W alker Greenbank PLC
Providing luxury worldwide
Annual Report & Accounts.
2014
Walker Greenbank PLC Annual Report & Accounts 2014 Walker Greenbank PLC  
is an international luxury 
interior furnishings group.
The Group’s brands, Sanderson, Morris & Co., 
Harlequin, Zoffany, Scion and Anthology, 
offer a unique mix of heritage and 
contemporary design. The Group designs, 
manufactures and markets wallcoverings, 
fabrics and complementary products.
International 
Potential
The Group sells in over 75 
countries around the world, 
with its own operations in 
the USA, France and Holland, 
and elsewhere through an 
extensive network of agents 
and distributors.
Licensing 
Opportunities
The Brands continue to 
increase their focus on licensing 
opportunities, delivering significant 
extensions to the product lines 
offered by existing partners and 
regularly forming new relationships 
both in the UK and international 
markets.
Investing in 
Innovation
The Group’s manufacturing 
businesses continue to invest in 
technology, efficiency and the 
development of a highly skilled 
and flexible workforce to secure 
genuine competitive advantage.
Brand Strength
The Group owns six individual 
brands, all positioned from  
the mid to the upper end of 
the furnishings market and 
covering a broad spectrum  
of tastes from traditional to 
contemporary.
14
22
18
26 Walker Greenbank PLC, Annual Report & Accounts 2014
01
• Sales up 3.6 % to £78.4 million (2013: £75.7 million) 
• Adjusted profit before tax* up 14.9% at £7 .33 million 
(2013: £6.38 million)
• Unadjusted profit before tax up 11.6 % at £5.50 million 
(2013: £4.93 million)
• Licensing income up 13.6 % to £2.13 million (2013: 
£1.88 million) 
• Adjusted earnings per share** up 20.1 % at 11.30p 
per share (2013: 9.41p per share)
• Final dividend up 25.6 % to 1.57p per share (2013: 
1.25p per share), giving a total dividend up 25.0%  
at 1.85p per share (2013: 1.48p per share)
• Significant capital investment of £4.74 million 
(2013: £3.12 million)
• Net funds of £1.5 million (2013: £1.2 million)
 
* Adjusted for accounting charges relating to share-based incentives and defined benefit charge. 
** Adjusted earnings per share excludes the accounting charges relating to share-based incentives  
and defined benefit charge and the deferred tax credit arising from the share-based incentives. 
Highlights
Strategic Reports
01 Highlights
02 Chairman’s Statement
04 Chief Executive’s Strategic Review
08 Chief Financial Officer’s Review
11 Q&A
12 Strategic Report
14 Brand Strength
18 Investing in Innovation
22 International Potential
26 Licensing Opportunities
Governance
30 Board of Directors and Company Secretary
32 Report of the Directors
33 Statement of Directors’ Responsibilities
34 Directors’ Remuneration Report
37 Corporate Governance Statement 
39 Audit Committee Report 
Financial Statements
40 Independent Auditors’ Report on 
Consolidated Financial Statements
41 Consolidated Income Statement
42 Consolidated Statement of 
Comprehensive Income
43 Consolidated Balance Sheet
44 Consolidated Cash Flow Statement
45 Consolidated Statement of  
Changes in Equity
46 Notes to the Consolidated  
Financial Statements
73 Independent Auditors’ Report on 
Company Financial Statements
74 Company Balance Sheet
75 Notes to the Financial Statements
82 Five Year Record
83 Shareholder Information
IBC Corporate Advisers
£78.4m
2013 £75.7m
+3.6%
£7.3 3m
2013 £6.38m
+14.9%
+ 9.6 %
2013 8.7%
+89bps
£5.95m
2013 £5.80m
+2.6%
11 .30p
 2013 9.41p
 +20.1%
1.85p
 2013 1.48p
 +25.0%
 
Group revenue
 
Group adj PBT*
Group adj  
operating margin
Cash inflow from 
operating activities
 
EPS
 
Dividend per share
Left
The Woodville collection  
from Zoffany
Right
The Emma Bridgewater  
collection by Sanderson Walker Greenbank PLC, Annual Report & Accounts 2014
02
Overview
It is pleasing to report a further year of progress at Walker 
Greenbank and to announce another significant increase in 
profitability and dividend payments. Looking back over the 
past four years, we have delivered double digit growth in 
underlying profitability each year. This track record has been 
achieved in a mixed global economic environment. As we 
begin our current financial year, it is encouraging to see 
positive trends in the UK economy, which is of particular 
importance as the UK, where we are market leader, is our 
largest market by sales. We are also encouraged by the 
economic backdrop in many of our overseas markets.
We have achieved the past four years of growth through the 
delivery of our strategy, in which continued investment in 
product, marketing and manufacturing is a recurring theme. 
During the year we extended the capabilities of our UK 
factories, including a £1.75 million investment in a hybrid 
rotary/gravure machine at our wallpaper printing factory in 
Loughborough. This custom-built machine has allowed the 
creation of a highly innovative textured wallpaper, which 
Harlequin launched earlier this month under a new brand 
named Anthology. Anthology marks the first time that we 
have specifically designed wallpaper for overseas markets. 
Our strategy of licensing our designs for use in lifestyle 
products, such as bedlinen, has been an important 
contributor to growth. Last year, our global licensing income 
grew by £256,000 to more than £2.1 million. This has made 
a significant contribution to our profit growth but, because 
licence income is essentially a royalty payment, this income 
is not proportionally reflected in turnover growth. When we 
created the Scion brand, which was launched in early 2012, 
licensing was an integral part of the brand’s development. In 
the short period of time since Scion’s launch we have already 
seen successful ranges of Scion bedlinen, rugs, towels, and 
other products. 
International sales were up 6.6% during the year at 
£23.8 million, which represents 39% of our Brands sales. 
Economic recovery in the US helped fuel strong growth, which 
we continue to see as a major opportunity for the Company. 
During the year we commenced the extension and redesign 
of our New York showroom, which, along with other initiatives, 
Chairman’s 
Statement
It is pleasing to report 
a further year of 
progress at Walker 
Greenbank and to 
announce another 
significant increase  
in profitability and 
dividend payments. 
Terry Stannard 
Non-executive Chairman
+6.6 %
International sales
International sales were  
up 6.6% during the year  
at £23.8 million, which 
represents 39% of  
our Brands sales. 
2012 2011
1.20 0.95 1.48 1.85
2014 2013
Dividend per share pence
2012 2011
5.7 5.0 6.4 7.3
2014 2013
Adjusted proﬁt before tax* £ million
* Adjusted for accounting charges relating to share-based incentives and defined benefit charge.  Walker Greenbank PLC, Annual Report & Accounts 2014
03
will continue to drive US sales. We have also opened a 
new showroom in Dubai, complementing our existing 
international showrooms in New York and Paris and our 
partnership showrooms in Russia and China. 
Financials
Total sales increased 3.6% to £78.4 million (2013: £75.7 
million). The operating profit before an accounting charge 
relating to the Long-Term Incentive Plan (‘LTIP’) rose 14.2% 
to £7.51 million (2013: £6.58 million). The profit from 
operations was up 12.2% to £6.54 million (2013: £5.83 
million). The interest charge has reduced from £193,000 to 
£180,000. The net defined benefit pension charge has risen 
from £704,000 to £868,000 as a consequence of costs 
associated with the triennial valuation and a reduction in the 
expected return on scheme assets.
Profit before tax excluding the LTIP accounting charge and 
the net defined benefit charge was £7.33 million (2013: £6.38 
million) an increase of 14.9%. The profit before tax after the 
two charges was £5.50 million (2013: £4.93 million). The profit 
after tax was £5.04 million (2013: £3.96 million) and basic 
adjusted earnings per share were up 20.1 % after removing 
the LTIP accounting charge, net defined benefit charge and 
the deferred tax credit arising from LTIP.
The cash inflow from operating activities was £5.95 million 
(2013: £5.80 million), reflecting strong operating profits and 
continued investment in product. The Group has continued 
to invest with capital expenditure of £4.74 million (2013: 
£3.12 million). Despite this investment, the Group had net 
funds at the year end of £1.49 million (2013: £1.16 million). 
Dividend
During the year, the Group has paid a final dividend for the 
year to 31 January 2013 of 1.25p per share and an interim 
dividend of 0.28p per share. The Directors recommend the 
payment of a final dividend of 1.57p per share (2013: 1.25p) 
which will be payable on 8 August 2014 to shareholders on 
the register on 18 July 2014. This brings the total dividend 
for the year to 1.85p per share (2013: 1.48p) an increase 
of 25.0%. 
People
On behalf of the Board, I would like to thank all of our 
management and employees for their contribution to 
another successful year. Post the year end, I was delighted 
to welcome Mike Gant to Walker Greenbank as Chief 
Financial Officer. He brings a depth of international, financial, 
and brand experience to the Company. I would like to thank 
Mike’s predecessor, Alan Dix, for his valuable contribution 
during his nine years as Group Finance Director.
Outlook
The current financial year has started well. In the first 12 
weeks our total Brands sales are up 6.7% compared with the 
same period last year helped by sales in the UK, our largest 
market, up 9.4%. Overseas Brands sales are up 2.8% in 
reportable currency and, encouragingly, 7.1 % ahead in 
constant currency. Manufacturing has performed strongly 
during the first 12 weeks, driven by digital printing.
We have recently launched some exciting and innovative 
products, including Anthology and Scion’s third collection, 
and are continuing to develop our export business. With an 
improving economic environment, we expect to drive sales 
growth in both UK and international markets and look 
forward to the year ahead with confidence.
Terry Stannard
Non-executive Chairman
6 May 2014
Top
Picture Gallery from the Sanderson 
Voyage of Discovery collection
Left
The Voyage of Discovery collection  
from Sanderson Walker Greenbank PLC, Annual Report & Accounts 2014
04
2012 2011 2010
0.1
0.2
0.1
0.3
0.4
1.3
1.4
1.0
1.6
1.7
2014 2013
Licensing income £ million
■ Sanderson, Morris & Co., Zoffany ■ Harlequin, Scion
2012 2011
74
69
76
78
2014 2013
Revenue £ million
I am pleased to report the continued progress that the Group 
has made with the successful implementation of its strategy, 
comprising: 
• Market penetration – to continue to develop our brands in 
the UK and internationally through the development of 
new product categories and extension of market positions; 
• International expansion – to focus on the distribution and 
marketing of our brands in the important US, European, 
and Asia Pacific markets where we see significant potential 
to grow our existing market share and to invest in the 
exciting growth opportunities in other international 
markets; 
• 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 and Scion brands, by broadening the 
product range and exploiting the considerable licensing 
opportunities; 
• To continue to promote our British manufacturing 
capability through investment in innovative printing 
techniques and market leading facilities that provide 
quality, added value products to our customers  
worldwide; and
• Acquisitions – to actively evaluate acquisition 
opportunities that fit synergistically with our current brand 
portfolio with the objective of further advancing our 
earnings growth.
Overview
We have continued to make strong progress with further 
growth in sales and profits. 
Our Brands have benefited from the continued investment in 
design, marketing and from new product launches. We are 
particularly encouraged with the performance of the Scion 
brand which in its second year has achieved UK and overseas 
sales of over £2 million. Total Brands sales increased 3.3% 
to £60.8 million. In a challenging UK market, Brands sales 
increased by 0.6% over the full year helped by an improving 
second half trend. Export sales grew 6.6% to £23.8 million 
driven by strong growth in US and Western Europe markets.
Chief 
Executive’s 
Strategic 
Review
We have continued to 
make strong progress 
with further growth in 
sales and profits. 
John Sach 
Chief Executive
+ 13.6 %
Global licensing income
Licensing income
Global licensing income  
has grown 13.6% to £2.13 
million with both the UK and 
overseas growing strongly. 
Substantial growth in the  
UK was achieved by our 
bedlinen partner, with  
Scion branded bedlinen 
launched alongside new 
ranges for both Harlequin 
and Sanderson.  Walker Greenbank PLC, Annual Report & Accounts 2014
05
Following the Eurozone crisis in 2012 we are encouraged to 
report sales growth in Western Europe of 9.3% to £6.7 million 
in reportable currency, 5.0% in constant currency, driven by 
Southern Ireland, Benelux, and Germany. The recovery in  
the US has continued, leading to growth in sales of 8.6% to 
£7.0 million in reportable currency and 6.9% in local currency. 
Other highlights include sales in the Far East, up 11.1 %  
to £3.4 million, and growth of 12.7% to £0.9 million  
in Australasia. 
Global licensing income has grown 13.6% to £2.13 million 
with both the UK and overseas growing strongly. Substantial 
growth in the UK was achieved by our bedlinen partner, with 
Scion branded bedlinen launched alongside new ranges for 
both Harlequin and Sanderson. 
Overseas, our Australian bedlinen partner launched the Scion 
brand alongside Harlequin and Sanderson with immediate 
positive results whilst in Japan our long-term partner for 
Sanderson/Morris, Nishikawa, developed a full bed and bath 
offer for Harlequin. Licensing will remain a core area of focus 
for the Group with a number of further initiatives already 
underway, both at home and abroad. 
Manufacturing has had another successful year increasing 
both sales and profits on what was a record year last year. 
There continues to be significant investment in digital printing 
at both the fabric and wallpaper printing sites. This year has 
also seen a substantial investment at our wallpaper factory of 
£1.75 million in the commissioning of a custom-built hybrid 
rotary/gravure machine. Standfast, our fabric printing factory, 
has advanced the commissioning of its second fast-run digital 
printer to meet substantial increase in demand from its 
customers with digital print sales having more than doubled 
compared with last year. 
The Brands
The Brands segment incorporates global trading from our 
internationally recognised brands including our overseas 
subsidiaries in the US and France.
The Brands segment has grown sales by 3.3% over the same 
period last year to £60.8 million. The Brands’ operating 
profits grew 11.8% to £6.59 million helped by strong licensing 
income and improved operating margins. 
Harlequin & Scion
Harlequin has grown its worldwide sales 3.8% to £26.1 million 
compared with the same period last year. It continues to be 
the UK’s leading mid-market brand achieving growth of 1.1 % 
in a challenging UK market. It has cemented its position as 
the Group’s number one brand in the US, growing 21.3% 
year on year. Sales in Western Europe continue to improve, 
growing 14.4% over last year, whilst elsewhere sales were 
broadly flat.
The Scion brand was launched in the early part of last year.  
It continues to grow its brand presence and its second 
extensive collection, Wabi Sabi, was launched in February 2013. 
Its simple contemporary designs are ideally suited to licensed 
products and to date successful ranges of bedlinen, rugs, 
towels, and other ancillary products have been launched. The 
impact of this exciting new brand cannot be overstated – its 
recently launched third collection, Spirit and Soul, is being 
hailed by customers as its strongest yet. 
Arthur Sanderson & Sons incorporating the  
Morris & Co. brand
Encouragingly, sales at Sanderson grew 5.0% over the 
same period last year to £21.0 million. A strong second half 
performance has helped grow the UK, its largest market, 
3.5% over the same period last year to £11.1 million. Export 
sales overall grew 7.0% with Western Europe, its largest 
market outside the UK, growing 1.1 % helped by a stronger 
second half performance, particularly in Germany and 
Southern Ireland. The US, its second biggest export market, 
increased sales by 4.7% year on year whilst the rest of 
the world grew 11.6% driven by the Far East, up 31.9%, 
and specifically Japan and China, up 52.6% and 38.8% 
respectively, reflecting the strength of the Sanderson and 
Morris & Co. brands.
The Sanderson and Morris & Co. brands benefit from heritage 
and global brand recognition, as well as an extensive archive 
of designs to attract licensing opportunities. Licence income 
increased 7.6% over the same period last year. UK and 
Australian bedlinen licensees have helped drive this growth 
along with a number of new licence arrangements signed 
during the year.
Right
The Jardin Bohème collection  
from Harlequin 
Below
Caspia bedlinen by Harlequin 
Digital print sales 
have more than 
doubled compared 
with last year.  Walker Greenbank PLC, Annual Report & Accounts 2014
06
0
15
2012 2011
8.1% 7.5% 8.7% 9.6%
2014 2013
Adjusted operating margin*
0
15
2012 2011
8.21 7.24 9.41 11.3
2014 2013
Adjusted earnings per share** (pence)
2012 2011
74
69
76
78
2014 2013
Revenue £ million
Zoffany
Zoffany is positioned at the upper end of the premium 
market, which has been the most challenging end of 
the market in the recent past. This led to the decision to 
discontinue some older, slow-selling collections slightly early 
impacting the performance in the first half of the year 
which has contributed to a full year sales decline of 1.9% to 
£10.7 million. Encouragingly though, the second half has 
experienced an improving performance over the same period 
last year benefiting from strong performances from more 
recent collections. 
Sales in the UK declined 5.8%. In contrast, Zoffany’s second 
largest market, the US, grew by 3.8% and sales in Western 
Europe were up 17.6%, driven by strong performances in 
Southern Ireland and Spain.
Manufacturing
Our continued commitment to investment in our wallpaper 
and fabric printing factories has helped deliver another strong 
performance with both sales and profitability increasing to 
record levels. Total sales grew 7.0% leading to an increase in 
profits of 14.5% to £3.1 million (2013: £2.7 million). 
Anstey
Anstey, our wallpaper printing factory, had a very successful 
year with sales growing by 6.9% to £16.8 million over the 
same period last year. Third party sales in the UK were up 
7.1 % and third party export sales were up 2.7% whilst sales 
to our own brands grew by 7.5%. 
