Sanderson boasts outlets in New York and Chicago. Are they under threat from Trump's Tariff crusade?
Back at home, a bit of a reshuffle at the top table:
"The departure of Rogers marks a significant change in the company's board dynamics"
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Snippets from reports of the company's latest update:
".. profits for the year are set to fall by more than half "
"..product sales have been impacted by “softness in the contract market at the end of the year, particularly in North America”
"The group said it now expects to deliver pre-tax profits of between £4 million and £4.8 million for the year to January. This compares with a £12.2 million profit the previous year, and is below previous estimates of around £8 million."
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Their cash has dropped from £16.3m FY24 to about £10m even taking into account their pension contribution (£2.3m) and capital investment (£3m). Down to an actual balance though of only £5m. So over £11m burn. How much Capex for this FY? |
CFX have managed their brands more effectively and have quietly and slowly built a good US business. I don’t know about SDG but without the licensing deal the company wld be hemorrhaging cash. |
Re today's rns: |
£124k for the chairman
£51k for the non-execs
Pay is aligned to performance according to the remuneration report - last year the CEO/FD triggered a weighted 42% of their bonus payment
The committee also considered their performance against the RSP targets and found a suitable fudge to still award a decent percentage
This company is ripe to be taken over imo - being currently run for the benefit of the board only |
SDG has cropped up on my deep value screen.
However, the CEO's disgustingly high pay package not only hits the bottom line, but also reveals a serious issue with governance. Why aren't the audit committee and the NEDS doing their duty?
Where's the respect for the Company owners? |
My wife says the company is suffering from Kath Kittson - its too much everywhere all at once.....
LESS is MORE... |
Spot on Essential-this maybe should be broken up and would yield double the present disgraceful share price |
salver, LM needs to go.
I'm pretty shocked institutional investors have not agitated for CEO change.
I say pretty shocked, however when you are managing other people's money, rather than your own, it sometimes creates a comfortable 'distance'.
There's arguably been an abundance of clarity for over 12 months that SDG needs an executive with corporate restructuring experience. |
I see some hedge funds (LBV asset management) -have taken a 5 percent stake in this in last few days |
What CFX shows, is in challenging conditions it's possible to deliver a reasonable result.
Yes, I am aware CFX has a greater US exposure, etc.
Those ascribing UK macro as the predominant factor in SDG's recent performance, arguably miss other clues. |
Colefax broker Peel Hunt has just raised their eps forecasts by 35 percent so I’m guessing January wasn’t too bad! |
In fairness, CFX's numbers are to 31 Oct, the downturn at SDG came later and in particular first two weeks January for the UK. Chairman makes the important point re. potential US tariffs which would affect both companies if more so CFX:
"The Group has delivered a good performance in the first six months due to a strong Fabric Division performance in the US. Market conditions in the UK and Europe are currently challenging and we expect these conditions to continue through the second half of the year. Following the US election in November the US Dollar exchange rate has strengthened significantly and if sustained this will be beneficial for Fabric Division profits going forward. Although trading prospects in the US look favourable there is currently significant uncertainty around the possibility of higher US import tariffs and how they might impact our US business." |
The problem with their designs.....
They got literally everywhere...
It was the same problem as Kath Kittson (a while back).
People began to think of it as "down market tat" (or heading that way)...
Having said that...
Mass production has a place...
As does this company.....
But perhaps not quite yet.... |
The board at SDG would do well to examine these figures excellent results just published by Colefax- they have just equaled fully year consensus near enough just in first half |
I see Lisa Montague and Diane Thompson have made a token purchase of shares -probably to try and keep their jobs rather than anything else-still it must be remembered that the asset value of the company is still intact and still well north of double the share price |
Directors purchase and holdings hardly a vote of confidence imo. |
CEO and Chairman have purchased approx £25k's worth of shares. Anyone impressed? |
Progressive have now reduced their eps forecast from 8.3p to 4.6p. Personally unless they drastically change their business another warning would not surprise me.Given it's now at about a 50% discount to NTAV it may attract a bidder, but as I've posted previously, why would someone buy if demand for their products isn't there and they can acquire IP via licensing contracts to accommodate the fickle ups and downs of the fashionable design market.Good look to holders as the high end / branded market will inevitably pick back up again but their sales have been flat for a long time now in any case. |
Consumers habits tend to change over time such as being minimalistic and deciding to paint rather than paper which is just a fraction of the cost.
There could be more fundamental reasons behind the fall in sales however and I have to admit I haven't been able to research the company thoroughly. |
I think that the ending of wfh is hurting them - there's been a clear trend away from the large houses in the country that everyone wanted during covid, towards the smaller city centre pads that reduce commuting. Their papers and furnishings are nearly all oriented towards the grand family style rather than the urban professional. They really need to wake up. |
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