number
At 1 February 3,964,093 3,964,093
Granted 2,150,000 –
Forfeited – –
Exercised 2,386,794 –
Expired 162,206 –
At 31 January 3,565,093 3,964,093
Refer to note 11 for disclosure of the charge to the consolidated income statement arising from share based payments.
On 20 May 2010 further awards were made to the Executive Directors and senior management, a total of 2,117,000 ordinary shares.
26. Capital reserve
Capital reserve represents: £000
Share premium of companies acquired under merger accounting principles 1,276
Capital reserve arising on consolidation 293
Capital redemption reserve for deferred shares 1,003
Capital redemption reserve for ‘B’ shares 40,885
At 31 January 2010 and 2009 43,457
27. Dividends
The Directors have recommended the payment of a final dividend in respect of the year ended 31 January 2010 of 0.50p per share, a total of 
£283,000 (excluding dividends on shares held in treasury or by the employee benefit trust), which is subject to the approval of shareholders at  
the annual general meeting on 28 July 2010. Accrual of the dividend is not recognised in these financial statements in accordance with IFRS 
accounting principles.
28. Cash generated from operations
2010  
£000
2010  
£000
2009  
£000
2009  
£000
Operating profit 2,415 3,561
Depreciation 1,324 1,470
Amortisation 462 376
Charge for long-term incentive plan recognised in equity 127 414
Loss/(profit) on disposal of property, plant and equipment – 6
Unrealised foreign exchange (gains)/losses included in operating profit 221 (499)
Defined benefit pension cash contributions (1,352) (1,327)
Changes in working capital
Decrease/(increase) in inventories 649 (1,341)
Decrease/(increase) in trade and other receivables 2,062 1,164
(Decrease)/increase in trade and other payables (1,316) (288)
2,177 (25)
Cash generated from operating activities 4,592 3,536 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
58
29. Analysis of net debt
1 February 
2009  
£000
Cash flow 
£000
Working 
capital 
facilities (see 
note below) 
£000
Current 
portion of 
term facilities 
£000
Other 
non-cash 
changes  
£000
Exchange 
movement 
£000
31 January 
2010  
£000
Cash and cash equivalent 1,050 1,298 – – – (15) 2,333
Borrowings due within one year (400) 400 (2,445) (400) (22) – (2,867)
Borrowings due after one year (6,868) 1,445 2,445 400 (2) – (2,580)
(7,268) 1,845 – – (24) – (5,447)
Net debt (6,218) 3,143 – – (24) (15) (3,114)
The working capital facilities provided by Barclays in place at the end of the financial year were due to end their term in July 2010 and have been 
classified as Borrowings due within one year. These facilities were renewed in March 2010 for another three year term. Other non-cash charges 
are amortisation of issue costs relating to the borrowings.
30. Commitments
a) Capital commitments
Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:
2010  
£000
2009  
£000
Property, plant and equipment – 96
– 96
b) Lease commitments
Operating lease payments represent rentals payable by the Group for certain office properties. Land and building leases are negotiated for an 
average of 14 years and rentals are fixed for an average of five years. Other leases are negotiated for an average term of three years and rentals 
are fixed for an average of three years.
Total commitments due under non-cancellable operating leases are as follows:
Land &  
buildings  
2010  
£000
Other  
2010  
£000
Land &  
buildings  
2009  
£000
Other  
2009  
£000
Within one year 1,395 321 960 396
Between one and five years 4,917 174 3,305 512
Over five years 4,284 – 4,282 –
10,596 495 8,547 908
The Group expects to receive total sub-lease rental income of £14,000 (2009: £81,000) under the terms of sub-lease agreements entered into 
with third parties.
Other leases include hire of plant, machinery and motor vehicles.
Notes to the Consolidated Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
59
Accounts
31. Principal subsidiary undertakings
The principal Group operating companies that traded during the year, and are wholly owned, and which are included in these consolidated 
financial statements are as follows:
Abaris Holdings Limited – registered in England and Wales
Walker Greenbank Inc* – incorporated in the USA
Whittaker & Woods SRL – incorporated in Italy (disposed  
on 16 December 2009)
Arthur Sanderson & Sons SARL * – incorporated in France
Investments in Group companies are ordinary shares.
* Shares held by subsidiary company.
The principal activities of the Group are design, manufacture, marketing and distribution of wallcoverings, furnishing fabrics and associated 
products for the consumer market.