Anstey has continued its investment in new innovative 
printing techniques. Its recent investment includes the 
purchase of its third digital printer and most significantly  
a £1.75 million investment in a new hybrid rotary/gravure 
machine. This new custom-built machine has increased  
much needed gravure capacity and replaced outdated  
rotary equipment leading to improvements in efficiency and 
capability. This purchase adds to the wide range of printing 
techniques that the factory is able to offer its customers. The 
new machine enables the creation of new textured wallpaper 
product by combining the two print techniques. This 
capability was used by Harlequin in its Leonida collection 
launched in the second half and by third party customers 
developing their own new products. It has also helped the 
Harlequin brand create the recently launched Anthology 
collections. Whilst these collections will be available in the  
UK, the designs have been specifically developed for  
export customers. 
Standfast
Standfast, our fabric printing factory, also had a strong 
performance with annual sales up 7 . 1 % to £15.4 million 
compared with the same period last year. Third party sales are 
up 2.7% with sales to our own brands increasing 9.0% with a 
stronger launch of new print collections from the Brands this 
year. Due to increasing customer demand, a second fast-run 
digital printer was acquired and commissioned in the second 
half. This, combined with the investment in digital printing over 
the past five years, has helped grow digital sales 110% year  
Chief Executive’s Strategic  
Review continued
* Adjusted for accounting charges relating to 
share-based incentives and defined benefit charge. 
** Adjusted earnings per share excludes the accounting 
charges relating to share-based incentives and 
defined benefit charge and the deferred tax credit 
arising from the share-based incentives.  Walker Greenbank PLC, Annual Report & Accounts 2014
07
Top
The Madison collection  
from Sanderson HOME
Bottom
The Jardin Bohème collection  
from Harlequin 
on year and now represents 23% of Standfast’s sales. This 
continued investment in technology and innovation, together 
with our extensive historic archives, has helped create the 
platform to investigate other market opportunities such as upper 
end apparel.
Summary
We have continued to grow our brands both in the UK and 
internationally during the year through our sustained investment 
in design, marketing and from new product launches such as the 
Scion brand which in its second year has delivered sales of more 
than £2 million. Wabi Sabi, its second collection, launched in the 
spring of 2013 won the gold award for Best Fabric and silver for 
Best Wallcovering at the recent House Beautiful Awards.
Internationally, we have seen encouraging growth driven by the 
US, Western Europe, and the Far East. With the recent launch of 
our Anthology collections combined with improving trends in the 
UK, our largest market, we are confident that we will continue to 
build market share.
Global licensing income delivered a strong performance as  
we continue to find new opportunities to leverage the Group’s 
heritage brands. Product extensions for 2014 will include a 
contemporary collection of Momentum bedlinen designs under 
the Harlequin brand and a range of Morris & Co. bedlinen. 
We have continued to invest in our British manufacturing sites 
to further enhance the innovative, added value, techniques 
that we are able to offer our customers. In addition, the Group 
has opened a new design showroom in Chelsea Harbour and 
another in Dubai and are currently extending and redesigning 
our New York showroom.
We have also made a significant investment of £400,000 during 
the past 12 months to transform our presence online. Customers 
can now view our products, experiment with different designs 
and order samples online on any device from a PC to a 
smartphone. We are particularly excited by our Style Library 
website as it marks the first time that all our brands and 
products have been accessible in the same place online.
The new websites are integrated into the Company’s central 
IT system, which was launched in January last year after a 
substantial investment in renewing our IT platform. The new 
websites have the functionality for B2B e-commerce, which we 
believe could have considerable potential in our planned 
expansion in the US.
We will continue to focus on delivering against our strategy and 
the Board remains confident of our future growth prospects.
John Sach
Group Chief Executive
6 May 2014 Walker Greenbank PLC, Annual Report & Accounts 2014
08
Chief Financial 
Officer’s 
Review
Mike Gant
Chief Financial Officer
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 Manufacturing divisions included in these 
reports, the Group has included in note 4 of this Report 
further information on our segments. 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. 
Long-Term Incentive Plan
There has been a new award of shares during the year 
under the Long-Term Incentive Plan with the vesting 
conditions of half the award based on Total Shareholder 
Return (‘TSR’) with an adjusted profit before tax floor and 
half based on Earnings Per Share (‘EPS’) growth. There has 
been a charge of £970,000 (2013: £746,000) in the Income 
Statement relating to LTIP awards. The charge in the year 
is higher than last year as the relative position of Walker 
Greenbank PLC within the comparator group has risen which 
means the number of shares that would vest under each 
award has increased. This increase in the number of shares 
along with the increase in share price has also resulted in a 
significant increase in the national insurance element of 
the charge for the period.
Interest
The net interest charge for the year was £180,000 (2013: 
£193,000) including amortisation of capitalised debt 
issue costs. 
Net Defined Benefit Pension
The charge during the year was £868,000 (2013: £704,000). 
The increased charge reflects the additional costs associated 
with the triennial valuation and a reduction in the expected 
return on scheme assets.
Current Taxation
There is a small corporation tax charge of £21,000 (2013: 
£16,000) arising from withholding tax suffered on overseas 
licence income. 
The Group had net 
funds at the year end 
of £1.49 million and 
has increased the total 
dividend for the year 
by 25% . Walker Greenbank PLC, Annual Report & Accounts 2014
09
Deferred Taxation
Due to brought forward UK corporation tax losses of £6.3 
million (2013: £9.1 million), the Group does not anticipate 
paying significant UK corporation tax in the coming year. 
However, as the corporation tax losses that are being utilised 
have been recognised as a deferred tax asset, in the current 
and following year there will be a deferred tax charge in the 
Income Statement as the losses are utilised. It is expected 
that given the current level of taxable profits within the main 
UK entity, Abaris Holdings Limited, the tax losses giving rise to 
the deferred tax asset will either be fully utilised or nearly fully 
utilised by January 2015.
The Group also continues to recognise the deferred tax asset 
arising from the pension deficit. Although there has been 
an increase in the pension deficit, a reduction in the tax rate 
from 23% to 20% has resulted in a small decrease in the 
associated deferred tax asset which has been recognised in 
the Statement of Comprehensive Income.
Earnings per share (‘EPS’)
The basic EPS was 8.63p (2013: 6.89p). The Group also 
reports an underlying EPS which removes the impact of the 
LTIP accounting charge, net defined benefit pension charge 
and the deferred tax credit arising from LTIP as these can 
fluctuate due to external factors outside of the control of the 
Group. A better understanding of the underlying performance 
of the business is given after adjusting for these items. The 
adjusted basic EPS was 11.30p (2013: 9.41p).
Operating Cash Flow and Net Debt
The Group generated net cash inflow from operating 
activities during the year of £5,945,000 (2013: £5,798,000) 
reflecting strong operating profits and continued investment 
in product. 
The Group paid net interest of £180,000 (2013: £209,000), 
as the level of average borrowing reduced year on year. 
Capital expenditure was £4,735,000 (2013: £3,119,000) with 
significant investment in the hybrid rotary/gravure machine at 
Anstey, additional digital printing at Standfast and our new 
websites. The depreciation and amortisation charge during 
the period was £2,217,000 (2013: £2,048,000). The Group will 
continue to invest in the Manufacturing facilities and will 
complete the refurbishment of the New York showroom in 
the first quarter although capital expenditure during the next 
12 months will reduce from this year’s increased level. 
The Group made additional payments to the pension 
schemes of £1,138,000 (2013: £1,077,000) to reduce the 
deficit, part of the ongoing planned reduction, along with 
£535,000 (2013: £507,000) of fund scheme expenses. 
Income tax of £936,000 (2013: £640,000) that arose on 
the vesting of an LTIP award was paid during the year.
The Group had net funds at the year end of £1.49 million 
(2013: £1.16 million). There is average debt during the 
year due to the timing and seasonality of revenues and 
investment in product. The average net debt improved  
by £657,000 to £4,171,000 (2013: £4,748,000).
The Group utilises facilities provided by Barclays Bank Plc. 
There is a term property facility of £1,400,000 (2013: 
£1,800,000) at the year end expiring in July 2017 . There is 
also a receivables facility linked to the level of trade receivables 
which allows the Group to more effectively manage seasonal 
fluctuations in working capital. This facility was renewed on 
31 January 2013 for a further three-year term expiring in 
January 2016. There is a three-year committed facility of 
£2.5 million secured against inventories. There were no 
borrowings at the end of the year for the receivables facility 
and committed facility. Under these facilities there was 
borrowing headroom of £13,092,000 (2013: £12,607 ,000).  
The total facilities have a current limit of £16.50 million 
(2013: £16.50m).
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 the 
contributions from the Company to reduce the deficit offset 
by a negative return on index linked gilts over the year.  
The impact of these factors is shown as follows:
2014
 £000
Deficit at beginning of year (8,238)
Scheme expenses (535)
Interest cost (2,545)
Expected return on plan assets 2,212
Contributions 1,673
Return on scheme assets (1,580)
Actuarial losses from the change in discount factor (547)
Actuarial gain from the change in demographic 
assumptions 352
Gross deficit at the end of the year (9,208)
Dividends
During the year, the Group has paid a final dividend for the 
year to 31 January 2013 of 1.25p per share and an interim 
dividend of 0.28p per share. The Directors recommend the 
payment of a final dividend of 1.57p per share (2013: 1.25p) 
which will be payable on 8 August 2014 to shareholders on the 
register on 18 July 2014. This brings the total dividend for the 
year to 1.85p per share (2013: 1.48p) an increase of 25.0%.  Walker Greenbank PLC, Annual Report & Accounts 2014
10
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 asset of 
£153,000 (2013: £63,000 asset) at the end of the year in 
relation to US dollar and Japanese yen forward contracts.
There is no liability (2013: £15,000 liability) arising  
from US dollar and euro 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 against 
individual receivables, a provision has been required of 
£289,000 (2013: £284,000) which is a collective assessment 
of the risk against non specific receivables. 
Mike Gant
Chief Financial Officer
6 May 2014
Chief Financial Officer’s Review
continued
Interview with  
Mike Gant,  
Chief Financial Officer
Q&A Walker Greenbank PLC, Annual Report & Accounts 2014
11
Q. What attracted you to joining Walker Greenbank 
earlier this year?
Walker Greenbank is a high quality business with many 
exciting opportunities for growth so I was keen to be part of it. 
Its key assets are its brands and its people with a real breadth 
of core skills including design, manufacturing and marketing. 
The combination of the brands’ strength and the operational 
excellence has created an outstanding business in its 
marketplace. It’s also an increasingly international business 
and there’s real potential to grow export markets.
Q. Have you worked for similar companies in the past?
My background is in brands but predominantly in the fast 
moving consumer goods sector rather than in luxury goods. 
I’m sure that there will be many areas of my experience in 
FMCG that will be very useful at Walker Greenbank. I also have 
considerable international experience and of working with a 
supply chain that includes manufacturing and distribution.  
I joined Walker Greenbank from Britvic plc, where I was finance 
director of the GB and International business units.
Q. What differentiates Walker Greenbank?
I’ve been hugely impressed by the passion that people have 
across the business – the enthusiasm for the individual brands 
and the pride that people take in their work really shows on 
their faces. The depth of experience in terms of years working 
at the Company is also very impressive – even small teams of 
people at the Company can have more than 100 years of 
combined experience, which really benefits the business and 
reflects well on the company’s culture.
I think the brands also differentiate the Company in that they 
have got a rich heritage, they continue to innovate and they 
are high quality.
Q. How would you describe Walker Greenbank’s  
financial profile?
Walker Greenbank has an excellent financial profile. It is great 
to join the Company now as the balance sheet has been 
transformed during the past five years. I’ve joined a profitable, 
cash generative business with a progressive dividend policy. 
The financial profile means that the Company can continue  
to invest significantly in the business to drive its growth.
Q. What has particularly impressed or surprised you at 
Walker Greenbank?
I’ve been surprised by the level of complexity and skill in the 
manufacturing processes and what it actually takes to print 
luxury fabric and wallpaper. For example in digital fabric 
printing, which at first sight seems a very modern process, 
there is a significant artisan element in the preparation of the 
cloth, in the colour separation and the paintbrush work.
Q. Where do you see the growth opportunities in  
the business?
I see multiple growth opportunities at Walker Greenbank and 
these will be helped by the improving macro-economic 
environment. We’re growing the brand portfolio and product 
range, we’re expanding internationally and we’re building the 
licensing opportunities. I can also see profits growth from 
operational gearing because the Company has reached the 
point where additional sales are very profitable.
Q. Which international markets do you see as having 
particular potential?
All of the overseas markets are important but I think this year 
Asia and the Middle East will be very interesting with the 
recent Anthology launch because the Anthology designs are 
specifically targeted at overseas markets. Also, I think the US 
has huge potential for Walker Greenbank brands and it’s a 
country where the Company is under-represented. We’re 
trialling B2B e-commerce in the US using our new web 
platform, which could work well because of our limited 
presence currently and because of the different time zones.
I see multiple growth opportunities  
at Walker Greenbank and these will  
be helped by the improving macro-
economic environment.  Walker Greenbank PLC, Annual Report & Accounts 2014
12
Strategy and business model
Walker Greenbank PLC is a luxury interior furnishings 
company that designs, manufactures and markets wallpapers 
and fabrics together with a wide range of ancillary interior 
products. The Company’s brand portfolio – comprising 
Sanderson, Morris & Co., Harlequin, Zoffany, Scion and 
Anthology – spans heritage and contemporary design and  
its products are sold in more than 75 countries worldwide.  
The Company derives significant licensing income from the 
use of its designs in lifestyle products such as bedlinen, rugs 
and tableware.
The Company employs more than 600 people and has 
showrooms in London, New York, Paris and Dubai along with 
partnership showrooms in Moscow and in Shenzhen. Its UK 
manufacturing base, which includes a wallpaper factory in 
Loughborough and a fabric printing factory in Lancaster, 
manufactures product both for the Company and for other 
wallpaper and fabric brands. Continued investment in 
manufacturing has allowed the Company to offer a wide 
range of printing techniques.
The strategy comprises five pillars:
• Market penetration 
• International expansion 
• Lifestyle product extension 
• Manufacturing capability
• Acquisitions  
Strategic 
Report
Business review and future 
developments
A review of the Group’s activities and the 
strategy and information regarding the future 
development of the business are given in the 
Chief Executive’s Strategic Review on page 4, 
which when taken with the Chairman’s 
Statement, the Chief Financial Officer’s 
Review and the information provided below, 
together form the Directors’ Strategic Report 
for the year ended 31 January 2014.
The Directors present 
their Strategic Report 
on the Group for  
the year ended 
31 January 2014. Walker Greenbank PLC, Annual Report & Accounts 2014
13
Key Performance Indicators (‘KPIs’)
The KPIs for the business are primarily financial. 
2014 2013
Revenue growth 3.6% 2.3%
Adjusted operating margin 9.6% 8.7%
Year end gearing (5.6)% (4.8)%
Average gearing 15.6% 19.6%
Basic adjusted earnings per share 11.30p 9.41p
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 
Chief Financial Officer’s Review. 
Business risks previously identified were the potential loss of 
the core IT system used by the Brands and the potential loss 
of the central warehousing facility in Milton Keynes. A new IT 
system was implemented last year and we have seen the 
benefits of this investment during the year. In December, the 
Group secured a lease on a second warehouse premises, also 
in the Milton Keynes area, which is currently being fitted-out 
and appropriately staffed to be fully operational in May 2014. 
Not only does this secondary unit give increased resilience in 
the event of a major disaster, it also provides additional room 
for our ongoing expansion and investment in new product. 
The new facility will provide the opportunity to make working 
practices more streamlined and efficient and staff will benefit 
from a clean and modern working environment.
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. 
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. Further information can be found in the Audit 
Committee Report on page 39.
Employees
The Group is a responsible employer, compliant with all 
relevant human resources and health and safety regulations. 
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.
Environment
Both factories have environmental policies and actively seek to 
reduce their impact on the environment through responsible 
sourcing of raw materials, responsible waste handling and 
recycling where economically viable, and emissions monitoring 
in accordance with Environmental permits.
Third party suppliers to the Brands are issued a set of quality 
and operational standards to which they are expected to 
adhere, which includes their confirmation that they conduct 
their business within all applicable laws with regard to human 
rights, pay, working conditions and health and safety. 
This report was approved by the Board of Directors on 6 May 
2014 and signed on its behalf by
John Sach
Group Chief Executive 14
Walker Greenbank PLC, Annual Report & Accounts 2014
Our brands are 
internationally recognised 
for their market leading 
designs, quality, service and 
value. They are carefully 
positioned to focus on the 
mid to upper end of the 
furnishings market.
Brand  
Strength 15
Walker Greenbank PLC, Annual Report & Accounts 2014
I feel so fortunate to be 
working in such a wonderful 
and vibrant company.
Harlequin employed me on 
their graduate recruitment 
scheme almost three years 
ago and I am now living my 
dream, creating beautiful 
products that will be sold 
throughout the world.
Louise Collis,  
Harlequin designer
3
With three separate full time design 
studios and the flexibility to work with 
freelance designers where 
appropriate, we are able to keep 
setting the trends year after year. Walker Greenbank PLC, Annual Report & Accounts 2014
16
Top
The Harlequin design studio
Bottom
The Poetica collection  
from Harlequin 
Founded in 1860 Sanderson is the oldest 
surviving brand in its field. Granted the Royal 
Warrant in 1923, Sanderson is one of the 
most renowned brands in interiors worldwide, 
offering classic, inspirational products often 
based on documents from its extensive 
archive. It is aimed at the mid to premium 
end of the worldwide interior furnishings 
market. Sanderson is known for its lasting 
quality, timeless style and quintessentially 
English designs.
