Disposal

Walker Greenbank PLC
5 September 2000




Not for release or distribution in or into the United States, Canada,
Australia or Japan 
 
 
Walker Greenbank PLC 
 
PROPOSED SALE OF THE HAND BLOCK WALLPAPER BUSINESSES 
 
The Board of Walker Greenbank PLC ('Walker Greenbank' or the 'Group') is
pleased to announce that contracts have been exchanged for the disposal of
the wallpaper businesses, Cole & Son and John Perry (Wallpapers) (together
the 'Hand Block Wallpaper Businesses') to a newly formed company, Karen
Beauchamp Limited, for a total consideration of £3 million. £2.8 million is
payable on completion and the remaining £200,000 is payable on or before 28
February 2002, together with accrued interest. The consideration will be
utilised by the group as part of its working capital and will enable it to
minimise its use of short term working capital facilities.
 
The disposal of the highly specialist Hand Block Wallpaper Businesses will be
completed on or before 29 September 2000. The disposal represents a further
step in the strategy of the Group in creating a powerhouse of design in
quality consumer fabrics and wallcoverings supported by centres of excellence
in manufacturing and distribution. As part of the sale, it is intended that
the Group will enter into a manufacturing contract for the non-hand block
wallpapers distributed by Cole & Son. The Group has also agreed to distribute
the products of the Hand Block Wallpaper Businesses in certain markets for a
short period after completion.
 
Aidan Connolly, Chief Executive, Walker Greenbank said:
'As leading, highly-specialised historic wallpaper businesses, Cole & Son and
John Perry do not offer the opportunity for future growth in the area that
the Group is seeking. We have achieved an excellent sale price that, bearing
in mind our current market capitalisation, highlights the value of the
Group's assets'.
 
 
Information on the Hand Block Wallpaper Businesses 
The Hand Block Wallpaper Businesses comprise the trade and assets of the Cole
& Son and John Perry (Wallpapers) business operating units, together with a
freehold property in Islington. The Group acquired the businesses in early
1995 for a total consideration of £1.506 million.
 
Cole & Son distributes a range of historic wallpapers. The hand made and
block printed wallpapers were traditionally made by John Perry (Wallpapers)
from its remarkable factory in Islington until April 2000, when the business
moved to Loughborough. Cole & Son and John Perry wallpapers feature in a
number of famous buildings across the world.
 
Sales of the Hand Block Wallpaper Businesses in the year ended 31 January
2000 amounted to £1.8 million, which represented 3.7% of Group sales. As at
31 January 2000, the net assets of the Hand Block Wallpaper Businesses were
approximately £0.9 million. Following acquisition in 1995, the Hand Block
Wallpaper Businesses made significant losses until, in February 1998, they
were amalgamated into the Group's Zoffany and Anstey wallpaper businesses. In
the year ended 31 January 2000, the Hand Block Wallpaper Businesses made a
contribution before property and central costs, unallocated overheads,
interest and tax of £0.35 million.
 
After writing back goodwill associated with the purchase of the Hand Block
Wallpaper Businesses of £1.4 million, Walker Greenbank will be reporting a
profit on this transaction of £0.5 million in its accounts for the year ended
31 January 2001.
 
 
Information on Karen Beauchamp Limited 
Karen Beauchamp Limited is a newly formed company, owned by Karen Beauchamp,
a leading wallpaper and fabric designer in London, together with Anthony
Evans, who was, until February 1998, the managing director of the businesses.
Karen Beauchamp and her team were advised by Derek Rothera, senior partner of
Derek Rothera & Company, Chartered Accountants of London.
 
 
Contacts: 
Aidan Connolly     0144 223 4666 
Walker Greenbank PLC  
 
John Rudofsky     020 8481 7681 
Helsen Communications 
 
Richard Barlow      0207 311 8051 
KPMG Corporate Finance