Walker Greenbank PLC
Chalfont House
Oxford Road
Denham 
UB9 4DX
T: 08708 300 365
F: 08708 300 364
www.walkergreenbank.com
2007 
Walker Greenbank PLC
Annual Report and Accounts
Walker Greenbank PLC  Annual Report and Accounts 2007 Walker Greenbank PLC is a designer, 
manufacturer and distributor of furnishing 
fabrics and wallpaper, whose international  
brands include Sanderson, Morris & Co.,  
Harlequin and Zoffany. 
FRONT COVER: Extravagance Wallpaper 
Collection by Harlequin, Design Divine.
BACK COVER: Pemberley Collection by 
Sanderson, Design Pillemont Toile.
01 Highlights
02 Strong growth
 – Harlequin
04 Continued investment
 – Sanderson and Morris & Co.
06 Focus on core values
 – Zoffany
08 Concept to creation
10 Chairman’s Statement
12 Chief Executive’s Review
14 Financial Review
16 Directors and Advisers
17 Report of the Directors
19  Statement of Directors’ 
Responsibilities
20 Independent Auditors’ Report
21 Group Profit and Loss Account
22 Balance Sheets
23 Group Cash Flow Statement
24   Statement of Total Recognised  
Gains and Losses
24  Reconciliation of Movements  
in Shareholders’ Funds
25 Notes to the Accounts
42 Five-Year Record
See page 4 See page 4 See page 6
See page 8 See page 8
See page 2
Harlequin
Harlequin has built a reputation  
as one of the leading brands 
in the home furnishings market 
offering quality contemporary 
fabrics and wallcoverings.
Sanderson
Sanderson is internationally 
recognised as a leading global  
brand in interior design  
and decorating.
Morris & Co.
The Morris & Co. business has  
a heritage that dates back to the  
mid 19th Century when it was 
founded by William Morris,  
the acclaimed designer.
Zoffany
Zoffany offers a range of products  
of the highest quality including 
wallpaper, fabrics, trimmings,  
carpets, paint and furniture.
Walker Greenbank
Our Brands
Overseas Distribution Sites
Our UK Manufacturing Sites
Anstey 
Wallpaper
Standfast & Barracks
Printed fabrics
France USA Italy WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 Operating proﬁt
£2,201,000
2007
2006
190%
Previous year
£758,000
Pension deﬁcit
£3,821,000
2007
2006
-52%
Previous year
£7,981,000
Sales growth
£53,327,000
2007
2006
15%
Previous year
£46,361,000
Highlights
+
190
%
Operating profit from  
continuing operations
£2,201,000
–
52
%
Pension deficit reduced
£3,821,000
+
15
%
Increase in sales from 
continuing operations
£53,327,000
 A further year of excellent progress with continued 
strong organic growth 
 Turnover from continuing operations up 15% to  
£53.33 million (2006: £46.36 million) 
 Operating profit from continuing operations up nearly 
three-fold to £2.20 million (2006: £0.76 million)
 Earnings per share of 4.49p (2006: 4.51p) with 
underlying earnings per share from continuing 
operations of 2.23p (2006: loss per share 0.77p)
 Pension deficit further reduced to £3.82 million  
(2006: £7.98 million) which now represents only  
30% of shareholders’ funds (2006: 93%)
Gearing reduced to 67% (2006: 109%) 
 Shareholders’ funds increased by 49% to  
£12.85 million (2006: £8.60 million)
 Current financial year has started strongly as  
organic growth continues and trading is ahead  
of internal projections
•
•
•
•
•
•
•
• WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 Strong growth
The Harlequin brand has continued its strong growth, 
marking the second consecutive year of substantial growth.
Harlequin
Overview 
Harlequin has built a reputation as one of the leading 
companies in the home furnishings market offering quality 
contemporary fabrics and wallcoverings. 
It has had great success with its recent collections such as 
‘Lagoon’, ‘Indulgence’ and ‘Mahina’. Harlequin continues to 
develop a broad range of collections from different design 
sources and is firmly established as a fashion leader in the 
home furnishings market.
Overall sales growth 42%.
Margins improved.
Three-fold increase in profits.
Expansion in product launches.
Sales to USA doubled.
•
•
•
•
•
Highlights
+
40
%
Increase in sales in the UK
+
45
%
Increase in export sales WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 www.harlequin.uk.com
TOP LEFT: Far Far Away Collection. 
TOP RIGHT: Fortuna Collection, 
Design Adonica.
RIGHT: Fortuna Collection.
LEFT: Far Far Away Collection, 
Design Twinkle Toes. WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 Increasing momentum in sales growth in all  
product categories.
 Growth is broad based in all product categories and  
in all major markets.
 Investment in product development and  
marketing continues.
•
•
•
Overview 
Sanderson is internationally recognised as a leading global 
brand in interior design and decorating.
The Morris & Co. business has a heritage that dates back 
to the mid 19th century when it was founded by William 
Morris, the acclaimed designer.
Sanderson and Morris & Co.
Continued investment
Following increased investment in product over the past two years, we are 
now experiencing increasing momentum in Sanderson’s sales growth.
+
13
%
Increase in sales
+  7
  %
Growth in licensing 
contribution
Highlights WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 www.sanderson-uk.com
FAR LEFT: Pemberley Collection, 
Design Limoge.
TOP RIGHT: Morris Volume  
IV Collection.
BOTTOM LEFT: Pemberley 
Collection, Design Pillemont Toile.
BOTTOM RIGHT: Pemberley 
Collection, Design Madagascar. WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 Zoffany
Focus on core values
The efforts of the Group to focus Zoffany back to its traditional 
design values to re-establish it as one of the UK’s leading 
premium end brands are taking effect.
Overview 
Zoffany offers a range of products of the highest quality 
including wallpaper, fabrics, trimmings, carpets, paint  
and furniture. 
The designs are inspired by the rich traditions of the past, 
but look equally at home in contemporary interiors. 
Zoffany is also able to offer a bespoke custom design 
service on many of its products, collaborating with the 
designer and architect.
 Decline in sales arrested with sales growth in the  
second half of the year for the first time in four years. 
Overall sales for the year slightly up on last year.
Export sales up 13%.
Increased marketing expenditure.
•
•
•
• WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0
www.zoffany.com
TOP LEFT: Nureyer Collection.
BOTTOM LEFT: Nureyer Collection.
BOTTOM RIGHT: Elementi 
Collection, Design Fiamma.
BOTTOM MIDDLE: Elementi 
Collection, Design Gaia.
BOTTOM LEFT: Nureyer Collection. WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 Niche manufacturing for premium brands
Anstey 
Anstey Wallpaper Company is the world’s leading 
specialist commission printer of high end wall coverings, 
offering a comprehensive range of paper and vinyl 
substrates and a diverse choice of different hand and 
machine printing techniques including block, flat screen, 
rotary screen, surface print, flexo and gravure.
With our technical expertise, we work closely with 
customers on the innovation and development of  
new products and special effects for the wallcoverings 
market, ensuring that we maintain exacting product 
quality standards that are demanded at this premium  
end of the market.
Concept to creation
Anstey, our wallpaper factory, and Standfast, our fabric printing factory, are 
both UK market leaders in their niche manufacturing processes and meet all 
of the Group’s requirements for fabric -printing and wallpaper.
Standfast
Standfast & Barracks is now the UK’s largest fabric printer, 
specialising in high quality rotary and flat screen printing,  
using a wide variety of different dyestuffs and fabrics,  
including cotton, linen, silk, wool and velvet. 
Design projects can be in many formats, and it is with  
this in mind that the skills, knowledge and experience  
of the Studio artists have developed. Not only a colour 
separation studio, the artists have the ability to develop 
projects from design ideas through to print-ready artwork.
The combination of traditional hand separation 
techniques and the latest computer technology enables 
the studio to construct repeating designs from original 
artwork, produce fine tonal sketches, develop texture 
ideas and produce flat colour separations with speed, 
accuracy and efficiency.
+
16
%
Overall sales growth
+
23
%
External 3rd party  
sales growth
 Interior design trend now moving strongly towards 
wallpaper in this sector of the market.
Improved factory efficiencies.
•
•
Highlights
+
19
%
Overall sales growth
+
14
%
External 3rd party  
sales growth
 Significant investment in capital equipment and 
maintenance to help mitigate impact of increases  
in energy costs.
Increased factory efficiencies.
•
•
Highlights WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 0 FAR LEFT: Extravagance Collection 
by Harlequin, Exuberance Design.
LEFT: Indulgence Collection by 
Harlequin, Enchant Design. WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007  0
Overview
In last year’s Annual Report I began by describing 
the year to January 2006 as a landmark year in 
that we reported a full year operating profit for 
the first time since 2000, reflecting the success  
of our strategy of restoring the Group to 
profitability and of the strengthening trend in 
interior design towards the use of colour and 
pattern in wallpaper and fabrics. I am now very 
pleased to report another year of excellent 
progress in which our recovery has allowed us to 
enter a sustained growth phase. The momentum 
in our business is highlighted by a near three-fold 
increase in operating profits from continuing 
operations before exceptional items of £2,201,000 
in the year to 31 January 2007, compared with 
£758,000 in 2006.
Our financial year concluded with a significantly 
strengthened balance sheet, which benefited 
from a cash inflow from operating activities of 
£2,995,000 (2006: £1,643,000), a substantially 
reduced pension deficit and reduced debt. 
Our brands
Harlequin, Sanderson, Morris & Co. and Zoffany 
have made significant progress during the year. 
Harlequin, our mid-market brand, has delivered 
substantial year on year sales growth. The brand 
has gained market share from its competitors and 
more than doubled its operating profits for the 
second consecutive year, reflecting continued 
investment in new designs and a widening of  
the brand’s distribution. Growth in revenue at 
Sanderson is accelerating, following the significant 
investment in product and an increase in 
marketing this year. Our strategy of focusing the 
Zoffany brand on its core and traditional design 
Chairman’s Statement 
I am now very pleased to report another year of excellent progress in which 
the recovery has been sustained, allowing us to enter a growth phase.
values is re-establishing the business as a leading 
brand at the premium end of the market. This  
has led to Zoffany’s first increase in sales after  
a number of years of under performance. As 
reported at the interim stage, results from  
our business in the United States have been 
disappointing, with underlying sales growing 
more slowly than anticipated. This led to a 
strengthening of the management team and  
we are confident of making progress in this 
important market.