The Morris & Co. business has a history 
that dates back to 1861 when the acclaimed 
designer, William Morris, founded his first 
company. Its unique ‘Arts & Crafts’ heritage is 
preserved in the modern interpretation of its 
high quality fabrics and wallcoverings.  
The past few years have witnessed a 
resurgence of interest in all things Morris 
following the 150th anniversary celebrations 
of 2011, and in particular the huge success 
enjoyed by the Archive Collections launched 
in 2011 and the Archive II collections that 
followed in 2013. The next major launch is 
scheduled for spring 2015.
Zoffany is a luxury brand with elegance and 
heritage at its core, offering products of the 
highest quality including wallpaper, fabrics, 
trimmings, paint and furniture. Inspired by 
a unique archive, together with technical 
innovation, Zoffany continues to create 
beautiful designs for both contemporary and 
period interiors. Operating at the premium 
end of the interiors market the dedicated 
design studio creates products that are used 
by leading interior designers and architects 
all over the world.
Walker Greenbank Brands offer stylish 
solutions for consumers, designers and 
contract interiors, covering a wide range 
of tastes from traditional to ultra 
contemporary.
Brand Strength continued Walker Greenbank PLC, Annual Report & Accounts 2014
17
Scion
Anthology
Zoffany
Harlequin
Sanderson
Sanderson 
Home
Morris & Co
Harlequin supplies high quality, design‑led 
collections to the mid to premium end of the 
worldwide interior furnishings market. Harlequin 
has enjoyed significant growth over the last 
10 years as the product profile has expanded 
to appeal to a greater breadth of consumers 
and designers. Alongside its core products, the 
brand has continued to develop and extend its 
successful licensing partnerships in bedlinen, 
towels and rugs. Particularly exciting has been 
the development of a concept for bed/bath 
with a new partner in Japan for 2014 and the 
further prospect of launching bedlinen and 
towels in the USA for 2015.
Launched to great acclaim in spring 2012, 
Scion’s refreshing and innovative approach to 
furnishings design met with instant approval 
among trend savvy, fashion aware consumers 
and designers. The cutting edge, accessibly 
priced and forward looking fabrics and 
wallpapers also resonated with the broader 
interiors market, leading to the establishment 
of instant licensing arrangements for bedlinen, 
towels, rugs, giftware and ceramics. The 
impact of this exciting new brand cannot be 
underestimated, with customers who have 
seen previews of the third season launch this 
spring, Spirit and Soul, claiming it to be the 
strongest yet.
Launched in April 2014, Anthology has been 
conceived and developed as an international 
brand that will focus intensely on the market 
for top end contemporary wallcoverings, with 
equal appeal for both the residential and 
contract markets. With over 100 beautiful 
products contained in collections 01 and 
02, Anthology has already generated strong 
advance orders for pattern books from our 
partners around the world.
–  Complementary range of brands in the areas of the 
market with the best mix of volumes and margins
 –  Continued growth in the best margin segments 
through brand extension
–  Sizeable market: scope for significant further growth
Mass Market
Contemporary
Traditional
Premium Walker Greenbank PLC, Annual Report & Accounts 2014
18
We continue to promote 
our British manufacturing 
capability through 
investment in innovative 
printing techniques and 
market leading facilities that 
provide quality, added value 
products to our customers 
worldwide.
Investing in 
Innovation Walker Greenbank PLC, Annual Report & Accounts 2014
19
For the first time, this custom-
built 8 colour hybrid machine 
allows for the combination of 
finely toned gravure printing 
techniques in line with and in 
registration with rich, lustrous 
and textured rotary screen 
techniques. Brand new 
product developments will 
now be possible fully utilising 
the unique capabilities of the 
machine onto paper and 
non-woven and in product 
formats suitable to both the 
UK and export markets.
£ 1.75m
We have invested heavily in our 
manufacturing including a £1.75 
million investment in a hybrid rotary/
gravure machine at our wallpaper 
printing factory in Loughborough. Walker Greenbank PLC, Annual Report & Accounts 2014
20
Investing in Innovation continued
The Group’s manufacturing businesses  
have invested heavily over recent years  
in the latest production equipment and 
computer aided design technology  
and also in developing a highly skilled  
and flexible workforce to secure a  
genuine competitive advantage.
The demand for digital printing is 
accelerating with further investment 
to come. 
Recent digital sales
• FY  2010/11:  £0.5m
• FY  2011/12:  £1.0m
• FY  2012/13:  £1.7m
• FY  2013/14:  £3.6m
Digitally 
printed 
fabrics 
sales Walker Greenbank PLC, Annual Report & Accounts 2014
21
At Standfast the focus has been on 
developing a digital printing capability that is, 
in terms of product quality, at the absolute 
forefront of what is possible on the premium 
cotton, linen, velvet and wool fabrics required 
by our home furnishings customers. By 
combining our traditional skills and expertise 
in fabric processing with a state-of-the-art 
design studio capability we are able to create 
beautiful large-scale designs, typically using 
many more colours than is possible using 
screen printing processes. The investment in 
high-speed digital printers, which run seven 
times faster than our existing bank of ink-jet 
printers, mark a further shift in the economics 
of the digital process and creates a new 
paradigm of opportunity for Standfast. 
Anstey has also invested in digital printing to 
further broaden the product offer, but with 
the technical and economic benefits for 
wallcoverings currently much less compelling 
than for fabrics, the primary focus for product 
development and investment remains on our 
wide range of conventional print techniques. 
2012’s investment in a scatter machine, 
which enables beads and large particle 
metallic inks and ‘gritter’ to be applied 
in-register to a printed design, has been 
further developed and expanded and new 
base substrate options added, including 
plain and holographic foils, to create some 
stunning effects. In response to the dramatic 
growth in demand for the innovative 
products produced using our rotary screen 
process Anstey has invested £1.75 million in  
a new eight-colour rotary/gravure hybrid 
printing press, which further strengthens our 
reputation as one of the most innovative  
and flexible wallcoverings manufacturers  
in the world.
Top
The Leonida collection from Harlequin 
Bottom
The Gondolier wallpaper from  
the Zoffany Tespi collection
Right
Clock Tower Standfast & Barracks, 
Lancaster 
Far left
The Leonida collection from Harlequin  Walker Greenbank PLC, Annual Report & Accounts 2014
22
With our brands offering 
a compelling blend of 
qualities that set us apart 
from our competitors, from 
ultra contemporary designs 
to heritage collections and 
an ever widening spread 
of price points, we are 
increasingly important to 
our distribution partners 
around the world. This 
unique positioning, 
coupled with our enhanced 
marketing and sales 
operations, provides 
considerable potential 
for future growth in both 
established and emerging 
markets.
International 
Potential Walker Greenbank PLC, Annual Report & Accounts 2014
23
75
Our products are sold in  
75 countries and we continue  
to invest in exciting growth 
opportunities in  
International markets.
During the past 1 2 months we 
have opened a Walker Greenbank 
office and showroom in Dubai 
and have joined with our partner 
in Russia to open a showroom for 
our brands in Moscow. The first 
half of 201 4 will see an impressive 
new showroom for Harlequin, 
Scion and Anthology in Chelsea 
Harbour and we will complete a 
full refurbishment of our recently 
enlarged flagship New Y ork 
showroom. Walker Greenbank PLC, Annual Report & Accounts 2014
24
International Potential continued
International markets offer substantial  
scope for growth. Already sold in 
75 countries we continue to find new 
opportunities and our financial strength 
provides a strong platform for the 
development of closer ties and more  
direct engagement with our partners,  
both existing and new.
Dubai
1,350 sq ft 
New
London
Zoffany, 
Sanderson  
and Morris & Co.
1,450 sq ft 
21 years trading
Harlequin
1,120 sq ft
New (previously 
400 sq ft)
21 years trading
Our products continue to grow in popularity 
and market reach as we maintain our intense 
focus on design excellence and market leading 
quality. We market these attributes carefully 
according to the brand and product type, 
giving prominence to our heritage wherever 
appropriate and highlighting the added value 
that our unique manufacturing capabilities 
bring to our printed fabrics and wallcoverings.
Showroom 
refurbishments
We have recently opened new 
showrooms in London and Dubai, 
and are extending and redesigning 
our New York showroom. Walker Greenbank PLC, Annual Report & Accounts 2014
25
Working closely with our extensive network  
of agents and distributors we have pursued 
many new initiatives around the world during 
the past 12 months. In Australia our partner 
doubled the size of the showroom in Sydney 
whilst in Moscow new showroom space for 
the Sanderson, Morris and Zoffany brands 
has been extended to include Harlequin, 
Scion and soon Anthology.
In the USA we have engaged with both 
existing and new partners to realise improved 
and enlarged showrooms in Atlanta, Los 
Angeles, San Fransisco, Seattle and 
Washington. In addition, we have undertaken 
a complete refurbishment of our extended 
New York showroom which will open in  
May 2014.
Also under our own control we established 
our first Walker Greenbank office and 
showroom in Dubai during Autumn 2013, 
whilst closer to home Harlequin moved to  
an impressive new showroom in Chelsea 
Harbour which opened in February 2014. 
All of these developments combine with  
our unique spread of design styles and price 
points to make Walker Greenbank an 
increasingly important partner on the world 
stage, providing ever increasing exposure  
to drive growth in both established and 
emerging markets.
Top
Shenzhen showroom, China
Middle
New Walker Greenbank Dubai showroom
Bottom left
New Harlequin showroom,  
Chelsea Harbour Design Centre,  
London
Bottom right
Shenzhen showroom, China
+6.6 %
Increase in International 
Brand sales
New York
5,600 sqft 
New (previously 
4,300 sq ft) 
20 years trading
Amsterdam
800 sq ft 
14 years trading
Paris
1,100 sq ft 
14 years trading
Moscow
1,100 sq ft 
2 years trading
China 
(Shenzhen)
5,500 sq ft 
2 years trading Walker Greenbank PLC, Annual Report & Accounts 2014
26
The Brands have continued 
to increase their focus on 
licensing opportunities, 
extending the product reach 
of existing partners and 
building new relationships 
both in the UK and 
international markets.
Licensing 
Opportunities Walker Greenbank PLC, Annual Report & Accounts 2014
27
£2.13m
We have continued the 
development of our relationship 
with Brink & Campman with  
rug ranges across all brands.
licensing income
It’s a privilege to work with  
a brand with such a strong 
design heritage as Sanderson 
and to have access to such  
a broad range of designs, 
which translate easily into  
beautiful rugs.
Brink & Campman Walker Greenbank PLC, Annual Report & Accounts 2014
28
2012 2011 2010
0.1
0.2
0.1
0.3
0.4
1.3
1.4
1.0
1.6
1.7
2014 2013
Licensing income £ million
■ Sanderson, Morris & Co., Zoffany ■ Harlequin, Scion
The Brands have increased their focus on 
licensing opportunities in the past year, 
building on existing relationships and 
forming new partnerships both in the  
UK and international markets.
The two most significant product categories for licensing 
currently are bedlinen and rugs, so it is pleasing to note  
that all of our partners, both at home and abroad, have 
significantly extended their product offers across our brands. 
With Sanderson and Harlequin continuing to gain in strength 
it has been Scion that has shown the most dramatic new 
developments through 2013, in some cases establishing 
product lines as yet undeveloped elsewhere.
Particularly exciting was a significant new venture in Japan, 
where Sanderson’s partner of many years developed a full 
offer in bedding and towels for the Harlequin brand.
During the year we have devoted increased attention to 
Morris & Co. in the UK and plan to introduce carefully selected 
new product categories during 2014.
Licensing Opportunities 
continued
Global licensing income has grown 
13.6% to £2.13 million with both the 
UK and overseas growing strongly. 
Substantial growth in the UK was 
achieved by our bedlinen partner, 
with the Scion branded bedlinen 
launched alongside new ranges for 
both Harlequin and Sanderson. 
Licensing 
income
+ 13.6 %
Global licensing income Walker Greenbank PLC, Annual Report & Accounts 2014
29
Also enjoying rapid sales growth are our 
bedlinen partners in the UK and Australia, 
both of whom have significantly increased 
their offers under the Sanderson, Harlequin 
and Scion brands. Once again, by linking our 
designers more closely with the bedlinen 
studios during concept development, our 
brands are seen to be bringing excitement and 
innovation to this core home product sector.
Looking to International markets the past  
few years have seen major advances with 
Sanderson and Morris & Co.’s licensing partners 
in Japan. Always a key market, the substantial 
extension of the product offer and attendant 
sales growth for Sanderson and Morris & Co. 
has been achieved against a backdrop of 
declining revenues for other brands. 
Top
Spring Flowers bedlinen by Sanderson
Above
New rug range by Sanderson HOME
Left
Scion’s first range of bathroom 
accessories produced by BlissHome Walker Greenbank PLC, Annual Report & Accounts 2014
30
John Sach
Group Chief Executive Officer
Terry Stannard
Non-executive Chairman
Terms of appointment 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. From a marketing 
background he went on to run businesses in 
Asia Pacific and Europe at United Biscuits plc, 
was a divisional CEO at Hillsdown Holdings plc 
and CEO at Terranova Foods plc and Uniq plc. 
Since 2001, he has held a wide range of 
non-executive Chair and director 
appointments at both quoted and unquoted 
businesses. He is currently Non-executive 
Chairman at Ensemble Clothing Ltd and a 
Non-executive Director at The Bradfords 
Group Ltd.
John is a Chartered Management 
Accountant who joined the Group in 1994 
as Group Financial Controller and was 
appointed to the Board as Group Finance 
Director in 1999. He was appointed Group 
Chief Executive Officer in May 2004.
David has an MA from Oxford University and 
broad experience as a managing director in a 
variety of consumer product businesses since 
1986. He joined the Group in 2002 and was 
appointed to the Board in December 2004 
following his appointment as Managing 
Director of the Group’s six main fabric and 
wallcovering brands, Harlequin, Sanderson, 
Morris & Co., Zoffany, Scion and Anthology.
Mike is a Chartered Management Accountant 
with an MBA from Nottingham Business 
School who joined the Board in 2014. He 
brings a breadth of international, financial, and 
brand experience to the Company from his 
previous roles at Bass plc, Marstons plc, Geest 
plc, Constellation Brands inc, and Britvic plc.
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.
Committee membership Audit Committee
Remuneration Committee
Nomination Committee
Nomination Committee Audit Committee
Remuneration Committee
Nomination Committee
Board of Directors and  
Company Secretary Walker Greenbank PLC, Annual Report & Accounts 2014
31
Mike Gant
Chief Financial Officer
David Smallridge
Managing Director – Brands
Fiona Goldsmith
Non-executive Director
Caroline Geary
Company Secretary
Caroline joined the Group in 2000. She is a 
Chartered Secretary, and was appointed 
Company Secretary in 2012.
Terms of appointment 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. From a marketing 
background he went on to run businesses in 
Asia Pacific and Europe at United Biscuits plc, 
was a divisional CEO at Hillsdown Holdings plc 
and CEO at Terranova Foods plc and Uniq plc. 
Since 2001, he has held a wide range of 
non-executive Chair and director 
appointments at both quoted and unquoted 
businesses. He is currently Non-executive 
Chairman at Ensemble Clothing Ltd and a 
Non-executive Director at The Bradfords 
Group Ltd.
John is a Chartered Management 
Accountant who joined the Group in 1994 
as Group Financial Controller and was 
appointed to the Board as Group Finance 
Director in 1999. He was appointed Group 
Chief Executive Officer in May 2004.
David has an MA from Oxford University and 
broad experience as a managing director in a 
variety of consumer product businesses since 
1986. He joined the Group in 2002 and was 
appointed to the Board in December 2004 
following his appointment as Managing 
Director of the Group’s six main fabric and 
wallcovering brands, Harlequin, Sanderson, 
Morris & Co., Zoffany, Scion and Anthology.
Mike is a Chartered Management Accountant 
with an MBA from Nottingham Business 
School who joined the Board in 2014. He 
brings a breadth of international, financial, and 
brand experience to the Company from his 
previous roles at Bass plc, Marstons plc, Geest 
plc, Constellation Brands inc, and Britvic plc.
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.
Committee membership Audit Committee
Remuneration Committee
Nomination Committee
Nomination Committee Audit Committee
Remuneration Committee
Nomination Committee Walker Greenbank PLC, Annual Report & Accounts 2014
32
Report of the Directors
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 2014.
Group result
The profit before taxation amounted to £5,495,000 (2013: £4,934,000). 
Proposed dividend
The Directors recommend payment of a final ordinary dividend of 1.57p 
per share, amounting to £923,000 (excluding dividends on shares held by 
the employee benefit trust) which will be recognised in the financial 
statements for the following year (2013: 1.25p per share). An interim 
dividend of 0.28p per share was paid during the year.
Business review and future developments
A review of the year and likely developments is contained in the  
Strategic Report.
Financial risk management
Details of the Group’s financial risk management objectives and policies 
are contained in the Strategic Report on page 12 and in note 2 to the 
financial statements.
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.
Directors
The Board of Directors who served during the year ended 31 January 
2014 and to the date of signing the financial statements were as follows:
T Stannard   Non-executive Chairman
F Goldsmith   Non-executive Director
J Sach    Chief Executive Officer
A Dix     Finance Director  
– resigned 30 April 2014
D Smallridge   Managing Director (Brands)
M Gant     Chief Financial Officer 
– appointed 3 March 2014
Details of the Directors’ Service Contracts are set out in the Directors’ 
Remuneration Report on pages 34 to 36, together with details of their 
interests in ordinary shares of the Company. Biographical details are set 
out on page 30.
