Sanderson Design Share Discussion Threads

[salver2] 05/2/2024 20:55

Thank you for that bare knee I didn’t see the similar large trade a few minutes later - that makes sense -shuffling of institutional positions

[bareknee] 05/2/2024 20:13

Salver2

Those trades are marked up as having happened on SINT, which google tells me means they were carried out off-market by a Systematic Internaliser. I carried on googling which suggests some financial institution has carried out the trades. My best guess is that they've carried out those trades on behalf of two clients ( or maybe a subsidiary of the FI ? ) who didn't want to buy and sell on the open market so have done a deal between them.

[salver2] 05/2/2024 17:05

Massive trade just gone through?

[disc0dave46] 04/2/2024 21:09

Trading update this week?

[disc0dave46] 01/2/2024 09:48

But they are highly unlikely to use all their cash for buybacks. As for SDG, beating forecasts is also highly unlikely IMO. Revenue is flat so only licensing could surprise to the upside but they haven't informed the market of any further deals other than the £0.7m from Envogue.

[disc0dave46] 31/1/2024 19:23

So their eps growth rate has significantly benefitted by their share buybacks.

[essentialinvestor] 31/1/2024 18:30

CFX has arguably not driven much longer term profit growth, where they have created value is in the extraordinary number of shares cancelled over the last 2 decades plus, which must now be over 70%.

[disc0dave46] 31/1/2024 18:24

Yep minimal growth. Eps from 113p (if they achieve that, we will know next week) to forecast 114p is only +0.9% growth.

[davebowler] 31/1/2024 17:53

Master Investor-Sanderson Design Group (LON:SDG) – Continuing To Improve Just over a month ago the shares of this interior furnishings, fabrics and paints group were trading at 111p, they closed last night at around the 128p level. The highest they touched in 2023 was 148p, that was at the end of April, just after the group announced its Annual Results for the year to end January 2023. The lowest they have traded in the last year was 95p last August, at the time of its Half Year Trading Update. That announcement guided that market expectations would be met, however it also sounded out a cautious warning about the general economic environment. Subsequently to that price reaction by investors and the Interim Results in early October, the group's shares have been edging gently better, aided somewhat by new licensing deals with some major retail names. The gradual improvement in the group's shares gives me a certain confidence that its imminent Final Trading Update will show continuing balance sheet strength and not too much of a fall-back in adjusted pre-tax profits for the year just concluding. As far as I am concerned, I believe that Sanderson is a 'classic design' business of global recognition and deserves a far better rating than that currently accorded to its shares. It is an international luxury interior furnishings company that designs, manufactures and markets wallpapers and fabrics together with a wide range of ancillary interior products and it has some top design brand names in its portfolio. Analyst Matthew McEachran at Singer Capital Markets rates the group's shares a Buy, looking for 204p as his Price Objective. His estimate for the last year show sales down £2m at £109.9m, while adjusted pre-tax profits could be nearly 5% lower at £12.0m, easing back its earnings to 12.8p (14.3p) but maintaining its dividend at 3.50p per share. The analyst expects £114.1m sales this coming year to end January 2025, with £13.0m profits, 13.5p earnings and an increased dividend of 3.69p per share. Towards the end of November last year Close Asset Management doubled its holding to 10.00% of the group's equity, following a purchase of stock at around the 114p level – I am convinced that as a longer-term holder this fund manager will do very well with the position. Shocks permitting, I really do believe that these shares will continue to improve over the next few months and retain my view that they are totally undervalued at 128p. (Profile 24.04.23 @ 135p set a Target Price of 168p)

[disc0dave46] 31/1/2024 14:43

IMO if H2 is on a par with last year compared to H1 (namely a 7% reduction for n H2 compared to H1) then their forecast Rev of £110m should be achievable.As for licence, well they've only reported an additional £0.7m so far so that could be £7.6m for the year. At a guess circa 12p to 13p adjusted eps. Would be good to see an actual uplift in earnings compared to last year but doubt they will ever blow the doors off.

[disc0dave46] 31/1/2024 09:54

Coming back to SDG, what’s your view on trading that they will update on possibly next week?