32. Disposal of subsidiary
On 16 December 2009, the Group strengthened its distribution arrangement in Italy through the sale of its Whittaker & Woods SRL subsidiary for 
consideration receivable of £72,000. The net assets disposed of were:
£000
Property, plant and equipment 10
Current assets
Stock 4
Trade debtors 224
Cash 17
Other debtors 23
268
Current liabilities
Trade creditors (4)
Creditors intergroup (86)
Other creditors (116)
(206)
Net Assets 72
Of the consideration receivable £17,000 was received prior to the balance sheet date with the remainder due in installments within the next  
18 months. The disposal does not have a material impact on the Group financial position or results for the year, and does not satisfy the criteria  
of IFRS 5 for presentation as a discontinued activity.
33. Contingent assets
Vat claim
Following the judgement in the Fleming case, Walker Greenbank PLC has registered a claim with HM Revenue and Customs for the recovery of 
VAT associated with the expenses incurred on the issue of shares over the period from 1973 to 1997. There are ongoing discussions with HM 
Revenue and Customs on this matter.
Loss of profit claim
As a consequence of loss of pattern books in a fire in January 2009, some collection launches were either abandoned or delayed. A loss of profit 
claim is currently being made against insurers. 60
WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
Company Accounts
61 Independent Auditors’ Report on Company  
Financial Statements
62 Company Balance Sheet
63 Notes to the Accounts
70 Five Year Record
In this section
Company Accounts WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
61
Accounts
We have audited the parent company financial statements of Walker 
Greenbank plc for the year ended 31 January 2010 which comprise 
the Company Balance Sheet and the related notes. The financial 
reporting framework that has been applied in their preparation is 
applicable law and United Kingdom Accounting Standards (United 
Kingdom Generally Accepted Accounting Practice).
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities, 
the directors are responsible for the preparation of the parent company 
financial statements and for being satisfied that they give a true and fair 
view. Our responsibility is to audit the parent company financial 
statements in accordance with applicable law and International 
Standards on Auditing (UK and Ireland). Those standards require us to 
comply with the Auditing Practices Board’s Ethical Standards for 
Auditors.
This report, including the opinions, has been prepared for and only for 
the company’s members as a body in accordance with Chapter 3 of 
Part 16 of the Companies Act 2006 and for no other purpose. We do 
not, in giving these opinions, accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown or 
into whose hands it may come save where expressly agreed by our 
prior consent in writing.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or error. This includes an 
assessment of: whether the accounting policies are appropriate to the 
parent company’s circumstances and have been consistently applied 
and adequately disclosed; the reasonableness of significant 
accounting estimates made by the directors; and the overall 
presentation of the financial statements.
Opinion on financial statements
In our opinion the parent company financial statements:
give a true and fair view of the state of the company’s affairs as at  >
31 January 2010;
have been properly prepared in accordance with United Kingdom  >
Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the  >
Companies Act 2006.
Opinion on other matter prescribed by the Companies 
Act 2006
In our opinion the information given in the Directors’ Report for the 
financial year for which the parent company financial statements are 
prepared is consistent with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the 
Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent  >
company, or returns adequate for our audit have not been received 
from branches not visited by us; or
the parent company financial statements are not in agreement with  >
the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are  >
not made; or
we have not received all the information and explanations we  >
require for our audit.
Other matter
We have reported separately on the group financial statements of 
Walker Greenbank plc for the year ended 31 January 2010.
Owen Mackney (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
St Albans
2 June 2010
Independent Auditors’ Report
To the members of Walker Greenbank Plc WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
62
Note
2010  
£000
2009  
£000
Fixed assets 4 4,219 4,335
Investments 5 43,557 43,755
47,776 48,090
Current assets and liabilities
Debtors 6 16,576 15,307
Creditors: amounts falling due within one year 8 (11,979) (9,639)
Net current assets 4,597 5,668
Total assets less current liabilities 52,373 53,758
Creditors: amounts falling due after more than one year 9 (2,600) (3,000)
Net assets 49,773 50,758
Capital and reserves:
Share capital 11 590 590
Share premium account 12 457 457
Retained earnings 12 6,838 7,823
Other reserves 12 41,888 41,888
Total shareholders’ funds 49,773 50,758
The notes on pages 63 to 69 form an integral part of the Company financial statements.
J D Sach     A N Dix
Director     Director
These accounts were approved by the Directors on 2 June 2010.