Post balance sheet events
On 3 March 2014, M Gant was appointed to the Board as Chief Financial 
Officer. A Dix resigned from the Board effective 30 April 2014.
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.
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.
Political donations
The Group has not made any political donations (2013: nil). 
Annual General Meeting
At the forthcoming Annual General Meeting (‘AGM’) M Gant will stand 
for election following his appointment since the last AGM. T Stannard 
and D Smallridge will retire by rotation and being eligible will offer 
themselves for re-election.
The AGM will be held on 16 July 2014. The Notice of Meeting will be 
separately distributed to shareholders.
Substantial shareholdings
As at 24 April 2014 the Company is aware of the following substantial 
shareholdings in its ordinary share capital. The percentages are 
calculated from the 59,006,162 ordinary 1p shares allotted, called and 
fully paid up. Comparatives at 22 April 2013 are shown.
Schroder Investment Management 17.07% (2013: 15.56%), Investec 
Wealth & Investment 10.29% (2013: 8.55%), Blackrock Investment 
Management 8.17% (2013: 8.90%), Octopus Investments 3.35% 
(2013: 1.67%), Royal London Asset Management 3.10% (2013: 3.41 %), 
Revera Asset Management 3.02% (2013: 3.93%).
Independent auditors
A resolution to reappoint PricewaterhouseCoopers LLP as auditors of the 
Company will be proposed at the AGM. Walker Greenbank PLC, Annual Report & Accounts 2014
33
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report, the 
Strategic Report, the Report of the Directors, 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.
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 confirm that:
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.
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
6 May 2014
Registered Office
Chalfont House
Oxford Road
Denham UB9 4DX
Registered number 61880 Walker Greenbank PLC, Annual Report & Accounts 2014
34
Directors’ Remuneration Report 
Introduction
As a company listed on the Alternative Investment Market (‘AIM’), the 
Company is not required to comply with the Directors’ Remuneration 
Report requirements set out in Schedule 8 of the Large and Medium-
sized Companies and Groups (Accounts and Reports) Regulations 2008 
as amended in August 2013 (‘the Regulations’). However, whilst the 
Company is not required to comply with the Regulations, the Company 
has used them as guidance and voluntarily presented selected 
disclosures in this report, where relevant and appropriate.
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 Officer 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. New Bridge Street was 
retained during the financial year to provide independent advice to the 
Committee where required. 
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 promote 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 Group and 
individual performance, market levels of, and trends in, executive 
remuneration and relative pay levels within the Group.
In addition to basic salary, each Executive Director is provided with 
health care benefits. 
Annual performance-related bonus
Each Executive Director’s remuneration package includes a performance-
related bonus. 
The maximum bonus potential was 100% of basic salary for the year 
ended 31 January 2014. Payouts are based on sliding scale profit targets 
and performance against individual objectives. Details of the bonus 
awards for 2013/14 are set out on page 35.
Long-Term Incentive Plan
The Company operates the 2006 Walker Greenbank Long-Term 
Incentive Plan (‘LTIP’) as its primary senior executive incentive 
arrangement. The LTIP seeks to motivate and retain Executive Directors 
and other senior management within the Group, to enable them to 
potentially benefit from delivering above market Total Shareholder 
Returns (‘TSR’) and earnings growth. The key terms of the LTIP are 
as follows:
• the LTIP has a maximum annual limit of 150% of basic salary;
• awards are normally granted in May each year. In 2013 the highest 
grant equated to a maximum of 125% of basic salary; 
• awards are normally structured as nil cost options; 
• awards only vest (i.e. become exercisable) subject to continued service 
and to the extent that relevant performance conditions are met.
The 2014 grant will again be a three-year measurement with the 
performance conditions based on a combination of TSR and EPS growth. 
This combination rewards both earnings growth and relative stock market 
performance and is consistent with market practice in the FTSE AllShare. 
A summary of the performance conditions attaching to outstanding awards 
can be found on page 36. To the extent that these performance conditions 
are not met at the end of the vesting period, the options will lapse. 
Dilution
All equity-based awards are subject to an overall limit on the number of 
new shares issued of 10% within any 10-year period. The current dilution 
against this limit is 0%. 
Pensions
J Sach is a member of the defined benefit section of the Walker 
Greenbank Pension Plan 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 Flexible Retirement 
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.
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. Walker Greenbank PLC, Annual Report & Accounts 2014
35
Directors’ detailed emoluments
Year to 31 January 2014
Salary 
£000
Annual 
bonus 
£000
LTIP 
awards 
£000
Benefits in 
kind 
£000
Pension 
contribution 
£000
2014 
Total 
£000
Executive Directors
J Sach 245 194 666 1 37 1,143
D Smallridge 176 133 485 1 26 821
A Dix 144 58 286 1 14 503
Non-executive Directors
T Stannard 66 – – – – 66
F Goldsmith 30 – – – – 30
661 385 1,437 3 77 2,563
Year to 31 January 2013
Salary 
£000
Annual 
bonus 
£000
LTIP 
awards 
£000
Benefits in 
kind 
£000
Pension 
contribution 
£000
2013 
Total 
£000
Executive Directors
J Sach 238 173 465 1 36 913
D Smallridge 188 121 349 1 28 687
A Dix 140 57 174 1 14 386
Non-executive Directors
T Stannard 64 – – – – 64
F Goldsmith 28 – – – – 28
658 351 988 3 78 2,078
The majority of the annual bonus payable was linked to achievement of operating profit with a sliding scale starting at the budget level set for the 
financial year. A small percentage was based on achievement of personal performance objectives.
Directors’ pension entitlements
Accrued annual pension benefits for J Sach at the year end were £13,153 (2013: £12,708) 
Directors’ share interests
The interest 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 2014 
Number
1p ordinary shares 
31 January 2013 
Number
T Stannard 70,000 70,000
F Goldsmith 45,000 45,000
J Sach 1,600,365 1,410,105
D Smallridge 993,972 864,416
A Dix 704,589 634,174
There have been no changes in the interests set out above between 31 January 2014 and 6 May 2014.
Directors’ LTIP awards
Date of grant
Share price at 
grant
Maximum 
awards at 
1 February 
2013
Granted 
in year
Exercised 
in year
Lapsed in 
year
Maximum 
awards at 
31 January 
2014
J Sach 20/05/2010 33.0p 680,000 – 595,000 85,000 –
19/05/2011 49.0p 589,623 – – – 589,623
18/05/2012 71.5p 416,199 – – – 416,199
16/05/2013 111.5p – 274,897 – – 274,897
1,685,822 274,897 595,000 85,000 1,280,719
D Smallridge 20/05/2010 33.0p 495,000 – 433,125 61,875 –
19/05/2011 49.0p 467,347 – – – 467,347
18/05/2012 71.5p 329,888 – – – 329,888
16/05/2013 111.5p – 196,938 – – 196,938
1,292,235 196,938 433,125 61,875 994,173
A Dix 20/05/2010 33.0p 292,000 – 255,500 36,500 –
19/05/2011 49.0p 337,693 – – – 337,693
18/05/2012 71.5p 244,755 – – – 244,755
16/05/2013 111.5p – 96,996 – – 96,996
874,448 96,996 255,500 36,500 679,444 Walker Greenbank PLC, Annual Report & Accounts 2014
36
Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 
Walker Greenbank AIM 
0 
200 
400 
600 
800 
1000 
1200 
1400 
1600 
1800 
2000 
%
The 2010 LTIP awards partially vested on 20 May 2013 as a result of the 
Company being ranked second in a TSR comparator group of companies 
operating in the household sector and the profit before tax underpin of 
£3.5 million for the year ended 31 January 2013 being exceeded.  
The share price on the vesting date was 112.0p. The balance of  
awards lapsed.
The 2011, 2012 and 2013 LTIP awards will vest subject to continued 
service and the extent to which relevant performance conditions  
are achieved. 
The primary performance condition for the 2011 and 2012 awards  
above is based on relative TSR against a comparator group of companies 
operating in the household sector, with partial vesting for a median  
TSR increasing on a sliding scale to full vesting for a top ranking TSR.  
In addition to the relative TSR target, a profit before tax underpin applies. 
For awards granted in 2011 and 2012, respective profit before tax 
underpins of £6 million and £6.5 million will apply in relation to financial 
year ending prior to the relevant date of vesting.
The performance conditions for the 2013 awards are based both on 
compound growth in EPS and relative TSR against a comparator group of 
AIM companies, with a profit before tax underpin of £6.75 million for the 
year ended 31 January 2016.
The comparator group chosen was the AIM companies ranked 101 to 
200 by market capitalisation as at 15 May 2013, and the relevant TSR 
measurement is on a sliding scale, with no vesting until the Company 
reaches at least median position within the comparator group. 
The share price reached a high of 178.5p and a low of 80.5p during the 
financial year ended 31 January 2014. The average share price during 
the financial year was 130.7p. The share price on 1 February 2013 was 
80.5p and on 31 January 2014 it was 163.5p.
Directors’ Remuneration Report continued
Total Shareholder Return index for the five financial years 
ending 31 January 2014
Approval
This report was approved by the Directors and signed by order of the Board.
Caroline Geary
Company Secretary
6 May 2014 Walker Greenbank PLC, Annual Report & Accounts 2014
37
Corporate Governance Statement
As a company listed on the Alternative Investment Market the 
Company is not required to issue a Corporate Governance Statement 
of Compliance with the principles and provisions of the UK Corporate 
Governance Code (‘the Code’) however the Company voluntarily 
presents disclosures that reflect the extent of the Company’s application 
of the Code. 
Chairman’s Statement
The Board supports the principles and aims of the Code. Good 
governance reduces risk and adds value to our business. Delivering 
growth and long-term shareholder value with effective and efficient 
decision making is of high importance to the Board. 
The Board
The Company is supervised by the Board of Directors. The Board 
comprises three Executive and two Non-executive Directors. There 
is a clear division of responsibilities between the Chairman, who is 
responsible for the effective leadership and smooth running of the 
Board, and the Chief Executive Officer who, with the other Executive 
Directors, is responsible for the running of the Company.
The Directors
The Board of Directors who served during the year ended 31 January 
2014 and their attendance at meetings is shown in the adjacent table. 
Since the year end A Dix has resigned his position, effective 30 April 
2014, and M Gant was appointed to the Board effective 3 March 2014. 
Biographical details of the current Board are given on page 30.
Board programme
The Board meets at least nine times each year in accordance with its 
scheduled meeting calendar and the attendance by each Board member 
at scheduled meetings is shown.
The role of the Board
The Board is responsible for the long-term success of the Company. 
There is a formal schedule of matters reserved to the Board. 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. The business reports monthly 
on its performance against its agreed budget, and the Board reviews 
the monthly update on performance and any significant variances are 
reviewed at each meeting. Senior executives below Board level attend 
Board meetings, where appropriate, to present business updates.
Board meetings throughout the year are held at the Company’s 
various sites giving, in particular the Non-executive Directors, access 
to the manufacturing sites to gain a greater understanding of the 
Group’s activities.
Independent advice
All Directors are able to take independent professional advice in the 
furtherance of their duties, if necessary, at the Company’s expense. 
In addition the Directors have direct access to the advice and services 
of the Company Secretary.
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.
Attendance at scheduled meetings of the Board and its Committees
Board
Nomination 
Committee
Remuneration 
Committee
Audit 
Committee
T Stannard 9 1 3 3
F Goldsmith 9 1 3 3
J Sach 9 1 – –
D Smallridge 9 – – –
A Dix 9 – – –
The Board scheduled nine meetings during the year and additional 
meetings were convened to deal with specific matters and approval of 
the financial results.
Independent Directors
The Board considers, after careful review, that the Non-executive 
Directors bring an independent judgment to bear. All Non-executive 
Directors have contracts which contain six-month notice clauses. These 
are available for inspection at the Company’s registered office and at 
the Annual General Meeting. All Directors retire by rotation at regular 
intervals in accordance with the Company’s Articles of Association and 
the principles of the Code. The Non-executive Directors continue to retire 
for re-election at least every third year and their other time commitments 
are reviewed regularly. Further details of each of the independent 
Directors are set out on page 30.
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.
Nomination Committee
The Nomination Committee is chaired by T Stannard, Non-executive 
Chairman, and comprises F Goldsmith, the other Non-executive Director, 
and J Sach, the Chief Executive Officer.
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 comprises 
himself 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 Officer is important when determining the remuneration of 
the other Executive Directors.
In framing its policy the Remuneration Committee takes into account 
any factors which it deems necessary, including industry standard 
executive remuneration, differentials between executive and employee 
remuneration and differentials between executives. The remuneration 
of the Non-executive Directors is determined by the Executive Directors. Walker Greenbank PLC, Annual Report & Accounts 2014
38
Audit Committee
The Audit Committee is chaired by F Goldsmith and comprises herself 
and T Stannard. Although all the Committee members are considered to 
be appropriately experienced to fulfil their role, F Goldsmith is considered 
as having significant, recent and relevant experience in line with the 
Code. Further details of the work of the Committee is contained in the 
Audit Committee Report on page 39.
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.
Risk management process
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 Strategic Report and 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 Group’s systems are designed to provide 
reasonable assurance as to the reliability of financial information, 
ensuring proper control over income and expenditure, assets  
and liabilities.
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. 
The Chairman, Chief Executive Officer and Chief Financial Officer have 
regular dialogue with individual institutional investors in order to develop 
an understanding of their views. Presentations are made to analysts, 
investors and prospective investors covering the annual and  
interim results.
The Company website (www.walkergreenbank.com) has an Investors 
section giving private investors direct access to business information and 
Company reports. There is also an enquiries mailbox facility.
All shareholders receive notice of the Annual General Meeting at which 
all Committee chairs will be available for questions.
Corporate Governance Statement continued Walker Greenbank PLC, Annual Report & Accounts 2014
39
Audit Committee Report
The objective of the Committee is to provide oversight and governance 
to the Group’s financial reports, its internal controls and processes in 
place, its risk management systems and the appointment and 
relationship with the external auditor.
Responsibilities
• Monitor the integrity of the financial statements of the Company, 
reviewing any significant reporting issues and judgements they 
contain.
• Advise on the clarity of disclosure and information contained in the 
Annual Report and Accounts.
• Ensure compliance with applicable accounting standards and review 
the consistency of methodology applied.
• Review the adequacy and effectiveness of the internal control and 
risk management systems.
• Oversee the relationship with the external auditor, reviewing 
performance and advising the Board on their appointment and 
remuneration.
• Ensure appropriate arrangements in place for individuals to raise 
concerns regarding breach of conduct and legal and regulatory 
compliance.
Membership
The Committee is comprised solely of independent Directors, being 
myself as Chairman and the other Non-executive Director, Terry 
Stannard. The Board is satisfied that I have significant, recent and 
relevant experience in line with the Code.
Terms of reference
Updated terms of reference were adopted by the Board in 2012. These 
are available on the website.
Meetings
The Committee meets three times per year; in April and September 
being the appropriate time to review the Annual Report and Accounts 
and the interim report respectively, and also in January to review the 
previous year and plan for the year ahead. At the meetings the findings 
of the external audit are discussed, and the effectiveness of the 
Company’s system of internal controls and risk management is reviewed.
Each meeting is attended by the Committee’s members as well as, by 
invitation, the Executive Directors and the external auditor. A record of 
the meeting attendance by Committee members is set out on page 37. 
During the year, the Audit Committee held a private meeting with  
the external auditor, PricewaterhouseCoopers LLP (‘PwC’), without 
management being present, in order to receive feedback from them.  
The Committee Chairman also met with PwC separately on  
several occasions.
The Committee supports the Board in carrying out its responsibilities in 
relation to financial reporting, risk management and assessing internal 
controls. The need for an internal audit department is also examined on 
a continuing basis. The Committee also manages the relationship with 
the external auditor.
The Committee undertook the following activities during the course of 
the year:
Financial reporting
The Committee reviews the half year and annual financial statements 
and matters raised by management and the auditors.
• The accounting policies used are consistent both year on year and 
across the Group (other than as disclosed in note 1 of the financial 
statements).
• The methods used to account for significant transactions are 
appropriate.
• The financial statements give a true and fair view and the disclosures 
made are balanced and understandable.
• Appropriate estimates and judgements have been used, taking into 
account the views of the external auditor.
• The appropriate accounting standards have been applied.
Internal controls and risk management
There is an ongoing process to identify, evaluate and manage the risks 
faced by the Group.
The Committee reviews this risk management process annually, and 
the process is continually being developed and improved. Each business 
unit reports monthly on key risks identified and measures that are being 
taken to mitigate the risk. The Strategic Report includes further detail  
as to the business risks identified and actions being taken. 
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 have been found.
External audit
The Committee considers a number of areas when reviewing the 
external auditor appointment namely their performance in discharging 
the audit, the scope of the audit and terms of engagement, their 
independence and objectivity and their reappointment and 
remuneration.
The Committee reviews the objectivity and independence of the auditors 
when considering reappointment . The external auditor is required to 
rotate the lead audit partner every five years. The provision of non-audit 
services provided by the external auditors is also monitored, and details 
of non-audit fees that have been provided by PricewaterhouseCoopers 
LLP during the year are disclosed in note 7 of the financial statements.
The Committee has confirmed it is satisfied with the independence, 
objectivity and effectiveness of PwC and has recommended to the Board 
that the auditors be reappointed, and there will be a resolution to this 
effect at the forthcoming Annual General Meeting.
