Wallpaper and interior furnishing group Walker Greenbank plc (LON:WGB) shrugged off a hit from UK flooding as it reported higher annual sales and profits.
The group, which owns the Sanderson wallpaper brand, said last year's flood at its Standfast & Barracks fabric printing plant in Lancaster had continued to affect sales.
But it said its insurance policy would cover the consequent shortfall and the factory was on track to resume most of its production by the end of this month.
The group had an exceptional gain of about £1.4mln as a result of an interim insurance payment for loss of profits.
The flooding did affect sales in the first nine weeks of this year.
UK brand sales fell 3.8% whereas overseas brand sales rose 8.7% in reportable currency, up 4.1% in constant currency.
But the group said overall sales in the year to the end of January still rose 5.4% to £87.8mln and adjusted profits lifted 10% to £8.95mln.
The group continued product development including the fourth collection from its Anthology wallpaper brand.
It increased the final dividend by a quarter to 2.45p per share, boosting the total dividend by 25.1% at 2.89p per share.
Chairman Terry Stannard said: "Our new product launches and contract pipeline mean we are confident of the trading outlook in the year ahead.
"We are particularly encouraged by the launch of the fourth collection from the Anthology brand, which for the first time includes an extensive range of contract-quality woven fabrics, by the launch of the Woodland Walk collection from Sanderson and by a strong trading start from our wallpaper factory in Loughborough."
Shares in Walker Greenbank increased 4.5p to 205p in lunchtime London trading.
Broker N+1 Singer said the business disruption from the floods seemed higher than expected and affected UK sales for both fabric and wallpaper.
But it added: "The impact will, however, be covered by the insurance claim where the claim period runs until December 2017.
"They do thus appear to have sufficient time to get the business back on track."