W alker Greenbank PLC
Annual Report and Accounts 
for the year ended 31 January 2012
EXTENDING OUR
REACH AND RANGE Walker Greenbank PLC 
is an international luxury 
interior furnishings group.
The Group’s brands, Sanderson, 
Morris & Co., Harlequin, Zoffany and 
Scion offer a unique mix of heritage 
and contemporary design. The 
Group designs, manufactures and 
markets wallcoverings, fabrics and 
complementary products.
Overview
01 Highlights
02 Extending our reach
04 Stretching our brands
06 Broadening our range
08 Increasing our capability
10 Valuing our people
12 Our year in review
14 Chairman’s Statement
16 Chief Executive’s Review
20 Financial Review
22 Directors and Advisers
Directors’ report
23 Report of the Directors
25  Statement of Directors’ Responsibilities
26  Directors’ Remuneration Report
29  Corporate Governance Statement 
Financial statements
30  Independent Auditors’ Report on 
Consolidated Financial Statements
31 Consolidated Income Statement
32  Consolidated Statement of 
Comprehensive Income
33 Consolidated Balance Sheet
34 Consolidated Cash Flow Statement
35  Consolidated Statement of  
Changes in Equity
36  Notes to the Consolidated  
Financial Statements
65  Independent Auditors’ Report on 
Company Financial Statements
66 Company Balance Sheet
67 Notes to the Financial Statements
74 Five Year Record
75 Shareholder Information 01
WALKER GREENBANK PLC
Annual Report and Accounts 2012
REVENUE 
£MILLION
2012
2011
2010
020 40 60 80
OPERATING PROFIT BEFORE EXCEPTIONALS
£MILLION
2012
2011
2010
0 1.5 3.0 4.5 6.0
PROFIT BEFORE TAX
£MILLION
2012
2011
2010
0 1.5 3.0 4.5 6.0
DIVIDEND PER SHARE
PENCE
2012
2011
2010
0 0.5 1.0 1.5 2.0
 Sales up 7 .6% to £7 4.0 million (201 1: £68.8 million) 
with strong international brands growth of 1 1 % to 
£22.0 million (201 1: £19.7 million)
 Licensing income up 1 1% to £1.59 million (201 1: 
£1.44 million) and new licence agreements signed 
with Portmeirion (tableware), Brink & Campman (rugs) 
and others
 Operating proﬁts before exceptional gain up 24% to 
£5.56 million (201 1 : £4.47 million)
 Earnings per share up 26% to 6.76p (201 1: 5.36p)
 Final dividend up 25% to 1.00p per share (201 1: 
0.80p) giving a total dividend of 1.20p per share 
(201 1: 0.95p)
HIGHLIGHTS
PAGES 
02-03
Extending our reach
PAGES 
04-05
Stretching our 
brands
PAGES 
08-09
Increasing our 
capability
PAGES 
06-07
Broadening  
our range
P PA A
Br
ou 02
WALKER GREENBANK PLC
Annual Report and Accounts 2012
MIDDLE EAST MOSCOW
RIO DE JANEIRO
SHANGHAI
USA
W. EUROPE
SCANDINAVIA
E. EUROPE
S AMERICA
MIDDLE EAST
+4%
+6%
+15%
+22%
+14%
+105%
$8.78m
£6.78m
£2.00m
£2.10m
£0.20m
£1.22m 03
WALKER GREENBANK PLC
Annual Report and Accounts 2012
EXTENDING
OUR
REACH
FAR EAST
AUSTRALIA
+22%
+5%
£2.85m
£0.77m
Building on the substantial growth 
potential in the North American, 
European and Rest of World markets.
Q: How big an opportunity are international markets?
JOHN: International markets offer a huge opportunity. Our 
products are already sold in 75 countries but only in recent 
years has Walker Greenbank been in a ﬁnancial position to fully 
focus on these growth opportunities. We now have the balance 
sheet strength to achieve our ambitions in international markets, 
at a time when our products continue to grow in popularity 
globally. The heritage and design excellence of our brands 
combined with our UK manufacturing capability are all of 
considerable appeal to both emerging and established 
international markets.
Q: How does Walker Greenbank achieve 
international sales?
JOHN: We have an extensive network of agents and 
distributors around the world and work closely with them. 
Recently, in China we were very closely involved in helping 
our distribution partner open a major showroom in Shenzhen 
to showcase our wallpapers, fabrics and lifestyle products. 
We also have our own showrooms in New York and Paris. 
The licensing of our brands for lifestyle products is another 
important means to grow overseas income. Last year our 
licensees in Japan were highly successful, beneﬁting from 
Morris & Co.’s 150th anniversary.
Q: Which international markets offer the most 
exciting growth opportunities?
JOHN: Established markets offer us considerable potential, in 
part dependent on the economic cycle. The US is of particular 
interest to us, in that we already have a presence there and it’s 
a natural market for our products, but perhaps the most exciting 
opportunities for us lie in the emerging markets for luxury interior 
goods where we have seen rapid growth in Eastern Europe, the 
Far East, the Middle East and South America.
JOHN SACH
Chief Executive 04
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Stretching our Brands into new market 
positions including award winning 
designs from Clarissa Hulse and 
Melissa White as well as the launch 
of our new brand Scion.
STRETCHING 
OUR
BRANDS 05
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Q: T ell us more about your collaborations with 
leading independent designers.
DAVID: We have superb in-house designers but the strong 
identities of all of our brands mean that they are also ideally 
positioned for collaborations with leading independent 
designers. In the past year, Harlequin’s Kallianthi collection by 
Clarissa Hulse and Melissa White’s Arden collection for Zoffany 
have both enjoyed considerable acclaim from customers and 
commentators alike.
Q: Harlequin’ s Momentum collection has been a huge 
success. What does it mean for Walker Greenbank?
DAVID: The launch of Momentum was one of the most 
exciting developments at Harlequin during 201 1. It’s a 
stunning compilation of contemporary weaves and special 
effect wallpapers in a boutique hotel style that works extremely 
well in both home and commercial interiors. The strength of the 
appeal of Momentum is such that it has set new sales records 
for Walker Greenbank, in the UK and overseas. 
Q: The Scion brand was launched in February 2012. 
What’s its target market?
DAVID: Scion is a young, contemporary brand that combines 
fresh new styling with a particular focus on value. Scion is in a 
completely new part of the market for Walker Greenbank, so is 
highly complementary to the Company’s other brands. We’ve 
been really pleased with the success of the Scion launch and 
the high level of interest from potential customers.
Q: Licensing your brands has created a wide range 
of products but are you increasing your own product 
lines too?
DAVID: Alongside our ever-expanding licensing arrangements 
for the Sanderson, Morris & Co. and Harlequin brands we have 
also extended our own product range to include cushions and 
will be launching a trimmings range for Harlequin in the summer 
of 2012.
DAVID SMALLRIDGE
Managing Director Brands 06
WALKER GREENBANK PLC
Annual Report and Accounts 2012
LICENCE INCOME
£MILLION
2012
2011
2010
0 0.5 1.0 1.5 2.0
Q: T ableware is a key part of any interior. T ell us 
about Sanderson’s tableware collections.
VICTORIA: We signed a licensing deal last year with 
Portmeirion, a market leader in innovative tableware. So far, 
they have launched two delightful tableware ranges based on 
contrasting Sanderson designs. Fiﬁ is a 1950s-inspired retro 
collection whereas Porcelain Garden is classically inspired 
featuring delicate ﬂowers, birds and butterﬂies.
Q: T ell us more about Harlequin’s licensing 
arrangement in rugs.
ALISON: This licensing arrangement is with Brink & Campman, 
a prestige rug maker in the Netherlands. We were really pleased 
with their launch in February of a stunning collection of 20 
Harlequin rugs in nine different designs. They are currently 
developing ranges for the Sanderson and Scion brands. 
Rugs are just one of a wide range of lifestyle products that 
we’re developing through licensing arrangements to 
complement our wallpapers and fabrics. 
Q: How did Morris & Co. come to work with Barbour?
VICTORIA: Barbour and Morris & Co. are both quintessential UK 
brands so they make a perfect partnership. It’s also really exciting 
because in addition to Morris & Co.’s Strawberry Thief and 
Marigold fabrics being used for the linings of Barbour jackets, the 
fabrics will also be used to create a range of Barbour handbags.
Q: Lighting is a new area of licensing for Harlequin. 
T ell us more. 
ALISON: Harlequin’s established identity as a successful 
contemporary brand brings huge potential for its use in lifestyle 
products. Our licensing partnership with Elstead Lighting, a UK 
company with worldwide distribution, was a particularly exciting 
development. The introduction of a stylish collection of modern 
table and ﬂoor lamps, wall lights and chandeliers, designed by 
Harlequin and incorporating the brands fabric in its shades, 
reﬂects both the strength and breadth of the brand. 07
WALKER GREENBANK PLC
Annual Report and Accounts 2012
BROADENING
OUR 
RANGE
VICTORIA BLAIR (TOP)
Marketing director for Sanderson, 
Morris & Co. and Zoffany
ALISON GORE (BOTTOM)
Marketing director for Harlequin 
and Scion
We are developing our lifestyle 
product range by exploiting 
the brands potential to grow 
licence opportunities. 08
WALKER GREENBANK PLC
Annual Report and Accounts 2012
We continue to invest in developing 
new techniques to broaden our offering 
to our customers. A key focus has been 
the investment in digital printing for both 
fabrics and wallpapers. 09
WALKER GREENBANK PLC
Annual Report and Accounts 2012
INCREASING
OUR
CAPABILITY
Q: Investment in the wallpaper factory has included 
a scatter machine. What new effects does it bring?
BARRY: The scatter machine at the wallpaper factory in 
Loughborough adds glass beads and other particles to 
wallpaper and by combining this process with our different 
printing techniques we can create some highly individual 
textural effects. Harlequin’s highly successful Momentum 
collection features wallpapers produced on the scatter 
machine, which has also been used to create some superb 
wallpapers for many of our third party customers.
Q: T ell us more about the investment in digital printing.
BARRY: We’ve been building our digital printing capacity 
over the last four years, initially at the fabric printing factory 
in Lancaster and more recently at the wallpaper factory in 
Loughborough. We now have four digital printers in Lancaster 
and one in Loughborough.
Digital printing allows very large image sizes to be created 
and very short runs to be printed economically. We’ve 
produced some stunningly vibrant fabric prints in Clarissa 
Hulse’s Kallianthi collection for Harlequin using digital printing 
as well as for both existing and new third party customers at 
home and overseas. We also recently launched our ﬁrst digitally 
printed wallpaper for Zoffany’s Arden collection, which features 
a stylised Elizabethan country scene in a huge repeat size. 
Q: Screen printing is a traditional technique. 
Are you still investing in it? 
BARRY: Conventional ﬂatbed and rotary screen remain very 
attractive methods for fabric printing and during the past year 
we have substantially extended our ﬂatbed capability at our 
Lancaster factory to allow us to print a wider range of products. 
By continuing to invest in both factories, we aim to offer all our 
customers the broadest possible range of traditional and 
innovative printing techniques and design opportunities. 
BARRY FORESTER
Manufacturing managing director 10
WALKER GREENBANK PLC
Annual Report and Accounts 2012
We provide value, quality and 
fulﬁlment to our customers. 
Our focus is on striving for 
excellence and ensuring we 
deliver on our promises. As  
a professional organisation,  
we believe that people make 
the difference.
Our strength comes from 
attracting and retaining the 
right people by providing a 
challenging and rewarding 
environment. We also provide 
ample opportunities for 
professional growth 
and development.
VALUING
OUR
PEOPLE
“ Next day delivery is really 
important and it’s our job 
to make it happen.”
Elise Barlow, Customer Services 11
WALKER GREENBANK PLC
Annual Report and Accounts 2012
“ I love the fact that I am 
able to express myself 
through my ideas.”
Louise Draper, Senior Designer
“ It’s great to see the 
technology adapting to 
customer requirements.”
Peter Nield, Print Technician
“ The archive provides 
an inspirational resource 
of historical textiles and 
artwork for us as a 
design team.”
Claire Hart, Designer  12
WALKER GREENBANK PLC
Annual Report and Accounts 2012
OUR YEAR IN REVIEW
It has been a very busy year which 
has seen numerous initiatives focused 
on extending the range and reach of the 
Group’s brands and the capability 
of manufacturing.
JANUARY 2012
Opening of major 
showroom in 
Shenzhen, China
A collaboration with our Chinese 
distributor to open a 560 sq m 
showroom on two ﬂoors, located 
in the design district of Shenzhen. 
Stocked with wallpapers and 
fabrics from the Group’ s brands 
together with an extensive range 
of the lifestyle products.
FEBRUARY 2012
Launch of Sanderson 
designs by Portmeirion 
and Blueprint 
collections 
T wo collections of tableware 
designed by Portmeirion, Fiﬁ, 
inspired by 1950s designs 
and more classical, Porcelain 
Garden. Blueprint designed 
a range of stationery, bags 
and tinware also inspired by 
Porcelain Garden.
FEBRUARY 2012
Launch of Scion brand 
to target new market 
segment
The brand name ‘Scion’ 
inspired by the dictionary 
deﬁnition ‘a young shoot or 
twig’ or ‘a descendant of a 
notable family or one with a long 
lineage’ is aimed at aspirational 
and fashion-aware customers. 13
WALKER GREENBANK PLC
Annual Report and Accounts 2012
SEPTEMBER 2011
Launch of Harlequin 
lighting
A stylish collection of modern 
table and ﬂoor lamps, wall lights 
and chandeliers designed by 
Harlequin and Elstead Lighting. 
Hampshire based Elstead 
distribute the lights through major 
department stores, independent 
lighting retailers and existing 
Harlequin sales channels.
SEPTEMBER 2011
Harlequin launches 
Clarissa Hulse 
collection 
Clarissa Hulse’ s distinctive style, 
inspired by botanical themes, is 
unmistakable in the Harlequin 
collection, Kallianthi. It utilises 
the digital printing capability 
at Standfast & Barracks, the 
Group’ s fabric printing business.
MARCH 2011
Morris & Co. 
anniversary
Morris & Co. celebrated its 150th 
anniversary during 2011 following 
Sanderson’ s 150th in 2010. This 
was celebrated by the extensive 
launch of ‘The Archive Collection’ 
of prints, wallpapers, weaves 
and embroideries.
FEBRUARY 2012
Launch of Harlequin 
rug collection by 
Brink & Campman
The launch of nine designs in 
striking colour options. The rugs 
are promoted globally through 
Brink & Campman’ s distribution 
base and also through Harlequin’ s 
existing customers including 
John Lewis in the UK.