Fiona Goldsmith
Audit Committee Chairman
6 May 2014 Walker Greenbank PLC, Annual Report & Accounts 2014
40
Independent Auditors’ Report  
to the Members of Walker Greenbank PLC
Report on the group financial statements
Our opinion
In our opinion the financial statements, defined below:
• give a true and fair view of the state of the group’s affairs as at 31 
January 2014 and of its profit and cash flows for the year then ended;
• have been properly prepared in accordance with International 
Financial Reporting Standards (IFRSs) as adopted by the European 
Union; and
• have been prepared in accordance with the requirements of the 
Companies Act 2006.
This opinion is to be read in the context of what we say in the remainder 
of this report.
What we have audited
The group financial statements (the “financial statements”), which are 
prepared by Walker Greenbank plc, comprise:
• Consolidated Balance Sheet as at 31 January 2014;
• Consolidated Income Statement and Consolidated Statement of 
Comprehensive Income for the year then ended;
• Consolidated cash flow statement for the year then ended;
• Consolidated Statement of Changes in Equity for the year then 
ended; and
• the notes to the financial statements, which include a summary of 
significant accounting policies and other explanatory information.
The financial reporting framework that has been applied in their 
preparation is applicable law and IFRSs as adopted by the  
European Union.
In applying the financial reporting framework, the directors have made a 
number of subjective judgements, for example in respect of significant 
accounting estimates. In making such estimates, they have made 
assumptions and considered future events.
What an audit of financial statements involves
We conducted our audit in accordance with International Standards on 
Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). 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 and Accounts (the “Annual Report”) to identify material 
inconsistencies with the audited financial statements and to identify any 
information that is apparently materially incorrect based on, or materially 
inconsistent with, the knowledge acquired by us in the course of performing 
the audit. If we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the 
Report of the Directors for the financial year for which the financial 
statements are prepared is consistent with the financial statements.
Other matters on which we are required to report by exception
Adequacy of information and explanations received
Under the Companies Act 2006 we are required to report to you if, in our 
opinion, we have not received all the information and explanations we 
require for our audit. We have no exceptions to report arising from this 
responsibility. 
Directors’ remuneration
Under the Companies Act 2006 we are required to report to you if, in our 
opinion, certain disclosures of directors’ remuneration specified by law 
are not made. We have no exceptions to report arising from this 
responsibility. 
Responsibilities for the financial statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Statement of Directors’ Responsibilities set out 
on page 33, 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 ISAs (UK & 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.
Other matter
We have reported separately on the parent company financial 
statements of Walker Greenbank PLC for the year ended  
31 January 2014.
Owen Mackney (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Birmingham
6 May 2014 Walker Greenbank PLC, Annual Report & Accounts 2014
41
Consolidated Income Statement 
Year ended 31 January 2014
Note
2014 
£000
2013 
£000
Revenue 4 78,434 75,725
Profit from operations 4-7 6,543 5,831
Net defined benefit pension charge 8 (868) (704)
Finance costs 9 (180) (193)
Total finance costs (1,048) (897)
Profit before tax 5,495 4,934
Tax expense 12 (451) (972)
Profit for the year attributable to owners of the parent 5,044 3,962
Earnings per share – Basic 13 8.63p 6.89p
Earnings per share – Diluted 13 8.14p 6.89p
Adjusted earnings per share – Basic 13 11.30p 9.41p
Adjusted earnings per share – Diluted 13 10.66p 9.41p
All of the activities of the Group are continuing operations.
The notes on pages 46 to 72 form an integral part of the consolidated financial statements. Walker Greenbank PLC, Annual Report & Accounts 2014
42
Consolidated Statement of Comprehensive Income 
Year ended 31 January 2014
Note
2014 
£000
2013 
£000
Profit for year 5,044 3,962
Other comprehensive (expense)/income:
Items that will not be reclassified to profit or loss:
Actuarial (loss)/gains on scheme assets 23 (1,580) 1,013
Actuarial losses on scheme liabilities 23 (195) (3,036)
(Reduction)/increase of deferred tax asset relating to pension scheme liability (53) 121
Total items that will not be reclassified to profit or loss (1,828) (1,902)
Items that may be reclassified subsequently to profit or loss:
Currency translation gains 99 14
Cash flow hedges gains 90 113
Total items that may be reclassified subsequently to profit or loss 189 127
Other comprehensive expense for the year, net of tax (1,639) (1,775)
Total comprehensive income for the year attributable to the owners of the parent 3,405 2,187
The notes on pages 46 to 72 form an integral part of the consolidated financial statements. Walker Greenbank PLC, Annual Report & Accounts 2014
43
Consolidated Balance Sheet 
At 31 January 2014
Note
2014 
£000
2013 
£000
Non-current assets
Intangible assets 14 7,289 6,683
Property, plant and equipment 15 11,690 9,808
Deferred income tax assets 16 2,163 2,015
21,142 18,506
Current assets
Inventories 17 18,428 16,825
Trade and other receivables 18 13,884 12,810
Derivative financial asset 19 153 63
Cash and cash equivalents 20 2,830 2,920
35,295 32,618
Total assets 56,437 51,124
Current liabilities
Trade and other payables 21 (19,035) (16,925)
Derivative financial liability 19 – (15)
Borrowings 22 (400) (400)
(19,435) (17,340)
Net current assets 15,860 15,278
Non-current liabilities
Borrowings 22 (942) (1,364)
Retirement benefit obligation 23 (9,208) (8,238)
(10,150) (9,602)
Total liabilities (29,585) (26,942)
Net assets 26,852 24,182
Equity
Share capital 25 590 590
Share premium account 457 457
Foreign currency translation reserve (89) (188)
Accumulated losses (14,766) (17,247)
Other reserves 40,660 40,570
Total equity attributable to owners of the parent 26,852 24,182
The financial statements on pages 46 to 72 were approved by the Board of Directors on 6 May 2014 and signed on its behalf by
John Sach  Mike Gant 
Director   Director 
Registered number: 61880 Walker Greenbank PLC, Annual Report & Accounts 2014
44
Consolidated Cash Flow Statement
Year ended 31 January 2014
Note
2014 
£000
2013 
£000
Cash flows from operating activities
Cash generated from operations 28 6,165 6,023
Interest paid (152) (209)
Debt issue costs (50) –
Income tax paid 12 (18) (16)
Net cash generated from operating activities 5,945 5,798
Cash flows from investing activities
Purchase of intangible fixed assets 14 (1,049) (880)
Purchase of property, plant and equipment 15 (3,704) (2,239)
Proceeds from disposal of tangible fixed assets 18 –
Net cash used in investing activities (4,735) (3,119)
Cash flows from financing activities
Purchase of treasury shares 25 – (136)
Repayment of borrowings 29 (400) (1,109)
Dividends paid to Company’s shareholders (900) (711)
Net cash used in financing activities (1,300) (1,956)
Net (decrease)/increase in cash, cash equivalents and bank overdrafts (90) 723
Cash, cash equivalents and bank overdrafts at beginning of year 2,920 2,197
Cash, cash equivalents and bank overdrafts at end of year 29 2,830 2,920
The notes on pages 46 to 72 form an integral part of the consolidated financial statements. Walker Greenbank PLC, Annual Report & Accounts 2014
45
Consolidated Statement of Changes in Equity
Year ended 31 January 2014
Attributable to owners of the parent
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 2012 590 457 (18,250) 43,457 (2,950) (50) (202) 23,052
Profit for the year – – 3,962 – – – – 3,962
Other comprehensive income/(expense):
Actuarial gains on scheme assets (note 23) – – 1,013 – – – – 1,013
Other actuarial losses on scheme liabilities 
(note 23) – – (3,036) – – – – (3,036)
Deferred tax relating to pension scheme liability – – 121 – – – – 121
Currency translation differences – – – – – – 14 14
Cash flow hedging reserve – released to Income 
Statement – – – – – (56) – (56)
Cash flow hedging reserve – recognised in equity 
during the year – – – – – 169 – 169
Total comprehensive income/(expense) – – 2,060 – – 113 14 2,187
Transactions with owners, recognised directly  
in equity:
Dividends – – (711) – – – – (711)
Long-term incentive plan charge – – 430 – – – – 430
Long-term incentive plan vesting – – (640) – – – – (640)
Purchase of treasury shares – – (136) – – – – (136)
Balance at 31 January 2013 590 457 (17,247) 43,457 (2,950) 63 (188) 24,182
Attributable to owners of the parent
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 2013 590 457 (17,247) 43,457 (2,950) 63 (188) 24,182
Profit for the year – – 5,044 – – – – 5,044
Other comprehensive income:
Actuarial loss on scheme assets (note 23) – – (1,580) – – – – (1,580)
Actuarial losses on scheme liabilities (note 23) – – (195) – – – – (195)
Deferred tax relating to pension scheme liability – – (53) – – – – (53)
Currency translation differences – – – – – – 99 99
Cash flow hedging reserve – released to Income 
Statement – – – – – 67 – 67
Cash flow hedging reserve – recognised in equity 
during the year – – – – – 23 – 23
Total comprehensive income – – 3,216 – – 90 99 3,405
Transactions with owners, recognised directly in 
equity:
Dividends – – (900) – – – – (900)
Long-term incentive plan charge – – 467 – – – – 467 
Long-term incentive plan vesting – – (936) – – – – (936)
Deferred tax arising on long-term incentive plan – – 634 – – – – 634
Balance at 31 January 2014 590 457 (14,766) 43,457 (2,950) 153 (89) 26,852 Walker Greenbank PLC, Annual Report & Accounts 2014
46
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 
Sanderson, Morris & Co., Harlequin, Zoffany and Scion. 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 through profit and loss, 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 Group’s 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 2013 or ending 31 January 2014.
Since the Group’s previous annual financial statements for the year ended 31 January 2013 the following pronouncements are now effective and have 
been adopted by the Group:
• Amendment to IAS 1 ‘Financial statement presentation’ – regarding other comprehensive income – effective periods beginning on or after 1 July 2012 
• Amendment to IAS 12 ‘Income taxes on deferred tax’ – effective periods on or after 1 January 2013
• Amendment to IAS 19 ‘Employee benefits’ – effective periods beginning on or after 1 January 2013
• Amendment to IFRS 7 ‘Financial instruments: Disclosures’ on offsetting financial assets and financial liabilities – effective periods beginning on or 
after 1 January 2013
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 2014 and/or which have not yet been endorsed by the EU. The Group has 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.
• Amendments to IFRS 10 ‘Consolidated financial statements’, IFRS 12 and IAS 27 for investment entities – effective periods beginning on or after 
1 January 2014
• IFRS 10 ‘Consolidated financial statements’ – effective periods beginning on or after 1 January 2014
• IFRS 13 ‘Fair value measurement’ – effective periods beginning on or after 1 January 2014
• IAS 27 (revised 2011) ‘Separate financial statements’ – effective periods beginning on or after 1 January 2014
• IAS 28 (revised 2011) ‘Associates and joint ventures’ – effective periods beginning on or after 1 January 2014
• Amendment to IAS 32 ‘Financial instruments: Presentation’ on offsetting financial assets and financial liabilities – effective periods beginning on 
or after 1 January 2014
• IAS 36 ‘Impairment of assets’ on recoverable amount disclosures – effective periods beginning on or after 1 January 2015
• Amendment to IAS 19 ‘Employee benefits’ on defined benefit plans – effective periods beginning on or after 1 July 2014
• IFRS 9 ‘Financial instruments’ – classification and measurement – effective periods beginning on or after 1 January 2018
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 74 to 81).
Notes to the Consolidated Financial Statements Walker Greenbank PLC, Annual Report & Accounts 2014
47
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. Any acquisition costs are expensed as incurred. 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.
The Employee Benefit Trust (‘EBT’) controlled by the Group is also included by consolidation. Until shares held by the EBT 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 EBT 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 Consolidated Income Statement 
and is not subsequently reversed. If a significant event occurs that may affect the carrying value of goodwill, an impairment review will be carried out. 
No such events have occurred in the current or previous financial year. 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. 
The measurement basis for goodwill is cost less accumulated impairment.
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 can be used at any point going forward and is 
regularly 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. If a significant event occurs that may affect the carrying value of the archive, an impairment review will be 
carried out. No such events have occurred in the current or previous financial year. The measurement basis used for the Archive is cost less accumulated 
impairment. Walker Greenbank PLC, Annual Report & Accounts 2014
48
1. Accounting policies and general information continued
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 ten years on a straight line basis. Software amortisation commences when the asset goes into operational use by the 
business. The measurement basis used for software is cost less accumulated amortisation and impairment.
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. The measurement basis used for Collection design is cost less accumulated 
amortisation and impairment.
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.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
49
1. Accounting policies and general information continued
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 and is continually reviewed for 
impairment going forward. 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.
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.
• ‘ 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 with the right of offset 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 receivable, probability that the receivable will 
enter bankruptcy or financial reorganisation, default or delinquency in payments, and the unavailability of credit insurance at commercial rates for 
receivables 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 payable 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. Walker Greenbank PLC, Annual Report & Accounts 2014
50
1. Accounting policies and general information continued
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’.
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 capitalised at the leases’ commencement, at the lower of fair value of the leased assets and the 
present value of the minimum lease payments. The assets are depreciated over their useful lives and the interest element of the rental obligations is 
charged to the Consolidated 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. Dividend distribution is set by the Board on a regular basis so long as sufficient funds are available.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
51
1. Accounting policies and general information continued
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. The EBT is treated as an agent of the Group and as such EBT transactions are 
treated as being those of the Group.
Revenue
The Group revenue is measured at fair value of the consideration received or receivable and represents amounts recoverable by the Group for goods 
and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Revenue comprises:
• Sale of goods – sales of goods are recognised when the Group has transferred to the buyer the significant risks and rewards of ownership, which is 
usually at the point of delivery of the goods.
• Royalty revenue – royalties are received from licence holders under the terms of various agreements, and are recognised on an accruals basis in 
accordance with the substance of the relevant agreement.
Deposits received from customers in advance of the delivery of goods or services are recognised as deferred revenue. 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 profit 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 two reportable segments 
which are brands and manufacturing.
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. Walker Greenbank PLC, Annual Report & Accounts 2014
52
1. Accounting policies and general information continued
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 cooperation with the Group’s operating units.
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US 
dollar and the euro. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency 
that is not the entity’s functional currency.
The Group’s policy is, where possible, to allow the Group’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 2014, the average sterling to US dollar translation rate applied by the Group including the impact of hedging contracts 
was £1 : US$1.57. If the rate had been £1 : US$1.47 with all other variables held constant, profit before tax would have been higher by £204,000. If the 
rate had been £1 : US$1.67 with all other variables held constant, profit before tax would have been lower by £179,000.
For the year ended 31 January 2014, the average sterling to euro translation rate applied by the Group including the impact of hedging contracts was 
£1 : €1.18. If the rate had been £1 : €1.08 with all other variables held constant, profit before tax would have been lower by £225,000. If the rate had 
been £1 : €1.28 with all other variables held constant, profit before tax would have been higher by £190,000.
The sensitivities tested above reflect movements in the foreign currency exchange rates over the financial year. 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.
On 31 January 2013, the receivables facility was renewed with Barclays Bank PLC and a new Committed facility was agreed as a replacement to the 
Inventory facility, signed on 15 January 2013. Variable interest rates were negotiated on all the loans. The Board continues to monitor the interest 
rates monthly.
For the year ended 31 January 2014, 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 £34,000 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.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
53
2. Financial risk management continued
Prior to accepting new customers an independent credit check is obtained. Based on this information individual credit limits and payment terms are 
established. If no independent credit ratings are available, customers are asked to pay on a proforma basis until creditworthiness can be established. 
The utilisation of credit limits is regularly monitored. Credit limits may only be exceeded with the authorisation from key management, this is 
dependent on the amount expected to exceed the limit and the Group’s trading history with that customer.
There is no difference between the carrying amount and the maximum credit risk exposure.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its debt instruments. It is 
the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The maturity profile of the Group’s debt and other 
financial liabilities is disclosed in note 22.
During the year the Group had facilities with Barclays Bank PLC. A significant element of the facility is linked to working capital, which allows the Group 
to manage its cash more effectively during the seasonal fluctuations in working capital associated with the industry. This element of the facility was 
renewed in January 2013.
Management monitors rolling forecasts of the Group’s cash and loan facility utilisation on a monthly basis. The Group ensures that it has adequate 
facilities available to cover both its short-term and medium-term commitments. In addition, the Group’s liquidity management policy is to project cash 
flows in major currencies and consider the level of liquid assets necessary to meet these liabilities as they fall due.
Capital risk management
The Group’s objectives when managing capital are:
• to safeguard the 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 2014, the Group’s strategy, which was unchanged from the previous year, was to reduce the average gearing ratio. The 
average gearing ratios for 2014 and 2013 were as follows:
Year ended 31 January
2014 
£000
2013 
£000
Average net debt 4,171 4,748
Total equity 26,852 24,182
Less: amounts recognised directly in equity relating to currency contracts (153) (63)
Adjusted capital 26,699 24,119
Average net debt to adjusted capital ratio 15.6% 19.6%
Year end net funds/debt to adjusted capital ratio (5.6)% (4.8)%
The Group considers the average net debt to adjusted capital 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 receivables 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. Walker Greenbank PLC, Annual Report & Accounts 2014
54
3. Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning future events. The resulting accounting estimates will seldom precisely equal the related 
actual results. The Group applies its best endeavours in setting accounting estimates, and uses historical experience and other factors, including input 
from experienced and specialist management. Estimates and assumptions are periodically re-evaluated and the resulting accounting balances 
updated as new information including actual outcomes become apparent.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the 
next financial year are discussed below.
a) Retirement benefit obligations
The Group recognises its obligations to employee retirement benefits. The quantification of these obligations is subject to significant estimates and 
assumptions regarding life expectancy, discount and inflation rates, wage and salary changes, the rate of increase in pension payments, and the 
market values of equities, bonds and other pension assets. In making these assumptions the Group takes advice from a qualified actuary about which 
assumptions reflect the nature of the Group’s obligations to employee retirement benefits. The assumptions are 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.