Walker Greenbank PLC Company Accounts – UK GAAP
Company Balance Sheet
At 31 January 2010 WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
63
Accounts
1. Accounting policies
Accounting convention
The financial statements are prepared on a going concern basis and under the historical cost convention. They have been prepared in 
accordance with applicable accounting standards and United Kingdom Generally Accepted Accounting Practice, with the Companies Act 2006, 
and with the accounting policies set out below which have been consistently applied to all periods presented unless otherwise indicated.
Profit and loss account
No profit and loss account is presented for Walker Greenbank PLC (‘the Company’) as it has applied the exemption provided by Section 408 of 
the Companies Act 2006. A loss of £984,000 (2009: loss £4,103,000) has been dealt with in the accounts of the parent Company.
Consolidation
These financial statements present information relating to the entity Walker Greenbank PLC, and are not consolidated. The consolidated financial 
statements of the Group of which the Company is the parent are separately presented within this Annual Report and Accounts under IFRS.
Fixed assets
Depreciation is charged on tangible fixed assets (excluding freehold land) on a straight-line basis on the original cost after deduction of any 
estimated residual value. The principal annual rates are:
Freehold buildings 2%
Short leasehold improvements Over the unexpired period of the lease
Plant, equipment and vehicles Between 5% and 33%
Computer assets Between 12.5% and 33%
Land and buildings are stated at cost less any provision for impairment.
Impairment of fixed assets and investments
Fixed assets and investments are subject to review for impairment in accordance with Financial Reporting Standard No.11. Where impairment 
triggers are identified the recoverable amount of the relevant asset, or group of assets within an income generating unit, is determined, being the 
higher of value in use and net realisable value. If the carrying amount of the asset exceeds its recoverable amount an impairment loss is 
calculated. Any impairment is recognised in the profit and loss account in the year in which it occurs. Where impairments have been identified in 
prior years and recoverable amount was based on value in use, an updated discounted cash flow is prepared annually to assess whether the 
previous impairment in value has reversed. When all conditions are met, the impairment is reversed and recognised in profit and loss in the year in 
which the reversal occurs.
Financial instruments
The Company is listed on the Alternative Investment Market regulated by The London Stock Exchange. It is not required to adopt FRS26 
‘Financial Instruments: Measurement’ or FRS29 ‘Financial Instruments: Disclosures’ in these financial statements, and has not elected to 
voluntarily do so.
The Company continues to adopt the amortised cost basis of accounting for financial instruments, and had not elected to voluntarily apply fair 
value measurements of financial instruments, including derivative financial instruments.
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. 
Transactions in foreign currencies are recorded at the rates ruling at the date of transaction. All exchange differences are taken to the profit and 
loss account. Further disclosure of the Group’s financial risk management policies is included in note 2 of the consolidated financial statements of 
the Group which are separately presented from these Company accounts.
Employee share ownership plan (‘ESOP’)
Where the Company’s issued share capital is acquired by an ESOP trust sponsored by the Company the cost of acquisition is deducted from 
profit and loss reserves in accordance with UITF Abstract 38. No gain or loss is recognised in the profit and loss account or statement of total 
recognised gains and losses on the purchase, sale, issue or cancellation of shares, including transfers to and from treasury shares. Dividends 
receivable on shares held by the ESOP are excluded from the profit and loss account, and are excluded from amounts recognised as dividends 
payable by the Company.
Employee benefits – share based payments under long-term incentive plans (‘LTIP’)
In accordance with the transitional provisions, FRS20 has been applied to all grants of equity instruments after 7 November 2002 that had not 
vested as of 1 January 2005.
Notes to the Accounts WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
64
1. Accounting policies continued
The Group issues equity-settled share-based payments to certain employees which must be measured at fair value and are recognised as an 
expense in the income statement with a corresponding increase in equity. The fair values of these payments are measured at the dates of grant, 
taking into account the terms and conditions upon which the awards are granted. The fair value is recognised over the period during which 
employees become conditionally entitled to the awards, subject to the Group’s estimate of the number of awards which will lapse, either due to 
employees leaving the Group prior to vesting or due to non-market based performance conditions not being met. The total amount recognised in 
the income statement as an expense is adjusted to reflect the actual number of awards that vest.
