Sanderson Design Share Discussion Threads

[essentialinvestor] 11/10/2023 13:05

If licencing revenue is a straight 100% conversion into profit,
then the rest of the business is....


Made the point previously, more radical restructuring is arguably required with
additional costs taken out of the business.

[barnesian] 11/10/2023 12:47

Not everyone is poor. Sanderson is a premium brand

[clocktower] 11/10/2023 11:55

How will they grow the business in these conditions?

High interest rates, world in turmoil.

[disc0dave46] 11/10/2023 11:39

The business even with licensing is making a loss IMO even on an adjusted basis.....H1 underlying adj pbt £6.8m, licensing which we've been told has 100% margins, income £6.9m in H1. Think your £9m - £10m is profit before tax going on H2 last year when allowing also for the licensing element.

[salver2] 11/10/2023 11:23

Half agree with you Disco but I’m a bit more optimistic than that and I think they’ll make 9-10 million after tax with cash balances at year end of around 18 million puts them on about a pe of 6 plus cash which I think is far too low but in this environment it’s a case of show me

[disc0dave46] 11/10/2023 11:09

Rev going nowhere, licensing only +£400k in H1 and IMO the £6.9m is as far as it goes unless they sign up any new contracts in H2.

[davebowler] 11/10/2023 10:01

hTTps://www.standard.co.uk/business/wallpaper-company-sanderson-clarkeandclarke-design-b1112723.html

[trt] 11/10/2023 08:41

Excellent interims should see an uplift in the share price from here.

[davebowler] 11/10/2023 08:25

Master Investor

Sanderson Design Group (LON:SDG) – Broker Repeats Buy Stance
Ahead of the luxury interior furnishings group reporting its interim results to end July next Wednesday morning, analyst Matthew McEachran, at Joint Broker Singer Capital Markets, published a Corporate Client Buy Note on the company.





The company designs, manufactures and markets wallpapers, fabrics and paints, while also deriving licensing income from the use of its designs on a wide range of products such as bed and bath collections, rugs, blinds and tableware.

McEachran has fixed a price objective on the globally-operating group’s shares of 210p – which compares very favourably with Friday night’s closing price of 106p.

The analyst considers that if forecasts are sustained (with the assumptions looking fair), the valuation is far too cheap and detached from any near peers, on just 8x P/E (6x ex cash) to Jan’24 or 3x EV/EBITDA to Jan’25.

The £75.8m capitalised group has a very strong balance sheet, with some £18m cash in the bank expected by the end of January next year.

(Profile 24.04.23 @ 135p set a Target Price of 168p)

[salver2] 11/10/2023 07:43

Very decent results in the circumstances and should see an uplift in the miserable share price

[trt] 05/9/2023 16:35

Looking good to £1.20 on the graphs.

[theoriginalwonderstuff] 24/8/2023 08:25

At what price does this become a tradable buy... i.e. something to dip into and sell soon after as part of the normal yo-yo that is "the markers"... Making 10% in the process i. A...

[essentialinvestor] 13/8/2023 17:43

Yes it's a rhetorical question as we don't run the business.

[supernumerary] 13/8/2023 15:20

True enough, but your question is as unanswerable as mine. Only the management has an accurate view, and if they want to keep shareholders onside, they'd do well to outline a strategy for dealing with these challenges that goes beyond just trying to increase licensing income.

[essentialinvestor] 13/8/2023 12:16

super, the questions you asked re AI and potential impacts on design /SDG's business cannot be answered by anyone as they are an unknown. The 'best' anyone can do is guess, which with the best will in the world could prove to be wildly inaccurate. It is worth keeping a watch on this area over the medium term.

There arguably are more immediate concerns, such as should SDG
ditch certain business activities. Is the business operating in too many areas

As one example, CFX does not manufacture products as previously mentioned.

[supernumerary] 12/8/2023 11:47

Licensing is clearly the way to go, and they recognise that. Maybe part of the UK operation could be repurposed to custom fabrics and papers: I could imagine many high-end customers wanting something unique and being prepared to pay a high price (and high margin!) for it.

[salver2] 12/8/2023 09:28

On another note on their careers website they are advertising for a director of partnerships and licensing who will be managing 15.5 million revenue by full year 2029 -which means they believe that they can expand by circa 9 million in next five years if they can achieve that goal-so the company are clearly ambitious in that department

[supernumerary] 11/8/2023 15:48

Exactly why I also posted the link :¬)

Ref your question - what do you think? And how do you think sdg could take advantage of this technology? Anybody else got a view?

[pugugly] 11/8/2023 15:25

supernumery:- Had seen your post but pointing out that in certain areas had already arrived - The momentum could be growing - Hence the link to BBC -

The open question - Is what impact will it have here.

[supernumerary] 11/8/2023 14:00

pug - perhaps read before write? See 1630 :¬)

[essentialinvestor] 11/8/2023 12:10

They still own the brands and can arguably also utilise AI within their
own business model - to what extent etc..

[pugugly] 11/8/2023 12:06

AI Could be here - Already here for fabrics and cards.


Really opens up the risk of personalised competition subject (imo) to printing technology and short runs but could very much the future of wallpaper.

If so what are the implications for historic business and share price.

[salver2] 10/8/2023 19:19

I notice along with their Archive direct to the consumer operation closing the William Morris shop in Harrods opened last year has also closed

[essentialinvestor] 10/8/2023 14:00

SP UP approx 10% from the recent pre results low point, perhaps a benefit
of low expectations in advance of results.