Furnishings group Sanderson Design Group PLC has reported a growth in half year sales and profit.
According to its interim results for the six months ended 31 July 2022, total sales rose 0.7% to £57.9m from £57.5m in 2021. Adjusted underlying pre-tax profit increased 12.5% to £6.3m.
Sanderson said that licensing revenue delivered a strong performance with sales up 90% at £3.8m, while brand product sales slipped 2.5% to £42.2m. This was impacted by cessation of trade in Russia and Brexit customs benefit in prior period.
The Morris & Co. brand posted sales growth of 20.8% in the UK and up 53.7% in North America, while third party manufacturing performed ‘robustly against a strong comparator’ with sales down 2.5% at £11.9m.
During the period, Sanderson renewed a number of licenses including Bedeck, NEXT and Williams Sonoma, along with strong generation of new collaborations and a resilient performance from core bedding and Japanese partnerships.
Dianne Thompson, Sanderson Design Group’s Chairman, said: “Thanks to the Group’s strong and rich portfolio of valuable brands, and the creative design talent and agility of our teams, we have managed to navigate the trading challenges of the first half, taking opportunities where possible to support the strategic progress of the Group.
“I am delighted to see positive developments in North America, where we have been under-distributed in the past and where management continues to focus. The UK performance of our top customers is encouraging, whilst challenges abound in the wider economy.
“Our current year performance to date is testament to the diversity of our model, and we continue to anticipate meeting Board expectations for the full year. Given the uncertainties in the current macro-economic and consumer environment, we look forward with caution and continue to actively manage the headwinds. We have a high-quality brand portfolio, growing US presence and strong cash balances to support ongoing investment. Alongside continued management action to reduce costs and increase efficiency, we remain confident in the strategy for the business.”