The Company applies UITF Abstract 44 ‘FRS20 – Group and treasury shares’. A portion of the fair value of awards granted to employees 
providing services to the Company’s subsidiary companies are recognised as an additional investment in those subsidiaries, and not as an 
expense of the Company.
Employee benefits – pensions
The Walker Greenbank Group operates both defined benefit and defined contribution pension schemes for the benefit of its employees. Further 
details of these schemes are included in note 23 of the consolidated financial statements of the Group presented within the Annual Report and 
Accounts. Defined benefit pension schemes are now accounted for within the separate financial statements of the Group’s trading subsidiary, 
Abaris Holdings Limited. The parent Company recognises contributions to defined contribution schemes in respect of its employees as expenses 
when incurred.
Share capital
Ordinary shares are classified as equity. Costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of 
tax, from the proceeds.
Treasury shares
Consideration paid including any directly attributable incremental costs (net of income taxes) on the purchase of the Company’s equity share 
capital (treasury shares) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. Where 
such shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related 
income tax effects is included in equity attributable to the Company’s equity shareholders.
Deferred taxation
Deferred taxation is recognised in respect of timing differences that have originated but not reversed at the balance sheet date and that give rise 
to an obligation to pay more tax or a right to pay less tax in the future. Deferred tax is calculated using the average rates that are expected to 
apply when the timing differences reverse, based on tax rates that have been substantively enacted by the balance sheet date. No provision has 
been made for any liability arising from the distribution of past earnings of subsidiary undertakings. Deferred tax assets are only recognised when 
it is more likely than not that they will be recovered in the foreseeable future.
Leases
Leases are classified as finance leases where the terms of the lease transfer substantially all the risks and rewards of ownership to the Company. 
All other leases are classified as operating leases.
Assets used by the Company which have been funded through finance leases are capitalised in tangible fixed assets and the resulting lease 
obligations are included in liabilities. The assets are depreciated over their useful lives and the interest element of the rental obligations is charged 
to the profit and loss account over the period of the lease, and represents a constant proportion of the balance of capital repayments outstanding.
Operating lease rentals are charged to the profit and loss account on a straight line basis over the period of the lease. Rent free periods 
receivable on entering an operating lease are released on a straight-line basis to the next break point in the lease.
Related party
The Company has applied the exemption available in FRS 8 and has decided not to disclose transactions with wholly owned subsidiary 
undertakings.
2. Auditors’ remuneration
2010  
£000
2009  
£000
Audit fee – fees payable to the Company auditor for the audit of the parent Company and the consolidation  
of the Group accounts 50 50
Notes to the Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
65
Accounts
3. Emoluments of Directors
Salary  
£000
Bonus  
£000
LTIP  
£000
Benefits  
£000
Sub-total 
aggregate 
emoluments
£000
Pension  
£000
2010  
Total  
£000
2009  
Total  
£000
Executive Directors:
John Sach 220 121 126 6 473 33 506 258
David Smallridge 160 88 117 1 366 24 390 177
Alan Dix 126 50 78 1 255 13 268 140
Non-executive Directors:
Ian Kirkham (retired 31 January 2009) – – – – – – – 65
Terry Stannard 60 – – – 60 – 60 26
Fiona Goldsmith (appointed 17 December 2008) 26 – – – 26 – 26 4
592 259 321 8 1,180 70 1,250 670
Executive Directors have been granted awards under long-term incentive plans in the form of nil priced share options. During the year the award 
granted in July 2006 vested. The vesting conditions were set in 2006 and comprised a profit before tax target for the year ended 31 January 2009 
and that the participants were employed at the end of the three year vesting period. Accordingly, the gain on exercise of the award, being the 
market value of the shares at the vesting date in July 2009, are included in aggregate emoluments above (‘LTIP’) for the current year, 
notwithstanding that this relates to performance of the Group in a prior period.
In both years, retirement benefits were accruing to one Director under a defined benefit scheme, who is the highest paid Director. Accrued annual 
pension benefits at the year end were £11,406 (2009: £10,188).
Benefits are accruing under defined contribution schemes for three Directors (2009: three Directors).
Further information of remuneration is included in the Directors’ Remuneration Report set out on pages 21 to 23.