Anstey, our wallpaper factory, and Standfast, our 
fabric printing factory, have made significant 
progress in the year. The strong return to 
popularity of wallpaper at the premium end of 
the market is now building in the mid-market and 
has helped Anstey deliver significant growth in 
both revenue and profits. Standfast continues  
to win market share and it has also achieved 
significant growth in both revenue and profits.
Financials
Turnover increased 10% to £53,327,000 from 
£48,392,000 and 15% from continuing operations. 
The operating profit from continuing operations 
increased nearly three-fold to £2,201,000 (2006: 
£758,000). The operating profit for the year was 
£3,477,000 (2006: £5,018,000). Both 2007 and 
2006 include the exceptional beneficial effect  
of the pension deficit reduction exercise. 
The profit before tax was £2,594,000 (2006: 
£2,625,000). The results include the exceptional 
profit from the pension deficit reduction exercise 
in 2007 of £1,276,000 (2006: £4,076,000) and the 
exceptional loss on the sale of Borge Holdings AS 
in 2006 of £1,281,000. The earnings per share for 
the year were 4.49p (2006: 4.51p).
Following the Group’s return to profitability and 
the successful outcome of the pension deficit 
reduction exercise, shareholders’ funds have 
increased 49% to £12,847,000 (2006: £8,597,000). 
The pension deficit has reduced to represent 30% 
of shareholders’ funds at the year end, compared 
with 93% a year ago. The pension deficit 
reduction exercise has been extremely successful 
with the pension deficit reducing directly by 
£1,562,000 in 2007 and £5,634,000 in 2006. As  
a direct result of the reduction in the pension 
deficit the profit and loss has benefited in 2007 
with other finance income of £81,000 compared 
with a finance charge of £174,000 in the prior year.
The Group’s net indebtedness finished the  
year at £8,604,000 (2006: £9,357,000). The cash 
inflow from operating activities was £2,995,000 
(2006: £1,643,000) after payments to pensioners 
and settlement of liabilities of £894,000  
(2006: £950,000) associated with the pension 
deficit reduction exercise.
Dividend
The Directors do not recommend the payment 
of a dividend, but remain conscious of returning 
to the dividend list as soon as is prudent.
People
I would like to thank all of our employees who 
have demonstrated tremendous commitment 
and enthusiasm and have been an important 
ingredient in delivering the excellent progress  
of the Group in the past year.
Outlook
Having established the Group as a profitable and 
cash generative business we now have a solid 
platform from which to take advantage of the  WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007  opportunities that exist within a market that is 
benefiting from a major shift in interior fashion 
trends. Our brands, supported by our niche 
manufacturing, are well placed to exploit the 
move away from minimalism towards colour  
and design. Harlequin’s success in the past year 
underlines the growing strength of this trend and 
the organic growth opportunities that exist for 
the Group going forward.
With two months of our financial year now 
complete, we are trading ahead of our internal 
projections. The Board views the outcome for  
the current year with increasing confidence.
Ian Kirkham
Non-executive Chairman
16 April 2007
TOP: Maia Collection by Sanderson, 
Naomi Design.
BOTTOM LEFT: Maia Collection, 
Embroided Silk Design. 
BOTTOM RIGHT: Mimosa Collection  
by Harlequin. WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007  The year to January 2007 was a period of excellent 
progress in which we have consolidated the 
recovery of the Group and created a platform  
for future growth. Much work has been done  
to strengthen our financial position and this  
will allow us to take advantage of the 
opportunities ahead.
Strategy
Our strategy is to deliver earnings growth  
and to maximise the return to shareholders.  
We are driving our brands’ organic growth, 
expanding our contracts division, exploiting 
manufacturing opportunities and negotiating 
further licensing arrangements. 
There is significant organic growth potential in 
our brands: with Harlequin, we are expanding  
the product offer and aiming to achieve greater 
presence in overseas markets, specifically the 
North American market where the brand to date 
has had limited exposure; with Sanderson and 
Morris & Co., we are exploiting the strength of 
the brands’ global recognition through continued 
product investment and licensing arrangements; 
and with Zoffany, we will continue with the 
progress already made in restoring the business to 
its deserved pre-eminent position as a premium 
brand through enhanced focus on Zoffany’s core 
and traditional design values.
We are driving the expansion of our contracts 
division, with increased investment in contract-
specific product, supported by the strength of the 
brand names and our manufacturing capability.
We will evaluate acquisition opportunities in  
our highly fragmented market. However, any 
acquisition would have to fit with the current 
brand portfolio and provide synergistic and 
earnings enhancing opportunities.
Chief Executive’s Review
The year to 31 January 2007 was a period of excellent progress 
in which we have consolidated the recovery of the Group and 
created a platform for future growth.
The Brands
Harlequin
The Harlequin brand has continued the 
impressive sales growth seen in the first half of 
the year, achieving a year-on-year increase of 42% 
and marking the second consecutive year of 
substantial growth. Growth in 2007 was across  
all product categories – wallpaper, printed fabric 
and woven fabric – and across all markets, with 
export sales up strongly at 45% and the UK up 
40%. This performance further strengthens 
Harlequin’s position as the leading mid-market 
contemporary brand in the UK. Harlequin 
continues to expand its product launches and  
all of its recent collections have performed 
extremely well. Two of the Harlequin wallpaper 
collections now have annualised sales in excess  
of £1 million. Sales to the USA have doubled 
following the successful re-launch into certain 
states last year, expanding our presence to  
15 states in total.
The continued investment in design capability 
has delivered excellent product, which supported 
by strong marketing, sampling and patterning has 
fuelled the 42% sales growth. Coupled with 
improved margins, this has led to an almost 
three-fold increase in profits compared with  
the same period last year.
Zoffany
The process, begun in 2005, of re-enforcing 
Zoffany’s position as one of the UK’s leading 
premium brands is taking effect. Having brought 
an intense focus to its core and traditional design 
values we have seen sales growth in the second 
half of the year for the first time in four years. 
Overall sales for the year are slightly up on the 
same period last year with UK underlying sales  
in line with last year following an adjustment  
for a large contract order to the Intercontinental 
London Park Lane Hotel in the early part of last 
year. Export sales are up 13% on the same period 
last year. 
Overall margins are slightly reduced compared 
with last year due to the higher proportion of 
export activity. This, combined with a planned 
increase in marketing expenditure, has led to 
Zoffany breaking even this year in line with 
internal expectations. We fully expect the 
business to return to profitability in the  
current year.
Arthur Sanderson & Sons incorporating the 
Morris & Co. brand
Following increased investment in product over 
the past two years, we are now experiencing 
increasing momentum in Sanderson’s sales 
growth. Sales are up 13% compared with last year. 
As with Harlequin, the sales growth has been 
broad based showing growth in all major markets 
but driven by a strong UK performance. 
Licensing contribution grew 7%, with the key 
markets of Japan and Australasia performing well, 
helped by the continued development of the 
Sanderson and Morris & Co. names across a 
number of product categories. We continue to 
invest for the future in the key areas of product 
development and marketing, both of which  
we believe will deliver strong profit growth in  
the future.
Manufacturing
Anstey
Anstey has established itself as the market leader 
in the UK in wallpaper manufacture at the mid  
to premium end of the market. With the interior 
design trend now moving strongly towards 
wallpaper in this sector of the market Anstey has 
increased overall sales by 16%. External third party 
sales have grown 23% as more of its customers  WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007  have sought to satisfy the consumer demand  
for wallpaper. Group sales have grown 11%.  
This higher activity assisted by continued 
improvement in factory efficiencies and tightly 
controlled overheads has enabled the business  
to generate a return on sales compared with a 
break-even position last year.
Standfast
Standfast has continued to win market share and 
achieved growth in third party business of 14%. 
This together with the impact of the success of 
the Group’s brands has helped Standfast achieve 
overall sales growth of 19%. There has been a 
significant increase in investment during the year 
both in terms of capital equipment and the level 
of preventive maintenance to help mitigate the 
impact of increases in energy costs. The higher 
activity and improved factory loadings have 
increased efficiencies enabling Standfast to 
generate improved return on sales.
Overseas
USA
Sales in the USA are down 9%, but this is primarily 
due to the exit of lower margin third-party 
business during the second half of last year. 
Sanderson and Morris & Co. sales have grown by 
11% with particular benefit arising from the latest 
Morris & Co. collection. Zoffany sales declined by 
12% primarily due to fewer significant contract 
orders realised in the year. The re-launch of the 
Harlequin brand last year has helped achieve 
more than a doubling of revenue.
Margins have improved with the exit from the 
lower margin third-party business during the 
second half of last year. However, the overall 
result was a loss due to increased investment in 
patterning, sampling and marketing during the 
year, all of which were clearly focused in support 
of our medium to long term belief in our brands’ 
potential in this important market.
Europe
The distribution businesses for Zoffany and 
Harlequin in Rome, and Zoffany and Sanderson  
in Paris are relatively small but have grown their 
combined sales by 22%, returning a small profit 
compared with a loss last year.
Summary
We are delighted to have built on last year’s 
substantial achievements through further 
progress delivered across all areas of our business, 
from our product collections to our balance 
sheet. We have created a solid platform for  
future progress and have identified significant 
opportunities for growth through leveraging our 
brand assets. The organic potential of our brands, 
underlined by the sales growth at Harlequin and 
more recently Sanderson, clearly demonstrates 
our ability to create shareholder value and we 
look forward to delivering further progress in  
the year ahead. 
John Sach
Chief Executive Officer
16 April 2007
Strategy
•  Increase earnings growth and to  
maximise the return to shareholders.
• Drive our brands’ organic growth.
•  Expand our contracts division, exploiting  
manufacturing opportunities.
• Negotiate further licensing arrangements.
• Invest and grow our North American Business.