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 notes 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. The carrying values of the non-financial assets are not considered to be sensitive due to the 
nature of the assets.
c) Deferred tax recognition
The Group considers it appropriate to recognise at the Balance Sheet date deferred tax assets resulting from historical trading losses and other 
temporary differences including pension deficits and the impact of awards under the long-term incentive plan. 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 LTIP 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. The Group 
considers the sensitivity on deferred tax recognition to be based on profits generated by the Group and tax rates set by the government. There has 
been no material impact on sensitivity in the current or previous financial year.
d) Long-term incentive plan 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 34 to 36 and in note 25.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
55
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 
aggregated as follows:
• Brands – comprising the design, marketing, sales and distribution, and licensing activities of Sanderson, Morris & Co., Harlequin, Zoffany and Scion 
brands operated from the UK and its foreign subsidiaries in the US and France.
• Manufacturing – comprising the wallcovering 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 for the purposes of IFRS 8. Additional revenue-only data is also reported to the CODM and is disclosed on the basis explained below. Other 
Group-wide activities and expenses, predominantly related to corporate head office costs, defined benefit pension costs, long-term incentive plan 
expenses, taxation and eliminations of intersegment items, are presented within ‘Eliminations and unallocated’.
a) Principal measures of profit and loss – Income Statement segmental information
Year ended 31 January 2014
Brands 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
UK revenue 34,874 14,619 – 49,493
International revenue 23,797 3,011 – 26,808
Licence revenue 2,133 – – 2,133
Revenue – External 60,804 17,630 – 78,434
Revenue – Internal – 14,525 (14,525) –
Total revenue 60,804 32,155 (14,525) 78,434
Profit/(loss) from operations 6,590 3,062 (3,109) 6,543
Net borrowing costs – – (180) (180)
Net pension charge – – (868) (868)
Profit/(loss) before taxation 6,590 3,062 (4,157) 5,495
Tax charge – – (451) (451)
Profit/(loss) for the year 6,590 3,062 (4,608) 5,044
Year ended 31 January 2013
Brands 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
UK revenue 34,669 13,864 – 48,533
International revenue 22,315 3,000 – 25,315
Licence revenue 1,877 – – 1,877
Revenue – External 58,861 16,864 – 75,725
Revenue – Internal – 13,200 (13,200) –
Total revenue 58,861 30,064 (13,200) 75,725
Profit/(loss) from operations 5,894 2,675 (2,738) 5,831
Net borrowing costs – – (193) (193)
Net pension charge – – (704) (704)
Profit/(loss) before taxation 5,894 2,675 (3,635) 4,934
Tax charge – – (972) (972)
Profit/(loss) for the year 5,894 2,675 (4,607) 3,962
The segmental Income Statement disclosures are measured in accordance with the Group’s accounting policies as set out in note 1.
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.
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 auditors’ 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. Walker Greenbank PLC, Annual Report & Accounts 2014
56
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:
2014 
£000
2013 
£000
Western Europe 6,713 6,142
Scandinavia 1,805 1,908
Eastern Europe 2,209 2,174
Europe Total 10,727 10,224
Middle East 858 846
Far East 3,354 3,018
USA 6,993 6,442
South America 342 401
Australasia 948 841
Other 575 543
23,797 22,315
Revenue of the Brands reportable segment – revenue from operations in all territories where the sale is sourced from the Brands operations, together 
with contract and licence revenue:
Brand revenue analysis:
2014 
£000
2013 
£000
Harlequin, incorporating Scion 26,101 25,154
Sanderson, incorporating Morris & Co. 20,984 19,977
Zoffany 10,742 10,952
Other brands 844 901
Licensing 2,133 1,877
60,804 58,861
Revenue of the Manufacturing reportable segment – including revenues from internal sales to the Group’s Brands:
Manufacturing revenue analysis:
2014 
£000
2013 
£000
Standfast 15,358 14,344
Anstey 16,797 15,720
32,155 30,064
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 2014
Brands 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
Depreciation 915 839 20 1,774
Amortisation 398 45 – 443
Impairment losses – trade receivables 182 2 – 184
Reversal of impairment losses – trade receivables (11) (22) – (33)
Impairment losses – inventory 1,146 54 – 1,200
Reversal of impairment of inventory – (19) – (19)
LTIP payment charges – – 970 970
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
57
4. Segmental analysis continued
Year ended 31 January 2013
Brands 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
Depreciation 873 852 15 1,740
Amortisation 264 44 – 308
Impairment losses – trade receivables 152 25 – 177
Reversal of prior period impairment losses – trade receivables (27) (10) – (37)
Impairment losses – inventory 838 71 – 909
Reversal of impairment of inventory – (7) – (7)
LTIP payment charges – – 746 746
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 2014
Brands 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
Assets 38,269 20,456 (2,288) 56,437
Liabilities (18,442) (5,860) (5,283) (29,585)
Total net assets/(liabilities) 19,827 14,596 (7,571) 26,852
Capital expenditure – Intangible assets 1,033 16 – 1,049
Capital expenditure – Property, plant and equipment 994 2,708 2 3,704
Year ended 31 January 2013
Brands 
£000
Manufacturing 
£000
Eliminations 
and 
unallocated 
£000
Total 
£000
Assets 35,508 17,253 (1,637) 51,124
Liabilities (17,877) (5,042) (4,023) (26,942)
Total net assets/(liabilities) 17,631 12,211 (5,660) 24,182
Capital expenditure – Intangible assets 876 4 – 880
Capital expenditure – Property, plant and equipment 993 1,235 11 2,239
e) Additional entity-wide disclosures
Revenue by geographical location of customers:
2014 
£000
2013 
£000
United Kingdom 50,190 48,533
Continental Europe 11,589 11,696
United States of America 8,854 8,499
Rest of the World 7,801 6,997
78,434 75,725
No single customer of the Group accounts for 10% or more of total revenue.
Non-current assets by geographical territory:
2014 
£000
2013 
£000
United Kingdom 18,558 16,137
Continental Europe 232 247
United States of America 189 107
18,979 16,491
Non-current assets included above comprise intangible assets and property, plant and equipment. Walker Greenbank PLC, Annual Report & Accounts 2014
58
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 and prior year, there are no exceptional items.
6. (a) Analysis of operating profit by function of expense
2014 
£000
2013 
£000
Revenue 78,434 75,725
Cost of sales (30,347) (30,193)
Gross profit 48,087 45,532
Net operating expenses:
Distribution and selling costs (12,747) (12,939)
Administration expenses (27,677) (25,926)
LTIP accounting charge (970) (746)
Other operating expense (150) (90)
Net operating expenses (41,544) (39,701)
Profit from operations 6,543 5,831
(b) Analysis of revenue by category
2014 
£000
2013 
£000
Sale of goods 76,301 73,848
Licence royalty income 2,133 1,877
78,434 75,725
(c) Analysis of expense by nature
2014 
£000
2013 
£000
Changes in inventories of finished goods and work in progress (2,053) (545)
Raw materials and consumables used 25,689 24,704
Employee benefit expense 22,515 21,177
Depreciation and amortisation charges 2,217 2,048
Transportation expenses 3,244 2,976
Advertising costs 1,220 1,559
Other selling costs 6,765 6,958
Establishment costs 4,253 3,399
Operating lease payments 1,881 1,868
Repairs and maintenance 1,117 1,114
Other expenses 5,043 4,546
Total cost of sales, distribution and selling costs, administration expenses and LTIP accounting charge 71,891 69,804
7. Group profit from operations
2014 
£000
2013 
£000
Group profit from operations is stated after charging/(crediting):
Depreciation of property, plant and equipment 1,774 1,740
Amortisation of intangibles 443 308
Cost of inventories recognised as expense in cost of sales 23,978 24,159
Impairment of inventories 1,200 909
Reversal of impairment of inventories (19) (7)
Impairment of trade receivables 184 177
Reversal of impairment of trade receivables (33) (37)
Net foreign exchange losses 117 90
Operating lease rentals:
– Hire of motor vehicles and plant and machinery 434 469
– Land and buildings 1,447 1,399
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
59
7. Group profit from operations continued
2014 
£000
2013 
£000
Auditors’ remuneration:
Fees payable to Company’s auditors for the audit of parent Company and consolidated financial statements 55 53
Fees payable to the Company’s auditors for other services: Audit of Company’s subsidiaries pursuant to legislation 87 93
Other accounting services 46 47
188 193
8. Net defined benefit pension charge
2014 
£000
2013 
£000
Expected return on pension scheme assets 2,212 2,190
Interest on pension scheme liabilities (2,545) (2,439)
Scheme expenses met by Group (535) (455)
Net charge (note 23) (868) (704)
9. Finance costs
2014 
£000
2013 
£000
Interest expense:
Interest payable on bank borrowings (158) (159)
Amortisation of issue costs of bank loans (22) (34)
Total finance costs (180) (193)
10. Emoluments of Directors
Salary 
£000
Bonus 
£000
LTIP 
£000
Benefits 
£000
Sub-total 
Aggregate 
emoluments 
£000
Pension 
£000
2014 
Total 
£000
2013 
Total 
£000
Executive Directors:
John Sach 245 194 666 1 1,106 37 1,143 913
David Smallridge 176 133 485 1 795 26 821 687
Alan Dix 144 58 286 1 489 14 503 386
Non-executive Directors:
Terry Stannard 66 – – – 66 – 66 64
Fiona Goldsmith 30 – – – 30 – 30 28
661 385 1,437 3 2,486 77 2,563 2,078
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 £13,153 (2013: £12,708). Benefits are accruing under defined contribution schemes for three Directors (2013: 
three Directors).
Further information on the remuneration of the Directors is included in the Directors’ Remuneration Report set out on pages 34 to 36.
11. Employee information
2014 
£000
2013 
£000
Wages and salaries 18,807 17,860
Social security costs 2,007 2,067
Other pension costs 575 504
LTIP awards, including NIC thereon 970 746
Employee benefit expense 22,359 21,177 Walker Greenbank PLC, Annual Report & Accounts 2014
60
11. Employee information continued
The average monthly number of employees (including Directors) during the year
2014
 Number
2013 
Number
Brands, including warehousing 231 232
Manufacturing 311 308
Overseas 30 29
Corporate and administration 20 20
592 589
Compensation of key management personnel
2014 
£000
2013 
£000
Short-term employee benefits (including short-term incentives) 3,283 2,928
Post-employment benefits (including pension costs) 150 154
LTIP awards 970 746
4,403 3,828
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. LTIP awards reflect the charge in the Income Statement and do not 
reflect the market value of shares expected to vest.
12. Tax expense
2014 
£000
2013 
£000
Current tax:
– overseas, current tax 21 16
Deferred tax:
– current year 415 821
– adjustment in respect of prior year (1) 53
– effect of change in corporation tax rate to 20% (2013: 23%) 16 82
Deferred tax 430 956
Tax charge for the year 451 972
Reconciliation of tax charge for the year
2014 
£000
2013 
£000
Profit on ordinary activities before tax 5,495 4,934
Tax on profit on ordinary activities at standard rate 23% (2013: 24%) 1,263 1,184
Non-deductible expenditure 48 39
Parent and overseas losses and temporary timing differences not recognised (497) (353)
Future deductions for LTIP payments (276) –
Adjustments in respect of prior years (1) 53
Effect of change in corporation tax rate to 20% (2013: 23%) (86) 49
Tax charge for year 451 972
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 
£6.3 million (2013: £9.1 million).
No overseas taxation is anticipated to become payable within the immediate future due to the availability of gross tax losses of approximately 
£1.9 million (2013: £1.9 million).
Legislation has now been substantively enacted to reduce the main corporation tax rate to 21 % from 1 April 2014 and to 20% from 1 April 2015.
The deferred tax balance at 31 January 2014 included within these financial statements has been calculated at a rate of 20%, being the rate enacted 
in the Finance Act (2013), as this is the rate at which the majority of the balances are expected to unwind.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
61
13. Earnings per share
Basic 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. The adjusted basic earnings per share is calculated by dividing the adjusted earnings by the weighted average number of shares. As a 
consequence of the improved profitability of the Group, PBT performance criteria within LTIPs 5, 6 and 7 are now being met and as a consequence 
these LTIP awards are now dilutive. 
2014 2013
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 earnings per share 5,044 58,466 8.63 3,962 57,501 6.89
Effect of dilutive securities
Shares under LTIP 3,476
Diluted earnings per share 5,044 61,942 8.14 3,962 57,501 6.89
Adjusted basic and diluted earnings per share:
Add back LTIP accounting charge 970 746
Add back net defined benefit pension accounting charge 868 704
Less deferred tax arising on LTIP (276)
Adjusted basic earnings per share 6,606 58,466 11.30 5,412 57,501 9.41
Adjusted diluted earnings per share 6,606 61,942 10.66 5,412 57,501 9.41
On 20 May 201 3, 1,003,305 shares vested under the Company’s long-term incentive plan and these were issued from the Walker Greenbank PLC Employee 
Benefit Trust. Following these transactions Walker Greenbank’s issued ordinary share capital with voting rights consists of 59,006, 162 (201 3: 59,006, 162) 
ordinary shares of which no (201 3: nil) ordinary shares are held in treasury and a further 240,61 1 (201 3: 1,243,916) ordinary shares are held by the Walker 
Greenbank PLC EBT with a cost of £49,427 (201 3: £255,528). 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 2014 was £392,196 (2013: £1,001,352). The total number of shares held in the EBT at the 
year end represented 0.4% (2013: 2.1 %) of the issued shares.
14. Intangible assets
Goodwill 
£000
Arthur 
Sanderson 
and William 
Morris Archive 
£000
Collection 
design 
£000
Software 
£000
Total 
£000
Cost
1 February 2012 1,400 4,300 1,457 5,341 12,498
Additions – – 287 593 880
Disposals – – – (4,409) (4,409)
31 January 2013 1,400 4,300 1,744 1,525 8,969
Additions – – 362 687 1,049
Disposals – – – – –
31 January 2014 1,400 4,300 2,106 2,212 10,018
Accumulated amortisation
1 February 2012 841 – 828 4,718 6,387
Charge – – 254 54 308
Disposals – – – (4,409) (4,409)
31 January 2013 841 – 1,082 363 2,286
Charge – – 261 182 443
Disposals – – – –
31 January 2014 841 – 1,343 545 2,729
Net book amount
31 January 2014 559 4,300 763 1,667 7,289
31 January 2013 559 4,300 662 1,162 6,683
31 January 2012 559 4,300 629 623 6,111
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 £443,000 (2013: £308,000) is included in administration expenses £398,000 (2013: £306,000) and distribution and 
selling costs £45,000 (2013: £2,000). Walker Greenbank PLC, Annual Report & Accounts 2014
62
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 (2013: £559,000) is attributable to the manufacturing segment. The carrying value of the 
Archive at the year end of £4,300,000 (2013: £4,300,000) 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 (2013: £nil).
In assessing whether an impairment of goodwill is required the carrying value of the cash-generating unit (‘CGU’) or group of CGUs is compared with 
its recoverable amount. The recoverable 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% (2013: 6.57%). The discount rate used is the same across all segments.
The Group has used formally approved budgets for the first two years (2013: 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% (2013: 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% (2013: 6.57%) 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 2014.
15. Property, plant and equipment
Land and 
buildings 
£000
Plant, 
equipment 
and vehicles 
£000
Computer 
hardware 
£000
Total 
£000
Cost:
1 February 2012 5,404 18,960 1,520 25,884
Additions 16 2,115 108 2,239
Disposals – (147) – (147)
Currency movements – 6 – 6
31 January 2013 5,420 20,934 1,628 27,982
Additions 14 3,664 26 3,704
Disposals – (547) – (547)
Currency movements – (34) – (34)
31 January 2014 5,434 24,017 1,654 31,105
Accumulated depreciation
1 February 2012 1,404 13,990 1,177 16,571
Charge 103 1,481 156 1,740
Disposals – (138) – (138)
Currency movements – 1 – 1
31 January 2013 1,507 15,334 1,333 18,174
Charge 93 1,546 135 1,774
Disposals – (512) – (512)
Currency movements – (21) – (21)
31 January 2014 1,600 16,347 1,468 19,415
Net book amount
31 January 2014 3,834 7,670 186 11,690
31 January 2013 3,913 5,600 295 9,808
31 January 2012 4,000 4,970 343 9,313
The total depreciation expense of £1,774,000 (2013: £1,740,000) is included in administration expenses £1,768,000 (2013: £1,736,000) and 
distribution and selling costs £6,000 (2013: £4,000).
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
63
15. Property, plant and equipment continued
The net book amount of land and buildings comprises: 
2014 
£000
2013 
£000
Freehold land 450 450
Freehold buildings 3,384 3,463
Net book amount 3,834 3,913
Land and buildings are stated at historical cost.
All of the Group’s banking facilities remain secured by a fixed and floating charge over the carrying value of assets (land and buildings) of £3,834,000 
(2013: £3,913,000).
16. Deferred income tax assets
A deferred tax asset of £2,163,000 (2013: £2,015,000) is recognised in respect of tax losses, future deductions for LTIP payments and other temporary 
differences.