FEBRUARY 2012
First wallpaper 
digital printer used 
to produce Melissa 
White wallpaper
The new collection from Zoffany, 
Arden, has utilised the digital 
printing technique and features 
a stylised Elizabethan country 
scene in a huge repeat. 14
WALKER GREENBANK PLC
Annual Report and Accounts 2012
CHAIRMAN’S STATEMENT
TERRY STANNARD
CHAIRMAN
We remain focused on 
opportunities to develop 
our international business, 
where our brand assets and 
UK manufacturing base bring 
signiﬁcant potential to build 
on our strong position in 
established markets.
Our Harlequin showroom at 
Chelsea Harbour, London. 15
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Overview
The year to 31 January 2012 was an excellent year during which 
we continued to exploit the potential of our brands, both in the UK 
and internationally. 
Sales for the year grew by 7 .6% to £7 4.0 million with all segments of the 
Group achieving year on year growth leading to an increase of 24% in 
operating proﬁt before exceptional items at £5.56 million.
Our Brand sales grew by 7 .3% to £57 .4 million with international sales 
growing strongly by 1 1% to £22.0 million. In our largest market, the UK, 
sales grew by 4.6% to £33.8 million. Our global licence income grew 
1 1%, led by Japan and our UK bed linen licensee.
Our UK manufacturing operations had another successful year with 
third party sales growing by 8.8% helped by international sales growth 
of 32% as existing customers developed their ranges and new 
customers were attracted by our innovative printing techniques. 
These results demonstrate further progress towards our vision of 
creating a highly proﬁtable international luxury brands group. We have 
built strong market positions in our core sectors of wallpaper and fabrics 
and our brands have stretched into lifestyle categories such as rugs, 
tableware and lighting through our worldwide licence partners.
Financials
Overall sales increased 7 .6% to £7 4.0 million (201 1: £68.8 million). The 
operating proﬁt for the year was up 24% to £5.56 million (201 1: £4.47 
million before an exceptional gain of £0.50 million from a loss of proﬁts 
claim). Proﬁt before tax grew 9.7% to £4.89 million (201 1: £4.46 million). 
The proﬁt after tax increased 26% to £3.83 million (201 1: £3.03 million).
Earnings per share were 6.76p (201 1: 5.36p) a growth of 26%.
The cash inﬂow from operating activities was £4.28 million (201 1: £4.26 
million), reﬂecting strong operating proﬁts partially offset by a continued 
signiﬁcant investment in new product. The Group’s net indebtedness at 
the year end reduced to £0.67 million (201 1: £1.82 million). 
Dividend
During the year, the Group has paid a ﬁnal dividend for the year to 
31 January 201 1 of 0.80p per share and an interim dividend of 0.20p 
per share. The Directors recommend the payment of a ﬁnal dividend of 
1.00p per share (201 1: 0.80p) which will be payable on 10 August 2012 
to shareholders on the register on 13 July 2012. This brings the total 
dividend for the year to 1.20p per share (201 1: 0.95p) an increase of 26%. 
People
On behalf of the Board, I would like to thank all of our management and 
employees for their contribution to an extremely successful year. 
Outlook
We remain focused on opportunities to develop our international 
business, where our brand assets and UK manufacturing base bring 
signiﬁcant potential to build on our strong position in established markets.
After three months of the current year Brand sales are 5% ahead of the 
same period last year. We are conﬁdent of delivering a positive outcome 
for the year.
TERRY STANNARD
NON-EXECUTIVE CHAIRMAN
15 MAY 2012
Our Sanderson and Zoffany showroom 
at Chelsea Harbour, London. 16
WALKER GREENBANK PLC
Annual Report and Accounts 2012
CHIEF EXECUTIVE’S REVIEW 
JOHN SACH
GROUP CHIEF EXECUTIVE
Our ongoing investment in 
product design, marketing, 
customer service and 
manufacturing capability 
has helped us deliver excellent 
results during the year and it 
is particularly pleasing that 
39% of brand sales are 
now international.
Our opening of the Shenzhen 
showroom in China. 17
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Strategy
I am pleased to report that the Group continues to make signiﬁcant 
progress with the implementation of its strategy, which comprises:
 – International expansion – to focus on the distribution and marketing 
of our brands in the European and North American markets where 
we see signiﬁcant potential to grow our market share and to invest in 
the exciting growth opportunities in other international markets;
 – Market penetration – to continue to grow our brands in the UK and 
internationally through extension of market positions;
 – Lifestyle product extension – to proﬁt from the global recognition 
of the Group’s heritage brands, Sanderson and Morris & Co., and 
the contemporary design excellence of the Harlequin brand, by 
extending the product range and exploiting the product licensing 
opportunities; 
 – Extending manufacturing capability – to continue to invest in the 
latest printing techniques and to promote the considerable 
opportunities of being a quality UK manufacturer; and
 – Acquisitions – to continue to evaluate acquisition opportunities that 
ﬁt with our current brand portfolio with the objective of further 
advancing our earnings growth.
Overview
I am extremely pleased to report that we have continued to make 
progress on our record year last year with further growth in sales 
and proﬁts.
Our Brands have beneﬁted from the continued investment in design, 
marketing and product launch and have increased sales 4.6% to 
£33.8 million in what has been a challenging UK market. Internationally 
the Brands sales have grown 1 1% to £22.0 million. 
Europe as a whole has grown 10%, led by strong growth of 22% in 
Eastern Europe and 15% in Scandinavia particularly driven by Russia 
and Sweden. Despite the Euro zone difﬁculties trading was resilient with 
sales growth of 6.2% in Western Europe and encouragingly our own 
business in France has grown 23% following showroom investment 
and increased management focus.
Our business in the US is showing signs of improvement and is slightly 
up for the year as a whole in reportable currency and up 4.4% in local 
currency having been ﬂat at the half year.
Following a number of business initiatives, our other international 
markets have grown 28% to £5.64 million. This was led by growth in 
the Middle East of 105%, helped by a signiﬁcant hotel contract in Dubai, 
and growth of 22% in the Far East with the signiﬁcant Morris & Co. 
launch in the year helping Japan grow sales 46% and growth of 13% 
in China where our distributor has recently opened a showroom in 
Shenzhen predominately dedicated to our brands.
Global Licensing income has grown 1 1 % to £1.59 million with both UK 
and overseas growing strongly. In the UK our established bed linen 
licensee, Bedeck, achieved signiﬁcant growth. Amongst our overseas 
licensees, our Japanese licensees did particularly well beneﬁting from the 
Morris & Co. 150th anniversary and products being launched into China. 
The luxury and heritage nature of the Group’s brands has led to the 
signing of new licence arrangements such as Portmeirion tableware, 
Blueprint stationery, Elstead Lighting and Brink & Campman rugs.
Manufacturing has had another successful year. The activity levels in 
the second half of the year reduced from the high levels seen in the ﬁrst 
half, when manufacturing beneﬁted from customers restocking in the 
early months. Annual sales were ﬂat at £28.7 million with a small 
improvement in proﬁtability. 
The Brands
Our commitment to invest in the strength and depth of our product 
range and our attention to customer service has ensured another 
successful year for our four interior furnishings brands that make up 
the Brands segment.
In March 2012 a new brand, Scion, was launched which is a young, 
contemporary brand aimed at aspirational and fashion aware customers 
and stretches the reach of our brands into new market areas. 
The Brands achieved growth in sales of 7 .3% over last year to 
£57 .4 million. The Brands’ operating proﬁts before exceptional items 
grew 14% to £5.37 million with continued substantial investment in 
product and marketing. 
Brands UK
Harlequin
Harlequin has grown its overall sales 9.2% over the same period last 
year to £22.4 million, maintaining its position as the UK’s leading 
mid-market contemporary brand. The growth has been driven by 
strong international sales led by particularly strong growth in the Far 
East, Middle East and Sweden. Harlequin launched an innovative 
collection with Clarissa Hulse during the year and revenues exceeded 
expectations. Harlequin continues to develop its licensing income and 
launched a range of lighting in conjunction with Elstead Lighting. 
We were particularly pleased with the performance of Harlequin’s 
Momentum collection, which has become the brand’s biggest selling 
range in recent years.
Our refurbished showroom 
in Rue de Mail, Paris. 18
WALKER GREENBANK PLC
Annual Report and Accounts 2012
CHIEF EXECUTIVE’S REVIEW CONTINUED
Arthur Sanderson & Sons incorporating the 
Morris & Co. brand
There has been particular investment both in product and marketing 
during the 150th anniversary year of Morris & Co. which was marked 
by special UK exhibitions at several key Morris houses including 
Wightwick Manor, Standen and Red House and unique events in over 
20 international markets including major seminars as far aﬁeld as Tokyo 
and Los Angeles. These, and other activities, have raised the proﬁle of 
Morris & Co. and, combined with the global recognition of the Sanderson 
brand, have helped increase sales by 8.2% to £19.0 million. The growth 
has been driven by international sales with particularly strong growth in 
Sweden, Russia and Japan, an important market for Morris & Co.
Zoffany
Zoffany is positioned at the upper end of the premium market and sales 
have been much more challenging in the second half. Overall sales 
grew by 3.3% to £9. 10 million, this has been supported by strong 
international performance up 14.9% over last year with particularly 
strong performances in Scandinavia, Russia, the Far East and the 
Middle East where there were speciﬁc contract wins.
Brands Overseas
Our Overseas segment comprises our two wholly-owned subsidiaries 
in New York and Paris.
Following two extremely challenging years in the US market, the 
second half of the year has shown signs of recovery helping grow 
revenues for the full year by 4.4% in local currency, but ﬂat in reportable 
currency. This performance has been helped by key changes to our 
showroom partners in certain states and investment in a new back 
ofﬁce in New Jersey. We are committed to this market where we 
remain conﬁdent about the medium-term potential.
Despite challenging conditions in Western Europe, our French 
distribution business has grown 23% greatly helped by increased 
management focus and investment in remodelling our Paris showroom. 
Manufacturing
Following an extremely strong performance last year it is pleasing 
to report that our manufacturing segment has maintained both 
overall revenues and proﬁtability helped by strong third party and 
international growth. 
The striking Folia collection 
was produced by the Harlequin 
Design Studio and was launched 
in January 2012. 19
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Anstey
Anstey, our wallpaper printing business, grew overall sales by 3.5% to 
£13.5 million. Third party sales in the UK were up 1 1% and third party 
export sales were up 32%. Internal sales to our own brands were down 
due to the timing and volume of product launches. 
The investment made in a scatter machine in the ﬁrst half of the year 
has given us the capability to add glass beads and other particles to 
wallpaper offering our customers a wider range of exciting new textured 
effects. This was commissioned in the second half and Harlequin led the 
way with the recent launch of the Momentum collection utilising this 
technique. Third party customers are also progressing with design 
developments. We continue to invest and to innovate our manufacturing 
capability and commissioned our ﬁrst digital printer early this year.
Standfast
Standfast, our fabric printing factory, had a small decline in overall 
annual sales of 3.7% to £15.2 million. Third party sales grew 5.8% with 
export sales growing strongly, by 32%, and UK sales growing 1.9%. 
Sales to our own brands declined 16% following a very strong launch 
of new print collections last year.
Standfast continues to invest in digital printing due to increasing 
demand and commissioned its fourth machine during the year. Digital 
printers allow customers the ﬂexibility of high value, short print runs and 
large scale designs. Further signiﬁcant investment in digital printing will 
continue to be made in order to satisfy the demand for this type of 
product. There was a signiﬁcant investment in the capacity and 
extension of the ﬂatbed printing capability during the year.
Summary
Our ongoing investment in product design, marketing, customer 
service and manufacturing capability has helped us deliver excellent 
results during the year and it is particularly pleasing that 39% of our 
brand sales are now international.
We intend to continue to exploit our brand assets internationally and 
remain conﬁdent of continued progress during the current year 
and beyond.
JOHN SACH
GROUP CHIEF EXECUTIVE
15 MAY 2012
The Zoffany Akita Weave and 
Vinyl Wallpaper collections 
which take their inspiration 
from Japanese craftwork. 20
WALKER GREENBANK PLC
Annual Report and Accounts 2012
REVENUE 
£MILLION
2012
2011
2010
020 40 60 80
OPERATING PROFIT BEFORE EXCEPTIONALS
£MILLION
2012
2011
2010
02 46
NET ASSETS
£MILLION
2012
2011
2010
010 5 152025
FINANCIAL REVIEW
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 these 
Consolidated Financial Statements further information on our segments. 
Exceptional items are both material and their nature is sufﬁcient 
to warrant separate disclosure and identiﬁcation. There were no 
exceptional items in the year but during the previous year a full and ﬁnal 
payment of £500,000 was received for an insurance settlement ‘loss of 
proﬁts claim’ which arose from the disruption to collection launches in 
2009 as a consequence of the loss of marketing material products 
held at a third party’s premises which were destroyed in a ﬁre in 
January 2009.
Interest
The net interest charge for the year was £254,000 (201 1: £146,000) 
including amortisation of debt issue costs capitalised. Included in the 
previous year was an interest receipt of £86,000 as a consequence of 
a successful Fleming claim for the recovery of VAT.
Net Deﬁned Beneﬁt Pension
The charge during the year was £407 ,000 (201 1: £364,000). There was 
a net settlement gain last year arising from the two remaining deferred 
members of the Walker Greenbank Senior Management Scheme 
accepting enhanced transfer values and the effective closure of 
that scheme. 
Current Taxation
There is a small corporation tax charge of £15,000 arising from 
withholding tax suffered on overseas licence income and a prior year 
adjustment for overseas tax of £36,000. 
Deferred Taxation
Due to the substantial brought forward UK corporation tax losses 
(£12.6 million), the Group does not anticipate paying UK corporation tax 
in 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. Although the pension deﬁcit has increased 
during the year there has been a small decrease in the associated 
deferred tax asset due to the reduction in the tax rate to 25% which 
has been recognised in the Statement of Comprehensive Income.
Earnings per share (‘EPS’)
The basic and diluted EPS was 6.76p (2011: 5.36p). 
Operating Cash Flow and Net Debt
The Group generated net cash inﬂow from operating activities during 
the year of £4,282,000 (201 1: £4,260,000) reﬂecting the increased 
revenues, operating proﬁts and continued investment in product. 
The Group paid net interest of £230,000 (201 1: £121,000), last year 
beneﬁted from interest on a VAT refund by HMRC in respect of expenses 
incurred on the issue of shares in earlier years. Capital expenditure was 
£2,538,000 (201 1: £2,453,000). The depreciation and amortisation 
charge during the period was £1,853,000 (201 1: £1,738,000). The Group 
will continue to invest in the Manufacturing facilities and is part way 
through a major investment in a new IT system for the Brands. Capital 
expenditure will remain high during the next 12 months. 