Makeda Collection by Harlequin. WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007  Profit and loss 
The profit and loss account has been set out in a 
columnar format this year. This presentation has 
been adopted in order to reflect more clearly the 
underlying performance of the business, and to 
separate the exceptional beneficial impact of the 
pension deficit reduction exercise in both 2007 
and 2006 and the exceptional loss in 2006 on the 
sale of Borge Holdings AS and its subsidiary John 
O Borge AS. The table below shows the true 
underlying performance:
 2007 2006 
 £000 £000
Profit before tax per  
 the accounts 2,594 2,625
Exclude discontinued activities – (184)
Exclude exceptional benefit pension  
 deficit reduction exercise (1,276) (4,076)
Exclude exceptional loss on  
 disposal of Borge Holdings AS – 1,281
Underlying profit/(loss)  
 before tax 1,318 (354)
Tax (58) (80)
Profit/(loss) after tax 1,260 (434)
Underlying EPS 2.23 (0.77)
Disposals
There were no disposals during the year. In the 
previous year the Group sold the non-core 
business of Borge Holding AS and its subsidiary 
John O Borge AS. There was a profit on disposal 
after related costs of £532,000. Under FRS 17  
the Group accounts showed a pension liability 
associated with the John O Borge business, 
although under Norwegian accounting rules 
there was a small pension surplus. As a 
consequence of the sale this liability, £95,000 was 
no longer required and was released. Goodwill 
previously written off to reserves was expensed in 
the profit and loss as required by FRS 10, leading 
to an overall net loss on disposal of £1,281,000. 
The goodwill was directly credited back  
to reserves as seen in the Reconciliation  
of Movements in Shareholders’ Funds.
Interest
The interest charge for the year was £964,000 
(2006: £938,000) including amortisation of debt 
issue costs capitalised in accordance with FRS4 
‘Capital Instruments’. There was other finance 
income during the year of £81,000 (2006: other 
finance charge £174,000). This is a consequence  
of the significant reduction in the gross pension 
liability compared with the previous year. 
Taxation
The Group tax charge continues to reflect the 
amounts borne in foreign territories. This is 
constantly under review to ensure every 
opportunity is considered to minimise the 
amount incurred. In the UK, the Group has 
substantial brought forward tax trading losses 
and, as a consequence, does not anticipate paying 
UK corporation tax in the foreseeable future. It 
will be the Group’s intention to reflect a deferred 
tax asset in the future as the Group demonstrates 
its continuing improving profitability. The first 
step was to reflect the deferred tax asset 
associated with the pension liability this year, 
which is reflected in the Statement of Total 
Recognised Gains and Losses.
Earning per share (‘EPS’)
The basic and diluted EPS was 4.49p (2006: 4.51p). 
The underlying EPS is 2.23p for the current year 
(2006: loss per share 0.77p). The number of  
shares in issue remained constant for both years 
at 56,457,000.
 
Operating cash flow
The Group generated net cash inflow from 
operating activities during the year of £2,995,000 
Financial Review
(2006: £1,643,000). It paid interest of £893,000 
(2006: £866,000) and capital expenditure of 
£1,220,000 (2006: £710,000). There has been 
increased investment in the manufacturing 
businesses focused energy-saving projects and 
replacement of old equipment which was 
becoming unreliable. The depreciation charge 
during the period continued to be greater than 
required capital expenditure. Working capital  
was tightly controlled and although the Group 
turnover for continuing businesses increased by 
15% there was a small decrease in working capital.
The Group made payments to the pension 
schemes of £1,078,000 to reduce the deficit and 
this is part of the ongoing planned reduction. 
There were also payments made during the year 
to active and deferred pensioners of £286,000  
as these pensioners accepted an offer from the 
Group to buy out the right to non-statutory 
pension increases. During the year liabilities of 
£608,000 associated with the pension reduction 
exercise that arose last year were settled. 
As a consequence net debt in the Group  
has reduced by £753,000 to £8,604,000  
(2006: £9,357,000).
Pension deficit
The pension deficit has reduced further this year. 
There are three key contributing factors: the first 
being £1,078,000 ongoing contributions from the 
Company to reduce the deficit; the second was 
the reduction arising from the settlement of 
liabilities of £1,562,000 and the final being the 
recognition of the deferred tax associated with 
the pension deficit. The impact of these factors  
is shown in the following table. WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007   2007 
  £000
Deficit at beginning of period  (7,981)
Current service cost  (180)
Other finance income  81
Contributions  1,078
Reduction of deficit following  
 settlement of liabilities  1,562
Actuarial loss  (18)
Gross deficit at the end of the year  (5,458)
Deferred tax asset arising  1,637
Net deficit at end of period  (3,821)
Long-Term Incentive Plan
At the AGM held on 25 July 2006, conditional 
awards of shares were granted to the executive 
directors and certain employees under the  
Long-Term Incentive Plan (‘LTIP’). FRS 20 has  
been adopted during the year. The impact  
has been a charge in the Profit and Loss  
Account of £143,000.
Treasury policy
The Group’s treasury policy is controlled centrally 
in accordance with procedures approved by the 
Board. It is run prudently as a central Group 
function, providing services to the other Group 
companies and adopts a risk averse strategy.
The main risks covered by this policy are interest 
rate risk, foreign currency risk and liquidity risk.
Gearing 
The gearing level for the Group improved during 
the year to 67% at January 2007 (2006: 109%). 
Funding
The Group utilises a facility provided by Burdale 
Financial Ltd, part of the Bank of Ireland. It is a 
three year facility which ends on 23 July 2007 with 
a limit of £18,500,000. A significant element of 
the facility is linked to working capital levels 
which allows the Group to manage its cash more 
effectively during the seasonal fluctuations in 
working capital associated with the industry 
in which the Group operates. 
The Group has been seeking a funding structure 
that is more appropriate to its improving financial 
strength and an agreement has been reached on 
commercial terms with a UK clearing bank to 
provide these requirements from July 2007 
subject only to satisfactory legal agreements 
being concluded.
All of the bank’s facilities remain secured by first 
fixed and floating charges over the Group’s assets. 
Going concern
The directors are confident, after having made 
appropriate enquiries, that the Group and 
Company have adequate resources to continue  
in the foreseeable future. For this reason they 
continue to adopt the going concern basis in 
preparing the accounts.
IFRS
The Group will adopt IFRS for the year ending  
31 January 2008, and its first reporting under  
the new accounting rules will be for the interim 
period ending 31 July 2007. The Board has 
progressed a project during the year to ensure 
the successful implementation of IFRS accounting 
rules for the year ending 31 January 2008.
Interest rate risk
The Group has continued to maintain its debt  
in floating rate instruments in order to benefit 
from the lower rates available and the increasing 
reduction in borrowings. This policy remains 
constantly under review to ensure interest cost  
is minimised. The viability of hedging instruments 
that would limit the impact of interest rate 
movements will continue to be reviewed based 
on the Board’s perception of future rate increases 
and the reducing level of borrowings.
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 
any unmatched exposures are covered by forward 
contracts wherever economically practical.
The Group does not trade in financial 
instruments and hedges are only used for known 
cash flows. This has resulted in there being no 
significant gains and losses.
Liquidity risk
The Group ensures that it has adequate facilities 
available to cover both its short-term and 
medium-term commitments. These are fully 
disclosed in note 22 on page 35.
Alan Dix
Group Finance Director
16 April 2007 WALKER GREENBANK PLC  ANNUAL REPORT AND ACCOUNTS 2007  Directors
Ian Kirkham (57)
Non-executive Chairman (A, R, N)
Ian joined the Board in April 2002. He has 
considerable experience in manufacturing  
and distribution businesses in the UK Home 
Improvement and Building Products Markets. He 
was for seven years Chief Executive of Headlam 
Group plc and is currently Chairman of Everest 
Group, Latium Management Services and several 
other building industry businesses.
Charles Gray (64)
Non-executive Director (A, R, N)
Charles joined the Board as a non-executive 
Director in December 2004. He is a Chartered 
Accountant with extensive experience in the field 
of textile manufacture and engineering. He is 
currently a director of Yorklyde Plc.
John Sach (51)
Chief Executive Officer 
John joined the Group in 1994 as Group  
Financial Controller and was appointed to 
the Board as Group Finance Director in 1999.  
He was appointed Chief Executive Officer  
in May 2004.
David Smallridge (51)
Executive Director
David joined the Group in 2002 with a wide 
experience as a managing director in the 
consumer products services. He was appointed 
to the Board in December 2004 following his 
appointment as Managing Director of the 
Group’s three main fabric and wallcovering 
brands, Harlequin, Sanderson and Zoffany.
Alan Dix (48)
Group Finance Director
In July 2005, Alan Dix was appointed Group 
Finance Director. He is a Chartered Accountant 
with experience from a broad range of industries.
A – Audit Committee
R – Remuneration Committee
N – Nominations Committee
Advisers
Stockbrokers and Advisers
Teather & Greenwood Ltd
Beaufort House
15 St Botolph Street
London EC3A 7QR
Auditors
PricewaterhouseCoopers LLP
Donington Court
Pegasus Business Park
Castle Donington
East Midlands DE74 2UZ
Tax Advisers 
Chiltern Plc
3 Sheldon Square
Paddington
London W2 6PS
Public Relations
Buchanan Communications Ltd
45 Moorfields
London EC2Y 9AE
Solicitors
DLA Piper
Princes Exchange
Princes Square
Leeds LS1 4BY
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire HD8 0LA
Bankers
Royal Bank of Scotland
280 Bishopsgate
London EC2M 4RB
Directors and Advisers WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 17
The Directors submit their annual report together with the audited financial statements of the Group for the year ended 31 January 2007.
Principal activities and review of the business
The principal activities of the Group are the design, manufacture, marketing and distribution of wallcoverings, furnishing fabrics and associated products for 
the consumer market. A review of activities is given in the Chief Executive’s Review, which, taken with the Chairman’s Statement, the Financial Review and 
the information in the Report of the Directors, represents the Group’s Business review. 
The Directors do not expect there to be any significant change in the principal activities of the Group in the foreseeable future.
Group result
The profit before taxation amounted to £2,594,000 (2006: £2,625,000). The Directors do not recommend payment of a final ordinary dividend  
(2006: no dividend paid), which leaves a surplus of £2,536,000 to be transferred to reserves (2006: £2,545,000).
Key Performance Indicators
The KPIs for the business are primarily financial.
