Trading Update

RNS Number : 7389Y

Sanderson Design Group PLC

18 January 2022

 

This announcement contains inside information as stipulated under the UK version of the market abuse regulation (EU no. 596/2014) as it forms part of UK law by virtue of the European Union (withdrawal) act 2018 (as amended from time to time).
For immediate release	18 January 2022

SANDERSON DESIGN GROUP PLC

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

Trading Update

Sanderson Design Group PLC (AIM: SDG), the luxury interior design and furnishings group, announces a trading update in respect of the year ending 31 January 2022 following a strong performance from the Company's manufacturing and licensing operations.

Whilst Group revenues for the year are expected to be only slightly ahead of Board expectations at approximately £112.0 million (FY 2021: £93.8m), the Group's profitability is expected to be significantly ahead owing to the operational gearing effect of recent manufacturing sales and additional, higher margin, licensing income.

Overall brand product sales during the year have performed broadly in line with expectations, with a particularly strong performance from the Morris & Co. brand. North America recorded strong growth of approximately 40% in constant currency and represents approximately 19% of the Group's brand product sales.

The Group's manufacturing operations have continued to benefit from very strong order books. Third party sales are expected to be up approximately 33% in the year compared with the prior year, in part reflecting the attraction of onshore UK production for UK customers following Brexit and COVID-19 related global supply chain issues, along with strongly growing international sales. Both of the Group's manufacturing sites, wallpaper printing in Loughborough and fabric printing in Lancaster, performed well.

Licensing agreements signed in the second half of the financial year, including a further agreement with NEXT announced in October 2021 and an agreement with Williams Sonoma announced in August 2021, contributed to a strong performance from licensing. This performance reflects the recognition of accelerated income under IFRS15 along with robust sales from existing licensees, notably NEXT's Morris & Co. womenswear and the core categories of window coverings and bedding.

As a result of the above, the Board expects adjusted profit before tax of at least £12.0 million for the year ending 31 January 2022 (FY 2021: £7.1m).

The Company's balance sheet has further strengthened during the second half of the year. The net cash position at 31 January 2022 is expected to show an improvement on the £15.4 million, excluding leases, as at 31 July 2021.

Sanderson Design Group's full year results will be announced in April 2022.

For further information:

Sanderson Design Group PLC	c/o Buchanan [phone]
Lisa Montague, Chief Executive Officer
Mike Woodcock, Chief Financial Officer
Caroline Geary, Company Secretary
Investec Bank plc (Nominated Adviser and Broker)	[phone]
David Anderson / Alex Wright / Ben Farrow
Buchanan	[phone]
Mark Court / Sophie Wills / Toto Berger

[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, Paris, 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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