4. Tangible fixed assets
Land and 
buildings 
£000
Plant, 
equipment 
and vehicles 
£000
Computer 
assets  
£000
Total  
£000
Cost:
31 January 2009 5,404 50 18 5,472
Additions – – – –
Disposals – – – –
31 January 2010 5,404 50 18 5,472
Depreciation:
31 January 2009 1,092 28 17 1,137
Charge 109 7 – 116
Disposals – – – –
31 January 2010 1,201 35 17 1,253
Net book amount:
31 January 2010 4,203 15 1 4,219
31 January 2009 4,312 22 1 4,335
The net book amount of land and buildings comprises:
2010  
£000
2009  
£000
Freehold land 450 450
Freehold buildings 3,753 3,862
Net book value 4,203 4,312
The value of assets secured under the Barclays facility was property of £4,203,000 (2009: £4,312,000). WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
66
5. Investments
Shares in subsidiary undertakings
2010  
£000
2009  
£000
Cost:
As at 1 February 2009 44,793 44,714
Additions 29 79
Disposal of subsidiary (227) –
As at 31 January 2010 44,595 44,793
Provision for impairment:
Beginning of year and end of year (1,038) (1,038)
Net book amount 43,557 43,755
Additions in both years relate to the application of the Company’s accounting policy for share-based payments.
Walker Greenbank PLC is registered and domiciled in the United Kingdom. It is the parent Company of the Walker Greenbank Group. The 
principal Group operating companies that traded during the year and are wholly owned are as follows:
Abaris Holdings Limited – registered in England and Wales
Walker Greenbank Inc* – incorporated in the USA
Arthur Sanderson & Sons Inc* – incorporated in the USA
Arthur Sanderson & Sons SARL * – incorporated in France
Whittaker & Woods SRL – incorporated in Italy (disposed of on 16 December 2009)
Whittaker & Woods SRL was sold on 16 December 2009 for consideration of £72,000.
Investments in Group companies are ordinary shares.
* Shares held by subsidiary company.
The principal activities of the Group are design, manufacture, marketing and distribution of wallcoverings, furnishing fabrics and associated 
products for the consumer market.
The carrying value of the investment in Abaris Holdings Limited is reviewed annually by reference to its value in use to the Company. The value in 
use was calculated using future expected cash flow projections, discounted at 10.5% (2009: 9.5%) on a pre tax basis, and is not intended to 
reflect a realisable value on disposal.
6. Debtors
2010  
£000
2009  
£000
Amounts owed by subsidiary undertakings 16,071 15,005
Other debtors 229 165
Prepayments 276 137
16,576 15,307
Included within other debtors is an amount repayable after one year of £nil (2009: £12,000). Amounts owed by subsidiary undertakings are 
non-interest bearing and are unsecured. These loans are callable on demand by the Company should payment be required, but full settlement 
within the next 12 months is unlikely to be sought.
Notes to the Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
67
Accounts
7. Discolsure of fair value of derivative financial instruments
2010  
£000
2009  
£000
Forward foreign exchange contracts – cash flow hedges 175 (812)
Forward foreign exchange contracts
The Group’s US based subsidiary, Walker Greenbank Inc., sells products to local customers with sales invoiced in US dollars. As the Group’s 
presentation currency is sterling it is exposed to changes in the reported sterling value of these sales. The Group considers that it is highly 
probable that future sales of this nature will continue to arise over at least the next 12 months. During the year Walker Greenbank PLC has 
entered into monthly forward foreign exchange contracts up to July 2011, with a third party, to buy sterling and sell dollars. The Group has 
designated these contracts as cash flow hedges of the foreign currency risk arising from the highly probable future forecast sales transactions. As 
at the reporting date the fair value of the forward foreign contracts relating to the benefit on these anticipated future transactions is an asset of 
£175,000 (2009: Liability £820,000).
The Group make more purchases from the euro zone than sales made to the euro zone. As the Group’s presentation currency is sterling it is 
exposed to changes in the reported sterling value of the purchases. The Group considers that the level of this exposure will reduce over the next 
12 months. As at the reporting date there were no Euro forward foreign contracts. The fair value of the Euro forward contracts entered into by 
Walker Greenbank PLC last year was an asset of £8,100.
8. Creditors: due within one year
2010  
£000
2009  
£000
Bank term loans (note 9) 400 400
Bank overdrafts 1,074 1,069
Trade creditors 244 94
Amounts owed to subsidiary undertakings 9,307 7,500
Other taxes and social security 43 40
Other creditors 59 139
Accruals 852 397
11,979 9,639
Amounts owed to subsidiary undertakings are non-interest bearing and are unsecured. These loans are payable on demand by the Company 
should payment be required, but full settlement within the next 12 months is unlikely to be sought.