        2007 2006
Underlying sales growth        15% 1%
Operating profit margin before exceptional items        4.1% 1.6%
Gearing        67% 109%
Pension deficit as a percentage of shareholders’ funds       30% 93%
Underlying EPS         2.23p (0.77)p
Directors and their interests
The Directors in office at 31 January 2007 and their interests in the shares of the Company were as follows:
        1p ordinary  1p ordinary 
        shares shares 
        31 January  31 January 
        2007 2006 
        Number Number
I Kirkham        730,000 680,000
C Gray*        150,000 60,000
J D Sach        590,000 160,000
D H Smallridge        100,000 60,000
A N Dix          70,000 30,000
* includes 50,000 shares held by Mr Gray’s wife.
The share price on 1 February 2006 was 19.5p and on 31 January 2007 was 48.75p.
Long-Term Incentive Plan
At the AGM held on 25 July 2006, conditional awards of shares were granted to the executive directors and certain employees under the Long-Term 
Incentive Plan (‘LTIP’). The share price at the date of grant was 26.25p. In accordance with the rules of the LTIP the shares awarded will vest three years  
after the date of grant subject to the Group achieving earnings per share targets. FRS 20 has been adopted during the year.
At the year end, awards have been granted for a maximum of 2,549,000 shares.
The awards granted to the executive directors are:
         1p ordinary  
        Vesting date shares
J D Sach        25.07.2009 805,298
D H Smallridge        25.07.2009 745,297
A N Dix         25.07.2009 498,405
Movement in share options 
 
     At 1 February  At 31 January  Exercise Dates 
     2006 2007 Option price Earliest Latest
J D Sach     50,000 – 69.5p 06.11.1999 05.11.2006
      40,000 40,000 66.0p 23.04.2000 22.04.2007
Total      90,000 40,000
Report of the Directors WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 18
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None of the Directors’ share interests changed between 31 January 2007 and the signing of the accounts.
The details of the Board of Directors in office at 31 January 2007 are set out on page 16. 
At the forthcoming Annual General Meeting (‘AGM’), Alan Dix will retire by rotation and being eligible will offer himself for re-election. 
Executive share option schemes
During the year, no options over ordinary shares were exercised or granted and options over 80,000 ordinary shares have lapsed. Options over ordinary shares 
outstanding at 31 January 2007 are as shown below.
      Number of  Subscription Exercisable dates
Date granted      shares price From To
23 April 1997       70,000 66.0p 23.04.2000 22.04.2007
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.
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 30 to the accounts.
Employees
The Group keeps its employees informed on matters affecting them and on the progress of the Group by way of informal meetings and consultation with 
employees’ representatives. All Group businesses apply the principles of equal opportunity in recruitment, career progression and remuneration. Disabled 
persons are given full and fair consideration for employment where an appropriate vacancy occurs, having regard to their particular aptitudes and abilities. 
Whenever possible, arrangements are made for the continuing employment of persons who have become disabled during service and for appropriate 
training of all disabled employees, who are given equal consideration with all other employees in promotion and career development.
Substantial shareholdings
At 16 April 2007 the Company was aware of the following substantial shareholdings in its ordinary share capital: Gartmore Investment Limited 18.43%, 
Barclays Wealth 5.35%, Brewin Dolphin 4.64%, Walker Greenbank EBT 4.32%, Cazenove Fund Management 3.42%, AXA Framlington 3.39%, and British 
Airways Pension Trustees Ltd 3.21%. 
Special Business
At the AGM on 25 July 2007 items 4, 5 and 6 will be proposed as Special Business. Details of the business can be found in the Notice of the AGM.
Payments to suppliers
The Group agrees terms and conditions for its business transactions with suppliers and makes payment in accordance with those terms and conditions 
subject to the supplier meeting its obligations. The amount of trade creditors shown in the consolidated balance sheet at 31 January 2007 represents 69 days 
(2006: 60 days) of average purchases during the year for the Group.
The Company is a holding company and has no meaningful equivalent of creditor days.
Business risks
Apart from the impact of a global nature or a significant downturn in the UK market there are no significant business risks that are not covered by insurance 
policies. Whilst the dollar remains weak this will affect trading of our business in North America but this business is not currently a significant profit 
contributor to the overall Group.
Auditors
A resolution to reappoint PricewaterhouseCoopers LLP as auditors of the Company will be proposed at the AGM.
Report of the Directors continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 19
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial 
statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The 
financial statements are required by law to give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the 
Group for that period. 
In preparing those financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
 state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the  
financial statements;
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business, in which 
case there should be supporting assumptions or qualifications as necessary.
The Directors confirm that they have complied with the above requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group 
and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the 
Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Directors, individually, are aware there is no relevant audit information of which the Group’s auditors are unaware and the Directors have  
taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of  
that information.
By order of the Board
Julian Wilson
Company Secretary
16 April 2007 
Registered Office
Chalfont House
Oxford Road
Denham UB9 4DX
Registered number 61880
•
•
•
•
Statement of Directors’ Responsibilities WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 20
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Independent Auditors’ Report to the  
Members of Walker Greenbank PLC
We have audited the group and parent company financial statements (the ‘financial statements’) of Walker Greenbank Plc for the year ended 31 January 
2007 which comprise Group Profit and Loss Account, the Group and Company Balance Sheets, the Group Cash Flow Statement, the Group Statement of 
Total Recognised Gains and Losses, the Reconciliation of Movements in Shareholders’ Funds and the related notes. These financial statements have been 
prepared under the accounting policies set out therein.
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing 
(UK and Ireland). This report, including the opinion, has been prepared for and only for the company’s members as a body in accordance with Section 235 of 
the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, 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.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies 
Act 1985. We also report to you whether in our opinion the information given in the Report of the Directors is consistent with the financial statements. 
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and 
explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. This other 
information comprises only the Report of the Directors, the Chairman’s Statement, the Chief Executive’s Review, the Financial Review and the Five Year 
Record. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial 
statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes 
examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant 
estimates and judgments made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the 
group’s and company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with 
sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other 
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
 the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the  
group’s and the parent company’s affairs as at 31 January 2007 and of the group’s profit and cash flows for the year then ended;
the financial statements have been properly prepared in accordance with the Companies Act 1985; and
the information given in the Report of the Directors is consistent with the financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
East Midlands
16 April 2007
•
•
• WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 21
      Before 
      exceptional Exceptional Total Total 
      items items 2007 2006 
     note £000 £000 £000 £000
Turnover
Continuing operations     2,3 53,327 – 53,327 46,361
Discontinued operations      2,3 – – – 2,031
      53,327 – 53,327 48,392
Operating profit
Continuing operations     3 2,201 – 2,201 758
Discontinued operations     3 – – – 184
Exceptional items      3 – 1,276 1,276 4,076
      2,201 1,276 3,477 5,018
Profit on sale of subsidiary     4 – – – 532
Pension provision (FRS 17) release on sale of subsidiary     – – – 95
Goodwill previously written off to reserves      – – – (1,908)
Net loss on sale of subsidiary     4 – – – (1,281)
Profit on ordinary activities before interest      2,201 1,276 3,477 3,737
Net interest payable
Interest payable     9   (898) (872)
Amortisation of issue costs      9   (66) (66)
        (964) (938)
Other finance income/(charge)      10   81 (174)
Profit on ordinary activities before taxation     2,5   2,594 2,625
Tax on profit on ordinary activities      11   (58) (80)
Profit on ordinary activities after taxation        2,536 2,545
Dividends       19   – –
Profit for the year         2,536 2,545
Earnings per share – Basic and diluted     12     4.49p 4.51p
Earnings per share – Basic and diluted from continuing operations   12    4.49p 6.46p
Dividend per ordinary share      19   – –
There is no material difference between the profit on ordinary activities above and their historical cost equivalent.
Group Profit and Loss Account
Year ended 31 January 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 22
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      Group Group Company Company 
      2007 2006 2007 2006 
     note £000 £000 £000 £000
Fixed assets
Intangible assets     13 4,820 4,859 – –
Tangible assets     14 9,623 10,205 4,489 4,595
Investment in subsidiaries      15 – – 43,579 33,250
      14,443 15,064 48,068 37,845
Current assets
Stocks     16 13,476 11,539 – –
Debtors     17 10,344 9,137 17,175 15,823
Cash at bank and in hand       2,065 1,530 – 77
      25,885 22,206 17,175 15,900
Creditors: amounts falling due within one year     18 (13,587) (10,403) (9,987) (9,440)
Net current assets       12,298 11,803 7,188 6,460
Total assets less current liabilities      26,741 26,867 55,256 44,305
Creditors: amounts falling due after more than one year    20 (10,073) (10,289) (780) (1,225)
Net assets excluding pension liability      16,668 16,578 54,476 43,080
Pension liability      30 (3,821) (7,981) – –
Net assets       12,847 8,597 54,476 43,080
Capital and reserves
Share capital     24 590 590 590 590
Share premium account     25 457 457 457 457
Profit and loss account     25 (28,707) (32,957) 11,541 145
Other reserves      25 40,507 40,507 41,888 41,888
Equity shareholders’ funds       12,847 8,597 54,476 43,080
J D Sach
Director
A N Dix
Director
These accounts were approved by the Directors on 16 April 2007.
Balance Sheets
At 31 January 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 23
      2007 2007 2006 2006 
     note £000 £000 £000 £000
Net cash inflow from operating activities     27  2,995  1,643
Returns on investment and servicing of finance
Interest received      20  12 
Interest paid       (913)  (878) 
        (893)  (866)
Taxation       (50)  (184)
Capital expenditure
Purchase of tangible fixed assets       (1,220)  (710) 
        (1,220)  (710)
Acquisitions and disposals
Net proceeds from disposal of operations      –  1,498
        –  1,498
Equity dividends paid        –  –
Cash inflow before use of liquid resources and financing      832  1,381
Management of liquid resources       –  –
Financing
Proceeds from new loans      –  655 
Principal repayments of finance lease obligations      –  (251) 
Repayment of borrowings       (282)  (1,414) 
        (282)  (1,010)
Increase in cash      28,29  550  371
Group Cash Flow Statement
Year ended 31 January 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 24
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        Group Group 
        2007 2006 
        £000 £000
Profit for the financial year        2,536 2,545
Actual less expected return on pension scheme assets       (1,216) 3,817
Experience gains and losses arising on pension scheme liabilities      (5) 425
Change in actuarial assumptions        1,203 (7,141)
Currency translation differences        (17) (27)
Deferred tax on pension liability         1,637 –
Total recognised gains and losses since the last annual report       4,138 (381)
Reconciliation of Movements in Shareholders’ 
Funds
Year ended 31 January 2007
        Group Group 
        2007 2006 
        £000 £000
Profit for the financial year        2,536 2,545
Dividends         – –
Profit for the year        2,536 2,545
Other recognised gains/(losses) relating to the year       1,602 (2,926)
Accrual for long-term incentive plan liabilities        112 –
Goodwill previously set off to reserves in respect of the disposal of operations     – 1,908
Net increase to shareholders’ funds        4,250 1,527
Opening shareholders’ funds          8,597 7,070
Closing shareholders’ funds         12,847 8,597
 
Statement of Total Recognised Gains and Losses
Year ended 31 January 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 25
1 Accounting policies
Accounting convention
The accounts are prepared under the historical cost convention and in accordance with applicable accounting standards and with the Companies  
Act 1985.
