Luxury interior design and furnishings group, Sanderson Design Group PLC, has reported a decline in sales and profit.
According to its audited financial results for the year ended 31 January 2025, total sales fell 7.6% to £100.4m from £108.6m in 2024.
Adjusted underlying pre-tax profit resulted at £4.4m, down 63.9% from £12.2m year-on-year. The company reported a statutory loss of £13.9m, compared to its profit of £10.4m the prior year.
This reflects “the impact of the consumer environment on brand product sales and manufacturing”, the group said, adding that it had also incorporated a £16.3m non-cash impairment of intangible assets related to goodwill arising from the acquisition of Clarke & Clarke in October 2016.
UK sales were down 14% to £32.8m from £37.9m, while US revenues were slightly down by 2% to £21m. EU sales fell 7% to £9.1m and Rest of the World sales declined 12% to £8.4m.
Looking ahead, the group will continue to focus on accelerating strategic initiatives to position the it for future success, while the restructuring at its UK factories has reduced costs to align with anticipated volumes and the trend to digital printing.
North America remains a “key growth opportunity”, and the Group does not currently expect a material direct impact from tariffs imposed on imports into the USA.
“The first two months of our current financial year started strongly in the USA with our core brand sales showing double-digit revenue growth compared with the same two months last year,” Sanderson added. “The UK and Northern Europe performed in line with expectations during the same period. The announcement of tariffs at the beginning of April and its impact on global markets has, however, impacted order intake in all regions.”
Dianne Thompson, Sanderson Design Group’s Chairman, said: “In response to market conditions, we continue to focus on accelerating strategic initiatives to position the Group for future success.
“North America remains a key growth opportunity, and the Group does not currently expect a material direct impact from tariffs imposed on imports into the USA. The evolving tariff regime is, however, a potential threat to US and global consumer confidence and we will continue to monitor closely.
“Our balance sheet remains robust, with over £5.0m of cash and an undrawn £10.0m bank facility. We are also making good progress in further strengthening our net cash position through planned inventory reduction.
“The Board is confident in its agility and its acceleration of strategic initiatives in response to the ongoing global market challenges and unpredictability. At this early stage in the current financial year, the Board continues to anticipate that the full year outturn will be in line with its expectations.”
