| 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 £112.0 million (2022: £112.2m).
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 |
| | Reported (£m) | Reported (£m) | Reported(£m) | Constant Currency (£m) |
| 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 £1.8 million.
The Company's high-margin licensing activities performed very strongly in the year, with revenues up approximately 23% at £6.4 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 £15.2 million (31 July 2022: £15.0 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 | |
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| Investec Bank plc (Nominated Adviser and Joint Broker) | +44 (0) 20 7597 5970 |
| David Anderson / Alex Wright / Ben Farrow | |
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| Singer Capital Markets (Joint Broker) | +44 (0) 20 7496 3000 |
| Tom Salvesen / Jen Boorer / Alex Emslie |
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| Buchanan | +44 (0) 20 7466 5000 |
| Mark Court / Toto Berger / Abigail Gilchrist | |
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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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