Walker Greenbank issues profit warning after Storm Desmond

14th Dec 2015 09:34

(ShareCast News) - Interior furnishings group Walker Greenbank said full year pre-tax profit is expected to be around 15% lower than current market forecasts due to the disruption caused by flooding at its fabric printing business in Lancaster.Trading in the following financial year will also be impacted until full printing capacity is restored.The company said it is now working with its insurers regarding the substantial flooding caused by Storm Desmond at Standfast & Barracks and has appointed a project manager and specialist contractors to assist in getting the factory back to full production as soon as possible."The company is fully covered for these losses by its insurance policy, which includes flood damage and business interruption, and expects to recover in full the profits shortfall incurred in both financial years," it said.Walker, whose brands include Sanderson, Morris & Co and Harlequin, said a recovery plan is being implemented in which production will be restored on a phased basis, starting with digital printing.In addition, the company said it plans to outsource some fabric printing in the short term.Walker's current best advice was that digital printing will be restored in the early part of next year, while other printing processes will resume sequentially with the intended result that the majority of printing capacity will be back on stream by the end of April 2016.At 0950 GMT, shares were down 4% to 203p.