REG - Sanderson Design Grp - Full Year Trading Update

Sanderson DesignAnnouncement

07/02/2023 07:00

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RNS Number : 0822P  Sanderson Design Group PLC  07 February 2023

 For immediate release
                                                        7 February
                        2023

SANDERSON DESIGN GROUP PLC

("Sanderson Design Group", the "Company" or the "Group")

 

Full Year Trading Update

 

Sanderson Design Group PLC (AIM: SDG), the luxury interior design and
furnishings group, is pleased to announce its trading update for the financial
year ended 31 January 2023.

Strong performances from the Morris & Co. brand, licensing and North
America were offset by withdrawal from the Russian market, and a small
decrease in manufacturing revenue against a strong comparator, to give Group
sales for the year of approximately £112.0 million (2022: £112.2m).

Underlying profits for the financial year ended 31 January 2023 are expected
to be in line with Board expectations, reflecting the strength of licensing
income, the implementation of price increases in February and August 2022 and
careful cost control across the business to manage inflationary pressures.

                                    FY23            FY22      FY23 v FY22    FY23 v FY22
                                    Reported (£m)   Reported  Reported(£m)   Constant Currency (£m)

                                                    (£m)
 Brand product revenue              83.4            84.1      -1%            -3%
 Brand licence revenue              6.4             5.2       23%            23%
 Third party manufacturing revenue  22.2            22.9      -3%            -3%
 Total revenue                      112.0           112.2     0%             -2%

 

In brand product sales, Morris & Co. recorded strong growth of
approximately 14% at constant currency. By region, North America delivered
product sales growth of around 5% at constant currency (18% in reported
currency) whilst the UK was almost unchanged at minus 1%. Product sales in
Northern Europe were down 17% in constant currency, impacted particularly by
the previously announced cessation of trade in Russia where prior year sales
were £1.8 million.

The Company's high-margin licensing activities performed very strongly in the
year, with revenues up approximately 23% at £6.4 million, buoyed by the
signing of new agreements and the renewal or expansion of existing licensing
arrangements.

Third party manufacturing sales declined by approximately 3% reflecting the
strong comparator of the previous year, a period of restocking after Covid.

The Group's net cash position as at 31 January 2023, excluding leases,
remained robust at approximately £15.2 million (31 July 2022: £15.0 million)
after the strategic investment made earlier in the year in inventory to ensure
availability of key lines of wallpaper and fabric.

Sanderson Design Group's full year results, including a detailed outlook on
the current financial year, will be announced in April 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
 Caroline Geary, Company Secretary

 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 (mailto: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, Scion, Clarke & Clarke and Archive by Sanderson Design.

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, Amsterdam and
Dubai.

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
(http://www.sandersondesigngroup.com)

 

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