ALAN DIX
GROUP FINANCE DIRECTOR 21
WALKER GREENBANK PLC
Annual Report and Accounts 2012
The Group made additional payments to the Pension schemes of 
£1,022,000 (201 1: £1,038,000) to reduce the deﬁcit, part of the ongoing 
planned reduction, along with £436,000 (201 1: £322,000) of regular 
contributions to fund scheme expenses. 
Income tax and NI of £348,000 that arose on the vesting of an LTIP 
award was paid during the year.
Net debt in the Group has reduced by £1, 150,000 to £667 ,000 (201 1: 
£1,817 ,000) representing gearing of 2.9% (201 1: 8.5%). The average 
level of debt during the year is higher due to the timing and seasonality 
of revenues and investment in product.
The Group utilises facilities provided by Barclays Bank Plc. There is a 
term property facility of £2,200,000 (201 1: £2,600,000) at the year end 
expiring in July 201 7 . There is also a facility linked to working capital which 
allows the Group to more effectively manage 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 £680,000 (201 1: £1, 161,000), 
representing headroom of £1 1,257 ,000 (201 1: £10,559,000). The 
headroom is set out below:
Utilisation
£000
Availability
£000
Property 2,184 2,200
Inventory – 2,500
Receivables 680 7,224
2,864 11,924
Less: Cash and cash equivalents (2,197)
Net Debt 667 (667) 
Headroom 11,257
The total facilities have a current limit of £16.50 million (201 1: 
£16.50 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 from the Company to 
reduce the deﬁcit; an increase in the liabilities of the scheme arising from 
lower discount rates but an increase in scheme assets reﬂecting the 
improvement in bond values. The impact of these factors is shown 
as follows:
2012 
£000
Deﬁcit at beginning of period (6,742)
Scheme expenses (488)
Interest cost (2,565)
Expected return on plan assets 2,646
Contributions 1,458
Actuarial gain on scheme assets 5,460
Actuarial losses from the change in discount factor (6,864)
Gross deﬁcit at the end of the year (7,095)
Long-Term Incentive Plan
There has been a new award of shares during the year under the 
Long-Term Incentive Plan (‘LTIP’) with vesting conditions based on Total 
Shareholder Return with an adjusted Proﬁt before Tax ﬂoor. There has 
been a charge of £414,000 (201 1: £697 ,000) in the Income Statement 
relating to LTIP awards. The charge last year was high as the award 
made in May 2007 fully vested in May 201 1 as the top range of the 
ﬁnancial target of proﬁt before tax had been met. Accruals made up to 
January 2010 were based on achievement of the lowest range of the 
ﬁnancial target which reﬂected internal projections at that time.
Dividends
During the year, the Group has paid a ﬁnal dividend for the year to 
31 January 201 1 of 0.80p per share and an interim dividend of 0.20p 
per share. The Directors recommend the payment of a ﬁnal dividend 
of 1.00p per share (201 1: 0.80p) which will be payable on 10 August 
2012 to shareholders on the register on 13 July 2012. This brings the 
total dividend for the year to 1.20p per share (201 1: 0.95p) an increase 
of 26%. 
Disposals
There were no major disposals during the year. 
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 ﬁnancial statements.
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. Working capital exposures are hedged using 
currency swaps.
The Group does not trade in ﬁnancial instruments and hedges are 
used for highly probable future cash ﬂows and to hedge working 
capital exposures. There is a hedging liability of £50,000 (201 1: £63,000 
asset) at the end of the year in relation to US dollar and Japanese yen 
forward contracts.
There is an asset of £54,000 arising from US dollar swaps used to 
hedge working capital exposures. 
Credit Risk
The Group no longer seeks credit insurance as this is not 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 payments from customers 
are close to terms however there have been speciﬁc expenses 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 £314,000 (201 1: £253,000) which is a collective 
assessment of the risk. 
ALAN DIX
GROUP FINANCE DIRECTOR
15 MAY 2012 22
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Directors
Terry Stannard (62)
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. 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 Antler Ltd and 
TSC Food Group Ltd and holds Non-executive Director 
roles at Bradford & Sons Ltd, Macphie of Glenbervie Ltd.
Fiona Goldsmith (45)
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 (56)
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 (56)
Executive Director
David joined the Group in 2002 with a broad based 
experience as a Managing Director in a variety of consumer 
product 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 (53)
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
Advisers
Stockbrokers and Advisers
Seymour Pierce Ltd
20 Old Baily
London EC4M 7EN
Auditors
PricewaterhouseCoopers LLP
10 Bricket Road
St Albans
Herts AL1 3JX
Tax Advisers
BDO Stoy Hayward LLP
55 Baker Street
London W1U 7EU
Public Relations
Buchanan Communications Ltd
107 Cheapside
London EC2V 6DN
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 Commercial Bank
Ashton House
497 Silbury Boulevard
Milton Keynes MK9 2LD
DIRECTORS AND ADVISERS 23
WALKER GREENBANK PLC
Annual Report and Accounts 2012
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 2012.
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 16, which, taken with 
the Chairman’s Statement on page 14, the Financial Review on 
page 20 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 £4,894,000 (201 1: 
£4,462,000). 
The Directors recommend payment of a ﬁnal ordinary dividend 
of 1.0p per share, amounting to £570,000 (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 (201 1: 0.80p per share). An interim dividend of 0.20p per share 
was paid during the year.
Key Performance Indicators (‘KPI’s’)
The KPI’s for the business are primarily ﬁnancial.
2012 2011
Sales growth/(decline) 7.6% 14%
Operating proﬁt margin before  
exceptional items 7.5% 6.5%
Gearing 2.9% 8.5%
Pension deﬁcit as a percentage  
of shareholders’ funds 31% 32%
Earnings per share 6.76p 5.36p
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
There is an ongoing process to identify, evaluate and manage the 
risks faced by the Group.
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. 
Two signiﬁcant business risks are the potential loss of the core IT 
system used by the Brands and the potential loss of the central 
warehousing facility in Milton Keynes. The phased implementation 
of an established third party replacement IT system is underway 
and will be concluded by the end of the coming ﬁnancial year.  
The Group has mitigated some of the risks associated with a 
warehouse by improving physical security and working practices 
during the year.
REPORT OF THE DIRECTORS
Where commercially appropriate the Group insures against 
ﬁnancial loss caused by unforeseen events by the means of 
insurance policies. 
Risks outside of the control of the Directors would be the impact 
of an event of a global nature or a signiﬁcant downturn in the UK 
market. 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.
The Audit Committee on behalf of the Board has reviewed the 
effectiveness of the internal controls and risk management and 
no signiﬁcant failings in control were found.
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 2012 represents 82 days (201 1: 102 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 (201 1: nil). During 
the year the Group made no charitable donations (201 1: nil).
Directors
The Board of Directors as at the date of this report and during the 
year ended 31 January 2012 is set out on page 22, together with 
biographical details. Details of the Directors’ Service Contracts are 
set out in the Directors’ Remuneration Report on page 26.
At the forthcoming Annual General Meeting (‘AGM’) F C Goldsmith 
and J D Sach will retire by rotation and being eligible will offer 
themselves for re-election. 24
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Directors’ share interests
The Directors in ofﬁce at 31 January 2012 are set out below. 
The interests of the Directors and their families in the shares of 
the Company at the beginning and end of the ﬁnancial year were 
as follows:
1p ordinary 
shares 
31 January 
2012
Number
1p ordinary 
shares
31 January 
2011
Number
T G Stannard 70,000 70,000
F C Goldsmith 45,000 45,000
J D Sach 1,331,105 1,093,370
D H Smallridge 729,734 559,922
A N Dix 566,334 429,535
There have been no changes in the interests set out above 
between 31 January 2012 and 15 May 2012.
The share price on 1 February 201 1 was 57p and on 31 January 
2012 was 51p.
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 26.
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.
Directors’ and ofﬁcers’ liability insurance
The Group maintains liability insurance for its Directors and ofﬁcers.
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.
Substantial shareholdings
At 7 May 2012 the Company is aware of the following substantial 
shareholdings in its ordinary share capital, comparatives at 5 May 
201 1 are shown. Henderson Global Investors 13.28% (201 1: 
16.49%), Cazenove Capital Management 8.46% (201 1: 2.86%), 
Blackrock Investment Management 7 .44% (201 1: 6. 16%), British 
Airways Pension Investment Management 3.70% (201 1: 3.70%), 
Barclays Wealth 3.32% (201 1: 4.01%), Royal London Asset 
Management 3.28% (201 1: 3.71%), TD Direct Investing 3.27% 
(201 1: 3.94%), Williams de Broe 3.22% (201 1: 4.38%).
Annual General Meeting
The Annual General Meeting will be held on 27 June 2012 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 they ought to have 
taken to make themselves aware of any relevant audit information 
and to establish that the auditors are aware of that information.
By order of the Board
CAROLINE GEARY
COMPANY SECRETARY
15 MAY 2012
Registered Ofﬁce
Chalfont House
Oxford Road
Denham UB9 4DX
Registered number 61880
REPORT OF THE DIRECTORS CONTINUED 25
WALKER GREENBANK PLC
Annual Report and Accounts 2012
The Directors are responsible for preparing the Annual Report, 
the Directors’ Report, the Directors’ Remuneration 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 those ﬁnancial statements, the Directors are required to:
(i) select suitable accounting policies and then apply them 
consistently;
(ii) make judgements and estimates that are reasonable 
and prudent;
(iii) 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; and
(iv) prepare the ﬁnancial statements on the going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
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
CAROLINE GEARY
COMPANY SECRETARY
15 MAY 2012
Registered Ofﬁce
Chalfont House
Oxford Road
Denham UB9 4DX
Registered number 61880 26
WALKER GREENBANK PLC
Annual Report and Accounts 2012
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 has 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 advisers when it considers it is appropriate. In 
determining the Directors’ remuneration for the year, including 
the structure of long-term incentive plans for management, the 
Committee consulted BDO Stoy Hayward about its proposals. 
BDO Stoy Hayward 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 should be performance related and aligned 
to performance measures that beneﬁt all shareholders and 
promotes the long-term success of the Company. 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 2012, the 
maximum bonus payable was 70% of basic salary. 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 new shares issued to 10% 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’) 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 62. To the extent that 
these performance conditions are not met at the end of the vesting 
period, the options will lapse. 
Pensions
J Sach is a member of the deﬁned beneﬁt section of the 
Walker Greenbank Pension scheme and the 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’ 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.
DIRECTORS’ REMUNERATION REPORT 27
WALKER GREENBANK PLC
Annual Report and Accounts 2012
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 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 
£000
Beneﬁts 
in kind 
£000
Pension 
contribution 
£000
2012 
Total 
£000
2011 
Total 
£000
Executive Directors
J Sach 231 162 244 2 35 674 428
D Smallridge 183 128 174 1 27 513 310
A Dix 132 49 139 2 13 335 216
Non-executive Directors
T Stannard 62 – – – – 62 60
F Goldsmith 27 – – – – 27 27
635 339 557 5 75 1,611 1,041
Directors’ pension entitlements
Accrued annual pension beneﬁts for J Sach at the year end were £1 1,570 (201 1: £1 1,072). 
Directors’ LTIP Awards
Date of grant
Maximum awards  
at 1 February 2011 Granted in year Exercised in year Lapsed in year
Maximum awards at 
31 January 2012
J Sach
24/05/2007 495,283 – 495,283 – –
27/05/2009 800,000 – – – 800,000
20/05/2010 680,000 – – – 680,000
19/05/2011 – 589,623 – – 589,623
1,975,283 589,623 495,283 – 2,069,623
D Smallridge
24/05/2007 353,774 – 353,774 – –
27/05/2009 600,000 – – – 600,000
20/05/2010 495,000 – – – 495,000
19/05/2011 – 467,347 – – 467,347
1,448,774 467,347 353,774 – 1,562,347
A Dix
24/05/2007 283,019 – 283,019 – –
27/05/2009 300,000 – – – 300,000
20/05/2010 292,000 – – – 292,000
19/05/2011 – 337,693 – – 337,693
875,019 337,693 283,019 – 929,693
The award of shares on 24 May 2007 had a four year vesting period. The award level was dependent upon the proﬁt before tax result for 
the ﬁnancial year ended 31 January 201 1. The maximum award vested as the proﬁt before tax result exceeded the upper range target of 
£4.3 million. The share price on the date of grant was 53.0p. 28
WALKER GREENBANK PLC
Annual Report and Accounts 2012
The award of shares on 27 May 2009 has a three year vesting 
period and is subject to a minimum adjusted 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 TSR 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 award of shares on 20 May 2010 has a three year vesting 
period and is subject to a minimum adjusted proﬁt before tax hurdle 
of £3.5 million for the ﬁnancial year ended 31 January 2013. The 
award begins to vest to Executive Directors upon the Company 
achieving TSR 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 33.0p.
The award of shares on 19 May 201 1 has a three year vesting 
period and is subject to a minimum adjusted proﬁt before tax hurdle 
of £6.0 million for the ﬁnancial year ended 31 January 2014. The 
award begins to vest to Executive Directors upon the Company 
achieving TSR 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 49.0p.
The share price reached a high of 57 .2p and a low of 42.55p during 
the ﬁnancial year ended 31 January 2012. The average share price 
during the ﬁnancial year was 49.6p. The share price on 31 January 
2012 was 51.75p.
Total Shareholder Return index for the ﬁve ﬁnancial years 
ending 31 January 2012
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Jan-07 Jul-07 Jan-08 Jan-09 Jul-09
Walker Greenbank PLC FTSE AIM ALL SHARE
Jan-10 Jul-10 Jul-11 Jan-12 Jul-08 Jan-11
0
20
40
60
80
100
120
%
Approval
This report was approved by the Directors and signed on its behalf by:
CAROLINE GEARY
COMPANY SECRETARY
15 MAY 2012
DIRECTORS’ REMUNERATION REPORT CONTINUED 29
WALKER GREENBANK PLC
Annual Report and Accounts 2012
As a Company listed on the Alternative Investment Market (‘AIM’) 
the Company is not required to issue a statement of compliance 
with the principles and provisions of the UK Corporate Governance 
Code (‘the Code’). 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 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 (‘AGM’). 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.
Board Committees
The Board has Remuneration, Audit and Nomination Committees, 
each of which has written terms of reference which are available on 
the Company’s website. The Company Secretary acts as secretary 
to the committees. The Board is satisﬁed that the committees 
discharged their responsibilities appropriately.
Nomination Committee
The Nomination Committee is chaired by T Stannard, the 
Non-executive Chairman and comprises F Goldsmith, the other 
Non-executive Director and J Sach, 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. 