Basis of consolidation
The Group accounts consolidate the financial statements of the parent and its subsidiary undertakings for the year ended 31 January 2007. Transactions 
arising on trading between Group undertakings are excluded.
No profit and loss account is presented for Walker Greenbank PLC as provided by Section 230 of the Companies Act 1985. A profit of £11,284,000  
(2006: £1,837,500 loss) has been dealt with in the accounts of the parent company.
Goodwill and intangible assets
For acquisitions made before 1 February 1998, goodwill representing the excess of the cost of acquisition of a business over the fair value of the net assets  
at the date of acquisition was written off to reserves. On subsequent disposal of all or part of these businesses, the appropriate proportion of goodwill  
is charged to the profit and loss account on disposal.
For acquisitions since 1 February 1998, goodwill representing the excess of the cost of acquisition of a business over the fair value of the net assets at 
the date of acquisition is capitalised and amortised over a period not exceeding 20 years.
The Arthur Sanderson and William Morris archive comprises a historic record of unique designs that are used to generate a significant royalty income  
in the business. The Directors believe that the valuation of this asset is substantially in excess of its current book value, however, it has been capped at its 
current value, in accordance with Financial Reporting Standard No.10. In the opinion of the directors the archive has an indefinite economic life and  
is not, therefore, subject to annual amortisation. The carrying value of this asset will be reviewed annually and provision made for any impairment in  
the carrying value if required.
Fixed assets
Depreciation is charged on a straight-line basis on the original cost (excluding freehold land) after deduction of any estimated residual value. The principal 
annual rates are:
Freehold buildings 2% 
Short leaseholds Over the unexpired period of the lease
Plant, equipment and vehicles  Between 5% and 33%
Computer assets Between 12.5% and 33% 
Land and buildings are stated at cost less provision for impairment.
Impairment of fixed assets, goodwill and investments
Fixed assets, goodwill and investments are subject to review for impairment in accordance with Financial Reporting Standard No.11. Any impairment is 
recognised in the profit and loss account in the year in which it occurs. A discounted cash flow is prepared annually to assess whether an impairment can  
be reversed. When all conditions are met the impairment is reversed and recognised in the profit and loss in the year in which the reversal occurs.
Financial instruments 
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 or, if hedged, at the forward contract rate. All differences are taken to the 
profit and loss account. Full disclosure of the Group’s treasury policy is detailed on page 15.
Foreign currency
The balance sheets of overseas subsidiary undertakings are translated at the rates of exchange ruling at the balance sheet date. The profit and loss 
accounts are translated at the average rates of exchange applicable to the accounting period. Exchange differences arising on translation of the opening 
net assets and results of overseas operations and on foreign currency borrowings, to the extent that they hedge the Group’s investment in such 
operations, are dealt with through reserves.
Employee share option plan
Under UITF 38, interest in own shares are reclassified from fixed asset investments to profit and loss reserves.
Share-based payments
The Group has adopted FRS 20 ‘Share-based payments’. The adoption of this standard represents a change in accounting policy following the 
introduction of a Long Term Incentive Plan for Directors and Senior Management during the year. The effect of the change is to increase staff costs  
by £143,000 (2006: £nil), to decrease profit in the year by £143,000 (2006: £nil).
Notes to the Accounts WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 26
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1 Accounting policies continued
Employee benefits – Share-based payments
The Group issues equity-settled share-based payments to certain employees which must be measured at fair value and recognised as an expense in the 
income statement with a corresponding increase in equity. The fair values of these payments are measured at the dates of grant, taking into account the 
terms and conditions upon which the awards are granted. The fair value is recognised over the period during which employees become conditionally 
entitled to the awards, subject to the Group’s estimate of the number of awards which will lapse, either due to employees leaving the Group prior to 
vesting or due to non-market based performance conditions not being met. The total amount recognised in the income statement as an expense is 
adjusted to reflect the actual number of awards that vest.
Turnover
The Group turnover represents the invoiced value of sales to external customers excluding VAT and is recognised at the point of despatch of goods.
Royalty income
Royalties are received from licence holders under the terms of various agreements. Royalties are recognised as other operating income as they fall due.
Stocks
Stocks and work in progress 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 items.
Pensions
The Group operates both defined benefit and defined contribution schemes. The cost of providing retirement pensions and related benefits is charged 
to the profit and loss account in accordance with Financial Reporting Standard No.17, full provision being made at the balance sheet date for any surplus 
or deficit of assets over liabilities.
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts are capitalised and depreciated over their estimated useful lives. 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 as they are incurred.
Deferred taxation
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, that give rise to an 
obligation to pay more tax in the future or a right to pay less. No provision has been made for any further liability arising from the distribution of past 
earnings of subsidiary undertakings. Deferred tax assets are recognised in the accounts, when it is more likely than not that they will be recovered in the 
foreseeable future.
The deferred tax provision has been calculated using the average rates that are expected to apply when the timing differences reverse based on tax rates 
and laws that have been enacted or substantively enacted by the balance sheet date.
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 27
2 Segmental analysis
(a) Classes of business
    Turnover
    
         2006 
        2007 (restated) 
        £000 £000
Continuing operations:
Fabrics        37,414 31,943
Wallcoverings        14,553 12,415 
Other         1,360 2,003 
        53,327 46,361 
The other category includes furniture, paint and trimmings.
Discontinued operations:
Fabrics        – 511 
Wallcoverings         – 1,520 
         – 2,031 
Group         53,327 48,392
The comparative classes of business have been restated to better reflect the nature of the business.
(b) Geographical segments
  Turnover Profit before taxation Net assets
    
    2007 2006 2007 2006 2007 2006 
    £000 £000 £000 £000 £000 £000
By origin on continuing operations:
United Kingdom    46,320 38,902 2,721 2,377 13,816 9,414
Continental Europe    1,466 1,198 9 (86) (1,011) (1,003)
North America     5,541 6,261 (136) 154 42 186
     53,327 46,361 2,594 2,445 12,847 8,597
By origin on discontinued operations:
Continental Europe     – 2,031 – 180 – –
By origin Group operations     53,327 48,392 2,594 2,625 12,847 8,597
By destination on continuing operations:
United Kingdom    35,485 29,476
Continental Europe    7,693 6,145
North America    7,503 7,937
Rest of the World     2,646 2,803
     53,327 46,361
By destination on discontinued operations:
Continental Europe     – 2,031
By destination Group operations    53,327 48,392
The Group has not disclosed segmental analysis by brand and manufacturing for turnover, operating profit and net assets as it regards the information as 
commercially sensitive. WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 28
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3 Analysis of operating profit
 2007 2006
  
    Continuing Discontinued Total Continuing Discontinued Total 
    £000 £000 £000 £000 £000 £000
Turnover    53,327 – 53,327 46,361 2,031 48,392 
Cost of sales     (23,006) – (23,006) (20,562) (957) (21,519)
Gross profit     30,321 – 30,321 25,799 1,074 26,873 
Net operating expenses:
Distribution costs    (13,272) – (13,272) (11,650) (305) (11,955)
Administrative expenses    (15,845) – (15,845) (14,489) (583) (15,072)
Other operating income     997 – 997 1,098 (2) 1,096
Operating profit before exceptionals    2,201 – 2,201 758 184 942
Reduction of pension deficit following settlement of liabilities  1,276 – 1,276 4,076 – 4,076
Operating profit     3,477 – 3,477 4,834 184 5,018
Exceptional items
During the year the Group bought out the right to non-statutory pension increases from its active and deferred pensioners. This has resulted in a 
reduction of the FRS 17 liability in the balance sheet of £1,562,000 (2006: £5,634,000) and a benefit of £1,276,000 (2006: £4,076,000) in the profit and  
loss account. The benefit arising from the pension reduction exercise would be classified as administration expenses under FRS 3. 
4 Loss on sale of Borge Holding AS and John O Borge AS
In June 2005, the wholly owned Norwegian subsidiaries Borge Holding AS and John O Borge AS were sold for a consideration before costs of £1,881,000.  
A profit of £532,000 was generated on the sale before goodwill previously written to reserves and the adjustment to FRS 17 provision. Goodwill 
previously written off to reserves of £1,908,000 was charged through the profit and loss account. A net loss on sale of £1,281,000 has been recorded.  
Net proceeds of £1,498,000 were received as detailed in the table below:
         2006 
         £000
Sale of John O Borge AS and Borge Holdings AS:
The disposal comprised the following: 
Tangible fixed assets         60
Stock         681
Debtors         745
Creditors         (520)
Profit on disposal          532
Net cash inflow from the disposal of John O Borge AS and Borge Holding AS      1,498
The tax effect of the disposal was £nil.
5 Profit on ordinary activities before taxation
        2007 2006 
        £000 £000
Profit on ordinary activities before taxation is stated after charging:
Auditors’ remuneration:
Audit fee – fees payable to the Company auditor for the audit of the parent Company and the consolidation accounts 50 46
Non audit fee – audit of Company’s subsidiaries pursuant to legislation     75 66
 – accounting advice with respect to IFRS        11 16 
Depreciation of owned assets        1,772 1,864
Amortisation of goodwill        39 39
Hire of motor vehicles and plant and machinery       377 410
Other operating leases        1,236 1,312
Loss on disposal of fixed assets         11 –
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 29
6 Emoluments of Directors
        2007 2006
    Salary Bonus Benefits Pension Total Total 
    £000 £000 £000 £000 £000 £000
Executive Directors:
John Sach    196 88 4 29 317 303
David Smallridge    140 63 1 14 218 175
Alan Dix    108 49 1 11 169 74
Non-executive Directors:
Ian Kirkham    58 – – – 58 54
Charles Gray    22 – – – 22 22
Peter Harkness (resigned 19 July 2005)    – – – – – 11
     524 200 6 54 784 639
In both years, retirement benefits were accruing to one Director under a defined benefit scheme, who is the highest paid Director. Accrued pension 
benefits at the year end were £19,458 (2006: £18,920).