[salver2] 31/1/2024 08:07

That also may be true but they cost me 68 pence and now they are 6.55 so about ten fold in 25 years

[eigthwonder] 31/1/2024 07:59

It certainly could go private but family interests and the evidence of that buyback getting through suggests you might be disappointed by the share price at which it happens.

[salver2] 31/1/2024 07:51

All interesting points and possibly correct but I bought the shares in 1998 when there were about 32 million shares in issue and now 6.2 million-somethings going to have to give at some time -maybe be taken private?

[eigthwonder] 31/1/2024 07:45

There is no RNS to that effect (increased holding). The % of family interest may have risen due to maintaining holdings on reduced number of shares in issue. Which isn’t quite the same thing. The fact that the directors sold into this less than satisfactory proposal (it further reduces liquidity, poor liquidity being a factor in the low rating) made me think this company isn’t being run for the benefit of outsiders and that approach to governance makes it uninvestable.

[salver2] 31/1/2024 07:32

They did indeed sell shares but most of the board increased their shareholding

[disc0dave46] 31/1/2024 00:41

The members of the Colefax senior team / BoD duly sold over 200,000 shares:David Green 183.373Robert Barker 16,194Key Hall 8,000Wendy Nicholls 9,675

[disc0dave46] 31/1/2024 00:33

The RNS 22nd Sept:

“The Company confirms that the Tender Price is 700 pence, being the lower of: (i) 700 pence; and (ii) 760 pence, being 105 per cent. of the average closing mid-market price per Share as derived from the London Stock Exchange Daily Official List over the five Business Days immediately preceding 22 September 2023 (being the date on which the Shares are to be purchased). “

My apologies I misread based on the 105 percent - speed reading. So yes the BoD sold at a discount but they offloaded shares nonetheless.
Don’t know why you felt the need to get personal, you’ve a record of doing that whenever I post, I have zero agenda and definitely no anger issues.

[salver2] 30/1/2024 22:29

The last tender offer was actually at a 7.6 percent discount to the prevailing price at the time Disco so don’t make up stories to sell your thesis-most of the principal shareholders increased their shareholding’s after the tender -wrong again im afraid -your such an an angry individual that you deny the facts to confirm your arguments

[disc0dave46] 30/1/2024 19:55

"so it is in their interests to keep the shares ridiculously low"The last CFX tender offer was at a premium to the market price so not "lower" and also enabled the BoD to sell off a chunk of their shares at a premium - lucky them!. On buybacks are you saying the business can manipulate the market?, that's a new one on me!. All these listed companies currently buying back their shares are doing it so they can pick them up cheaper!. Wow!.

[salver2] 30/1/2024 19:06

I hear what your saying but Colefax are so undervalued-if you strip out their cash of 17 million plus -they will still make by year end 5.5 million of net profit so they are being valued at 4 times earnings/they will launch yet another tender offer/buyback later this year so it is in their interests to keep the shares ridiculously low -most people cannot see this obvious fact though as they don’t watch this company-nevertheless I agree that times are toughening up

[disc0dave46] 30/1/2024 18:41

Colefax interims today weren't brilliant IMO.Their outlook was gloomy too:"Trading in all our major markets is starting to reflect the impact of high interest rates and lower levels of housing market activity. We are therefore expecting conditions to become more difficult especially as customer spending on our products tends to lag changes in housing market activity and we believe trading conditions are likely to remain challenging for much of the next financial year. "

[disc0dave46] 23/1/2024 13:58

New logo for 2024.Doesn't do it for me tbh, think the original 1930's one updated tastefully would have been better.Has the cushion to the right have a face on it, it's like one of those spot the difference pictures.Https://sanderson.sandersondesigngroup.com/sanderson-new-logo/

[eigthwonder] 11/1/2024 11:55

Licensing is a tricky one. The previous team were always cautious about it as they wanted to preserve the exclusive/premium angle, but arguably they were just a bit too comfy with where they were. The new team have tried harder but there is a limit to how much they can/should do - if every other home has a touch of the William Morris about it, the original core buyer might look elsewhere; look what happened to Burberry when the chavs found it. I think part of the problem is that at the upper end the market is self-limiting and even at the rarified levels there are cycles in fashion and willingness to pay up.