Remuneration Committee
The Remuneration Committee is chaired by T Stannard and  
F Goldsmith. 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 
CORPORATE GOVERNANCE STATEMENT
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. 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 22. The Audit Committee meets at 
least three times 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.
Auditor independence
The Audit Committee regularly monitors the non-audit services 
provided by the external Auditors and fees relating to non-audit 
services are detailed in the Annual Report and Accounts (note 7). 
The Committee conﬁrms it is satisﬁed with the independence, 
objectivity and effectiveness of the external Auditor, PwC, and 
accordingly a resolution to reappoint PwC as Auditor will be 
proposed at the forthcoming AGM.
Internal control
The Board acknowledges that it is responsible for the Group’s 
system of internal control and for reviewing its effectiveness. 
The Board keeps 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 other than disclosed in the Report of the Directors.
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.
The Board has considered the need for an internal audit function, 
but because of the size and nature of its operations does not 
consider it necessary at the current time.
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 AGM at which 
all Committee chairs will be available for questions. 30
WALKER GREENBANK PLC
Annual Report and Accounts 2012
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF WALKER GREENBANK PLC
We have audited the Group ﬁnancial statements of Walker 
Greenbank PLC for the year ended 31 January 2012 which comprise 
the Consolidated Income Statement, Consolidated Statement of 
Comprehensive Income, Consolidated Balance Sheet, Consolidated 
Cash Flow Statement, Consolidated Statement of Changes in Equity, 
the Accounting Policies 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 and express an 
opinion on 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. In addition, we read all the ﬁnancial and 
non-ﬁnancial information in the Annual Report to identify material 
inconsistencies with the audited ﬁnancial statements. If we become 
aware of any apparent material misstatements or inconsistencies 
we consider the implications for our report.
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 2012 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 2012.
OWEN MACKNEY 
(SENIOR STATUTORY AUDITOR)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
St Albans
15 May 2012 31
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Note
2012 
£000
2011 
£000
Revenue 4 74,014 68,778
Proﬁt from operations before exceptional items 5,555 4,472
Exceptional items:
Insurance settlement 5 – 500
Proﬁt from operations 4–7 5,555 4,972
Net deﬁned beneﬁt pension charge 8 (407) (364)
Interest payable 9 (254) (234)
Interest receivable 9 – 88
Net borrowing costs 9 (254) (146)
Net ﬁnance costs (661) (510)
Proﬁt before tax 4,894 4,462
Total tax charge 12 (1,065) (1,434)
Proﬁt for the year 3,829 3,028
Earnings per share – Basic and diluted 13 6.76p 5.36p
The notes on pages 36 to 64 form an integral part of the consolidated ﬁnancial statements.
CONSOLIDATED INCOME STATEMENT
YEAR ENDED 31 JANUARY 2012 32
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Note
2012 
£000
2011 
£000
Proﬁt for year 3,829 3,028
Other Comprehensive Income/(Expense):
Actuarial gains on scheme assets 23 5,460 1,718
Other actuarial losses on scheme liabilities 23 (6,864) (1,559)
Currency translation (losses)/gains (41) 4
Cash ﬂow hedges (losses) (113) (112)
(Reduction) of deferred tax asset relating to pension scheme liability (47) (403)
Other comprehensive expense for the year, net of tax (1,605) (352)
Total comprehensive income for the year attributable to the owners of the parent 2,224 2,676
The notes on pages 36 to 64 form an integral part of the consolidated ﬁnancial statements.
CONSOLIDATED STATEMENT  
OF COMPREHENSIVE INCOME
YEAR ENDED 31 JANUARY 2012 33
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Note
2012 
£000
2011 
£000
Non-current assets
Intangible assets 14 6,111 5,973
Property, plant and equipment 15 9,313 8,768
Deferred income tax assets 16 2,850 3,982
18,274 18,723
Current assets
Inventories 17 17,000 15,630
Trade and other receivables 18 13,047 14,383
Derivative ﬁnancial asset 19 54 63
Cash and cash equivalents 20 2,197 1,927
32,298 32,003
Total assets 50,572 50,726
Current liabilities
Trade and other payables 21 (17,511) (18,847)
Derivative ﬁnancial liability 19 (50) –
Borrowings 22 (400) (400)
(17,961) (19,247)
Net current assets 14,337 12,756
Non-current liabilities
Borrowings 22 (2,464) (3,344)
Retirement beneﬁt obligation 23 (7,095) (6,742)
(9,559) (10,086)
Total liabilities (27,520) (29,333)
Net assets 23,052 21,393
Equity
Share capital 25 590 590
Share premium account 457 457
Foreign currency translation reserve (202) (161)
Accumulated losses (18,250) (20,063)
Other reserves 40,457 40,570
Total equity 23,052 21,393
The notes on pages 36 to 64 form an integral part of the consolidated ﬁnancial statements.
JOHN SACH
DIRECTOR
ALAN DIX
DIRECTOR
These ﬁnancial statements were authorised for issue by the Board of Directors on 15 May 2012.
Registered number: 61880
CONSOLIDATED BALANCE SHEET
AT 31 JANUARY 2012 34
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Note
2012 
£000
2011 
£000
Cash ﬂows from operating activities
Cash generated from operations 28 4,530 4,456
Interest paid (230) (209)
Debt issue costs – (62)
Interest received – 88
Income tax paid (18) (13)
4,282 4,260
Cash ﬂows from investing activities
Purchase of intangible ﬁxed assets (441) (503)
Purchase of property, plant and equipment (2,097) (1,950)
Proceeds on sale of property, plant and equipment – 1
(2,538) (2,452)
Cash ﬂows from ﬁnancing activities
Purchase of treasury shares – (178)
Repayment of borrowings (904) (1,666)
Dividends paid to Company’s shareholders (570) (368)
(1,474) (2,212)
Net increase/(decrease) in cash, cash equivalents and bank overdrafts 270 (404)
Cash, cash equivalents and bank overdrafts at beginning of year 1,927 2,333
Exchange losses on cash and bank overdrafts – (2)
Cash, cash equivalents and bank overdrafts at end of year 29 2,197 1,927
The notes on pages 36 to 64 form an integral part of the consolidated ﬁnancial statements.
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 JANUARY 2012 35
WALKER GREENBANK PLC
Annual Report and Accounts 2012
Other reserves
Share capital 
£000 
(note 25)
Share 
premium 
account 
£000
Retained 
earnings 
£000
Capital 
reserve 
£000
(note 26)
Merger 
reserve
£000
Hedge 
reserve
£000
(note 19)
Translation
reserve
£000
Total
£000
Balance at 1 February 2010 590 457 (22,794) 43,457 (2,950) 175 (165) 18,770
Proﬁt for the year – – 3,028–––– 3,028
Other comprehensive income:
Actuarial gains on scheme assets 
(note 23) – – 1,718–––– 1,718
Other actuarial losses on scheme 
liabilities (note 23) – – (1,559) –––– (1,559)
Deferred tax relating to pension 
scheme liability – – (403) –––– (403)
Currency translation differences –––––– 4 4
Cash ﬂow hedging reserve – released 
to Income Statement – – – – – (175) – (175)
Cash ﬂow hedging reserve – 
recognised in equity during the year ––––– 63 – 63
Total comprehensive income/
(expense) – – 2,784 – – (112) 4 2,676
Transactions with owners:
Dividends – – (368) – – – – (368)
Reserve for long-term incentive plan – – 493 – – – – 493
Purchase of treasury shares – – (178) – – – – (178)
Balance at 31 January 2011 590 457 (20,063) 43,457 (2,950) 63 (161) 21,393
Proﬁt for the year – – 3,829 – – – – 3,829
Other comprehensive income:
Actuarial gains on scheme assets 
(note 23) – – 5,460 – – – – 5,460
Other actuarial losses on scheme 
liabilities (note 23) – – (6,864) – – – – (6,864)
Deferred tax relating to pension 
scheme liability – – (47) – – – – (47)
Currency translation differences –––––– (41) (41)
Cash ﬂow hedging reserve – released 
to Income Statement – – – – – (61) – (61)
Cash ﬂow hedging reserve – 
recognised in equity during the year – – – – – (52) – (52)
Total comprehensive income/
(expense) – – 2,378 – – (113) (41) 2,224
Transactions with owners:
Dividends – – (570) – – – – (570)
Long-term incentive plan charge – – 353 – – – – 353
Long-term incentive plan vesting – – (348) – – – – (348)
Balance at 31 January 2012 590 457 (18,250) 43,457 (2,950) (50) (202) 23,052
CONSOLIDATED STATEMENT  
OF CHANGES IN EQUITY
YEAR ENDED 31 JANUARY 2012 36
WALKER GREENBANK PLC
Annual Report and Accounts 2012
1. Accounting policies and general information
General information
Walker Greenbank PLC (‘the Company’) and its subsidiaries (together ‘the Group’) 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 as adopted by 
the European Union (‘IFRSs as adopted by the EU’) 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. 
The Group meets its day to day working capital requirements through its banking facilities. The Groups forecasts and projections, taking 
account of reasonably possible changes in trading performance show that the Group will be able to operate within the level of its current 
facilities as disclosed in note 22.
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the 
foreseeable future. Therefore the Group continues to adopt the going concern basis in preparing its consolidated ﬁnancial statements.
In preparing these ﬁnancial statements the Group has applied the IFRSs adopted by the European Union and the IFRIC interpretations 
where the effective date is relevant to the ﬁnancial year commencing on 1 February 201 1 or ending 31 January 2012. 
Since the Group’s previous annual ﬁnancial statements for the year ended 31 January 201 1 the following pronouncements are now 
effective and have been adopted by the Group:
 – IFRS 1 (revised) ‘First time adoption’ – effective 1 July 2010
 – Amendment to IFRS 1 ‘First time adoption on ﬁnancial instrument disclosures’ – effective 1 July 2010
 – IAS 24 (revised) ‘Related Party Disclosures’ – effective 1 January 201 1
 – Amendment to IAS 32 ‘Financial Instrument Presentation on Classiﬁcation of Rights Issues’ – effective 1 February 2010
 – IFRS Annual improvements (2010) – effective 1 January 201 1
 – Amendment to IFRIC14 ‘Prepayments of minimum funding requirement’ – effective 1 January 201 1
 – IFRIC 19 ‘Extinguishing ﬁnancial liabilities with equity instruments’ – effective 1 July 2010
There has been no material effect on the Group’s ﬁnancial statements following the introduction of the above.
The Group has not applied the following new standards, amendments and interpretations for which adoption is not mandatory for the year 
ending 31 January 2012 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.
 – Amendment to IFRS 1 (revised) ‘First time adoption – on ﬁxed dates and hyperinﬂation’ – effective 1 July 201 1
 – Amendment to IAS 1 ‘Financial statement presentation regarding other comprehensive income’ – effective 1 July 2012
 – Amendment to IAS 12 ‘Income taxes on deferred tax’ – effective 1 January 2012
 – Amendment to IAS 19 ‘Employee beneﬁts’ – effective 1 January 2013
 – IAS 27 (revised 201 1) ‘Separate ﬁnancial statements’ – effective 1 January 2013
 – IAS 28 (revised 201 1) ‘Associates and joint ventures’ – effective 1 January 2013
 – Annual improvements to IFRS (201 1)
 – Amendment to IFRS 7 ‘Financial instruments – disclosures on derecognition’ – effective 1 July 201 1
 – IFRS 9 ‘Financial instruments – classiﬁcation and measurement’ – effective 1 January 2013
 – IFRS 10 ‘Consolidated ﬁnancial statements’ – effective 1 January 2013
 – IFRS 1 1 ‘ Joint arrangements’ – effective 1 January 2013
 – IFRS 12 ‘Disclosure of interests in other entities’ – effective 1 January 2013
 – IFRS 13 ‘Fair value measurement’ – effective 1 January 2012
In addition, a number of exposure drafts of new or amended standards and interpretations have been announced by the International Accounting 
Standards Board (‘IASB’). These include exposure drafts on revenue recognition and leases, until ﬁnal details of these and other exposure drafts 
have been concluded by the IASB the Group is not able to evaluate the potential impact on the Group of these pronouncements.
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 66 to 73).
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS 37
WALKER GREENBANK PLC
Annual Report and Accounts 2012
1. Accounting policies and general information 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 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 acquiree. 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 rate ruling 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, 
which includes the amount of any non-controlling interest recognised, over the Group’s interest in the net fair value of the acquired entity’s 
identiﬁable assets and liabilities and any non-controlling interest in the acquiree 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 an historical 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 
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. Software amortisation commences when the asset goes into operational use 
by the business. 38
WALKER GREENBANK PLC
Annual Report and Accounts 2012
1. Accounting policies and general information 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 it 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 impairments 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 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 saleable 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 the 
anticipated cost of disposal. 
As books are sold or otherwise utilised and are no longer within the control of the Group, 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 be given 
away free of charge. The Group’s policy is to classify marketing materials on the Balance Sheet within trade and other receivables.
Non-saleable marketing materials are expensed to the Income Statement once the collection that these marketing materials relate to has 
been launched. Any subsequent costs or development expenditure are expensed as incurred.
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 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.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED  39
WALKER GREENBANK PLC
Annual Report and Accounts 2012
1. Accounting policies and general information continued
Financial assets and liabilities – measurement basis continued
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 customer, 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 the carrying amount recognised in the 
Income Statement within administration expenses; and
 – ‘cash and cash equivalents’ – these comprise 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 administration 
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 Income Statement using the effective interest rate method; and
 – ‘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.
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 
and swap 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 affects 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 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 Income Statement 
within ﬁnance costs. 
The Group has no embedded derivatives that are not closely related to the host instrument.
Cash and 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. 40
WALKER GREENBANK PLC
Annual Report and Accounts 2012
1. Accounting policies and general information continued
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 charge’ within the Income Statement as the scheme is now closed to future accruals. 
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 date 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. National 
insurance contributions related to the awards are recognised as an expense in the Income Statement with a corresponding liability on the 
Balance Sheet.
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. 
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.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 41
WALKER GREENBANK PLC
Annual Report and Accounts 2012
1. Accounting policies and general information continued
Revenue continued
Deposits received from customers in advance of the delivery of goods or services are recognised as deferred income. Amounts receivable 
from customers representing 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 category in the Income Statement. 
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 affects 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. 
