Sanderson Design Share Discussion Threads

[disc0dave45] 17/3/2023 15:29

SDG mentioned around 16 minutes in.Could see this go below 120.Https://youtu.be/8GVsSU12ELQ

[salver2] 23/2/2023 15:23

I agree I think Lisa Montague is excellent- the only thing that surprises me is how few shares she’s bought although I’m guessing she has a lot of options- and I suppose it’s better for her in a way that the share stays a lowly price

[essentialinvestor] 23/2/2023 15:15

Salver, I think the importance of yesterday's announcement is C&C instantly becomes a more valuable brand. And by the same measure SDG a more valuable business.

Got to hand it to the CEO.

[salver2] 23/2/2023 12:17

I see that Morris and Co have teamed up with an American Interior designer and influencer called Shea McGee -she has about 3.7 million followers (over 1percent of people in the USA )-I’m suprised that there is no RNS about this -as I would imagine it will give Morris fantastic exposure

[trt] 23/2/2023 09:03

Luxury home furnishings group Sanderson design strikes a rosy licensing deal with NextBy Daily Mail City & Finance Reporter22:01, 22 Feb 2023 , updated 08:35, 23 FebShares in interiors company Sanderson Design soared after it struck a deal with Next to sell products through the high street giant. The luxury home furnishings group signed a five-year licensing agreement to give Next exclusive rights to make products under its Clarke & Clarke brand. Clarke & Clarke is known for bright flowery designs and has a collaboration with TV star Tess Daly on bed linen and cushions. Products including bedding, towelling, tableware, furniture and lighting, will launch next year. They will be manufactured by Next's suppliers. AIM-listed Sanderson said the contract's value would be £2.6million this year alone. Sanderson's shares rose 15.2 per cent, or 18p, to 136.5p. The deal has the potential for 'multi-year income' and was a welcome vote of confidence from a major UK retailer, Sanderson chief executive Lisa Montague said. Next has had an agreement with Sanderson's Morris & Co brand for womenswear since 2021. Next has recently bought Joules and Made.com from the brink of collapse.

[hotfinance14] 23/2/2023 08:34

Article in the Dail Mail...

hxxps://www.dailymail.co.uk/money/markets/article-11782025/Sanderson-strikes-rosy-licensing-deal-next.html?ns_mchannel=rss&ns_campaign=1490&ito=1490

[essentialinvestor] 22/2/2023 16:46

Helps justify the price they paid for C&C a few years back

[barnesian] 22/2/2023 16:44

I think this share has a history of running up ahead of a profit announcement and then dropping after the announcement. I may buy back in. It depends. I'm still running my gain on half my holding so I'm hedging a bit. I'm also managing my CGT.

[trt] 22/2/2023 16:22

Rule of investing run with your winners and cut lose from your losers. After today's announcement more and more investors are realising this one is an absolute winner.

[salver2] 22/2/2023 15:20

Absolutely right Trt there are some on this board who are still waiting for 80p and now trying to rationalise why they didn’t buy -they know who they are -as you say if you see a bargain grab it -for a company like this still very undervalued

[trt] 22/2/2023 14:58

Could well see a dividend hike at the next results too.

[trt] 22/2/2023 14:57

Got to be in it to win it so no point sitting on the sidelines and I can see now that further investors are now buying in to this fantastic company.

[disc0dave45] 22/2/2023 14:47

Of course a 5 year deal generates multi year income!.Perhaps FY25 and beyond will see the impact on bottom line but as for this FY their broker is saying no change to forecasts and consensus is a 3% drop in eps for this year. Underlying business growth is non existent (as I've posted previously) and the only growth appears to be licensed income, which can be very lumpy. But hey if it generates such reactions in share price then we'll done holders.

[disc0dave45] 22/2/2023 12:51

Good news but already factored into FY24, Singers their joint broker has released an update note but maintained their profit forecast (£12m pbt for this FY). So clearly this deal has been in the making for a while, and the upfront income is all they will be getting this FY, if it wasn't already factored in then I'm sure their broker would have increased bottom line earnings given gross margin on licensing is usually 100%. Also, I'm sure the company would have stated emphatically that this deal will increase this years profits ahead of market expectations, but they haven't.Nice rise today for holders though.

[trt] 22/2/2023 10:40

Grabbed a few more shares this morning- licensing income is high margin so base line profits will accelerate for the next 5yrs based on the announcement this morning. No wonder they stated in the RNS it was 'major '.

[cliffpeat] 22/2/2023 08:45

"Accelerated licensing income of GBP2.6 million will be recognised by the Group in the current financial year in connection with the agreement, which covers the UK and Eire."

On the face of it might seem to boost the bottom line substantially - though there may be SDG designer costs involved.

However, without a detailed breakdown of YE 31Jan23 licensing income and whether there were any one-off or non-recurring receipts, it is not clear that this good news will necessarily boost 23/24 net profit.

Good to see apparent investor confidence reflected in today's share price rise.

[trt] 22/2/2023 08:26

Huge profits from this deal. Margins are good. Could see the share price over £1.50 very soon.

[our haven] 22/2/2023 08:11

Market loves the new licensing agreement and so do I. Happy days!

[eeza] 22/2/2023 07:15

RNS - NEXT agreement

[disc0dave45] 07/2/2023 13:36

Perhaps they gave adjusted pbt numbers the previous two years because they were ahead of their expectations, whereas this time they expect to be in line?. That said no reason IMO why they couldn't provide some numbers, they will have them otherwise couldn't give an in line expectation.

[barnesian] 07/2/2023 13:11

@disc0dave45 "Also noticed they declined to give any profit numbers this time in their update whereas they have previously (last two years)."

You make a good point. Last year the update was on 18th Feb compared with today 7th Feb, just after the close of the financial year. I don't know if that could explain it. But if they didn't have the profit numbers, why not wait a week before announcing?

[essentialinvestor] 07/2/2023 13:06

Not sure that is strong enough to push the share price much further forward ATM?.


Licensing helping to hold up profitability currently.

[kalai1] 07/2/2023 12:58

Sanderson Design Group plc the luxury interior design and furnishings group issued a 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. The balance sheet remains solid with net cash at approximately £15.2 million. Valuation looks pretty attractive with forward PE ratio under 10x, share price is also building up some positive momentum. The macro environment is a little unhelpful, and may hold back the top line for a while, but otherwise there is a lot to like here. BUY...

...from WealthOracle

[disc0dave45] 07/2/2023 11:25

Licensing income was £6.5m in 2019.......suggests to me it's very lumpy as only back to that level now, although that was down to a one-off agreement with H&M (what's their licensing contractual terms for existing agreements? - anybody?).Also noticed they declined to give any profit numbers this time in their update whereas they have previously (last two years).