9. Creditors: due after more than one year
2010  
£000
2009  
£000
Bank term loan 2,600 3,000
The term loan is secured by a floating charge over the property (note 4). Interest is charged at 1.25% (2008: 1.25%) over base rate.
Repayment of total borrowings
2010  
£000
2009  
£000
Over five years 1,000 1,400
Between two and five years 1,200 1,200
Between one and two years 400 400
After more than one year 2,600 3,000
Within one year (note 8) 400 400
3,000 3,400
The Company has facilities from Barclays Bank PLC which comprises a variable rate Term Loan secured on the Group’s freehold property of £4 
million which is being repaid on a 10 year profile. WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
68
9. Creditors: due after more than one year continued
Under the Barclays Bank PLC facilities, the Group is subject to various financial covenants which apply to the term loan, including interest cover 
and debt service.
Any non-compliance with covenants could, if not remedied or waived, constitute an event of default with respect to any such arrangements. The 
Group has reported to its financiers that it was in full compliance with its financial and operational covenants throughout each of the periods 
presented.
There is a set off arrangement for Group bank accounts held with the UK clearing bank.
10. Provisions – deferred tax liability
2010  
£000
2009  
£000
Balance at start of the year – 74
(Credit)/charge to profit and loss account – (74)
Balance at end of the year – –
Unrecognised net deferred tax assets at 31 January 2010 are £1,656,000 (2009: £1,430,000) relating to tax losses and other short-term timing 
differences. These will be realised as and when they reverse against suitable future taxable profits.
2010  
£000
2009  
£000
Depreciation in excess of capital allowances 7 7
Tax losses 1,345 1,158
Other timing differences 304 265
1,656 1,430
There is also capital tax loss of the Company at 31 January 2010 of £4,885,000 (2009: £4,885,000) but no deferred tax asset has been 
recognised as it is not considered probable that these losses will be utilised.
11. Share capital
Ordinary shares of 1p each: Number of shares £
Authorised share capital:
1 February 2009 and 31 January 2010 85,000,000 850,000
Allotted, called up and fully paid:
1 February 2009 and 31 January 2010 59,006,162 590,062
All holders of ordinary shares have the right to vote at general meetings of the Company and to distributions from dividends or on winding up of 
the Company.
On 27 July 2009 2,386,794 shares vested under the Company’s Long-Term Incentive Plan and these were removed from the Walker Greenbank 
PLC Employee Benefit Trust (‘EBT’). On 13 November 2009 1,690,093 shares were transferred from treasury to the EBT. On 8 January 2010 
Walker Greenbank PLC purchased 610,000 ordinary shares of 1p each in the Company at 21p per ordinary share at a total cost of £128,100. 
Following these transactions Walker Greenbank’s issued ordinary share capital with voting rights consists of 59,006,162 (2009: 59,006,162) 
ordinary shares of which 610,000 (2009: 1,690,093) ordinary shares are held in treasury and a further 1,852,445 (2009: 2,549,146) ordinary  
shares are held by the EBT with a cost of £380,534 (2009: £601,202). Shares held in treasury or by the EBT are treated as cancelled when 
calculating EPS.
The market value of shares held by the EBT at 31 January 2010 was £416,800 (2009: £261,287).
The total number of shares held in treasury at the year end represented 1.0% (2009: 2.9%) of the issued shares. The market value of these shares 
at 31 January 2010 was £137,250 (2009: £173,235).
The shares held by the trust and the treasury shares are held for the purpose of satisfying awards under long-term incentive plans to Executive 
Directors and senior management.
Notes to the Accounts continued WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
69
Accounts
11. Share capital continued
Long-Term Incentive Plans (‘LTIPs’)
The Group operates a Long-Term Incentive Plan. Up to the balance sheet date, there have been three awards under this plan, in which Executive 
Directors and senior management of the Group participate. The first award vested during the year. The LTIP has previously been approved by the 
shareholders at an Annual General Meeting. Further details are included in note 25 of the consolidated financial statements of the Group which 
are separately included within this Annual Report and Accounts, and in the Directors’ Remuneration Report set out on pages 23 to 25.
On 20 May 2010 further awards were made to the Executive Directors and senior management a total of 2,117,000 ordinary shares.