Segmental reporting
The Group is a designer, manufacturer and distributor of furnishings, fabrics and wallpaper and manages its operations as three reportable 
segments which are 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 the 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 the allocation of 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 foreign exchange risk and interest rate 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. 42
WALKER GREENBANK PLC
Annual Report and Accounts 2012
2. Financial risk management continued
Foreign exchange risk continued
The Group’s policy is, where possible, to allow the Group’s entities to settle liabilities in their functional currency with the cash generated 
from their operations in that currency. Where the Group’s 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 2012, the average sterling to US dollar translation rate applied by the Group including the impact of hedging 
contracts was £1 : US$1.55. If the rate had been £1 : US$1.45 with all other variables held constant, proﬁt before tax would have been 
higher by £160,000. If the rate had been £1 : US$1.65 with all other variables held constant, proﬁt before tax would have been lower 
by £140,000. 
For the year ended 31 January 2012, the average sterling to euro translation rate applied by the Group including the impact of hedging 
contracts was £1 : euro1. 15. If the rate had been £1 : euro1.05 with all other variables held constant, proﬁt before tax would have been lower 
by £273,000. If the rate had been £1 : euro1.25 with all other variables held constant, proﬁt before tax would have been higher by £229,000.
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. The Group has not felt there has been a requirement during the current or 
previous ﬁnancial year to enter into any of these options.
In July 2007 the Group entered into a ﬁnancing contract with Barclays Bank PLC of which the working capital facilities were renewed in 
March 2010, variable interest rates were negotiated on all the loans. These working capital facilities are due for review in July 2013. The 
Board continues to monitor the interest rates monthly.
For the year ended 31 January 2012, had the benchmark interest rate levels been 0.5% higher/(lower) than the actual experience, with all 
other variables held constant, the proﬁt before tax of the Group would have been (lower)/higher by £42,000 due to the change in interest 
rate expense on variable rate borrowings. The 0.5% sensitivity is deemed a reasonable sensitivity analysis based on expected movements 
in the base rate for the next ﬁnancial year.
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 is due to expire in July 2013 having been renewed in March 2010.
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.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 43
WALKER GREENBANK PLC
Annual Report and Accounts 2012
2. Financial risk management continued
Capital risk management
The Group’s objectives when managing capital are:
 – to safeguard the entities 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 2012, the Group’s strategy, which was unchanged from the previous year, was to reduce the average gearing 
ratio. The average gearing ratios for 2012 and 201 1 were as follows:
Year ended 31 January
2012
£000
2011
£000
Average net debt 6,682 5,871
Total equity 23,052 21,393
Less: amounts recognised directly in equity relating to currency contracts 50 (63)
Adjusted capital 23,102 21,330
Average net debt to adjusted capital ratio 29% 28%
Year end net debt to adjusted capital ratio 2.9% 8.5%
The Group considers the average debt to adjusted equity ratio to be appropriate at this time, but it will continue to reduce the pension 
deﬁcit by cash generated from operations and will also invest within the Group through capital expenditure and working capital.
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 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 in 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 regularly 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. 44
WALKER GREENBANK PLC
Annual Report and Accounts 2012
3. Critical accounting estimates and assumptions continued
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. Other intangibles and property, plant and equipment are reviewed 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 sales 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 inventories are disclosed in note 17 and of marketing materials 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 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. 
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 adjusted 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 including the national insurance component of the 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 26 to 28 
and the effect on the ﬁnancial statements of share awards is included in note 25. 
4. Segmental analysis
The Group is a designer, manufacturer and distributor of luxury interior furnishings, fabrics and wallpaper. The reportable segments of the 
Group are as follows:
 – Brands UK – comprising the design, marketing, sales and distribution and licensing activities of Harlequin, Sanderson, Zoffany and 
Morris & Co. brands operated from the UK.
 – Brands Overseas – comprising the marketing, sales and distribution operations of the Group’s foreign based subsidiaries in France and 
the United States.
 – Brands Total has been added to the segmental reporting to better reﬂect the decisions made by the CODM on resource allocation.
 – Manufacturing – comprising the wall covering and printed fabric manufacturing businesses operated by Anstey and Standfast 
respectively.
This is the basis on which the Group presents its operating results to the Board of Directors, 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 plans expenses, taxation and eliminations of intersegment items, are presented within ‘Eliminations 
and unallocated’.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 45
WALKER GREENBANK PLC
Annual Report and Accounts 2012
4. Segmental analysis continued
a) Principal measures of proﬁt and loss – Income Statement segmental information
Year ended 31 January 2012
Brands 
UK 
£000
Brands 
Overseas 
£000
Brands 
Total 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
UK Revenue 33,834 – 33,834 14,043 – 47,877
International Revenue 15,125 6,870 21,995 2,554 – 24,549
Licence Revenue 1,588 – 1,588 – – 1,588
Revenue – External 50,547 6,870 57,417 16,597 – 74,014
Revenue – Internal – – – 12,057 (12,057) –
Total Revenue 50,547 6,870 57,417 28,654 (12,057) 74,014
Proﬁt/(loss) from operations 5,869 (492) 5,377 2,572 (2,394) 5,555
Net borrowing costs – – – – (254) (254)
Net pension charge – – – – (407) (407)
Proﬁt/(loss) before taxation 5,869 (492) 5,377 2,572 (3,055) 4,894
Tax charge – 36 36 – (1,101) (1,065)
Proﬁt/(loss) for the year 5,869 (456) 5,413 2,572 (4,156) 3,829
Year ended 31 January 2011
 Brands 
UK 
£000
Brands 
Overseas  
£000
Brands 
Total 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
UK Revenue 32,359 – 32,359 13,313 – 45,672
International Revenue 13,124 6,607 19,731 1,940 – 21,671
Licence Revenue 1,435 – 1,435 – – 1,435
Revenue – External 46,918 6,607 53,525 15,253 – 68,778
Revenue – Internal – – – 13,529 (13,529) –
Total Revenue 46,918 6,607 53,525 28,782 (13,529) 68,778
Operating proﬁt/(loss) before exceptional items: 5,282 (557) 4,725 2,519 (2,772) 4,472
Insurance settlement 500 – 500 – – 500
Proﬁt/(loss) from operations 5,782 (557) 5,225 2,519 (2,772) 4,972
Net borrowing costs – – – – (146) (146)
Net pension charge – – – – (364) (364)
Proﬁt/(loss) before taxation 5,782 (557) 5,225 2,519 (3,282) 4,462
Tax charge – – – – (1,434) (1,434)
Proﬁt/(loss) for the year 5,782 (557) 5,225 2,519 (4,716) 3,028
There was £1,435,000 (201 1: £1,303,000) of intercompany sales between the UK and overseas brands.
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. 
Inter segment revenue earned by Manufacturing from sales to Brands is determined on normal commercial trading terms as if Brands 
were any other third party customer. Inter segment revenue earned by Brands for sales to Overseas, via the corporate head ofﬁce, are also 
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.  46
WALKER GREENBANK PLC
Annual Report and Accounts 2012
4. Segmental analysis continued
b) Additional segmental revenue information
The segmental revenues of the Group are reported to the CODM in more detail. One of the analyses presented is revenue by export market 
in the brands.
Brands revenue by export market
2012 
£000
2011 
£000
Western Europe 6,776 6,382
Scandinavia 1,997 1,740
Eastern Europe 2,104 1,731
Europe Total 10,877 9,853
Middle East 1,223 598
Far East 2,853 2,334
USA 5,478 5,475
South America 199 175
Australasia 770 731
Other 595 565
21,995 19,731
Revenue of the Brands reportable segment – revenue from operations in all territories where the sale is sourced from the United Kingdom 
Brands operations, excluding sales to Overseas subsidiaries, together with contract and licence revenue:
Brand Revenue Analysis
2012 
£000
2011 
£000
Harlequin 22,426 20,537
Sanderson, incorporating Morris & Co. 19,018 17,569
Zoffany 9,103 8,812
50,547 46,918
Revenue of the Manufacturing reportable segment – including revenues from internal sales to the Group’s brands:
Manufacturing Revenue Analysis
2012 
£000
2011
£000
Standfast 15,172 15,751
Anstey 13,482 13,031
28,654 28,782
Revenue of the Overseas reportable segment – revenue of the Group’s overseas subsidiaries from retail operations which also includes 
contract and licence revenue:
Overseas Revenue Analysis
2012 
£000
2011 
£000
United States of America 5,478 5,475
France 1,392 1,132
6,870 6,607
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 2012
Brands 
£000
Manufacturing 
£000
Overseas 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
Depreciation 684 773 83 10 1,550
Amortisation 251 52 – – 303
Impairment losses – trade receivables 113 23 12 – 148
Reversal of impairment losses – trade receivables (4) – (3) – (7)
Impairment losses – inventory 709 33 14 – 756
Reversal of impairment of inventory – (15) – – (15)
Share-based payment charges – – – 414 414
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 47
WALKER GREENBANK PLC
Annual Report and Accounts 2012
4. Segmental analysis continued
c) Other Income Statement segmental information continued
Year ended 31 January 2011
Brands 
£000
Manufacturing 
£000
Overseas 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
Depreciation 626 709 77 7 1,419
Amortisation 260 59 – – 319
Impairment losses – trade receivables 121 35 7 – 163
Reversal of prior period impairment losses – trade receivables – (14) – – (14)
Impairment losses – inventory 765 35 8 – 808
Reversal of impairment of inventory – (12) – – (12)
Share-based payment charges – – – 697 697
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 consist 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 2012
Brands 
£000
Manufacturing 
£000
Overseas 
£000
Eliminations 
and  
unallocated 
£000
Total 
£000
Assets 34,666 16,660 953 (1,708) 50,571
Liabilities (14,784) (4,714) (3,017) (5,004) (27,519)
Total net assets/(liabilities) 19,882 11,946 (2,064) (6,712) 23,052
Capital expenditure – Intangible assets 437 4 – – 441
Capital expenditure – Property, plant and equipment 982 969 109 37 2,097
Year ended 31 January 2011
Brands 
£000
Manufacturing 
£000
Overseas 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
Assets 32,891 16,458 1,056 321 50,726
Liabilities (15,365) (5,078) (2,455) (6,435) (29,333)
Total net assets/(liabilities) 17,526 11,380 (1,399) (6,114) 21,393
Capital expenditure – Intangible assets 600 6 – – 606
Capital expenditure – Property, plant and equipment 924 1,043 61 2 2,030
e) Additional entity-wide disclosures
Revenue by geographical location of customers
2012 
£000
2011 
£000
United Kingdom 48,573 46,322
Continental Europe 11,678 10,507
United States of America 7,398 7,105
Rest of the World 6,365 4,844
74,014 68,778
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
2012 
£000
2011 
£000
United Kingdom 15,037 14,380
Continental Europe 250 217
United States of America 137 144
15,424 14,741
Non-current assets included above comprise intangible assets and property, plant and equipment.  48
WALKER GREENBANK PLC
Annual Report and Accounts 2012
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 year, there are no exceptional items. 
In the prior year, a full and ﬁnal payment of £500,000 was received for an insurance settlement for a ‘loss of proﬁts claim’ which arose from 
the disruption to collection launches in 2009 as a consequence of the loss of marketing products held at third party’s premises which were 
destroyed in a ﬁre in January 2009. The amounts received are classiﬁed within other operating (expense)/income.
6. a) Analysis of operating proﬁt by function of expense
2012 
£000
2011 
£000
Revenue 74,014 68,778
Cost of sales (30,029) (27,384)
Gross proﬁt 43,985 41,394
Net operating expenses:
Distribution and selling costs (12,716) (12,060)
Administration expenses (25,711) (24,905)
Other operating (expense)/income (3) 543
Net operating expenses (38,430) (36,422)
Proﬁt from operations 5,555 4,972
6. b) Analysis of revenue by category
2012 
£000
2011 
£000
Sale of goods 72,426 67,343
Licence royalty income 1,588 1,435
74,014 68,778
6. c) Analysis of expense by nature
2012 
£000
2011 
£000
Changes in inventories of ﬁnished goods and work in progress (356) (2,281)
Raw materials and consumables used 24,934 23,474
Employee beneﬁt expense 20,141 20,097
Depreciation and amortisation charges 1,853 1,738
Transportation expenses 2,619 2,349
Advertising costs 1,749 1,472
Other selling costs 6,999 6,463
Establishment costs 2,938 3,441
Operating lease payments 1,817 1,883
Repairs and maintenance 1,072 1,101
Other expenses 4,690 4,612
Total cost of sales, distribution and selling costs and administration expenses 68,456 64,349
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 49
WALKER GREENBANK PLC
Annual Report and Accounts 2012
7. Group proﬁt from operations
2012 
£000
2011 
£000
Group proﬁt from operations is stated after charging/(crediting):
Depreciation of property, plant and equipment 1,550 1,419
Amortisation of intangibles 303 319
Cost of inventories recognised as expense in cost of sales 24,578 21,193
Impairment of inventories 756 808
Reversal of impairment of inventories (15) (12)
Impairment of trade receivables 148 163
Reversal of impairment of trade receivables (7) (14)
Net foreign exchange losses/(gains) 4 (43)
Operating lease rentals:
– Hire of motor vehicles and plant and machinery 434 426
– Land and buildings 1,383 1,457
2012 
£000
2011 
£000
Auditor’s remuneration:
– Fees payable to Company’s auditor for the audit of parent Company and consolidated ﬁnancial statements 50 50
– Audit of Company’s subsidiaries pursuant to legislation 88 79
– Taxation services 5 41
– Other accounting services 31 5
174 175
8. Net deﬁned beneﬁt pension charge
2012 
£000
2011 
£000
Expected return on pension scheme assets 2,646 2,434
Interest on pension scheme liabilities (2,565) (2,542)
Scheme expenses met by Group (488) (322)
Settlement gain – 66
Net charge (note 23) (407) (364)
9. Net borrowing costs
2012 
£000
2011 
£000
Interest expense:
Interest payable on bank borrowings (230) (209)
Amortisation of issue costs of bank loans (24) (25)
Other interest and similar charges payable – –
Total borrowing expense (254) (234)
Interest income:
Other interest receivable – 88
Net borrowing costs (254) (146)
The 201 1 ‘Other interest receivable’ includes £86,000 in respect of interest on the recovery of VAT refunded by HMRC in respect of 
expenses incurred on the issue of shares in earlier years. It further includes £2,000 in respect of interest received on bank deposits. There 
was no interest receivable in 2012. 50
WALKER GREENBANK PLC
Annual Report and Accounts 2012
10. Emoluments of Directors
Salary 
£000
Bonus 
£000
LTIP 
£000
Beneﬁts 
£000
Sub-total 
aggregate 
emoluments 
£000
Pension 
£000
2012 
Total 
£000
2011 
Total 
£000
Executive Directors:
John Sach 231 162 244 2 639 35 674 428
David Smallridge 183 128 174 1 486 27 513 310
Alan Dix 132 49 139 2 322 13 335 216
Non-executive Directors:
Terry Stannard 62 – – – 62 – 62 60
Fiona Goldsmith 27 – – – 27 – 27 27
635 339 557 5 1,536 75 1,611 1,041
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 £1 1,570 (201 1: £1 1,072). Beneﬁts are accruing under deﬁned contribution schemes for three 
Directors (201 1: three Directors).
