Walker Greenbank PLC
9 February 2000
WALKER GREENBANK PLC
Trading Statement
The creation of the Walker Greenbank Group in the early
1990's resulted in it having a large number of
incompatible IT systems. To address this problem and to
provide a platform for e-commerce, as well as dealing
with the Y2K risk, we have been working for over three
years on an integrated systems strategy for the whole
Group. Installation of this system was completed in
December 1999.
Whilst much of the new system has been implemented
successfully, certain software problems at the Group's
centralised warehouse in Milton Keynes have prevented it
from operating at previous efficiency levels in the run
up to the year end. This has had an impact on our
ability to process the orders we have received, reducing
our sales levels in the final period of the current
financial year. Our staff are working closely with the
software house which supplied and installed the package
to resolve these difficulties. Considerable progress has
been made and we anticipate that the new system will be
working efficiently shortly.
The Board has already agreed an approach with the
supplier to substantially mitigate the financial impact
of these implementation problems. The full year's
results will contain an exceptional receipt relating to
this matter. Taking this into account, profitability for
the second half of the financial year ended 31 January
2000 will fall slightly below the Board's expectations as
a result of the overall adverse impact of these events.
Aidan Connolly, Chief Executive, commented: 'Despite all
our best efforts, project overruns made it necessary to
install this software in a critical period for our
business. It was a disappointment that the installation
did not go totally smoothly. However, our software
partner has responded magnificently to the problems and
as a result we are already moving back on track and
forging ahead with implementing the next phase of our e-
commerce strategy.'
Walker Greenbank will announce its preliminary results
for the year ended 31 January 2000 on 18th April 2000.
Enquiries:
Aidan Connolly, Chief Executive
John Sach, Group Finance Director
Walker Greenbank plc
0144 223 4666
John Rudofsky/Patrick Toyne- Sewell
Citigate Dewe Rogerson
0207 638 9571
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