12. Shareholders fund and reserve movement
Share capital 
£000
Share 
premium 
account  
£000
Profit and  
loss account  
£000
Capital 
reserve  
£000
Total  
£000
1 February 2008 590 457 11,595 41,888 54,530
Reserve for long-term incentive plan liabilities – – 414 – 414
Loss for the year – – (4,103) – (4,103)
Treasury shares – – (83) – (83)
31 January 2009 590 457 7,823 41,888 50,758
Reserve for long-term incentive plan liabilities – – 127 – 127
Loss for the year – – (984) – (984)
Treasury shares – – (128) – (128)
31 January 2010 590 457 6,838 41,888 49,773
Capital reserve represents £000
Capital redemption reserve for deferred shares 1,003
Capital redemption reserve for ‘B’ shares 40,885
41,888
13. Operating lease commitments
Annual commitments due under non-cancellable operating leases are as follows:
Land and 
buildings 
2010  
£000
Other  
2010  
£000
Land and 
buildings  
2009  
£000
Other  
2009  
£000
Operating leases which expire:
Within one year – – – –
Between one and five years – – – –
Over five years 479 – 453 –
479 – 453 –
14. Contingent liability
The Company is party to a cross guarantee relating to the borrowings of its subsidiary Abaris Holdings Limited under the funding arrangement 
with Barclays Bank plc.
15. Post balance sheet event
The Directors have recommended the payment of a final dividend of 0.5p per share, a total of £283,033 (excluding dividends on shares held in 
treasury or by the employee benefit trust), which is not recognised in these financial statements in accordance with UK GAAP.
16. Related party transactions
The Company made contributions to Walker Greenbank Group Personal Pension Plan of £83,000 for the year ended 31 January 2010  
(2009: £73,000). WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
70
2006  
UK GAAP 
£000
2007  
IFRS  
£000
2008  
IFRS  
£000
2009  
IFRS  
£000
2010  
IFRS  
£000
Turnover 48,392 54,369 62,448 63,698 60,378
Overseas turnover by location of customer 18,916 18,374 20,908 22,672 20,409
Operating profit 5,018 3,757 3,961 3,561 2,415
Operating profit before exceptional items 758 2,481 3,961 3,857 2,522
EBITDA 2,845 4,323 5,783 5,703 4,308
Profit before taxation 2,625 2,694 3,099 2,787 1,552
Capital expenditure 710 1,447 1,797 1,527 1,067
Profit per share 4.51p 4.67p 14.49p 2.96p 2.10p
Average number of employees 539 548 586 594 529
Dividends – – – – –
Shareholders’ funds 8,597 12,943 20,799 19,911 18,770
Dividend per share – – – – –
The data for 2007 has been restated from UK GAAP to International Financial Reporting Standards. Data prior to 2007 has not been restated.
EBITDA is based on operating profit before exceptional items.
Five Year Record
Shareholder information
Financial Calendar
Annual General Meeting 28 July 2010
Announcement of half-year results October 2010
Walker Greenbank PLC
Chalfont House
Oxford Road
Denham
UB9 4DX
T: 0845 126 5582
F: 0845 126 5583
www.walkergreenbank.com WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
71
Accounts
Notes WALKER GREENBANK PLC 
ANNUAL REPORT AND ACCOUNTS 2010
72
Notes Luxury interior
furnishings group
Walker Greenbank PLC is a luxury interiors furnishings group whose 
brands include Harlequin, Sanderson, Morris & Co. and Zoffany. Our  
brands are targeted at the mid to upper end of the premium market.  
They have worldwide distribution including prestigious showrooms  
at Chelsea Harbour, London and the D&D building, Manhattan,  
New York. Half of the brand’s turnover is sourced in-house from  
the Group’s own specialist manufacturing facilities.
front cover: 
a painter’s garden collection, s anderson, d esign: s ummer tree inside front cover: 
wallpaper: florine from amilie collection, Harlequin cus Hions: amilie collection, Harlequin 2010
ANNUAL REPORT AND ACCOUNTS
Walker Greenbank PLC 
Luxury interior 
furnishings group 
2010
ANNUAL REPORT AND ACCOUNTS
Walker Greenbank PLC 
Luxury interior 
furnishings group 
Walker Greenbank PLC         Annual Report and Accounts 2010
www.walkergreenbank.com
Walker Greenbank PLC 
Chalfont House 
Oxford Road 
Denham 
UB9 4DX 
T: 0845 126 5582   F: 0845 126 5583