Further information on the remuneration of the Directors is included in the Directors’ Remuneration Report set out on pages 26 to 28. 
11. Employee Information
2012 
£000
2011 
£000
Wages and salaries 17,253 16,955
Social security costs 1,976 1,758
Other pension costs 498 687
Share-based payment awards, including NIC thereon 414 697
Employee beneﬁt expense 20,141 20,097
The average monthly number of employees (including Directors) during the year
2012 
Number
2011 
Number
Brands, including warehousing 233 211
Manufacturing 303 285
Overseas 26 32
Corporate and administration 20 22
582 550
Compensation of key management personnel
2012 
£000
2011 
£000
Short-term employee beneﬁts (including short-term incentives) 2,911 2,921
Post employment beneﬁts (including pension costs) 145 130
Share-based payment awards 414 697
3,470 3,748
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. 
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 51
WALKER GREENBANK PLC
Annual Report and Accounts 2012
12. Tax expense
2012 
£000
2011 
£000
Current tax:
– overseas, current tax (15) (13)
– overseas, adjustment in respect of prior year 36 –
Current tax 21 (13)
Deferred tax:
– current year (933) (1,339)
– adjustment in respect of prior year 7 (2)
– effect of change in corporation tax rate to 25% (160) (80)
Deferred tax (1,086) (1,421)
Tax charge for the year (1,065) (1,434)
Reconciliation of tax charge for the year
2012 
£000
2011 
£000
Proﬁt on ordinary activities before tax 4,894 4,462
Tax on proﬁt on ordinary activities at standard rate 26% (2011: 28%) (1,272) (1,249)
Non-deductible expenditure (32) (31)
Parent and overseas losses and temporary timing differences not recognised 356 (72)
Adjustments in respect of prior years 43 (2)
Effect of change in corporation tax rate to 25% (160) (80)
Tax charge for year (1,065) (1,434)
Factors affecting current and future tax charges
No UK corporation tax is anticipated to become payable within the immediate future due to the availability of gross tax losses of 
approximately £12.6 million (201 1: £16.2 million).
No overseas taxation is anticipated to become payable within the immediate future due to the availability of gross tax losses of 
approximately £1.7 million (201 1: £1.5 million). 
Legislation has now been substantively enacted to reduce the main corporation tax rate to 25% from 1 April 2012.
However included within the recent Budget statement by the Chancellor of the Exchequer were various changes to corporation tax and 
in particular to the rates to be applied from 1 April 2012. A further reduction of 1% to 24% has been proposed from 1 April 2012. The main 
corporation tax rate from that date will be 24%. In addition, it was announced that the rate will be reduced by 1% per annum to attain a rate 
of 22% by 1 April 2014.
Accordingly, the deferred tax balance at 31 January 2012, included within these ﬁnancial statements, which was calculated at a rate 
of 25%, being the rate enacted in the Finance Act (201 1), would be reduced by £43,000 assuming that the proposed rate of 24% from 
1 April 2012 is enacted. This reduction will be recognised in the ﬁnancial statements for the year ended 31 January 2013.
The further reductions to a rate of 22%, assuming that these are formally enacted, would result in a decrease in the deferred tax balance at 
31 January 2012 of £129,000. The deferred tax asset balance will be adjusted, in the ﬁnancial year that the change in the corporation tax 
rate is substantively enacted by Parliament. 52
WALKER GREENBANK PLC
Annual Report and Accounts 2012
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 beneﬁt trust (‘EBT’) and those held in treasury 
(note 25), which are treated as cancelled. 
2012 2011
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 3,829 56,655 6.76 3,028 56,491 5.36
Walker Greenbank’s issued ordinary share capital with voting rights consists of 59,006, 162 (201 1: 59,006, 162) ordinary shares of which 
960,000 (201 1: 960,000) ordinary shares are held in treasury and a further 1,093,541 (201 1: 1,852,445) ordinary shares are held by the 
Walker Greenbank PLC Employee Beneﬁt Trust (‘EBT’) with a cost of £224,638 (201 1: £380,534). 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 2012 was £565,907 (201 1: £981,796).
The total number of shares held in treasury at the year end represented 1.63% (201 1: 1.63%) of the issued shares. The market value of 
these shares at 31 January 2012 was £496,800 (201 1: £508,800).
14. Intangible assets
Goodwill 
£000
Arthur 
Sanderson 
and William 
Morris 
Archive 
£000
Collection 
design 
£000
Software 
£000
Total 
£000
Cost
1 February 2010 1,400 4,300 1,184 4,820 11,704
Additions – – 282 324 606
Disposals – – (226) – (226)
31 January 2011 1,400 4,300 1,240 5,144 12,084
Additions – – 244 197 441
Disposals – – (27) – (27)
31 January 2012 1,400 4,300 1,457 5,341 12,498
Amortisation
1 February 2010 841 – 599 4,577 6,017
Charge – – 234 85 319
Disposals – – (225) – (225)
31 January 2011 841 – 608 4,662 6,111
Charge – – 247 56 303
Disposals – – (27) – (27)
31 January 2012 841 – 828 4,718 6,387
Net book amount
31 January 2012 559 4,300 629 623 6,111
31 January 2011 559 4,300 632 482 5,973
31 January 2010 559 4,300 585 243 5,687
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. 
The total amortisation expense of £303,000 (201 1: £319,000) is included in administration expenses £293,000 (201 1: £300,000) and 
distribution and selling costs £10,000 (201 1: £19,000). 
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 53
WALKER GREENBANK PLC
Annual Report and Accounts 2012
14. Intangible assets continued
Impairment tests for Goodwill and Arthur Sanderson and William Morris Archive 
The carrying value of Goodwill at the year end of £559,000 (201 1: £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 (201 1: £nil). 
In assessing whether an impairment of goodwill is required the carrying value of the cash generative unit (‘CGU’) or group of CGUs is 
compared with its recoverable amount. The recoverable amounts 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 6.57% (201 1: 7 .35%). The discount rate used is the same across all segments.
The Group has used formally approved budgets for the ﬁrst two years (201 1: 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% (201 1: 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 6.57% (201 1: 7 .35%) is applied.
The Group does not consider it reasonably probable that any signiﬁcant changes to the key assumptions will arise that would result in 
impairment of either Goodwill or the Archive as at 31 January 2012. 
15. Property, plant and equipment
Land and 
buildings 
£000
Plant, 
equipment 
and vehicles 
£000
Computer 
hardware 
£000
Total 
£000
Cost
1 February 2010 5,404 16,470 1,336 23,210
Additions – 1,718 312 2,030
Disposals – (943) (294) (1,237)
Currency movements – (3) – (3)
31 January 2011 5,404 17,242 1,354 24,000
Additions – 1,931 166 2,097
Disposals – (213) – (213)
31 January 2012 5,404 18,960 1,520 25,884
Depreciation
1 February 2010 1,201 12,600 1,249 15,050
Charge 100 1,218 101 1,419
Disposals – (943) (294) (1,237)
31 January 2011 1,301 12,875 1,056 15,232
Charge 103 1,326 121 1,550
Disposals – (213) – (213)
Currency movements –2 –2
31 January 2012 1,404 13,990 1,177 16,571
Net book amount
31 January 2012 4,000 4,970 343 9,313
31 January 2011 4,103 4,367 298 8,768
31 January 2010 4,203 3,870 87 8,160
The total depreciation expense of £1,550,000 (201 1: £1,419,000) is included in administration expenses £1,507 ,000 (201 1: £1,400,000) and 
distribution and selling costs £43,000 (201 1: £19,000).  54
WALKER GREENBANK PLC
Annual Report and Accounts 2012
15. Property, plant and equipment continued
The net book amount of land and buildings comprises 
2012 
£000
2011 
£000
Freehold land 450 450
Freehold buildings 3,550 3,653
Net book amount 4,000 4,103
Land and buildings are stated at historical cost.
All of the Groups banking facilities remain secured by a ﬁxed and ﬂoating charge over the carrying value of assets (land and buildings) of 
£4,000,000 (201 1: £4, 103,000).
16. Deferred income tax assets
A deferred tax asset of £2,850,000 (201 1: £3,982,000) is recognised in respect of tax losses and other temporary differences and 
£1,086,000 (201 1: £1,421,000) has been charged to the Income Statement during the year as some of the tax losses have been utilised.
2012 
£000
2011 
£000
Taxable temporary differences on property, plant and equipment (849) (776)
Taxable temporary differences on intangible assets (171) (164)
Other temporary differences 107 38
Unutilised tax losses 1,989 3,063
1,076 2,161
Retirement beneﬁt obligations 1,774 1,821
2,850 3,982
The movements in the deferred tax asset on retirement beneﬁt obligations are recognised in the Statement of Comprehensive Income.
At the Balance Sheet date the Group has gross unused UK tax losses of £12.6 million (201 1: £16.2 million) available for offset against future 
proﬁts. A deferred tax asset of £2.0 million (201 1: £3. 1 million) is recognised in respect of £8.0 million (201 1: £1 1.3 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. 
Note 12 details the impact of the changes to the main rates of corporation tax announced in the recent Budget on the deferred tax asset 
set out above.
 
Potential deferred tax assets at 31 January 2012 of £1,939,000 (201 1: £2,329,000) 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. These are summarised in the table below and comprise the following: 
 – No deferred tax has been recognised on £4.6 million (201 1: £4.9 million) of gross UK losses as these 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, there are gross tax losses in Overseas subsidiaries of £1,757 ,000 (201 1: £1,482,000) which are available for offset against 
future taxable proﬁts by those subsidiaries. However, the realisation of these losses is not considered probable in the foreseeable future. 
 – Other deductible temporary differences which predominantly arise on share-based payments reserves.
2012 
£000
2011 
£000
Unutilised tax losses – UK 1,159 1,320
Unutilised tax losses – Overseas 611 519
Other deductible temporary differences – UK 169 490
1,939 2,329
As detailed in note 12 the main rate of corporation tax is to reduce to 22% by 1 April 2014. If these changes are enacted then the 
unrecognised deferred tax asset noted above would reduce by £159,000.
There are also unutilised capital tax losses at 31 January 2012 of £2,485,000 (201 1: £2,485,000) but no deferred tax asset has been 
recognised as it is not considered probable that these losses will be utilised. 
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 55
WALKER GREENBANK PLC
Annual Report and Accounts 2012
17. Inventories
2012 
£000
2011 
£000
Raw materials 1,858 1,446
Work in progress 972 1,287
Finished goods 14,170 12,897
17,000 15,630
The cost of inventories recognised as an expense and included in cost of sales amounted to £24,578,000 (201 1: £21, 193,000). 
The value of inventories providing security under the Barclays Bank PLC facility, if it were to be fully drawn, was £1 1,379,000 (201 1: 
£10,834,000). This facility was not utilised at either year end.
18. Trade and other receivables
Current
2012 
£000
2011 
£000
Trade receivables 9,574 10,075
Less: Provision for impairment of trade receivables (487) (515)
Net trade receivables 9,087 9,560
Other receivables 516 595
Marketing materials 2,068 2,894
Prepayments 1,376 1,334
13,047 14,383
The value of trade receivables providing funding under the Barclays facility was £7 ,224,000 (201 1: £7 ,276,000).
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 £5,615,000 (201 1: £5,538,000) 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 component 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. 
(ii) Past due – not individually impaired
Included in the Group’s trade receivable balances are debtors with a carrying value of £3,721,000 (201 1: £4, 1 17 ,000) which are past due at 
the reporting date for which the Group does not consider the need to create a speciﬁc impairment provision against individually identiﬁed 
debtor. The table below shows the aging analysis of the receivables:
2012 
£000
2011 
£000
1–30 days past due 1,816 1,931
31–60 days past due 1,508 1,692
61–90 days past due 370 347
91+ days past due 27 147
3,721 4,117
The Directors believe however, that in the current economic environment there is objective evidence of credit deterioration and an 
impairment of £314,000 (201 1: £253,000) representing a collective assessment of risk against debtors that are yet to be speciﬁcally 
identiﬁed. Due to the nature of the Group’s products, there is a limited amount of inventory left in the possession of customers that could 
act as collateral under terms of trade. As the value of this inventory is immaterial, it has not been disclosed in the ﬁnancial statements. 
(iii) Past due – individually impaired
As at 31 January 2012, trade receivables of £238,000 (201 1: £420,000) were individually determined to be impaired and provided for. 
The amount of the provision was £173,000 (201 1: £262,000). 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.  56
WALKER GREENBANK PLC
Annual Report and Accounts 2012
18. Trade and other receivables continued
(iii) Past due – individually impaired continued
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies: 
2012 
£000
2011 
£000
Sterling 8,103 8,252
Dollars 16 252
Euros 1,351 1,557
Other 133 94
9,603 10,155
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 territory of the customer was:
2012 
£000
2011 
£000
United Kingdom 6,610 6,783
Continental Europe 1,497 1,522
United States of America 195 535
Rest of the World 785 720
9,087 9,560
Provisions for impairment
Movements on the Group provision for impairment of trade receivables are as follows:
2012 
£000
2011 
£000
At 1 February (515) (408)
Provision for receivables impaired (148) (163)
Receivables written off in the year as uncollectible 168 44
Unused amounts reversed 7 14
Exchange difference 1 (2)
At 31 January (487) (515)
The creation and release of provisions for impaired trade receivables have been included within distribution and selling costs in the 
Income Statement.
19. Derivative ﬁnancial instruments
2012 
£000
2011 
£000
Forward foreign exchange contracts – cash ﬂow hedges – (liability)/asset (50) 63
Swap contract – cash ﬂow hedges – asset 54 –
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 the Company has entered into monthly forward foreign exchange contracts up to June 2013, 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 a liability of £50,000 (201 1: asset of £63,000). 
The amounts deferred in equity will be released into the Income Statement in the period or periods during which the hedged forecast 
transactions impact the Income Statement, which is expected to be within 15 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 currency contracts. 
Swap foreign exchange contracts
The Group uses swap contracts to manage its working capital exchange risk from both the foreign subsidiaries and the balances on 
debtors, creditors and cash held in foreign currency. These swap contracts are designated as Fair Value through the Income Statement.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 57
WALKER GREENBANK PLC
Annual Report and Accounts 2012
19. Derivative ﬁnancial instruments continued
Swap foreign exchange contracts continued
The use of swaps are reviewed monthly and renewed when necessary.
