TIDMSDG
RNS Number : 8538U
Sanderson Design Group PLC
04 August 2022
For immediate release 4 August 2022
SANDERSON DESIGN GROUP PLC
("Sanderson Design Group", the "Company" or the "Group")
Half 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 six months ended 31 July 2022.
Group sales in the six-month period of GBP57.9 million
(comprising Brand product and external Manufacturing sales along
with licensing revenue) were up 1% compared with the same period
last year (H1 FY22: GBP57.5 million), unchanged on a constant
currency basis.
Adjusted underlying profit before tax for the half year is
anticipated to be in line with the Board's expectations.
Brand product, manufacturing and licensing revenue
Six months to July Change (%)
31 of financial
year (GBP million)
2023 2022 Reported Constant
currency
---------- ---------- --------- ----------
Brand product
UK 22.1 22.3 (1%) (1%)
---------- ---------- --------- ----------
Northern Europe 5.5 6.9 (20%) (17%)
---------- ---------- --------- ----------
North America 9.7 8.6 13% 4%
---------- ---------- --------- ----------
Rest of the World 4.9 5.5 (11%) (9%)
---------- ---------- --------- ----------
Total Brand product
revenue 42.2 43.3 (3%) (3%)
---------- ---------- --------- ----------
Manufacturing
External 11.9 12.2 (2%) -
---------- ---------- --------- ----------
Internal 9.7 8.8 10% -
---------- ---------- --------- ----------
Total Manufacturing
revenue 21.6 21.0 3% -
---------- ---------- --------- ----------
Licensing
Total Licence revenue 3.8 2.0 90% 89%
---------- ---------- --------- ----------
Total revenue 57.9 57.5 1% 0%
---------- ---------- --------- ----------
Brand product
Brand product revenue was driven by a strong performance in the
targeted growth market of the US, along with continuing strong
growth from the Morris & Co. brand.
Brand product revenue in the prior year benefited from
approximately GBP0.6 million of predominantly European dispatches
delayed from FY21 due to customs delays that occurred following
Brexit. Additionally, Brand product sales in Northern Europe were
impacted by the previously announced decision to cease trade in
Russia, resulting in the loss of GBP0.8 million of sales compared
with H1 FY22. Excluding these two factors, Brand product revenue at
GBP42.2 million was up 1% year-on-year at reported rates, unchanged
on a constant currency basis.
Manufacturing
Overall, third-party manufacturing has performed robustly in the
first six months of the year, given the strong comparator at the
same time last year as customers emerged from Covid and commenced
restocking.
Licensing
Total licensing revenue was up 90% at GBP3.8 million (H1 FY22:
GBP2.0 million), driven by GBP1.9 million (H1 FY22: GBP0.5 million)
of accelerated income from recently signed licence agreements.
The progress within licensing continues with the recently
announced NEXT contract extension, extending its partnership with
Morris & Co. to 2025. In addition, the Williams Sonoma
kitchenware partnership with Morris & Co., initially signed in
August 2021, has been extended by two years to 2025, displaying the
major US retailer's confidence in the brand and products, which are
due to launch in September this year.
Balance sheet
The Group's liquidity position remains strong with net funds of
approximately GBP15.0 million as of 31 July 2022 (H1 FY22: GBP15.4
million), compared with GBP19.1 million on 31 January 2022. This
reduction partially reflects a strategic investment in inventory of
our best-selling collections.
Outlook
As set out in our AGM statement on 12 July 2022, we remain
vigilant in respect of the world economic environment. Current
market conditions are difficult to predict and we are planning for
a wide range of possible scenarios in the second half. Despite
this, full year trading currently remains in line with the Board's
expectations. The Group's strong cash position enables continued
investment in the business and also provides protection in the
event of any material adverse changes in trading conditions.
Lisa Montague, Chief Executive Officer of Sanderson Design
Group, commented: "I am pleased to be reporting good strategic
progress in the first six months of the year. It is encouraging to
see licensing partnerships with major retailers both in the UK and
US being extended, underpinning their belief in our brands and
products.
"The two-year contract extension with Williams Sonoma, a leading
US retailer, signals the confidence it has in the strength of a
collection that is yet to launch, and emphasises the progress we
are making in the US, a core growth market for the Group.
"We retain a rather cautious outlook, mindful of the cost,
supply chain and consumer confidence issues that impact the
macro-environment, though we are committed to delivering further
strategic progress during the remainder of the year."
Notice of Results
Sanderson Design Group expects to announce its interim results
for the six months ended 31 July 2022 on 11 October 2022.
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 Broker) +44 (0) 20 7597 5970
David Anderson / Alex Wright / Ben
Farrow
Buchanan +44 (0) 20 7466 5000
Mark Court / Toto Berger / Abigail
Gilchrist
SDG@buchanan.uk.com
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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