Sanderson Design Share Discussion Threads

[essentialinvestor] 03/4/2023 13:23

Dave, BMY may be worth monitoring for an opportunity fwiw, yet another profits upgrade announced recently as you may have seen.

[essentialinvestor] 31/3/2023 14:34

Given the number of people SDG employ you
might think there is scope for some rationalisation.

[alter ego] 31/3/2023 14:22

Good to see some realistic assessments here. Makes a pleasant change from the rose tinted interpretations and predictions that the stock is going to fly away from some quarters with the predictable "grabbing a few", "got to be in it to win it".
Not expecting any sudden surge in profitability any time soon but Lisa M is laying sound foundations for the future, both in streamlining production and exploiting the brands. I hold, naturally.

[salver2] 31/3/2023 13:36

Yes a good analysis but I am a little more bullish than Discodave although all the points he stated are very valid-I just think the brokers are as usual a bit behind the curve -we shall soon see

[essentialinvestor] 31/3/2023 12:35

Dave, appreciate the detailed reply, thanks.

[disc0dave45] 30/3/2023 22:25

EI
It’s fantastic that licensed income is growing, but it’s inevitably going to be very lumpy and potentially transitory, and as yet the value is a massive unknown (no framework / licence monetary values are ever given, unless I’ve missed them). Licence income is as it was going back to 2019 then it fell off a cliff due to H&M cancelling.
IMO this FY licence income will be about 10%-15% of their gross profit, and the remaining 85%-90% of the business is stalling, that’s my issue really, the underlying business isn’t growing and the area that is has zero long term vision (everything is 1-2 years away on that front) - what additional licence income is there for this FY? - other than the upfront payment from Next I can’t see mention of anything else.
Yes their brokers (Singers and Investec) may be managing expectations, but from the 3 analysts (think the other is Progressive?) the consensus is 3% reduction in earnings. That said from Stocko comments Progressive didn’t update on the Sainsbury’s agreement but said they’d wait until the outlook in the upcoming finals.
Just posting my views, which I appreciate are more negative but that’s mainly because of the reasons I’ve posted, if there was more clarity and the underlying business was doing okay then I’d see a positive reward to risk but perhaps the uncertainty is my personal constraint, if that makes sense.
Anyway I do truly hope holders do well.

[rp19] 30/3/2023 21:54

Not sure if brokers in general are that on the ball. Not particularly related to SDG, but often that can give private investors a bit of an edge.

[essentialinvestor] 30/3/2023 20:15

Dave, it's a fair point you've raised
as I've mentioned previously - unless they are managing expectations.

SDG benefited from buoyant third party manufacturing over the last few years,
this may have normalised. Growing revenue
in the core business is proving tricky
to say the least. What the licensing deals
show is the inherent value of their brands.

[disc0dave45] 30/3/2023 19:26

Would assume their house broker is already up to speed and knows what the outlook is for this FY, thus their 3% reduced earnings forecast.........unless they never talk!.

[essentialinvestor] 30/3/2023 19:17

Well we will know the answer very shortly.

I would expect there is significant medium to longer term potential stateside on licensing income, but let's see.

[salver2] 30/3/2023 19:11

If you take notice of brokers you will end up in the poorhouse!

[disc0dave45] 30/3/2023 18:41

Yes £2.6m licence income from Next in the bag for this FY and SDG’s broker is saying no change to forecasts and consensus is a 3% drop in eps for this year……so says a lot about non-licence income!.
Balance appears not to be an acceptable input here for some, oh well.

[essentialinvestor] 30/3/2023 17:12

That's a master agreement, exclusivity for an agreed timeframe, so would expect that to be worth more, but yes the latest news is a definite positive.

[zipstuck] 30/3/2023 17:11

From Feb RNS

he agreement includes a five year licence period from product launch in spring/summer 2024 following a year of product development by NEXT. The Clarke & Clarke licensed products will be available in NEXT stores and online at next.co.uk, and will also be wholesaled to third parties.

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.

