REG - Sanderson Design Grp - Trading Update

Sanderson DesignAnnouncement

18/01/2022 07:05

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RNS Number : 7389Y  Sanderson Design Group PLC  18 January 2022

 This announcement contains inside information as stipulated under the UK
 version of the market abuse regulation (EU no. 596/2014) as it forms part of
 UK law by virtue of the European Union (withdrawal) act 2018 (as amended from
 time to time).

 For immediate release
                                               18 January 2022

 

 

SANDERSON DESIGN GROUP PLC

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

 

Trading Update

 

Sanderson Design Group PLC (AIM: SDG), the luxury interior design and
furnishings group, announces a trading update in respect of the year ending 31
January 2022 following a strong performance from the Company's manufacturing
and licensing operations.

Whilst Group revenues for the year are expected to be only slightly ahead of
Board expectations at approximately £112.0 million (FY 2021: £93.8m), the
Group's profitability is expected to be significantly ahead owing to the
operational gearing effect of recent manufacturing sales and additional,
higher margin, licensing income.

Overall brand product sales during the year have performed broadly in line
with expectations, with a particularly strong performance from the Morris
& Co. brand. North America recorded strong growth of approximately 40% in
constant currency and represents approximately 19% of the Group's brand
product sales.

The Group's manufacturing operations have continued to benefit from very
strong order books. Third party sales are expected to be up approximately 33%
in the year compared with the prior year, in part reflecting the attraction of
onshore UK production for UK customers following Brexit and COVID-19 related
global supply chain issues, along with strongly growing international sales.
Both of the Group's manufacturing sites, wallpaper printing in Loughborough
and fabric printing in Lancaster, performed well.

Licensing agreements signed in the second half of the financial year,
including a further agreement with NEXT announced in October 2021 and an
agreement with Williams Sonoma announced in August 2021, contributed to a
strong performance from licensing. This performance reflects the recognition
of accelerated income under IFRS15 along with robust sales from existing
licensees, notably NEXT's Morris & Co. womenswear and the core categories
of window coverings and bedding.

As a result of the above, the Board expects adjusted profit before tax of at
least £12.0 million for the year ending 31 January 2022 (FY 2021: £7.1m).

The Company's balance sheet has further strengthened during the second half of
the year. The net cash position at 31 January 2022 is expected to show an
improvement on the £15.4 million, excluding leases, as at 31 July 2021.

Sanderson Design Group's full year results will be announced in April 2022.

 

 

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 Broker)  +44 (0) 20 7597 5970
 David Anderson / Alex Wright / Ben Farrow

 Buchanan                                          +44 (0) 20 7466 5000
 Mark Court / Sophie Wills / Toto Berger

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, Paris,
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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