REG - Sanderson Design Grp - Full Year Trading Update

Sanderson DesignAnnouncement

10/02/2026 07:00

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RNS Number : 3246S  Sanderson Design Group PLC  10 February 2026

 10 February 2026

SANDERSON DESIGN GROUP PLC

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

 

Full Year Trading Update

Results in line with expectations and strong cash position

 

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 2026.

The Group traded in line with management expectations for the full year, with
the delivery in the second half of strong growth in brand sales in the US and
other overseas markets and a good recovery in third-party manufacturing
revenue. Licensing performed robustly throughout the year and, within brand
sales, the direct-to-consumer channel achieved rapid growth, primarily
reflecting Morris & Co. sales. Subdued trading conditions in the UK
continued as expected through the second half.

Group revenue for the year is expected to be £99.5 million (FY2025:
£100.4m), marginally lower than the prior year in reported currency and
consistent with the prior year in constant currency.

Adjusted underlying profits for the year are expected to be at least £5
million (FY2025: £4.4m). This strong growth in profitability reflects the
Board's continued focus on strategic cost-saving initiatives.

The Group's net cash continued to build in the second half of the year to
approximately £9.8 million at 31 January 2026 (FY2025: £5.8m; H1 FY2026:
£7.8m) owing to further planned inventory reductions, working capital
management and controlled capital expenditure.

 

Brand product, manufacturing and licensing revenue

                                  Year to 31 January      % Change            % Change (CER)
                                              (£ million)           FY2026 v FY2025        FY
                                                                                           20
                                                                                           26
                                                                                           v
                                                                                           FY
                                                                                           20
                                                                                           25
                                  2026        2025        REP((1))  CER((2))  H126 v H125  H226 v H225
 Brand product
 UK                               30.0        32.8        (9)%      (9)%      (9)%         (8)%
 North America                    22.3        21.0        6%        10%       4%           15%
 North America (underlying)((3))                          5%        9%        4%           12%
 Northern Europe                  9.4         9.1         3%        1%        (9)%         11%
 Rest of the World                8.4         8.4         0%        0%        (9)%         8%
 Total Brand product revenue      70.1        71.3        (2)%      (1)%      (5)%         3%
 Manufacturing
 External                         18.9        18.1        5%        5%        (1)%         11%
 Internal                         10.8        13.6        (21)%     (21)%     (34)%        2%
 Total Manufacturing revenue      29.7        31.7        (6)%      (6)%      (16)%        6%
 Licensing
 Total Licence revenue            10.5        11.0        (5)%      (5)%      6%           (11)%

 TOTAL GROUP REVENUE              99.5        100.4       (1)%      0%        (3)%         3%

 

((1)) On a reported currency basis

((2)) On a constant currency basis

((3)) North America (underlying) excludes surcharges added to US sales to
mitigate additional costs resulting from the introduction of tariffs

 

The targeted growth market of North America performed strongly in the year,
with underlying brand product sales up 5% in reported currency and up 9% in
constant currency. US sales delivered double digit growth in the early part of
the financial year followed by a significant drop in Q2 as a result of
uncertainty around the US tariff regime. A strong recovery was seen in the
second half. Brand product sales in North America including surcharges
implemented to mitigate tariff costs were up 6% in reported currency and up
10% in constant currency. Brand product sales in Northern Europe and the Rest
of the World performed well in the second half, driven in part by contract
orders.

Total licensing revenue was robust at £10.5 million (FY2025: £11.0m) with
underlying revenue, which excludes the impact of the IFRS 15 accounting
standard, up 35% at £9.0 million (FY2026: £6.6m). This strong growth in
underlying performance, which contributes to the Group's cash generation,
reflects the receipt of minimum guaranteed amounts from licensing agreements
signed in previous years and revenue above those minimum guarantees.

Accelerated income, under IFRS 15, was £6.1 million (FY2026: £7.3m). Licence
renewals and extensions signed during the second half of the year with
significant accelerated income include Ruggable, which has broadened its
product range and included the Morris & Co. Huntington designs, and
Sangetsu, which has extended the Morris Chronicles agreement for a further
five-year period.

Third-party manufacturing revenue, at £18.9 million, was up 5% (FY2025:
£18.1m), benefiting from the improved momentum in order books referenced at
the time of the half year results in October 2025. Cost-saving and efficiency
initiatives have transformed the financial performance of the Group's
manufacturing operations and the flexibility of the manufacturing workforce.
Manufacturing is expected to have achieved slightly above break-even for the
financial year in line with the Group's target.

Direct-to-consumer ("DTC") is a new sales channel with all brands now having
DTC websites.  Following the Scion DTC pilot, the Morris & Co. DTC site
went live in September 2024 in the UK. It was launched in the US in March 2025
and since then DTC sites have been launched for Sanderson, Harlequin, Clarke
& Clarke and, most recently, Zoffany.

DTC sales in the year ended 31 January 2026, which are primarily from Morris
& Co., were £1.8 million, up from £0.4 million in the prior year, with a
substantial amount of the growth coming from the US from new customer
audiences.

 

Senior leadership

The Company has recently strengthened its management team with key
appointments to drive digitalisation and US growth.  Charlotte O'Sullivan was
recently appointed as Group Digital & Innovation Director to further
develop the Company's DTC business and lead the broader digitalisation of the
Company. Scott Christopher Hans, who joined the Company as SVP of Sales in the
US in November 2024 has this month been appointed President of the Company's
North American business.  Both of these senior leadership team roles will
support the Company's strategic growth priorities.

 

Outlook

As we begin the new financial year, there is increasing momentum in the
business, particularly in the US, manufacturing and DTC, although UK trading
conditions remain subdued. The Group benefits from a strong portfolio of
brands, a valuable archive and strong cash balances and the Board remains
confident in the Group's strategy in the year ahead and beyond.

The Group's full year results are expected to be announced in late April 2026.

 

For further information:

 Sanderson Design Group PLC                                   c/o Burson Buchanan
 Lisa Montague, Chief Executive Officer                       +44 (0) 20 7466 5000
 Mike Woodcock, Chief Financial Officer

 Investec Bank plc (Nominated Adviser and Joint Broker)       +44 (0) 20 7597 5970
 David Anderson / Charlotte Young

 Singer Capital Markets (Joint Broker)                        +44 (0) 20 7496 3000
 Jen Boorer / Sara Hale / James Todd

 Burson Buchanan                                              +44 (0) 20 7466 5000
 Mark Court / Sophie Wills / 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, 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 500 people and its products are
sold worldwide. It has showrooms in London, New York and Chicago.

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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