2014 
£000
2013 
£000
Taxable temporary differences on property, plant and equipment (933) (875)
Taxable temporary differences on intangible assets (168) (175)
Other temporary differences 93 101
Temporary differences on LTIP payments 909 –
Unutilised tax losses 420 1,069
321 120
Retirement benefit obligations 1,842 1,895
2,163 2,015
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 £6.3 million (2013: £9.1 million) available for offset against future profits. A 
deferred tax asset of £0.4 million (2013: £1.0 million) is recognised in respect of £2.1 million (2013: £4.6 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.
The March 2013 UK Budget Announcement included further proposals to reduce the main rate of corporation tax to 21 % from 1 April 2014 and 20% 
from 1 April 2015. These changes were substantively enacted on 2 July 2013 and are therefore reflected in the deferred tax balances in these financial 
statements.
Potential deferred tax assets at 31 January 2014 of £856,000 (2013: £1,969,000) relating to UK and overseas 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 £4.2 million (2013: £4.5 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 £1,908,000 (2013: £1,968,000) 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 LTIP payment reserves.
2014 
£000
2013 
£000
Unutilised tax losses – UK 846 1,035
Unutilised tax losses – Overseas 663 683
Other deductible temporary differences – UK 10 251
1,519 1,969
There are also unutilised capital tax losses at 31 January 2014 of £2,485,000 (2013: £2,485,000) but no deferred tax asset has been recognised as it is 
not considered probable that these losses will be utilised. Walker Greenbank PLC, Annual Report & Accounts 2014
64
17. Inventories
2014 
£000
2013 
£000
Raw materials 1,982 1,909
Work in progress 1,825 1,283
Finished goods 14,621 13,633
18,428 16,825
The cost of inventories recognised as an expense and included in cost of sales amounted to £23,978,000 (2013: £24,159,000).
The value of inventories providing security under the Barclays Bank PLC facility, if it were to be fully drawn, was £4,697,000 (2013: £4,415,000). This 
facility was not utilised at either year end.
18. Trade and other receivables
Current
2014 
£000
2013 
£000
Trade receivables 9,891 9,589
Less: Provision for impairment of trade receivables (563) (535)
Net trade receivables 9,328 9,054
Other receivables 611 588
Marketing materials 2,247 1,515
Prepayments 1,698 1,653
13,884 12,810
The value of trade receivables providing funding under the Barclays facility was £7,704,000 (2013: £7,149,000).
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 receivables with a carrying value of £6,299,000 (2013: £5,675,000) 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 receivables with a carrying value of £3,305,000 (2013: £3,685,000) 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 receivable. The 
table below shows the aging analysis of the receivables:
2014 
£000
2013 
£000
1–30 days past due 2,111 2,287
31–60 days past due 1,023 1,066
61–90 days past due 169 276
91+ days past due 2 56
3,305 3,685
The Directors believe however, that in the current economic environment there is objective evidence of credit deterioration and an impairment of 
£289,000 (2013: £284,000) representing a collective assessment of risk against receivables 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 2014, trade receivables of £287,000 (2013: £292,000) were individually determined to be impaired and provided for. The amount of 
the provision was £274,000 (2013: £251,000). 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.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
65
18. Trade and other receivables continued
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies: 
2014 
£000
2013 
£000
Sterling 8,402 7,722
Dollars 31 91
Euros 1,427 1,678
Other 79 151
9,939 9,642
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:
2014 
£000
2013 
£000
United Kingdom 6,228 6,486
Continental Europe 1,774 1,627
United States of America 296 332
Rest of the World 1,030 609
9,328 9,054
Provisions for impairment
Movements on the Group provision for impairment of trade receivables are as follows:
2014 
£000
2013 
£000
At 1 February (535) (487)
Provision for receivables impaired (184) (177)
Receivables written off in the year as uncollectible 124 92
Unused amounts reversed 32 37
At 31 January (563) (535)
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
2014 
£000
2013 
£000
Forward foreign exchange contracts – cash flow hedges – asset 153 63
Swap contract – cash flow hedges – (liability) – (15)
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 February 2015, with a third party, to buy sterling and 
sell dollars. The Group has designated these contracts as cash flow hedges of the foreign currency risk arising from the highly probable future forecast 
sales transactions. As at the reporting date the fair value of the forward foreign contracts relating to the benefit on these anticipated future 
transactions is an asset of £153,000 (2013: 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 Eurozone than sales made to the Eurozone. As the Group’s presentation currency is sterling it is exposed to 
changes in the reported sterling value of the purchases. The Group considers that the level of this exposure will reduce over the next 12 months. As at 
the reporting date there were no euro forward foreign currency contracts. Walker Greenbank PLC, Annual Report & Accounts 2014
66
19. Derivative financial instruments continued
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 receivables, 
payables and cash held in foreign currency. These swap contracts are designated as Fair Value through the Income Statement.
The use of swaps are reviewed monthly and renewed when necessary.
The US dollar swap contract held at the Balance Sheet date was closed on 28 February 2014 and at the year end had a fair value liability of £Nil (2013: 
fair value liability of £15,000). The euro swap contract held at the Balance Sheet date was closed on 28 February 2014 and at the year end had a fair 
value asset of £Nil (2013: fair value asset of £600).
20. Cash and cash equivalents
2014 
£000
2013 
£000
Cash at bank and in hand 2,830 2,920
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.
Of the above balance, £666,000 ($900,000) was held as security under a letter of credit by Wells Fargo in relation to the New York showroom refit to 
the benefit of the party undertaking the building work.
21. Trade and other payables
2014 
£000
2013 
£000
Trade payables 11,881 10,174
Other taxes and social security 1,878 1,459
Other payables and deferred revenue 419 367
Accruals 4,857 4,925
19,035 16,925
22. Borrowings
2014 
£000
2013 
£000
Current:
Term loan 400 400
400 400
Non-current:
Term loan 995 1,388
Committed facility (53) (24)
942 1,364
Total borrowings 1,342 1,764
In January 2013, the Group agreed terms to renew the Receivables facilities from Barclays Bank PLC for a three-year period and to cancel the existing 
Inventory facility and replace it with a new £2.5 million Committed facility for a three-year period. 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, a Committed facility whose 
availability is determined by the level of finished goods held by the Brands and a Receivables Financing Agreement which provides three-year variable 
rate floating loans secured on the eligible trade receivables 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 (2013: £16.5 million); the utilisation of the facilities at the year end was £1,342,000 
(2013: £1,764,000). 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 the 
Bank of England (for sterling loans) or the European Central Bank (for euro loans). The Committed Facility bears interest at a variable rate based on a 
margin above the Bank of England base rate.
Under the Barclays Bank PLC facilities, the Group is subject to a financial covenant which applies to the term loan, being interest cover. The receivables 
financing agreement 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.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
67
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
2014  
£000
2013 
£000
2014 
£000
2013 
£000
Term loan 995 1,388 1,000 1,400
Committed facility (53) (24) – –
Trade receivables loan – – – –
942 1,364 1,000 1,400
The fair values are based on cash flows discounted using a weighted average rate based on the borrowing rate of 1.75% (2013: 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 2014
Less than  
1 year  
£000
Between  
1 to 2 years  
£000
Between  
2 to 5 years  
£000
Over  
5 years  
£000
Borrowings 400 821 211 –
Trade and other payables 17,158 – – –
17,558 821 211 –
31 January 2013
Less than  
1 year  
£000
Between  
1 to 2 years  
£000
Between  
2 to 5 years  
£000
Over  
5 years  
£000
Borrowings 400 821 636 –
Trade and other payables 15,466 – – –
15,866 821 636 –
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
2014 
£000
2013 
£000
Sterling 1,342 1,764
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 £454,000 (2013: £458,000). 
Active members of the schemes are also able to make contributions.
Defined benefit schemes
Walker Greenbank PLC operates two defined benefit schemes in the UK which both offer pensions in retirement and death benefits to members: the 
Walker Greenbank Pension Plan and the Abaris Holdings Limited Pension Scheme. Pension benefits are related to the members’ final salary at 
retirement and their length of service. The schemes are closed to new members and to future accrual of benefits. This disclosure excludes any defined 
contribution assets and liabilities.
The Group’s contributions to the schemes for the year beginning 1 February 2014 are expected to be £1,672,000.
Walker Greenbank PLC has adopted the amendments to IAS 19 published in June 2011. The disclosures shown below adopt this standard for the 
current period. The prior period has not been restated as the impact of the changes were not material.
Full actuarial valuations of the schemes were carried out as at 5 April 2012 and have been updated to 31 January 2014 by a qualified independent 
actuary. The major assumptions used by the actuary were (in nominal terms) as follows:
2014 2013
Discount rate 4.45% 4.50%
Inflation assumption (RPI) 3.30% 3.30%
Inflation assumption (CPI) 2.40% 2.40%
Rate of increase in salaries 3.30% 3.30%
Rate of increase to pensions in payment, that increase in line with RPI subject to a maximum of 5% p.a. 3.10% 3.10%
Rate of increase to pensions (in excess of GMP) in deferment 2.40% 2.40% Walker Greenbank PLC, Annual Report & Accounts 2014
68
23. Retirement benefit obligations continued
The mortality assumptions imply the expected future lifetime from age 65 as follows:
2014 2013
Non-pensioner male currently 45 23.7 23.5
Pensioner male currently 65 22.3 21.6
Non-pensioner female currently 45 26.3 26.3
Pensioner female currently 65 24.8 24.4
The fair value of the assets, which are not intended to be realised in the short term and may be subject to significant change before they are realised, 
and the present value of the schemes’ liabilities, which are derived from cash flow projections over long periods and thus inherently uncertain, were:
2014  
£000
2013  
£000
Equities, absolute return and property 22,117 25,009
Fixed interest gilts 1,637 1,626
Fixed interest bonds 5,387 3,739
Index-linked gilts 17,138 17,412
Insured annuities 1,227 1,249
Cash and other 1,629 220
Fair value of scheme assets 49,135 49,255
The actual return on assets over the period was a gain of £632,000 (2013: gain of £3,203,000).
Present value of funded obligations 58,343 57,493
Fair value of scheme assets 49,135 49,255
Surplus/(deficit) in funded scheme (9,208) (8,238)
Net liability in balance sheet 9,208 8,238
Reconciliation of opening and closing balances of the present value of the defined benefit obligation
2014 
£000
2013 
£000
Benefit obligation at beginning of year 57,493 54,433
Service cost – 455
Interest cost 2,545 2,439
Net re-measurement (gains)/losses – financial 547 2,303
Net re-measurement (gains)/losses – demographic (352) –
Net re-measurement (gains)/losses – experience – 733
Benefits paid (1,890) (2,870)
Benefit obligation at end of year 58,343 57,493
Reconciliation of opening and closing balances of the fair value of plan assets
2014 
£000
2013 
£000
Fair value of plan assets at beginning of year 49,255 47,338
Interest income on scheme assets 2,212 2,190
Return on assets, excluding interest income (1,580) 1,013
Contributions by employers 1,673 1,584
Benefits paid (1,890) (2,870)
Scheme administrative cost (535) –
Fair value of scheme assets at end of year 49,135 49,255
Re-measurements of the net defined benefit liability/(asset) to be shown in the Statement of Comprehensive Income: 
2014 
£000
2013 
£000
Net re-measurement – financial 547 2,303
Net re-measurement – demographic (352) –
Net re-measurement – experience – 733
Return on assets, excluding interest income 1,580 (1,055)
Total re-measurement of the net defined benefit liability 1,775 1,981
The impact of IAS 19 Revised on the 2013 return on assets, excluding interest income has been an increase in the gain from £1,013,000 to £1,055,000.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
69
23. Retirement benefit obligations continued
Sensitivity analysis
The table below shows the impact on the defined benefit obligation of changing each of the most significant assumptions in isolation. The figures 
in the table as at 31 January 2014 have been calculated using the same valuation method that was used to calculate the defined benefit 
obligation above. The figures in the table as at 31 January 2013 have been calculated by applying the same percentage increase or decrease as 
at 31 January 2014.
Impact on scheme liabilities 
2014
Impact on scheme liabilities 
2013
Change in assumption £m Increase Decrease Increase Decrease
Discount rate 0.25% movement (2.3) 2.5 (2.3) 2.4
Rate of inflation (RPI)* 0.25% movement 1.2 (1.2) 1.2 (1.2)
Rate of inflation (CPI)* 0.25% movement 0.5 (0.5) 0.5 (0.5)
Assumed life expectancy 1 year movement 1.8 (1.9) 1.8 (1.8)
Extrapolation of the sensitivity analysis beyond the ranges shown may not be appropriate.
* With corresponding changes to the salary and pension increase assumptions.
History of schemes’ assets, obligations and experience adjustments
2014 
£000
2013 
£000
2012 
£000
2011 
£000
2010 
£000
Present value of defined benefit obligation (58,343) (57,493) (54,433) (47,044) (46,530)
Fair value of scheme’s assets 49,135 49,255 47,338 40,302 38,587
Deficit in the schemes (9,208) (8,238) (7,095) (6,742) (7,943)
Experience adjustments arising on scheme liabilities (195) (3,036) (6,864) (1,559) (7,694)
Experience adjustments arising on scheme assets (1,580) 1,013 5,460 1,718 2,665
24. Financial instruments by category 
The accounting policies for financial instruments have been applied to the line items below:
31 January 2014
Loans and 
receivables 
£000
Assets at 
fair value 
£000
Derivatives 
used for 
hedging 
£000
Total 
£000
Assets as per Balance Sheet
Derivative financial instruments – – 153 153
Trade and other receivables 9,939 – – 9,939
Cash and cash equivalents 2,830 – – 2,830
Total 12,769 – 153 12,922
31 January 2014
Liabilities 
at fair value 
£000
Other 
financial 
liabilities 
£000
Derivatives 
used for 
hedging 
£000
Total 
£000
Liabilities as per Balance Sheet
Borrowings – 1,342 – 1,342
Trade and other payables – 17,157 – 17,157
Total – 18,499 – 18,499
31 January 2013
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 9,642 – – 9,642
Cash and cash equivalents 2,920 – – 2,920
Total 12,562 – 63 12,625 Walker Greenbank PLC, Annual Report & Accounts 2014
70
24. Financial instruments by category continued
31 January 2013
Liabilities 
at fair value 
£000
Other financial 
liabilities 
£000
Derivatives 
used for 
hedging 
£000
Total 
£000
Liabilities as per Balance Sheet
Derivative financial instruments – – 15 15
Borrowings – 1,764 – 1,764
Trade and other payables – 15,466 – 15,466
Total – 17,230 15 17,245
25. Share capital
Ordinary shares of 1p each:
Number  
of shares £
Authorised share capital:
1 February 2012, 31 January 2013 and 31 January 2014 85,000,000 850,000
Allotted and fully paid:
1 February 2012, 31 January 2013 and 31 January 2014 59,006,162 590,062
All holders of ordinary shares have the right to vote at general meetings of the Company and to distributions from dividends or on winding up of the 
Company.
On 20 May 2013, 1,003,305 shares vested under the Company’s long-term incentive plan and these were issued from the Walker Greenbank PLC 
Employee Benefit Trust.
Following this transaction Walker Greenbank’s issued ordinary share capital with voting rights consists of 59,006,162 (2013: 59,006,162) ordinary 
shares of which no (2013: nil) ordinary shares are held in treasury. 260,114 (2013: 1,243,916) ordinary shares are held by the Walker Greenbank PLC EBT 
with a cost of £49,427 (2013: £255,528).
The market value of shares held by the EBT at 31 January 2014 was £392,196 (2013: £1,000,352). The total number of shares held in the EBT at the 
year end represented 0.4% (2013: 2.1 %) of the issued shares.
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
The Group operates a long-term incentive plan. There have been seven awards under this plan, in which Executive Directors and senior management 
of the Group participate. The first award vested during 2009, the second vested during 2011, the third, fourth and fifth vesting in subsequent years. 
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 Five Award Six Award Seven Award Seven
Grant date of awards 19 May 2011 18 May 2012 16 May 2013 16 May 2013
Grant date fair value of award (pence 
per award) 25.22 36.76 77.73 107.14
Vesting date of awards 19 May 2014 18 May 2015 16 May 2016 16 May 2016
Maximum number of awards 1,864,663 1,500,842 514,915 514,915
Vesting condition based on TSR with PBT floor TSR with PBT floor TSR with PBT floor EPS growth
Relevant date for determination of 
vesting conditions
TSR as at 19 May 2014
PBT for year ending 
31 January 2014
TSR as at 18 May 2015
PBT for year ending 
31 January 2015
TSR as at 13 May 2016 
 PBT for year ending 
31 January 2016
EPS for year ending 
31 January 2016
Further details of vesting conditions are set out in the Directors’ Remuneration Report on pages 34 to 36.
Notes to the Consolidated Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
71
25. Share Capital continued
The fair value at grant date of Award Four was estimated based on the share price of the Group at grant date. Awards Five and Six include vesting 
conditions that are market based, and allowance for these are included within the fair value at grant date. Award Seven has half the award based on 
vesting conditions that are market based and half based on the growth in adjusted EPS. The weighted average fair value of options granted during the 
period (Award Seven) that related to market based vesting conditions was determined using the Monte-Carlo valuation model was 77.73p per option. 
The significant inputs into the model were weighted average share price of 111.5p at the grant date, exercise price shown above, dividend yield of 
1.33%, an expected option life of three years, and an annual risk-free interest rate of 0.41 %. 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. The fair value of the options 
granted based on vesting conditions of growth in EPS was determined using the Black-Scholes valuation model was 107.14p. See note 11 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:
2014  
Number
2013  
Number
At 1 February 5,467,505 6,116,663
Granted 1,029,831 1,500,842
Exercised (1,839,250) (1,881,250)
Lapsed (287,750) (268,750)
At 31 January 4,370,336 5,467,505
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 2014 and 2013 43,457
27. Dividends
During the year, the Group has paid a final dividend for the year to 31 January 2013 of 1.25p and an interim dividend of 0.28p for the year to 
31 January 2014 (2013: 0.23p).
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 1.57p per share (2013: 1.25p per share) which will be payable on 8 August 2014 to 
shareholders on the register at 18 July 2014. This brings the total dividend for the year to 1.85p (2013: 1.48p) giving a cost of £923,000 (2013: 
£855,000). This brings the total dividend for the year to 1.85p (2013: 1.48p).