[zipstuck] 30/3/2023 14:56

I think it is fair to assume that licensing deals cna also be international and there lies the potential

[disc0dave45] 30/3/2023 14:16

Hi EIWill post some comments Paul Scott made following their Jan update.I do hold Page and fancied RWA but went for the larger cap operator.Hope all is well

[essentialinvestor] 30/3/2023 13:16

Dave, any view on Robert Walters?, If so would appreciate if you might post on the RWA board,
If not np.


So, another licensing agreement - particularly helpful if we are facing a tougher 12 months or so for other areas of the business.

[disc0dave45] 30/3/2023 09:15

Why are you getting personal?Nice to see another agreement with zero numbers and some way off in the distance.As said before, underlying business has zero growth and licensing deals come and go......excellent for the bottom line though while they last.Good luck holders.

[brucie5] 30/3/2023 08:37

Sainsburys Tu is oddly quite a stylish brand. Well done Sanderson.

[netcurtains] 30/3/2023 08:34

Discodave uses the bruce forsyth play your cards right school of thought. If its high it goes down. If it low it goes up. Works sometimes. Other times it goes horribly wrong.

[salver2] 30/3/2023 08:31

I notice Morris has done a deal with Marks and Spencer - has that ever been reported? Hugely undervalued here although Discodave believes otherwise!

[trt] 30/3/2023 08:05

The margin is 100% on licensing deals so fabulous deal with TUI and Habitat.

[trt] 30/3/2023 07:50

Sanderson Design Group PLC Major Licensing Agreement with Habitat and TuSource: UK Regulatory (RNS & others)TIDMSDGRNS Number : 6833USanderson Design Group PLC30 March 2023 For immediate release 30 March 2023 SANDERSON DESIGN GROUP PLC("Sanderson Design Group", the "Company" or the "Group")Major Licensing Agreement with Habitat and TuSanderson Design Group PLC (AIM: SDG), the luxury interior design and furnishings group, is pleased to announce a major licensing agreement with J Sainsbury plc in which the supermarket group's Habitat homewares brand and Tu clothing brand will develop a wide range of licensed products in collaboration with the Group's Morris & Co. and Scion brands.This agreement marks the first time that the Company has collaborated with Sainsbury's.Habitat will launch homeware products featuring exclusive designs and colourways from the Morris & Co. and Scion brands. The Scion products under this collaboration will launch in spring next year and the Morris & Co. products the following autumn.Tu is one of the UK's largest online clothing retailers, sold through tu.co.uk, argos.co.uk and in selected Sainsbury's stores. Tu will collaborate with the Scion brand to develop womenswear and children's clothing ranges for launch in the spring of next year.Lisa Montague, Sanderson Design Group's Chief Executive Officer, said: "We are delighted to sign this significant licensing agreement with the major retailer Sainsbury in which our Morris & Co. and Scion brands will collaborate with Sainsbury's Habitat and Tu brands on an exciting range of homewares and clothing. Both Habitat and Tu have substantial distribution throughout the UK, both in store and online, with Tu being one of the UK's largest online clothing retailers.The first products from this multi-year agreement will be launched in the spring of next year and we look forward to working closely with Habitat and Tu on the product development."Today's announcement marks the second major licensing agreement that we have signed this year, demonstrating the strength of our brands and collaborative capabilities along with the attractive financial contribution that licensing delivers for the Group."Paula Nickolds, General Merchandise Commercial Director, Sainsbury's said: "Habitat and Tu are both design-led brands, so our collaboration with Sanderson to bring customers products featuring iconic prints and colourways from Morris & Co. and Scion feels a natural fit. We are always looking for more ways to offer our customers a range of designs at affordable prices and we are confident they will love the products we've come together to create."For further i

[our haven] 30/3/2023 07:29

Good to see them sign another license agreement, this time with Sainsbury's. Should contribute nicely to the bottom line next year.

[salver2] 29/3/2023 10:14

I was wondering whether Sanderson might attract a bidder like Next - Wolfson definitely on the look out for acquisitions and this might make a good fit