The swap contract held at the Balance Sheet date was closed on 13 February 2012. There were no swap contracts held at the year ended 
31 January 201 1.
20. Cash and cash equivalents
2012 
£000
2011 
£000
Cash at bank and in hand 2,197 1,927
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.
21. Trade and other payables
2012 
£000
2011 
£000
Trade payables 10,461 11,731
Corporation tax – 38
Other taxes and social security 1,385 1,243
Other payables and deferred revenue 358 786
Accruals 5,307 5,049
17,511 18,847
22. Borrowings
2012 
£000
2011 
£000
Current:
Term loan 400 400
400 400
Non-Current:
Term loan 1,784 2,183
Trade receivables loan 680 1,161
2,464 3,344
Total borrowings 2,864 3,744
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 Bank PLC facilities are capped at £16.5 million (201 1: £16.5 million); the utilisation of the facilities at the year end was 
£2,864,000 (201 1: £3,7 44,000). 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).
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 Barclays Bank PLC that it was in full compliance with its ﬁnancial and operational covenants throughout each 
of the periods presented.  58
WALKER GREENBANK PLC
Annual Report and Accounts 2012
22. Borrowings continued
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
2012 
£000
2011 
£000
2012 
£000
2011 
£000
Term loan 1,784 2,183 1,800 2,200
Trade receivables loan 680 1,161 711 1,213
2,464 3,344 2,511 3,413
The fair values are based on cash ﬂows discounted using a weighted average rate based on the borrowing rate of 1.75% (201 1: 1.75%). 
The table below analyses the Group’s 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 2012 
Less than 
1 year 
£000
Between 
1 to 2 years 
£000
Between 
2 to 5 years 
£000
Over 
5 years 
£000
Borrowings 1,111 821 1,068 –
Trade and other payables 16,126–––
17,237 821 1,068 –
31 January 2011 
Less than 
1 year 
£000
Between 
1 to 2 years 
£000
Between 
2 to 5 years 
£000
Over 
5 years 
£000
Borrowings 1,613 821 1,286 222
Trade and other payables 17,566 – – –
19,179 821 1,286 222
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
2012 
£000
2011 
£000
Sterling 2,864 3,744
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 £451,000 (201 1: £365,000). 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 and the Abaris Holdings Limited Pension Scheme. The WG Senior Management 
Pension Scheme was effectively closed during the year. 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 2009 with an updated funding valuation 
performed as at April 2010. 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 2012 are expected to be £1,583,000. 
2012 2011
Discount rate 4.60% 5.60%
Rate of salary increase 2.90% 3.40%
Rate of increase to LPI pensions in payment 2.90% 3.30%
Rate of increase to pensions (in excess of GMP) in deferment 2.10% 3.40%
Rate of inﬂation 2.90% 3.40%
Expected return on plan assets 5.90% 6.60%
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 59
WALKER GREENBANK PLC
Annual Report and Accounts 2012
23. Retirement beneﬁt obligations continued
Deﬁned beneﬁt schemes continued
The principal assumptions applied when valuing the deﬁned beneﬁt schemes were:
Members are assumed to commute 25% of their pension (201 1: 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, in both years, are based on the Self Administered Pension Scheme with medium cohort effect and a 
ﬂoor of 1% p.a. on future mortality improvements. The mortality assumptions imply the expected future lifetime from age 65 as follows:
2012 2011
Non-pensioner male currently 45 23.4 23.2
Pensioner male currently 65 21.5 21.3
Non-pensioner female currently 45 26.2 26.0
Pensioner female currently 65 24.3 24.1
The amounts recorded in the Balance Sheet are determined as follows:
2012 
£000
2011 
£000
Equities 23,878 25,574
Fixed interest 21,973 13,301
Insured annuities 1,275 1,257
Cash and other 212 170
Fair value of plan assets 47,338 40,302
Present value of funded deﬁned beneﬁt obligations (54,433) (47,044)
Net liability in Balance Sheet (7,095) (6,742)
Reconciliation of opening and closing balances of the present value of the deﬁned beneﬁt obligation
2012 
£000
2011 
£000
Beneﬁt obligation at beginning of year 47,044 46,530
Scheme expenses 488 322
Interest cost 2,565 2,542
Actuarial loss – other 6,864 1,559
Removal of liabilities in Senior Management Scheme – (1,322)
Beneﬁts paid (2,528) (2,587)
Beneﬁt obligation at end of year 54,433 47,044
Reconciliation of opening and closing balances of the fair value of plan assets
2012 
£000
2011 
£000
Fair value of plan assets at beginning of year 40,302 38,587
Expected return on plan assets 2,646 2,434
Actuarial gain 5,460 1,718
Contributions by employers 1,458 1,360
Enhanced transfer costs – 46
Removal of scheme assets in Senior Management Scheme – (1,256)
Beneﬁts paid (2,528) (2,587)
Fair value of plan assets at end of year 47,338 40,302
The amounts recognised in the Income Statement are:
2012 
£’000
2011 
£’000 
Scheme expenses 488 322
Settlement gain – (66)
Interest on obligation 2,565 2,542
Expected return on plan assets (2,646) (2,434)
Net deﬁned beneﬁt pension charge 407 364 60
WALKER GREENBANK PLC
Annual Report and Accounts 2012
23. Retirement beneﬁt obligations continued
Reconciliation of opening and closing balances of the fair value of plan assets continued
The Group no longer has any remaining obligations in respect of The Walker Greenbank Senior Management Pension Scheme as the two 
remaining deferred members accepted enhanced transfer values during prior year. A net settlement gain of £66,000 was included within 
net deﬁned beneﬁt costs of the prior year.
 
The actual return on assets over the period was a gain of £8, 106,000 (201 1: gain of £4, 152,000).
Actuarial gains and (losses) recognised in Statement of Comprehensive Income 
2012 
£000
2011 
£000
Actual return on scheme assets higher than expected return 5,460 1,718
Other actuarial losses on scheme liabilities (6,864) (1,559)
(1,404) 159
Other actuarial losses on scheme liabilities in the period arise mainly from decreases in the discount rate and higher inﬂation assumptions 
used in determining the present value of scheme liabilities. 
The cumulative amount of actuarial losses reported in the Statement of Comprehensive Income before deferred taxation was £22, 130,000 
(201 1: £20,726,000).
History of schemes’ assets, obligations and experience adjustments
2012 
£000
2011 
£000
2010 
£000
2009 
£000
2008 
£000
Present value of deﬁned beneﬁt obligation (54,433) (47,044) (46,530) (39,224) (44,260)
Fair value of scheme’s assets 47,338 40,302 38,587 35,063 40,851
Deﬁcit in the schemes (7,095) (6,742) (7,943) (4,161) (3,409)
Experience adjustments arising on scheme liabilities (6,864) (1,559) (7,694) 5,458 2,064
Experience adjustments arising on scheme assets 5,460 1,718 2,665 (7,458) (1,364)
 
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 61
WALKER GREENBANK PLC
Annual Report and Accounts 2012
24. Financial instruments by category 
The accounting policies for ﬁnancial instruments have been applied to the line items below:
31 January 2012
Loans and 
receivables 
£000
Assets 
at fair value 
£000
Derivatives 
used for 
hedging 
£000
Total 
£000
Assets as per Balance Sheet
Derivative ﬁnancial instruments – – 54 54
Trade and other receivables 9,603 – – 9,603
Cash and cash equivalents 2,197 – – 2,197
Total 11,800 – 54 11,854
31 January 2012
Liabilities 
at fair value 
£000
Other 
ﬁnancial 
liabilities 
£000
Derivatives 
used for 
hedging 
£000
Total 
£000
Liabilities as per Balance Sheet
Derivative ﬁnancial instruments – – 50 50
Borrowings – 2,864 – 2,864
Trade and other payables – 16,126 – 16,126
Total – 18,990 50 19,040
 
31 January 2011
Loans and 
receivables 
£000
Assets 
at fair value 
£000
Derivatives 
used for 
hedging 
£000
Total 
£000
Assets as per Balance Sheet
Derivative ﬁnancial instruments – – 63 63
Trade and other receivables 10,155 – – 10,155
Cash and cash equivalents 1,927 – – 1,927
Total 12,082 – 63 12,145
31 January 2011
Liabilities 
at fair value 
£000
Other 
ﬁnancial 
liabilities 
£000
Derivatives 
used for 
hedging 
£000
Total 
£000
Liabilities as per Balance Sheet
Borrowings – 3,744 – 3,744
Trade and other payables – 17,566 – 17,566
– 21,310 – 21,310
25. Share Capital
Ordinary shares of 1p each
Number 
of shares £
Authorised share capital:
1 February 2010, 31 January 2011 and 31 January 2012 85,000,000 850,000
Allotted, called up and fully paid:
1 February 2010, 31 January 2011 and 31 January 2012 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. 
Walker Greenbank’s issued ordinary share capital with voting rights consists of 59,006, 162 (201 1: 59,006, 162) ordinary shares of which 
960,000 (201 1: 960,000) ordinary shares are held in treasury and a further 1,093,541 (201 1: 1,852,445) ordinary shares are held by the 
Walker Greenbank PLC Employee Beneﬁt Trust (‘EBT’) with a cost of £224,638 (201 1: £380,534). Shares held in treasury or by the EBT  
are treated as cancelled when calculating earnings per share.
The market value of shares held by the EBT at 31 January 2012 of £565,907 (201 1: £981,796).
The total number of shares held in treasury at the year end represented 1.63% (201 1:1.63%) of the issued shares. The market value of these 
shares at 31 January 2012 was £496,800 (201 1: £508,800).
The shares held by the EBT and the treasury shares are held for the purpose of satisfying awards under long-term incentive plans to 
Executive Directors and senior management.  62
WALKER GREENBANK PLC
Annual Report and Accounts 2012
25. Share Capital continued
Long-Term Incentive Plans (‘LTIPs’)
The Group operates a Long-Term Incentive Plan. There have been ﬁve awards under this plan, in which Executive Directors and senior 
management of the Group participate. The ﬁrst award vested during 2009 and the second vested during 201 1. 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 both the adjusted 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 Three Award Four Award Five
Grant date of awards 27 May 2009 20 May 2010 19 May 2011
Grant date fair value of award (pence per award) 7.92 18.00 25.22
Vesting date of awards 25 May 2012 17 May 2013 19 May 2014
Maximum number of awards 2,150,000 2,102,000 1,864,663
Vesting condition based on TSR with PBT ﬂoor TSR with PBT ﬂoor TSR with PBT ﬂoor
Relevant date for determination of vesting conditions TSR as at 27 May 2012 TSR as at 17 May 2013 TSR as at 19 May 2014
PBT for year ending  
31 January 2012
PBT for year ending  
31 January 2013
PBT for year ending  
31 January 2014
Further details of vesting conditions are set out in the Directors’ Remuneration Report on pages 26 to 28.
The fair value at grant date of Award Two was estimated based on the share price of the Group at grant date. Award’s Three and Four 
include 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 (Award Five) determined using the Monte-Carlo valuation model was 25.22p per 
option. The signiﬁcant inputs into the model were weighted average share price of 49.0p at the grant date, exercise price shown above, 
dividend yield of 1.94%, an expected option life of three years and an annual risk-free interest rate of 1.52%. 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 1 1 for the total expense recognised in the Income Statement for share options granted to Directors and employees.
Movements in the number of awards outstanding, assuming maximum achievement of vesting conditions are as follows:
2012 
Number
2011 
Number
At 1 February 5,667,093 3,565,093
Granted 1,864,663 2,102,000
Exercised (1,415,093) –
At 31 January 6,116,663 5,667,093
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 on capital restructurings 41,888
At 31 January 2012 and 2011 43,457
27. Dividends
During the year, the Group has paid a ﬁnal dividend for the year to 31 January 201 1 and an interim dividend of 0.20p for the year to 
31 January 2012 (201 1: 0. 15p).
The Group will continue to invest in the future growth of the business and to continue to pay dividends.
The Directors recommend the payment of a ﬁnal dividend of 1.00p per share (201 1: 0.80p per share) which will be payable on 10 August 
2012 to shareholders on the register at 13 July 2012. This brings the total dividend for the year to 1.20p (201 1: 0.95p).
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 63
WALKER GREENBANK PLC
Annual Report and Accounts 2012
28. Cash generated from operations
2012 
£000
2012 
£000 
2011 
£000
2011 
£000 
Proﬁt before tax 4,894 4,462
Deﬁned beneﬁt pension charge 407 364
Net borrowing costs 254 146
Depreciation 1,550 1,419
Amortisation 303 319
Charge for long-term incentive plan recognised in equity 353 493
Tax paid on vesting of LTIP 2 (348) –
Unrealised foreign exchange losses included in operating proﬁt (39) 9
Deﬁned beneﬁt pension cash contributions (1,458) (1,406)
Changes in working capital
(Increase) in inventories (1,370) (2,392)
Decrease/(increase) in trade and other receivables 1,282 (3,962)
(Decrease)/increase in trade and other payables (1,298) 5,004
(364) (6)
Cash generated from operations 4,530 4,456
29. Analysis of net debt
1 February 
2011
£000
Cash ﬂow
£000
Working 
Capital 
facilities
£000
Current 
portion 
of term 
facilities
£000
Other 
non-cash 
changes
£000
Exchange 
movement
£000
31 January 
2012
£000
Cash and cash equivalent 1,927 270 – – – – 2,197
Borrowings due within one year (400) 400 – (400) – – (400)
Borrowings due after one year (3,344) 504 – 400 (24) – (2,464)
(3,744) 904 – – (24) – (2,864)
Net debt (1,817) 1,174 – – (24) – (667)
Other non-cash changes are capitalisation and amortisation of the 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:
2012 
£000
2011 
£000
Property, plant and equipment 137 582
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 and 
buildings 
2012 
£000
Other 
2012 
£000
Land and 
buildings 
2011 
£000
Other 
2011 
£000
Within one year 1,435 378 1,416 329
Between one and ﬁve years 4,433 359 4,671 308
Over ﬁve years 6,487 – 3,553 7
12,355 737 9,640 644
Other leases include hire of plant, machinery and motor vehicles. 64
WALKER GREENBANK PLC
Annual Report and Accounts 2012
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
Arthur Sanderson & Sons Inc* – incorporated in the USA
Arthur Sanderson & Sons SARL * – incorporated in France
*Shares held by subsidiary company.
For a full list of subsidiary companies, please contact the Company Secretary at the Group registered address.
Investments in Group companies are ordinary shares.
The principal activities of the Group are design, manufacture, marketing and distribution of wallcoverings, furnishing fabrics and associated 
products for the consumer market.
