REG - Sanderson Design Grp - Trading Update

Sanderson DesignAnnouncement

27/06/2024 07:00

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RNS Number : 1205U  Sanderson Design Group PLC  27 June 2024

 For immediate release  27 June 2024

 

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 the following update on trading for the year
ending 31 January 2025.

At the time of the Group's full year results on 24 April 2024, the Group
commented that trading conditions overall were expected to remain challenging
in the current financial year. Since that time, trading conditions in the UK,
the Group's largest geographic region, have deteriorated, impacting brand
product sales during the months of May and June.

For the first 22 weeks of the current financial year, total brand product
sales were down 9% compared with the same period last year. In the UK, brand
product sales were down 14%, reflecting the worsening of market conditions.

The shortfall in revenue has a particular impact on profitability in the
current financial year owing to the previously communicated inflationary
pressures that the business is absorbing.

North America, the Group's strategic growth market, and Licensing have both
continued to trade in line with Board expectations. Manufacturing is
performing in line with the same comparison period last year, which is
slightly below expectations. The lower manufacturing volumes, resulting from
lower brand product sales, have had a negative effect on Manufacturing's cost
recovery.

As a result of this trading performance, the Board expects Group trading in
the current financial year to be below its earlier expectations. Underlying
profits before tax for the year ended 31 January 2025 are now expected to be
in the region of £8 million.

In light of current trading conditions, the Board is accelerating its
programme of strategic initiatives. As part of this programme, a review was
recently launched of the end-to-end cost to serve in the UK, with the
objective of delivering a more efficient model. Opportunities for further cost
savings have also been identified, including the reduction of capital
expenditure and discretionary spend, as part of an ongoing cost control
exercise.

The Group continues to benefit from a strong cash position, which serves to
protect the Group in the current subdued consumer environment.

A further update on trading for the half year to 31 July 2024 will be
announced on 7 August 2024.

 

This announcement contains inside information for the purposes of UK MAR.
The person responsible for arranging the release of this announcement on
behalf of the Company is Mike Woodcock, Chief Financial Officer.

 

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

 Investec Bank plc (Nominated Adviser and Joint Broker)       +44 (0) 20 7597 5970
 David Anderson / Ben Farrow

 Singer Capital Markets (Joint Broker)                        +44 (0) 20 7496 3000
 Tom Salvesen / Jen Boorer / James Todd

 Buchanan                                                     +44 (0) 20 7466 5000
 Mark Court / Sophie Wills / Toto Berger / Abigail Gilchrist
 SDG@buchanan.uk.com (mailto: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, Clarke & Clarke and Scion.

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 and Amsterdam.

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
(http://www.sandersondesigngroup.com)

 

 

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