Benefits are accruing under defined contribution schemes for three Directors (2006: three Directors).
7 Employee information
        Group Group 
        2007 2006 
        £000 £000
Wages and salaries        15,012 13,831
Social security costs        1,528 1,351
Other pension costs (note 30)         603 587
         17,143 15,769
The average monthly number of employees (including Directors) during the year
        Number Number
Sales, warehousing and administration        300 296
Manufacturing         248 240
         548 536
        Company Company 
        2007 2006 
        £000 £000
Wages and salaries        1,058 1,086
Social security costs        118 94
Other pension costs         72 105
         1,248 1,285
The average monthly number of employees (including Directors) during the year 
        Number Number
Administration         13 14
8 Long Term Incentive Plan
A Long Term Incentive Plan was approved by the shareholders at the Annual General Meeting on 26 July 2006. The criteria for the first award were  
also disclosed. 
The Company operates the LTIP for Executive Directors and Senior managment. Awards under the scheme are granted in the form of a nil-priced option, 
and are satisfied using market-purchased shares. The awards vest in full or in part dependent on the satisfaction of specified performance targets at the 
end of the three year vesting period. The level of the award is dependent upon the earnings per share achieved for the year ended 31 January 2009. A 
maximum of 2,549,000 shares could vest.
The share price on the day of the award was 26.75p. This leads to an expense in the current year of £143,000 including an allowance of £31,000 for 
national insurance contributions.
The fair value of the shares granted at 26 July 2006 is £673,833 based on the number of shares granted of 2,519,000 at a share price of 26.75p on the day  
of the award. WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 30
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9 Net interest payable
        2007 2006 
        £000 £000
Interest receivable:
Bank and other short-term deposit interest receivable       20 12
Interest payable:
Amortisation of issue costs of loan        (66) (66)
 Bank and other short term interest on loans and overdrafts wholly repayable within five years    (918) (884)
         (984) (950)
Net interest payable         (964) (938)
10 Other finance income/(charge)
        2007 2006 
        £000 £000
Expected return on pension scheme assets        2,408 2,260
Interest on pension scheme liabilities        (2,327) (2,434)
Net income/(charge)         81 (174)
11 Taxation
        2007 2006 
        £000 £000
UK Corporation tax charge
at 30% (2006: 30%) – current year        – –
 – prior years        – –
Overseas taxation – current year        58 124
 – prior years        – –
Total current tax         58 124
Deferred tax – current year        – (44)
 – prior years        – –
Total deferred tax         – (44)
Tax on profit on ordinary activities        58 80
The difference between the profit on ordinary activities at the corporation tax rate of 30% ruling in the UK and the actual current tax shown above is 
explained below:
        2007 2006 
        £000 £000
Profit on ordinary activities before taxation        2,594 2,625 
Profit on ordinary activities multiplied by standard rate of  corporation tax in the UK of 30% (2006: 30%)   778 787
Expenses not deductible for tax purposes         176 872
Non-taxable income         (774) (1,733)
Utilisation of prior years losses         (555) (486)
Depreciation in excess of capital allowances         466 494
Losses not recognised         84 295
Other timing differences          (117) (105)
Total current tax         58 124
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 31
12 Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of shares 
outstanding during the year, excluding those held in the employee share trust (note 25), which are treated as cancelled.  
  2007 2006
   
     Weighted   Weighted 
     average   average 
     number of Per share  number of Per share 
    Earnings shares amount Earnings shares amount 
    £000  (000s) pence £000 (000s) pence
Basic and Diluted EPS:
Earnings attributable to ordinary shareholders    2,536 56,457 4.49 2,545 56,457 4.51
Earnings per share from continuing operations:
Basic and diluted EPS    2,536 56,457 4.49 2,545 56,457 4.51
Loss on sale of subsidiary     – – – 1,281 – 2.27
Pre tax profit from discontinued operation    – – – (180) – (0.32)
Basic and diluted EPS from continuing operations   2,536 56,457 4.49 3,646 56,457 6.46
Earnings per share from discontinued operations:
Basic and diluted EPS 
Loss on sale of subsidiary    – – – (1,281) 56,457 (2.27)
Pre tax profit from discontinued operation    – – – 180 – 0.32
Basic and diluted EPS from discontinued operations   – – – (1,101) 56,457 (1.95)
13 Intangible assets
        Group Group 
        2007 2006 
        £000 £000
a) Goodwill        520 559
b) Arthur Sanderson and William Morris archive       4,300 4,300
         4,820 4,859
(a) Goodwill
         £000
Cost:
At 1 February 2006 and 31 January 2007         1,400
Amortisation:
At 1 February 2006         841
Amortisation for the year           39
At 31 January 2007          880
Net book amount at 31 January 2007         520
Net book amount at 31 January 2006         559
(b) Arthur Sanderson and William Morris Archive
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 historic record of unique designs that are used to generate a significant royalty income in the business. The Directors believe that the valuation of this 
asset is substantially in excess of the £4,300,000, however it has been capped at this level, in accordance with Financial Reporting Standard No. 10, to 
avoid the creation of negative goodwill on acquisition.
         £000
Cost:
At 1 February 2006 and 31 January 2007         4,300
Net book amount at 31 January 2007         4,300
Net book amount at 31 January 2006         4,300 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 32
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14 Tangible fixed assets
       Plant,   
      Land and equipment Computer  
      buildings and vehicles assets Total 
Group      £000 £000 £000 £000
Cost:
1 February 2006      6,281 13,862 6,438 26,581
Additions      – 1,112 110 1,222
Disposals      – (684) (1,020) (1,704)
Currency movements       – (42) – (42)
31 January 2007       6,281 14,248 5,528 26,057
Depreciation:
1 February 2006      1,696 10,004 4,676 16,376
Charge      101 760 911 1,772
Disposals      –  (673) (1,020) (1,693)
Currency movements       – (21) – (21)
31 January 2007       1,797 10,070 4,567 16,434
Net book amount:
31 January 2007       4,484 4,178 961 9,623
31 January 2006       4,585 3,858 1,762 10,205
        2007 2006 
The net book amount of land and buildings comprises:        £000 £000
Freehold land        450 450
Freehold buildings         4,034 4,135
Net book value         4,484 4,585
The market value of the land and buildings is not materially different from the net book value.
The value of assets secured under the Burdale facility was property of £4,484,000 (2006: £4,585,000) and plant and equipment of £2,963,000  
(2006: £3,094,000).
       Plant,   
      Land and equipment Computer  
      buildings and vehicles assets Total 
Company      £000 £000 £000 £000
Cost:
1 February 2006      5,364 255 410 6,029
Additions      – – – –
Disposals       – (234) (394) (628)
31 January 2007       5,364 21 16 5,401
Depreciation:
1 February 2006      779 246 409 1,434
Charge      101 4 1 106
Disposals       – (234) (394) (628)
31 January 2007       880 16 16 912
Net book amount:
31 January 2007       4,484 5 – 4,489
31 January 2006       4,585 9 1 4,595
        2007 2006 
        £000 £000
The net book amount of land and buildings comprises: 
Freehold land        450 450
Freehold buildings         4,034 4,135
Net book value         4,484 4,585
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 33
15 Investments
         Company 
Shares in subsidiary undertakings         £000
Cost:
1 February 2006 and 31 January 2007         44,617
Provision for impairment at 1 February 2006         11,367
Reversal of provision           (10,329)
Provision for impairment at 31 January 2007        1,038
Net book amount at 31 January 2007         43,579
Net book amount at 31 January 2006          33,250
The principal Group operating companies that traded during the year and are wholly owned are as follows:
Abaris Holdings Limited – registered in England and Wales
Walker Greenbank Inc* – incorporated in the USA
Arthur Sanderson & Sons Inc* – incorporated in the USA
Arthur Sanderson & Sons SARL* – incorporated in France
Whittaker & Woods SRL – incorporated in Italy
Investments in Group companies are ordinary shares.
*Shares held by subsidiary company.
The principal activities of the Group are design, manufacture, marketing and distribution of wallcoverings, furnishing fabrics and associated products for 
the consumer market.
The carrying value of the investment in Abaris Holdings Limited has been reviewed at 31 January 2007 by reference to its value in use to the Company. 
The value in use was calculated using future expected cash flow projections, discounted at 9% on a pre-tax basis, and is not intended to reflect a 
realisable value on disposal. The review has resulted in a reversal of the impairment of £10,329,000 to investments in subsidiary undertakings held  
by the Company.
16 Stocks
        Group Group 
        2007 2006 
        £000 £000
Raw materials        1,051 1,053
Work in progress        1,586 1,511
Finished goods         10,839 8,975
         13,476 11,539
The value of stocks secured under the Burdale loan was £8,912,000 (2006: £7,800,000).
The Company does not hold stock.
17 Debtors 
      Group Group Company Company 
      2007 2006 2007 2006 
      £000 £000 £000 £000
Trade debtors      8,575 7,340 – –
Amounts owed by subsidiary undertakings      – – 16,717 11,426
Other debtors      523 790 277 3,930
Prepayments       1,246 1,007 181 467
       10,344 9,137 17,175 15,823
The value of trade debtors secured under the Burdale loan was £7,597,000 (2006: £5,862,000).
