TIDMSDG
RNS Number : 5713I
Sanderson Design Group PLC
08 August 2023
8 August 2023
SANDERSON DESIGN GROUP PLC
("Sanderson Design Group", the "Company" or the "Group")
Half Year Trading Update
Strong performance from licensing underpins half year
profitability
Company remains on track to meet the Board's full year profit
expectations
Sanderson Design Group PLC (AIM: SDG), the luxury interior
design and furnishings group, is pleased to announce its trading
update for the six months ended 31 July 2023.
A strong performance in the half year from the Group's
high-margin licensing activities and encouraging growth in the US
have mitigated the difficult market conditions in the UK discussed
in the Company's AGM statement on 22 June 2023.
Group sales in the six-month period of GBP56.7 million
(comprising Brand product and external Manufacturing sales along
with licensing revenue) were down 2.1% in reported currency
compared with the same period last year (H1 FY23: GBP57.9m), down
3.0% on a constant currency basis.
The strong contribution from licensing means that adjusted
underlying profit before tax for the half year is expected to be
slightly ahead of the same period last year (H1 FY23: GBP6.3m).
Brand product, manufacturing and licensing revenue
Six months to 31 Change (%)
July
(GBP million)
2024 2023 Reported Constant
currency
--------- -------- --------- ----------
Brand product
UK 19.5 22.1 (11.8%) (11.8%)
--------- -------- --------- ----------
North America 10.7 9.7 10.3% 5.9%
--------- -------- --------- ----------
Northern Europe 5.1 5.5 (7.3%) (8.9%)
--------- -------- --------- ----------
Rest of the World 5.0 4.9 2.0% 0.0%
--------- -------- --------- ----------
Total Brand product
revenue 40.3 42.2 (4.5%) (5.8%)
--------- -------- --------- ----------
Manufacturing
(20.2
External 9.5 11.9 %) -
--------- -------- --------- ----------
Internal 7.6 9.7 (21.6%) -
--------- -------- --------- ----------
Total Manufacturing
revenue 17.1 21.6 (20.80%) -
--------- -------- --------- ----------
Licensing
Total Licence revenue 6.9 3.8 81.6% -
--------- -------- --------- ----------
Total revenue 56.7 57.9 (2.1%) (3.0%)
--------- -------- --------- ----------
Brand product revenue in the first half was impacted by the
challenging UK market, which represented approximately 48% of total
brand product revenue. The targeted growth market of the US
continued to perform well, with sales up 10.3% in reported
currency. The Rest of the World market benefited from an increasing
number of contract sales to the hospitality market in the Middle
East.
Third-party manufacturing at GBP9.5 million was down 20.2%
compared with the strong comparator last year (H1 FY23: GBP11.9m),
when customers restocked post Covid, and reflects a return to more
normalised trading conditions. Repeat orders were down in the first
half this year both from third-party and Group brands, although
orders for new collections have held up well.
Licensing performed strongly in the first half with total
licensing revenue up 81.6% at GBP6.9 million (H1 FY23: GBP3.8m),
driven by accelerated income of GBP4.9 million (H1 FY23: GBP1.9m)
from recently signed licence agreements.
Major new licensing deals were signed with NEXT and Sainsbury's
in February and March 2023 respectively and a considerable number
of licence renewals were also agreed, underlining the strength of
our licensing relationships. Sangetsu has recently launched Morris
Chronicles in Japan, a collection of Morris & Co. fabrics,
wallpapers and floor coverings, and, this autumn, the Company will
launch the Disney Home x Sanderson collection of vintage-inspired
fabrics and wallpapers.
The Company has recently streamlined its UK support function,
which is expected to yield annualised savings of GBP0.6 million
whilst maintaining a high level of customer focus.
Balance sheet
The Group's balance sheet remains strong with net cash of
approximately GBP15.9 million as at 31 July 2023 (H1 FY23:
GBP15.0m), compared with GBP15.4 million on 31 January 2023.
Outlook
As expected, recent consumer trends in the UK have persisted,
however, the Group continues to benefit from significant brand
strength and an increasingly diverse product range and geographical
reach. This has helped deliver a robust Group performance and, in
particular, a strong contribution from our high-margin licensing
activities, which has underpinned profitability in the first
half.
The Group remains cautious about the UK economic environment and
is committed to taking mitigating actions where necessary whilst
also maintaining momentum in delivering its strategic
objectives.
Focus remains on the significant international growth
opportunity in the US market and the growing pipeline of licencing
opportunities, both of which will underpin trading in H2 FY24 and
beyond.
The Group continues to benefit from a strong balance sheet and,
whilst the outlook is uncertain, the Board's expectations for the
Group's full year profits remain unchanged.
Notice of Results
Sanderson Design Group expects to announce its interim results
for the six months ended 31 July 2023 on 11 October 2023.
For further information:
Sanderson Design Group PLC c/o Buchanan +44 (0)
20 7466 5000
Lisa Montague, Chief Executive Officer
Mike Woodcock, Chief Financial Officer
Investec Bank plc (Nominated Adviser
and Joint Broker) +44 (0) 20 7597 5970
David Anderson / Alex Wright / Ben
Farrow
Singer Capital Markets (Joint Broker) +44 (0) 20 7496 3000
Tom Salvesen / Jen Boorer / Alex Emslie
Buchanan +44 (0) 20 7466 5000
Mark Court / Toto Berger / Abigail
Gilchrist
SDG@buchanan.uk.com
Notes for editors:
About Sanderson Design Group
Sanderson Design Group PLC is a luxury interior furnishings
company that designs, manufactures and markets wallpapers, fabrics
and paints. In addition, the Company derives licensing income from
the use of its designs on a wide range of products such as bed and
bath collections, rugs, blinds and tableware.
Sanderson Design Group's brands include Zoffany, Sanderson,
Morris & Co., Harlequin, Clarke & Clarke and Scion.
The Company has a strong UK manufacturing base comprising Anstey
wallpaper factory in Loughborough and Standfast & Barracks a
fabric printing factory, in Lancaster. Both sites manufacture for
the Company and for other wallpaper and fabric brands.
Sanderson Design Group employs approximately 600 people, and its
products are sold worldwide. It has showrooms in London, New York,
Chicago and Amsterdam.
Sanderson Design Group trades on the AIM market of the London
Stock Exchange under the ticker symbol SDG.
For further information please visit:
www.sandersondesigngroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFFFIITEIDIIV
(END) Dow Jones Newswires
August 08, 2023 02:00 ET (06:00 GMT)
Sanderson Design (LSE:SDG)
Historical Stock Chart
From Apr 2024 to May 2024
Sanderson Design (LSE:SDG)
Historical Stock Chart
From May 2023 to May 2024