NOTES TO THE CONSOLIDATED  
FINANCIAL STATEMENTS CONTINUED 65
WALKER GREENBANK PLC
Annual Report and Accounts 2012
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF WALKER GREENBANK PLC
We have audited the parent Company ﬁnancial statements of Walker 
Greenbank PLC for the year ended 31 January 2012 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 and 
express an opinion on 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. In addition, we read all 
the ﬁnancial and non-ﬁnancial information in the annual report 
to identify material inconsistencies with the audited ﬁnancial 
statements. If we become aware of any apparent material 
misstatements or inconsistencies we consider the implications 
for our report.
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 2012;
 – 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 2012 
OWEN MACKNEY 
(SENIOR STATUTORY AUDITOR)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
St Albans
15 May 2012 66
WALKER GREENBANK PLC
Annual Report and Accounts 2012
COMPANY BALANCE SHEET
AT 31 JANUARY 2012
Note
2012 
£000
2011 
£000 
Fixed assets
Tangible assets 4 37 10
Investments 5 43,762 43,665
43,799 43,675
Current assets and liabilities 
Debtors 6 13,268 18,027
Cash at bank and in hand – 460
13,268 18,487
Creditors: amounts falling due within one year 8 (6,124) (10,987)
Net current assets 7,144 7,500
Total assets less current liabilities 50,943 51,175
Creditors: amounts falling due after more than one year 9 (1,800) (2,200)
Net assets 49,143 48,975
Capital and reserves
Share capital 11 590 590
Share premium account 12 457 457
Retained earnings 12 6,208 6,040
Other reserves 12 41,888 41,888
Total shareholders’ funds 49,143 48,975
The ﬁnancial statements on pages 66 to 73 were approved by the Board of Directors on 15 May 2012 and were signed on its behalf by:
JOHN SACH
DIRECTOR
ALAN DIX
DIRECTOR
Registered Number: 61880 67
WALKER GREENBANK PLC
Annual Report and Accounts 2012
NOTES TO THE FINANCIAL STATEMENTS
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. 
Going concern
The Company meets its day to day working capital requirements through its banking facilities. The Company’s forecasts and projections, 
taking account of reasonably possible changes in trading performance show that the Company will be able to operate within the level of its 
current facilities as disclosed in note 9.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the 
foreseeable future. Therefore the Company continues to adopt the going concern basis in preparing its ﬁnancial statements.
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 proﬁt of £733,000 (201 1: loss of £7 45,000) has been dealt with in the ﬁnancial statements of the Company.
Consolidation
These ﬁnancial statements present information relating to the entity Walker Greenbank PLC and are not consolidated. The consolidated 
ﬁnancial statements of Walker Greenbank PLC and its subsidiaries (‘the Group’) of which the Company is the parent are separately 
presented within this Annual Report and Financial Statements and are prepared in accordance with IFRS. 
Tangible 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 were stated at cost less any provision for impairment.
Impairment of tangible ﬁxed assets and investments
Fixed assets and investments are subject to review for impairment in accordance with FRS 1 1. 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 the 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 FRS 26 
‘Financial Instruments: Measurement’ or FRS 29 ‘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. 
T ransactions in foreign currencies are recorded at the rates ruling at the date of transaction. All 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 this Company’s ﬁnancial statements. 
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 the Proﬁt and loss reserve in accordance with UITF Abstract 38.  68
WALKER GREENBANK PLC
Annual Report and Accounts 2012
1. Accounting policies continued
Employee beneﬁts – share-based payments under long-term incentive plans (‘LTIPs’)
The Company issues equity-settled share-based payments to certain employees of the Group which are measured at fair value and are 
recognised as an expense in the Proﬁt and loss account 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 Proﬁt and loss account as an expense is 
adjusted to reﬂect the actual number of awards that vest.
National insurance contributions, related to the awards are recognised as an expense in the Proﬁt and loss account with a corresponding 
liability being recorded on the Balance Sheet.
The Company has applied the amendment to FRS 20 ‘Share-based payments – Group and treasury shares’. This is consistent with the 
requirements of UITF 44 which the Company adopted in previous years.
Under these requirements 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 their Annual 
Report and Financial Statements. 
Deﬁned beneﬁt pension schemes are accounted for within the separate ﬁnancial statements of the Company’s trading subsidiary, Abaris Holdings 
Limited. The 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 and 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. 
Cash ﬂow statement and related party transactions
The Company has applied the exemption available in FRS 8 and has decided not to disclose transactions with wholly owned 
subsidiary undertakings.
In addition, the Company has taken advantage of the exemption from preparing a cash ﬂow statement under the terms of FRS 1.
For details of other related party transactions see note 16.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 69
WALKER GREENBANK PLC
Annual Report and Accounts 2012
2. Auditors’ remuneration 
2012 
£000
2011 
£000
Audit fee – fees payable to the Company auditor for the audit of the parent Company and the consolidation 
of the Group ﬁnancial statements 50 50
3. Emoluments of Directors
Salary 
£000
Bonus 
£000
LTIP 
£000
Beneﬁts 
£000
Sub-total 
Aggregate 
emoluments 
£000
Pension 
£000
2012 
Total 
£000
2011 
Total 
£000
Executive Directors:
John Sach 231 162 244 2 639 35 674 428
David Smallridge 183 128 174 1 486 27 513 310
Alan Dix 132 49 139 2 322 13 335 216
Non-executive Directors:
Terry Stannard 62––– 62 – 62 60
Fiona Goldsmith 27 – – – 27 – 27 27
635 339 557 5 1,536 75 1,611 1,041
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 £1 1,570 (201 1: £1 1,072). 
Beneﬁts are accruing under deﬁned contribution schemes for three Directors (201 1: three Directors).
Further information on the remuneration of the Directors is included in the Directors’ Remuneration Report which is included on pages 26 
to 28 of the Group’s Annual Report and Financial Statements.
4. Tangible ﬁxed assets
Plant, 
equipment 
and vehicles 
£000
Computer 
assets 
£000
Total 
£000
Cost
31 January 2011 50 20 70
Additions 35 2 37
31 January 2012 85 22 107
Depreciation
31 January 2011 41 19 60
Charge 91 10
31 January 2012 50 20 70
Net book amount
31 January 2012 35 2 37
31 January 2011 91 10
5. Investments
Shares in subsidiary undertakings
2012 
£000
2011 
£000
Cost:
As at 1 February 2011 44,703 44,595
Additions 97 108
Disposal of subsidiary – –
As at 31 January 2012 44,800 44,703
Provision for impairment:
Beginning of year and end of year (1,038) (1,038)
Net book amount at 31 January 2012 and 2011 43,762 43,665 70
WALKER GREENBANK PLC
Annual Report and Accounts 2012
5. Investments continued
Additions in both years relate to the application of the Company’s accounting policy on share-based payments under FRS 20.
Walker Greenbank PLC is registered and domiciled in the United Kingdom. It is the parent Company of the Walker Greenbank Group.  
The principal operating companies that traded during the year, all of which 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
* Shares held by subsidiary company.
Investments in Group companies are Ordinary shares.
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 6.57% (201 1: 7 .35%) on a pre tax basis and is not 
intended to reﬂect a realisable value on disposal.
A full list of subsidiaries will be included with the next Annual Return of the Company.
6. Debtors
2012 
£000
2011 
£000
Amounts owed by subsidiary undertakings 12,994 17,805
Other debtors 274 222
13,268 18,027
Amounts owed by subsidiary undertakings are non-interest bearing and are unsecured. These loans are repayable on demand by the 
Company should payment be required, but full settlement within the next 12 months is unlikely to be sought.
7. Disclosure of fair value of derivative ﬁnancial instruments
2012 
£000
2011 
£000
Forward foreign exchange contracts – cash ﬂow hedges – (liability)/asset (50) 63
Swap contract – cash ﬂow hedges – asset 54 –
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 the Company has 
entered into monthly forward foreign exchange contracts up to June 2013, with a third party, to buy sterling and sell US 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 forward exchange contracts with a notional principal of US$4.8 million (201 1: US$4.5 million) are outstanding. 
The fair value of the forward foreign contracts relating to the beneﬁt on these anticipated future transactions is a liability of £50,000 
(201 1: asset of £63,000). 
Swap foreign exchange contracts
The Group uses swap contracts to manage its working capital exchange risk from both the foreign subsidiaries and the balances on 
debtors, creditors and cash held in foreign currency.
The use of swaps are reviewed monthly and renewed when necessary.
The swap contract held at the Balance Sheet date was reversed on 13 February 2012. There were no swap contracts held at the year 
ended 31 January 201 1.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 71
WALKER GREENBANK PLC
Annual Report and Accounts 2012
8. Creditors: due within one year
2012 
£000
2011 
£000
Bank term loans (note 9) 400 400
Bank overdrafts 86 –
Trade creditors 93 70
Amounts owed to subsidiary undertakings 4,410 9,256
Other taxes and social security 204 218
Other creditors 62 –
Accruals 869 1,043
6,124 10,987
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
2012 
£000
2011 
£000
Bank term loan 1,800 2,200
Interest is charged at 1.25% (201 1: 1.25%) over base rate.
Repayment of total borrowings
2012 
£000
2011 
£000
Over ﬁve years 200 600
Between two and ﬁve years 1,200 1,200
Between one and two years 400 400
After more than one year 1,800 2,200
Within one year (note 8) 400 400
2,200 2,600
The Company has facilities from Barclays Bank PLC which comprises a variable rate term loan secured on the Group’s freehold property of 
£4.0 million which is being repaid on a 10 year proﬁle.
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 the covenants could, if not remedied or waived, constitute an event of default with respect to any such 
arrangements. 
The Group has reported to Barclays Bank PLC 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 Barclays Bank PLC.  72
WALKER GREENBANK PLC
Annual Report and Accounts 2012
10. Deferred taxation
Potential deferred tax assets at 31 January 2012 of £1,328,000 (201 1: £1,759,000) relating to tax losses and deductible temporary 
differences have not been recognised as it is not considered probable that recovery will arise.
2012 
£000
2011 
£000
Tax losses 1,159 1,320
Other timing differences 169 439
1,328 1,759
There are also unutilised capital tax losses of £4,885,000 (201 1: £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 2011 and 31 January 2012 85,000,000 850,000
Allotted, called up and fully paid:
1 February 2011 and 31 January 2012 59,006,162 590,062
Walker Greenbank’s issued ordinary share capital, with voting rights, consists of 59,006, 162 (201 1: 59,006, 162) ordinary shares of which 
960,000 (201 1: 960,000) ordinary shares are held in treasury and a further 1,093,541 (201 1: 1,852,445) ordinary shares are held by the 
Walker Greenbank PLC Employee Beneﬁt Trust (‘EBT’) with a cost of £224,638 (201 1: £380,534) and a market value at 31 January 2012 
of £565,907 (201 1: £981,786). Shares held in treasury or by the EBT are treated as cancelled when calculating EPS.
The total number of shares held in treasury at the year end represented 1.63% (201 1: 1.63%) of the issued ordinary shares. The market 
value of these shares at 31 January 2012 was £496,800 (201 1: £508,800).
The shares held by the EBT 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. There have been ﬁve awards under this Plan, in which Executive Directors and senior 
management of the Group participate. 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 Financial Statements. 
12. Shareholders’ funds and reserve movements
Share 
capital 
£000
Share 
premium 
account 
£000
Proﬁt 
and loss 
account 
£000
Capital 
reserve 
£000
Total 
£000
1 February 2010 590 457 6,838 41,888 49,773
Reserve for long-term incentive plans – – 493 – 493
Loss for the year – – (745) – (745)
Dividends paid – – (368) – (368)
Treasury shares – – (178) – (178)
31 January 2011 590 457 6,040 41,888 48,975
Reserve for long-term incentive plans –– 5– 5
Proﬁt for the year – – 733 – 733
Dividends paid – – (570) – (570)
31 January 2012 590 457 6,208 41,888 49,143
Capital reserve represents £000
Capital redemption reserve arising on capital reconstructions 41,888
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 73
WALKER GREENBANK PLC
Annual Report and Accounts 2012
13. Operating lease commitments
Annual commitments due under non-cancellable operating leases are as follows:
Land and 
buildings
2012
£000
Other
2012
£000
Land and 
buildings
2011
£000
Other
2011
£000
Operating leases which expire:
Within one year –– ––
Between one and ﬁve years 87 – 86 –
Over ﬁve years 420 – 420 –
507 – 506 –
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 1.00p per share (201 1: 0.80p per share), a total of £571,537 (201 1: 
£449,550). The shares held in Treasury or by the Employee Beneﬁt Trust are excluded from receiving dividends in accordance with UK GAAP .
16. Related party transactions
The Company made contributions to the Walker Greenbank Group Personal Pension Plan of £101,000 for the year ended 31 January 2012 
(201 1: £7 4,000). 74
WALKER GREENBANK PLC
Annual Report and Accounts 2012
2008 
£000
2009 
£000
2010 
£000
2011 
£000
2012 
£000
Revenue 62,448 63,698 60,378 68,778 74,014
Overseas revenue by location of customer 20,908 22,672 20,409 22,456 25,441
Proﬁt from operations 3,961 3,561 2,415 4,972 5,555
Proﬁt from operations before exceptional items and discontinued operations 3,961 3,857 2,522 4,472 5,555
EBITDA 5,783 5,703 4,308 6,210 7,001
Proﬁt before income tax 3,099 2,787 1,552 4,462 4,894
Capital expenditure 1,797 1,527 1,067 2,636 2,538
Earnings per ordinary share 14.49p 2.96p 2.10p 5.36p 6.76p
Average number of employees 586 594 529 550 582
Dividends paid in year – – – 368 570
Shareholders’ funds 20,799 19,911 18,770 21,393 23,052
Dividend per share
– Final (prior year end) – paid – – – 0.50p 0.80p
– Interim (current year end) – paid – – – 0.15p 0.20p
– Final (current year end) – proposed –––– 1.00p
EBITDA is based on proﬁt from operations before exceptional items.
FIVE YEAR RECORD 75
WALKER GREENBANK PLC
Annual Report and Accounts 2012
SHAREHOLDER INFORMATION
Financial Calendar
Annual General Meeting 27 June 2012
Announcement of half-year results October 2012
Walker Greenbank PLC
Chalfont House
Oxford Road
Denham
UB9 4DX
T : 0845 126 5582
F: 0845 126 5583 
www.walkergreenbank.com 76
WALKER GREENBANK PLC
Annual Report and Accounts 2012
NOTES  Chalfont House 
Oxford Road 
Denham UB9 4DX
United Kingdom
Tel: 0845 126 5582
Fax: 0845 126 5583
W alker Greenbank PLC
www.walkergreenbank.com