Included within Company and Group other debtors is an amount repayable after one year of £265,000 (2006: £276,000). Amounts owed by subsidiary 
undertakings to the Company include long-term loans recoverable after more than one year of £1,000,000 (2006: £1,000,000). WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 34
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18 Creditors: due within one year
      Group Group Company Company 
      2007 2006 2007 2006 
      £000 £000 £000 £000
Loans (note 22)      596 596 445 445
Bank overdrafts      – 2 1,126 56
Trade creditors      8,553 6,454 170 188
Amounts owed to subsidiary undertakings      – – 7,477 7,623
Corporation tax      43 39 – –
Other taxes and social security      848 585 39 11
Other creditors      547 201 209 48
Accruals       3,000 2,526 521 1,069
       13,587 10,403 9,987 9,440
There is a set off arrangement for bank accounts held with the UK clearing bank. The loans are secured by a fixed and floating charge over the assets of 
the Group’s UK operations.
19 Dividends
The Directors do not propose a final dividend in respect of the year ended 31 January 2007 (2006: No dividend proposed).
20 Creditors: due after more than one year
      Group Group Company Company 
      2007 2006 2007 2006 
      £000 £000 £000 £000
Loans (note 22)       10,073 10,289 780 1,225
       10,073 10,289 780 1,225
The loans are secured by a fixed and floating charge over the assets of the Group’s UK operations.
21 Operating lease commitments
Annual commitments due under non-cancellable operating leases are as follows:
        Land and 
      Land and  buildings 
      buildings Other (restated) Other 
      2007 2007 2006 2006 
Group      £000 £000 £000 £000
Operating leases which expire:
Within one year      21 80 19 73
Between one and five years       366 242 443 225
Over five years       817 – 624 –
       1,204 322 1,086 298
        Land and 
      Land and  buildings 
      buildings Other (restated) Other 
      2007 2007 2006 2006 
Company      £000 £000 £000 £000
Operating leases which expire:
Within one year      – – 12 –
Between one and five years       – – – –
Over five years       447 – 387 –
       447 – 399 –
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 35
22 Financial instruments
A discussion of treasury policy is given in the Financial Review on page 15. Short-term debtors and creditors have been excluded from all the following 
disclosures, other than currency risk disclosures.
Financial assets
        Group Group 
        2007 2006 
        £000 £000
Cash at bank and in hand         2,065 1,530
Borrowings
        Group Group 
        2007 2006 
        £000 £000
Bank overdrafts        – 2
Loans:
Secured
Burdale property loan        1,225 1,671
Burdale plant and equipment loan        188 337
Burdale Sterling loan        8,731 8,802
Burdale Euro loan         525 75
Total loans         10,669 10,885
Total borrowings         10,669 10,887
Repayment of total borrowings
Between two and five years:
Loans        335 816
Between one and two years:
Loans         9,738 9,473
After more than one year:
Loans        10,073 10,289
Within one year:
Bank overdrafts        – 2
Loans         596 596
Total borrowings         10,669 10,887
The loans in the UK operations are secured by a fixed and floating charge over the assets of the Group’s UK operations.
Interest rate and currency profile of financial net assets
        Floating rate Floating rate 
        assets assets 
        2007 2006 
Currency        £000 £000
Sterling        876 374
US Dollar        557 969
Euro        319 185
Swedish Kronor        302 2
Other         11 –
         2,065 1,530
Floating rate cash earns interest based on the relevant national base rate equivalents.
The bank facilities have a right of offset of currency accounts. WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 36
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22 Financial instruments continued
Interest rate and currency profile of financial liabilities
At 31 January 2007
         Fixed rate  
         borrowings 
         Weighted 
      Floating  Weighted average 
      rate Fixed rate average time until 
     Total borrowings borrowings interest rate maturity 
Currency     £000 £000 £000 % Years
Sterling     10,144 10,144 – – –
Euro      525 525 – – –
      10,669 10,669 – – –
Interest is charged at 2.2% above one month LIBOR on floating rate borrowings.
Interest rate and currency profile of financial liabilities
At 31 January 2006
         Fixed rate  
         borrowings 
         Weighted 
      Floating  Weighted average 
      rate Fixed rate average time until 
     Total borrowings borrowings interest rate maturity 
Currency     £000 £000 £000 % Years
Sterling     10,812 10,812 – – –
Euro      75 75 – – –
      10,887 10,887 – – –
Net foreign monetary assets/(liabilities)
The following summary shows the Group’s currency exposures that give rise to currency gains and losses recognised in the profit and loss account, 
resulting from exposures where monetary assets and liabilities (including intercompany trading balances) at the balance sheet date are denominated  
in currencies other than the functional currency of each operation.
At 31 January 2007
       Swedish 
    Sterling US dollar Euro kronor Other Total 
    £000 £000 £000 £000 £000 £000
Functional currency of entity
Sterling     – 856 (619) 338 57 632
     – 856 (619) 338 57 632
At 31 January 2006
       Swedish 
    Sterling US dollar Euro kronor Other Total 
    £000 £000 £000 £000 £000 £000
Functional currency of entity
Sterling     – 866 (462) 2 136 542
     – 866 (462) 2 136 542
Borrowing facilities
In July 2004, the Group agreed terms for a facility from Burdale Financial Limited. The three year facility comprises a loan secured on the Group’s freehold 
property of £2 million which is being repaid on a five year profile and a facility capped at £18.5 million that will fluctuate depending on the level of the UK 
debtors and stock against which it is secured. In May 2005 the Group agreed an additional facility from Burdale Financial Limited secured on manufacturing 
plant and equipment of £655,000 which is being repaid on a five year profile. The utilisation of the facility at the year end was £10,250,000 (2006: £10,198,000).
The fair value of short-term deposits, loans and overdrafts approximates to the carrying value due to all borrowings being subject to a floating rate. 
Forward contracts
The Group is subject to foreign exchange risk due to exchange rate movements between sterling and US dollars. The Group seeks to reduce this risk  
by entering into forward contracts. The Group had the following forward contracts at the end of the year: 
        Group Group 
        2007 2006 
        £000 £000
Fair value of forward contracts         45 –
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 37
23 Provisions for liabilities and charges
Deferred taxation
      Group Group Company Company 
      2007 2006 2007 2006 
      £000 £000 £000 £000
Deferred taxation provided in the accounts is as follows:
Depreciation in excess of capital allowances      – (68) – –
Other timing differences       – 68 – –
       – – – –
        2007 2006 
        Group Group 
        £000 £000
Deferred taxation unprovided:
Depreciation in excess of capital allowances        (1,131) (874)
Other timing differences        (25) 68
Tax losses         (6,945) (6,758)
         (8,101) (7,564)
It will be the Group’s intention to reflect a deferred tax asset as the Group continues to generate profits. 
A deferred tax asset on pension obligations of £1,637,000 (2006: £nil) is recognised in the Statement of Total Recognised Gains and Losses and offsets  
the gross pension liability (note 30).
24 Share capital
       Number of shares £
Ordinary shares of 1p each:
Authorised share capital:
1 February 2006 and 31 January 2007        85,000,000 850,000
Allotted, called up and fully paid:
1 February 2006 and 31 January 2007        59,006,162 590,062
Executive share option schemes
During the year, no options over ordinary shares were exercised or granted and options over 55,000 ordinary shares have lapsed. Options over ordinary 
shares outstanding at 31 January 2007 are as shown below:
      Number of Subscription  Exercisable Exercisable 
      shares price from to
Date granted: 
23 April 1997       70,000 66.0p 23.04.00 22.04.07
       70,000 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 38
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25 Reserves
     Share Profit Other reserves  
     premium and loss Capital Merger  
     account account reserve reserve Total 
     £000 £000 £000 £000 £000
Group
1 February 2006     457 (32,957) 43,457 (2,950) 40,507
Profit for the year     – 2,536 – – –
Deferred tax asset on pension liability     – 1,637 – – –
Accrual for long-term incentive plan liabilities     – 112 – – –
Actuarial loss on pension scheme     – (18) – – –
Currency translation movements     – (17) – – –
31 January 2007      457 (28,707) 43,457 (2,950) 40,507
     Share Profit Other reserves  
     premium and loss Capital Merger  
     account account reserve reserve Total 
     £000 £000 £000 £000 £000
Company
1 February 2006     457 145 41,888 – 41,888
Accrual for long-term incentive plan liabilities     – 112 – – –
Profit for the year      – 11,284 – – –
31 January 2007      457 11,541 41,888 – 41,888
During the year the carrying value of the investment in Abaris Holdings Limited was reviewed by reference to its value in use to the Company, this 
resulted in a reversal of an impairment of £10,329,000 being credited to the profit and loss account (note 15).
Capital reserve represents:
        Group Company 
        £000 £000
Share premium of companies acquired and accounted for under merger accounting principles    1,276 –
Capital reserve arising on consolidation        293 –
Capital redemption reserve for deferred shares       1,003 1,003
Capital redemption reserve for ‘B’ shares        40,885 40,885
         43,457 41,888
The profit and loss reserve includes £5,458,000 (2006: £7,981,000) stated after deferred taxation of £1,637,000 (2006: £nil) in respect of pension scheme 
liabilities of the Group pension fund.
The Walker Greenbank PLC Employee Benefit Trust (‘the trust’) holds 2,549,146 shares (2006: 2,549,146) with a cost of £601,202 (2006: £601,202) and  
a market value at 31 January 2007 of £1,242,709 (2006: £497,083).
The cumulative amount of goodwill which has been written off to the profit and loss account reserve in respect of existing Group companies  
is £2,410,000 (2006: £2,410,000).
26 Capital commitments
      Group Group Company Company 
      2007 2006 2007 2006 
      £000 £000 £000 £000
Authorised and contracted       37 47 – –
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 39
27 Reconciliation of operating profit to net cash inflow from operating activities
      2007 2007 2006 2006 
      £000 £000 £000 £000
Continuing operations:
Operating profit       3,477  4,834
Depreciation and amortisation      1,811  1,894
Difference between pension charge and cash contributions    (2,174)  (5,316)
Settlement of pension liabilities      (894)  (950)
Proceeds on disposal of fixed assets      –  3
Loss on disposal of fixed assets      11  –
(Increase)/decrease in stocks      (1,940)  525
(Increase)/decrease in debtors      (1,245)  1,624
Increase/(decrease) in creditors      3,837  (642)
Decrease in provisions      –  (323)
Amounts charged directly to equity with respect to long-term incentive plan   112  –
        (482)  (3,185)
Net cash inflow from continuing operating activities      2,995  1,649
Discontinued operations:
Operating profit       –  184
Depreciation and amortisation      –  9
Decrease in stocks      –  134
Increase in debtors      –  (125)
Decrease in creditors      –  (208)
        –  (190)
Net cash outflow from discontinued operations      –  (6)
Total net cash inflow from operating activities       2,995  1,643
28 Analysis of net debt
      1 February  Other Exchange  31 January  
     2006 Cash flow movements movement 2007 
     £000 £000 £000 £000 £000
Cash at bank and in hand     1,530 548 – (13) 2,065
Overdrafts      (2) 2 – – –
      1,528 550 – (13) 2,065
Debt due within one year     (596) – – – (596)
Debt due after one year      (10,289) 282 (66) – (10,073)
      (10,885) 282 (66) – (10,669)
      (9,357) 832 (66) (13) (8,604)
Other movements are amortisation of issue costs relating to the loan financing.