28. Cash generated from operations 
2014 
£000 
2014 
£000 
2013 
£000
2013 
£000 
Profit before tax: 5,495 4,934
Defined benefit pension charge 868 704
Net borrowing costs 180 193
Depreciation 1,774 1,740
Amortisation 443 308
Loss on disposal of fixed assets 15 –
Charge for long-term incentive plan recognised in equity 467 430
Long-term incentive plan vesting (936) (640)
Unrealised foreign exchange losses included in operating profit 114 18
Defined benefit pension cash contributions (1,673) (1,584)
Changes in working capital
(Increase)/decrease in inventories (1,603) 175
(Increase)/decrease in trade and other receivables (1,074) 172
Increase/(decrease) in trade and other payables 2,095 (427)
670 1,089
Cash generated from operations 6,165 6,023 Walker Greenbank PLC, Annual Report & Accounts 2014
72
Notes to the Consolidated Financial Statements continued
29. Analysis of net funds
1 February 
2013 
£000
Cash flow 
£000
Current 
portion of 
term facilities 
£000
Other non-
cash changes 
£000
31 January 
2014 
£000
Cash and cash equivalent 2,920 (90) – – 2,830
Borrowings due within one year (400) 400 (400) – (400)
Borrowings due after one year (1,364) 44 400 (22) (942)
(1,764) 444 – (22) (1,342)
Net (debt)/funds 1,156 354 – (22) 1,488
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:
2014 
£000
2013 
£000
Property, plant and equipment 700 1,797
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 5 years. Other leases are negotiated for an average term of 3 years and rentals are fixed for an 
average of 3 years.
Total commitments due under non-cancellable operating leases are as follows: 
Land and 
buildings 
2014 
£000
Other 
2014 
£000
Land and 
buildings 
2013 
£000
Other 
2013
£000
Within one year 1,490 318 1,450 364
Between one and five years 5,942 364 3,858 413
Over five years 7,213 – 5,635 –
14,645 682 10,943 777
Other leases include hire of plant, machinery and motor vehicles.
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 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 including all subsidiaries are design, manufacture, marketing and distribution of wallcoverings, furnishing fabrics 
and associated products for the consumer market. Walker Greenbank PLC, Annual Report & Accounts 2014
73
Independent Auditors’ Report to the Members  
of Walker Greenbank PLC
Report on the parent company financial statements
Our opinion
In our opinion the financial statements, defined below:
• give a true and fair view of the state of the parent company’s affairs 
as at 31 January 2014;
• 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.
This opinion is to be read in the context of what we say in the remainder 
of this report.
What we have audited
The parent company financial statements (the “financial statements”), 
which are prepared by Walker Greenbank plc, comprise:
• Company balance sheet as at 31 January 2014; and
• the notes to the financial statements, which include a summary of 
significant accounting policies and other explanatory information.
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).
In applying the financial reporting framework, the directors have made a 
number of subjective judgements, for example in respect of significant 
accounting estimates. In making such estimates, they have made 
assumptions and considered future events.
What an audit of financial statements involves
We conducted our audit in accordance with International Standards on 
Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). 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 and Accounts (the “Annual Report”) to identify material 
inconsistencies with the audited financial statements and to identify any 
information that is apparently materially incorrect based on, or materially 
inconsistent with, the knowledge acquired by us in the course of performing 
the audit. If we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the 
Report of the Directors for the financial year for which the financial 
statements are prepared is consistent with the financial statements.
Other matters on which we are required to report by exception
Adequacy of accounting records and information and explanations 
received
Under the Companies Act 2006 we are required to report to you if,  
in our opinion:
• we have not received all the information and explanations we require 
for our audit; or
• 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 financial statements are not in agreement with the accounting 
records and returns.
We have no exceptions to report arising from this responsibility.
Directors’ remuneration
Under the Companies Act 2006 we are required to report to you if, in our 
opinion, certain disclosures of directors’ remuneration specified by law 
are not made. We have no exceptions to report arising from this 
responsibility. 
Responsibilities for the financial statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Statement of Directors’ Responsibilities  
set out on page 33, 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 ISAs (UK & 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.
Other matter
We have reported separately on the group financial statements of 
Walker Greenbank PLC for the year ended 31 January 2014.
Owen Mackney (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Birmingham
6 May 2014 Walker Greenbank PLC, Annual Report & Accounts 2014
74
Company Balance Sheet
At 31 January 2014
Note
2014  
£000
2013  
£000
Fixed assets
Tangible assets 4 23 34
Investments 5 44,061 43,888
44,084 43,922
Current assets and liabilities
Debtors 6 13,771 11,774
Cash at bank and in hand – 247
13,771 12,021
Creditors: amounts falling due within one year 8 (6,318) (5,438)
Net current assets 7,453 6,583
Total assets less current liabilities 51,537 50,505
Creditors: amounts falling due after more than one year 9 (942) (1,364)
Net assets 50,595 49,141
Capital and reserves
Called up Share capital 11 590 590
Share premium account 12 457 457
Profit and loss account 12 7,660 6,206
Capital reserves 12 41,888 41,888
Total shareholders’ funds 50,595 49,141
The financial statements on pages 74 to 81 were approved by the Board of Directors on 6 May 2014 and were signed on its behalf by:
John Sach  Mike Gant 
Director   Director
Registered Number: 61880  Walker Greenbank PLC, Annual Report & Accounts 2014
75
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 £2,188,000 (2013: £1,055,000) 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 these 
Financial Statements and are prepared in accordance with IFRS. 
Tangible fixed assets
Tangible fixed assets are stated at historic cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs 
attributable to bringing the asset to its working condition for its intended use. Depreciation is charged on tangible fixed assets on a straight-line basis 
on the original cost after deduction of any estimated residual value. The principal annual rates are:
Plant, equipment and vehicles  Between 5% and 33%
Computer assets   Between 12.5% and 33% 
Investments
Investments in subsidiary undertakings are recorded at cost plus incidental expenses less any provision for impairment. Impairment reviews are 
performed by the directors when there has been an indication of potential impairment.
Impairment of tangible fixed assets and investments
Tangible fixed assets and investments are subject to review for impairment in accordance with FRS 11. Where impairment triggers are identified the 
recoverable amount of the relevant asset, or group of assets within a cash 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 account 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 has not elected to voluntarily apply fair value 
measurements of financial instruments, including derivative financial instruments. 
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. 
Transactions in foreign currencies are recorded at the rates ruling at the date of transaction. All 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. 
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.  Walker Greenbank PLC, Annual Report & Accounts 2014
76
1. Accounting policies continued
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 with a corresponding credit to equity. 
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. 
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. Dividend distribution is set by the Board on a regular basis so long as sufficient funds are available.
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. The EBT is treated as 
an agent of the Company and as such EBT transactions are treated as being those of the Company. 
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 capitalised at the leases commencement, at the lower of fair value of the leased assets and the present value 
of the minimum lease payments. 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 on the basis that it is consolidated into a 
group which produces a consolidated cash flow statement and whose accounts are publicly available.
For details of other related party transactions see note 16.
Notes to the Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
77
2. Auditors’ remuneration 
2014  
£000
2013  
£000
Audit fee – fees payable to the Company auditor for the audit of the parent Company  
and the consolidation of the Group financial statements 55 53
3. Emoluments of Directors
Salary  
£000
Bonus  
£000
LTIP  
£000
Benefits  
£000
Sub-total 
Aggregate 
emoluments 
£000
Pension  
£000
2014  
Total  
£000
2013  
Total  
£000
Executive Directors:
John Sach 245 194 666 1 1,106 37 1,143 913
David Smallridge 176 133 485 1 795 26 821 687
Alan Dix 144 58 286 1 489 14 503 386
Non-executive Directors:
Terry Stannard 66 – – – 66 – 66 64
Fiona Goldsmith 30 – – – 30 – 30 28
661 385 1,437 3 2,486 77 2,563 2,078
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 £13,153 (2013: £12,708). 
Benefits are accruing under defined contribution schemes for three Directors (2013: three Directors).
Further information on the remuneration of the Directors is included in the Directors’ Remuneration Report which is included on pages 34 to 36  
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 2013 90 29 119
Additions – 2 2
31 January 2014 90 31 121
Depreciation
31 January 2013 62 23 85
Charge 11 2 12
31 January 2014 73 25 97
Net book amount
31 January 2014 17 6 23
31 January 2013 28 6 34
5. Investments
Shares in subsidiary undertakings
2014  
£000
2013  
£000
Cost:
As at 1 February 2013 44,926 44,800
Additions 173 126
As at 31 January 2014 45,099 44,926
Provision for impairment:
Beginning of year and end of year (1,038) (1,038)
Net book amount at 31 January 2014 and 2013 44,061 43,888
Additions in both years relate to the application of the Company’s accounting policy on share based payments under FRS 20. Walker Greenbank PLC, Annual Report & Accounts 2014
78
5. Investments continued
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 SARL* – incorporated in France
A* indicates that the shares are held by a subsidiary company.
Investments in group companies are Ordinary shares.
The principal activities of the Group and its subsidiaries 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% (2013: 6.57%) on a pre tax basis, and is not intended to reflect a 
realisable value on disposal. The directors believe that the value of the investment is supported by their underlying net assets.
A full list of subsidiaries will be included with the next Annual Return of the Company.
6. Debtors
2014  
£000
2013  
£000
Amounts owed by subsidiary undertakings 12,605 11,533
Other debtors 1,166 241
13,771 11,774
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 twelve months is unlikely to be sought.
7. Disclosure of fair value of derivative financial instruments
2014  
£000
2013  
£000
Forward foreign exchange contracts – cash flow hedges – asset/(liability) 153 63
Swap contract – cash flow hedges – (liability)/asset – (15)
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 twelve months. 
During the year the Company has entered into monthly forward foreign exchange contracts up to February 2015, with a third party, to buy sterling and 
sell dollars. The Group has designated these contracts as cash flow hedges of the foreign currency risk arising from the highly probable future forecast 
sales transactions. As at the reporting date the fair value of the forward foreign contracts relating to the benefit on these anticipated future 
transactions is an asset of £153,000 (2013: asset of £63,000). 
The amounts deferred in equity will be released into the Profit and loss account in the period or periods during which the hedged forecast transactions 
impact the Profit and loss account, which is expected to be within fifteen months of the Balance Sheet date.
The Brands make more purchases from the Eurozone than sales made to the Eurozone. As the Group’s presentation currency is sterling it is exposed to 
changes in the reported sterling value of the purchases. The Group considers that the level of this exposure will reduce over the next 12 months. As at 
the reporting date there were no euro forward foreign 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 Profit and Loss account.
The use of swaps are reviewed monthly and renewed when necessary.
The US dollar swap contract held at the Balance Sheet date was closed on 22 February 2014 and at the year end had a liability of £Nil (2013: liability 
of £15,000). The Euro swap contract held at the Balance Sheet date was closed on 22 February 2014 and at the year end had an asset of £Nil (2013: 
asset of £600).
Notes to the Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
79
8. Creditors: due within one year
2014  
£000
2013  
£000
Bank term loans (note 9) 400 400
Bank overdrafts 792 –
Trade creditors 187 169
Amounts owed to subsidiary undertakings 4,410 4,410
Other taxes and social security (47) (267)
Other creditors 68 48
Accruals 508 678
6,318 5,438
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 twelve months is unlikely to be sought. 
9. Creditors: due after more than one year
2014  
£000
2013  
£000
Bank term loan 942 1,364
Interest is charged at 1.25% (2013: 1.25%) over base rate.
Repayment of total borrowings
2014  
£000
2013  
£000
Over five years – –
Between two and five years 542 964
Between one and two years 400 400
After more than one year 942 1,364
Within one year (note 8) 400 400
1,342 1,764
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 ten year profile. The Company arranged a new £2.5 million Committed facility on 15 January 2013 for a period of three 
years. This facility replaced the Inventory facility that was in place at the end of the previous year. The availability of the facility is dependent upon the 
level of Brand finished goods. 
Under the Barclays Bank PLC facilities, the Group is subject to a financial covenant which applies to the term loan, interest cover.
Any non-compliance with the covenant 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. 
10. Deferred taxation
Potential deferred tax assets at 31 January 2014 of £857,000 (2013: £1,285,000) relating to tax losses and deductible temporary differences have not 
been recognised as it is not considered probable that recovery will arise.
2014  
£000
2013  
£000
Tax losses 846 1,035
Other timing differences 11 250
857 1,285
There are also unutilised capital tax losses of £4,885,000 (2013: £4,885,000) but no deferred tax asset has been recognised as it is not considered 
probable that these losses will be utilised. Walker Greenbank PLC, Annual Report & Accounts 2014
80
11. Share capital
Ordinary shares of 1p each: Number of shares £
Authorised share capital:
1 February 2013 and 31 January 2014 85,000,000 850,000
Allotted and fully paid:
1 February 2013 and 31 January 2014 59,006,162 590,062
On 20 May 2013, 1,003,305 shares vested under the Company’s Long-Term Incentive Plan and these were issued from the Walker Greenbank PLC 
Employee Benefit Trust.
Following this transaction Walker Greenbank’s issued ordinary share capital with voting rights consists of 59,006,162 (2013: 59,006,162) ordinary 
shares of which no (2013: nil) ordinary shares are held in treasury. 260,114 (2013: 1,243,916) ordinary shares are held by the Walker Greenbank PLC EBT 
with a cost of £49,427 (2013: £255,364). 
The market value of shares held by the EBT at 31 January 2014 was £392,196 (2013: £1,001,707).
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 seven 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 2012 590 457 6,208 41,888 49,143
Reserve for long term incentive plans – – (346) – (346)
Profit for the year – – 1,055 – 1,055
Dividends paid – – (711) – (711)
31 January 2013 590 457 6,206 41,888 49,141
Reserve for long term incentive plans – – 166 – 166
Profit for the year – – 2,188 – 2,188
Dividends paid – – (900) – (900)
31 January 2014 590 467 7,660 41,888 50,595
Capital reserve represents: £000
Capital redemption reserve arising on capital reconstructions 41,888
13. Operating lease commitments
Annual commitments due under non-cancellable operating leases are as follows:
Land and 
Buildings  
2014  
£000
Other  
2014  
£000
Land and 
Buildings  
2013  
£000
Other  
2013  
£000
Operating leases which expire:
Within one year – – – –
Between one and five years 61 – 87 –
Over five years 420 – 420 –
481 – 507 –
Notes to the Financial Statements continued Walker Greenbank PLC, Annual Report & Accounts 2014
81
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 1.57p per share (2013: 1.25p per share), a total of £922,000 (2013: £722,000).  
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 £89,000 for the year ended 31 January 2014 
(2013: £111,000). Walker Greenbank PLC, Annual Report & Accounts 2014
82
Five Year Record
2010  
£000
2011  
£000
2012  
£000
2013  
£000
2014  
£000
Revenue 60,378 68,778 74,014 75,725 78,434
Overseas revenue by location of customer 20,409 22,456 25,441 27,192 28,244
Profit from operations 2,415 4,972 5,555 5,831 6,543
Profit from operations before exceptional items and discontinued operations 2,522 4,472 5,555 5,831 6,543
EBITDA 4,308 6,210 7,001 7,175 8,903
Profit before income tax 1,552 4,462 4,894 4,934 5,495
Capital expenditure 1,067 2,636 2,538 3,119 4,735
Earnings per ordinary share 2.10p 5.36p 6.76p 6.89p 8.63
Average number of employees 529 550 582 587 592
Dividends paid in year – 368 570 711 900
Shareholders’ funds 18,770 21,393 23,052 24,182 26,852
Dividend per share
– Final (prior year end) – paid – 0.50p 0.80p 1.00p 1.25p
– Interim (current year end) – paid – 0.15p 0.20p 0.23p 0.28p
– Final (current year end) – proposed – – – – 1.57p
EBITDA is based on profit from operations before exceptional items. Walker Greenbank PLC, Annual Report & Accounts 2014
83
Shareholder Information
Financial Calendar
Annual General Meeting 16 July 2014
Announcement of half-year results October 2014
Walker Greenbank PLC
Chalfont House
Oxford Road
Denham
UB9 4DX
T: 0845 126 5582
F: 0845 126 5583 
www.walkergreenbank.com Walker Greenbank PLC, Annual Report & Accounts 2014
84
Notes Corporate Advisers
Stockbroker and Nomad
Investec Bank Plc
2 Gresham Street
London EC2V 7QP
Independent Auditors
Chartered Accountants and Statutory Auditors
PricewaterhouseCoopers LLP
Cornwall Court
19 Cornwall Street
Birmingham B3 2DT
Tax Advisers
BDO 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
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Bankers
Barclays Commercial Bank
Ashton House
497 Silbury Boulevard
Milton Keynes MK9 2LD W alker Greenbank PLC
www.walkergreenbank.com
W alker Greenbank PLC
www.walkergreenbank.com
Chalfont House 
Oxford Road 
Denham UB9 4DX
United Kingdom
T el: 0845 126 5582
Fax: 0845 126 5583
Walker Greenbank PLC Annual Report & Accounts 2014