Sanderson Design Group PLC Full Year Trading Update (0822P)

TIDMSDG

RNS Number : 0822P

Sanderson Design Group PLC

07 February 2023

 
 For immediate release                          7 February 2023 
 

SANDERSON DESIGN GROUP PLC

("Sanderson Design Group", the "Company" or the "Group")

Full Year Trading Update

Sanderson Design Group PLC (AIM: SDG), the luxury interior design and furnishings group, is pleased to announce its 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 GBP112.0 million (2022: GBP112.2m).

Underlying profits for the financial year ended 31 January 2023 are expected to be in line with Board expectations, reflecting the strength of licensing income, the implementation of price increases in February and August 2022 and careful cost control across the business to manage inflationary pressures.

 
                                FY23       FY22      FY23 v FY22     FY23 v FY22 
                                                                      Constant 
                              Reported   Reported                      Currency 
                               (GBPm)     (GBPm)    Reported(GBPm)      (GBPm) 
                             ---------  ---------  ---------------  ------------ 
 Brand product revenue            83.4       84.1              -1%           -3% 
                             ---------  ---------  ---------------  ------------ 
 Brand licence revenue             6.4        5.2              23%           23% 
                             ---------  ---------  ---------------  ------------ 
 Third party manufacturing 
  revenue                         22.2       22.9              -3%           -3% 
                             ---------  ---------  ---------------  ------------ 
 Total revenue                   112.0      112.2               0%           -2% 
                             ---------  ---------  ---------------  ------------ 
 

In brand product sales, Morris & Co. recorded strong growth of approximately 14% at constant currency. By region, North America delivered product sales growth of around 5% at constant currency (18% in reported currency) whilst the UK was almost unchanged at minus 1%. Product sales in Northern Europe were down 17% in constant currency, impacted particularly by the previously announced cessation of trade in Russia where prior year sales were GBP1.8 million.

The Company's high-margin licensing activities performed very strongly in the year, with revenues up approximately 23% at GBP6.4 million, buoyed by the signing of new agreements and the renewal or expansion of existing licensing arrangements.

Third party manufacturing sales declined by approximately 3% reflecting the strong comparator of the previous year, a period of restocking after Covid.

The Group's net cash position as at 31 January 2023, excluding leases, remained robust at approximately GBP15.2 million (31 July 2022: GBP15.0 million) after the strategic investment made earlier in the year in inventory to ensure availability of key lines of wallpaper and fabric.

Sanderson Design Group's full year results, including a detailed outlook on the current financial year, will be announced in April 2023.

For further information:

 
 Sanderson Design Group PLC                 c/o Buchanan +44 (0) 
                                                    20 7466 5000 
 Lisa Montague, Chief Executive Officer 
 Mike Woodcock, Chief Financial Officer 
 Caroline Geary, Company Secretary 
 
 Investec Bank plc (Nominated Adviser 
  and Joint Broker)                         [phone] 
 David Anderson / Alex Wright / Ben 
  Farrow 
 
 Singer Capital Markets (Joint Broker)      [phone] 
 Tom Salvesen / Jen Boorer / Alex Emslie 
 
 Buchanan                                   [phone] 
 Mark Court / Toto Berger / Abigail 
  Gilchrist 
 [e-mail] 
 

Notes for editors:

About Sanderson Design Group

Sanderson Design Group PLC is a luxury interior furnishings company that designs, manufactures and markets wallpapers, fabrics and paints. In addition, the Company derives licensing income from the use of its designs on a wide range of products such as bed and bath collections, rugs, blinds and tableware.

Sanderson Design Group's brands include Zoffany, Sanderson, Morris & Co., Harlequin, Scion, Clarke & Clarke and Archive by Sanderson Design.

The Company has a strong UK manufacturing base comprising Anstey wallpaper factory in Loughborough and Standfast & Barracks a fabric printing factory, in Lancaster. Both sites manufacture for the Company and for other wallpaper and fabric brands.

Sanderson Design Group employs approximately 600 people, and its products are sold worldwide. It has showrooms in London, New York, Chicago, Amsterdam and Dubai.

Sanderson Design Group trades on the AIM market of the London Stock Exchange under the ticker symbol SDG.

For further information please visit: www.sandersondesigngroup.com

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February 07, 2023 02:00 ET (07:00 GMT)