29 Reconciliation of net cash flow to movement in net debt
        2007 2006 
        £000 £000
Increase in cash in the year        550 371
Decrease in debt and lease financing        282 911
Cash inflow from cash flows        832 1,282
Other movements        (66) 99
Exchange movement         (13) 8
Movement in the year        753 1,389
Net debt at 1 February 2006         (9,357) (10,746)
Net debt at 31 January 2007         (8,604) (9,357)
Other movements are amortisation of issue costs relating to the loan financing. WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 40
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30 Pension
The Company operates the following funded pension schemes in the UK: the Walker Greenbank Pension Plan, the Abaris Holdings Limited  
Pension Scheme and the WG Senior Management Pension Scheme. The Walker Greenbank Pension Plan is the biggest scheme. All schemes  
contain defined benefits sections. However, the Abaris Holdings Limited Pension Scheme also contains a defined contribution section, although  
this section is relatively small.
The pension cost charged to operating profit before exceptional items under FRS 17 ‘Retirement Benefits’ for the year amounts to £603,000 (2006: 
£459,000). This charge is equal to the service cost of £180,000 (2006: £167,000) in respect of the defined benefit arrangements, plus contributions of 
£423,000 (2006: £292,000) paid by the Company in respect of the defined contribution arrangements. The exceptional item of £1,276,000 credited to  
the operating profit relates to the net benefit of the settlement of non-statutory pension payments. Except where stated otherwise, the remainder  
of this FRS 17 pensions note relates only to the defined benefit arrangements.
During the year the Group offered to buy out the right to non-statutory pension increases from its active and deferred pensioners. This has resulted in a 
reduction in the FRS 17 liability in the balance sheet of £1,562,000 (2006: £5,634,000) and a benefit of £1,276,000 (2006: £4,076,000) in the profit and loss, 
disclosed as an exceptional operating item. 
A full FRS 17 actuarial valuation was carried out at 31 January 2007 by a qualified independent actuary. The main assumptions used by the actuary for  
the purposes of FRS 17 were:
Financial assumptions applied when valuing the defined benefit schemes
       2007 2006 2005 
Valuation method       Projected unit Projected unit Projected unit
Discount rate       5.3% 5.0% 5.5%
Inflation rate       3.2% 2.9% 2.8%
Increases to pensions in payment       3.2% 2.9% 2.8%
Increase in pensions (in excess of GMP) in deferment      3.2% 2.9% 2.8%
Salary increases        3.2% 2.9% 2.8%
The assumptions used by the actuary are best estimates chosen from a range of possible actuarial assumptions which, due to the timescale covered, may 
not necessarily be borne out in practice.
The fair value of the schemes’ 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:
Consolidated net deficit in the pension schemes and the expected long-term rates of return
  2007 2006 2005
    
    % £000 % £000 % £000
Equities and absolute return    7.80 20,306 7.10 19,702 8.35 19,128
Property    7.80 4,186 7.10 3,570 8.35 –
Fixed interest    5.30 13,078 4.70 13,695 4.60 12,232
Index linked gilts    4.80 – 4.10 – 4.60 516
Insured annuities    5.30 2,087 5.50 2,053 5.50 1,349
Cash and other    5.25 393 4.50 221 4.75 306
Defined contribution section     – 1,069 – 661 – 400
Total market value of assets     41,119  39,902  33,931
Present value of the schemes liabilities     (46,577)  (47,883)  (45,200)
Deficit in the schemes     (5,458)  (7,981)  (11,269)
Related deferred tax asset      1,637  –  –
Net pension liability      (3,821)  (7,981)  (11,269)
Volatility of FRS 17
It should be noted that the methodology and assumptions prescribed for the purposes of FRS 17 mean that the disclosures will be inherently volatile, 
varying greatly according to investment market conditions at each accounting date.
Notes to the Accounts continued WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 41
Movement in deficit during the period
        2007 2006 
        Group Group 
        £000 £000
Deficit at beginning of period        (7,981) (11,269)
Movement in the period:
Current service cost        (180) (167)
Contributions        1,078 799 
 Reduction of pension deficit following settlement of liabilities      1,562 5,634
Release due to sale of subsidiary        – 95
Other finance income/(charge)        81 (174)
Adoption of PA92 mortality tables        – (3,196)
Actuarial (loss)/gain        (18) 297
Deficit at end of period         (5,458) (7,981)
It should be noted that the UK schemes are closed to new entrants and so the use of the projected unit valuation method required by FRS 17 means 
that the current service cost (as a proportion of members’ earnings) is likely to increase as members approach retirement.
During the year, the Company contributed to the Walker Greenbank Pension Plan at the rate of 4.6% of pensionable salaries, plus additional amounts of 
£57,000 per month for the first eight months, and £77,000 per month for the remaining four months (as allowed by the Pensions Regulator as part of the 
application to extend the Schedule of Contributions). The Company paid contributions in line with the Schedule of Contributions to the WG Senior 
Management Scheme and Abaris Holdings Limited Pension Scheme.
The current Schedule of Contributions for the UK schemes requires the Company to pay the following contributions:
Walker Greenbank Pension Plan – 4.6% of pensionable salaries plus £77,000 per month
Abaris Holdings Limited Pension Scheme (Defined benefit Section only) – £17,460 per month falling to £12,770 from May 2007
WG Senior Management Pension Scheme – £3,700 per month plus administration and scheme levies
History of experience gains and losses
     2007 2006 2005 2004 2003
Difference between the expected and actual return on scheme assets:
Amount (£000)     (1,216) 3,817 822 1,446 (7,741)
Percentage of scheme assets     (3.0%) 9.6% 2.4% 4.7% 27.7%
Experience gains and losses on scheme liabilities:
Amount (£000)     (5) 425 (531) (501) (572)
Percentage of the present value of scheme liabilities    (0.0%) 0.9% (4.3.%) 1.2% 1.4%
Total amount recognised in statement of total recognised gains and losses:
Amount (£000)     (18) (2,899) (1,110) 945 (8,318)
Percentage of the present value of scheme liabilities    (0.0%) (6.1%) (2.5%) 2.3% 20.9%
 
•
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• WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 42
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       2005 
     2003 2004 (restated) 2006 2007 
     £000 £000 £000 £000 £000
Turnover     58,261 47,975 50,611 48,392 53,327
Overseas turnover     17,926 17,517 19,724 18,916 17,842
Operating profit/(loss) – restated     (3,802) (3,159) (2,690) 5,018 3,477
EBITDA     (691) (514) (322) 2,845 4,012
Profit/(loss) before taxation – restated     (7,975) (4,050) (807) 2,625 2,594
Capital expenditure     1,208 569 1,187 710 1,222
Profit/(loss) per share      (13.04p)  (7.61p)  (1.48p) 4.51p 4.49p
Average number of employees     665 568 613 539 548
Dividends     – – – – –
Shareholders’ funds – restated     12,742 8,680 7,070 8,597 12,847
Dividend per share      – – – – –
The shareholders’ funds for 2004 have been restated to reflect the implementation of UITF 38. The operating loss for 2005 has been restated to reflect  
the impact of FRS 4.
EBITDA is based on operating profit before exceptional items.
Financial Calendar
Annual General Meeting 25 July 2007
Announcement of half-year results October 2007
Five-Year Record WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 43
Notes WALKER GREENBANK PLC  ANNUAL REPORTS AND ACCOUNTS 2007 44
Notes Walker Greenbank PLC is a designer, 
manufacturer and distributor of furnishing 
fabrics and wallpaper, whose international  
brands include Sanderson, Morris & Co.,  
Harlequin and Zoffany. 
FRONT COVER: Extravagance Wallpaper 
Collection by Harlequin, Design Divine.
BACK COVER: Pemberley Collection by 
Sanderson, Design Pillemont Toile.
01 Highlights
02 Strong growth
 – Harlequin
04 Continued investment
 – Sanderson and Morris & Co.
06 Focus on core values
 – Zoffany
08 Concept to creation
10 Chairman’s Statement
12 Chief Executive’s Review
14 Financial Review
16 Directors and Advisers
17 Report of the Directors
19  Statement of Directors’ 
Responsibilities
20 Independent Auditors’ Report
21 Group Profit and Loss Account
22 Balance Sheets
23 Group Cash Flow Statement
24   Statement of Total Recognised  
Gains and Losses
24  Reconciliation of Movements  
in Shareholders’ Funds
25 Notes to the Accounts
42 Five-Year Record
See page 4 See page 4 See page 6
See page 8 See page 8
See page 2
Harlequin
Harlequin has built a reputation  
as one of the leading brands 
in the home furnishings market 
offering quality contemporary 
fabrics and wallcoverings.
Sanderson
Sanderson is internationally 
recognised as a leading global  
brand in interior design  
and decorating.
Morris & Co.
The Morris & Co. business has  
a heritage that dates back to the  
mid 19th Century when it was 
founded by William Morris,  
the acclaimed designer.
Zoffany
Zoffany offers a range of products  
of the highest quality including 
wallpaper, fabrics, trimmings,  
carpets, paint and furniture.
Walker Greenbank
Our Brands
Overseas Distribution Sites
Our UK Manufacturing Sites
Anstey 
Wallpaper
Standfast & Barracks
Printed fabrics
France USA Italy Walker Greenbank PLC
Chalfont House
Oxford Road
Denham 
UB9 4DX
T: 08708 300 365
F: 08708 300 364
www.walkergreenbank.com
2007 
Walker Greenbank PLC
Annual Report and Accounts
Walker Greenbank PLC  Annual Report and Accounts 2007