Luxury interior design and furnishings group, Sanderson Design Group PLC, has reported a decline in half year sales and profit.
According to its unaudited financial results for the six months ended 31 July 2024, total sales were down 11% to £50.5m from £56.7m in 2023.
Adjusted underlying pre-tax profit resulted at £2.2m, down 68% from £6.8m compared to the previous period.
The downturn in performance reflects a “challenging market” in the UK and elsewhere whilst growth was delivered in North America.
UK sales were down 14% to £16.7m, while Northern Europe revenues fell 6% to £4.8m. North America sales were up 4% to £11.1m.
Within its licensing segment, revenues were down 40% to £4.1m, while new licenses were secured during the period. “New licensees include Zara Home with Morris & Co. for a capsule bedding collection, which launches in January next year for Spring/Summer 2025, Swyft Home for the Morris & Co. brand on sofas and other furniture, and Pottery Barn Kids, part of US retailer Williams Sonoma, for a wide range of Morris & Co. children’s homewares and other products,” the group said.
“These agreements underline the continued appeal of the Morris & Co. brand for licensed product whilst the first products from a new agreement signed in the first half with John Lewis Partnership for the Sanderson brand, covering a wide range of John Lewis branded homewares, are expected to launch in Spring 2025.”
As for current trading, conditions at the start of the second half have been “more challenging than expected” in almost all territories particularly in the UK and Northern Europe. Total brand product sales for the first eight months of the current financial year are -10%, which compares with -9% for the first 22 weeks of the financial year as announced on 27 June 2024.
Delivery of the Board’s expectations is reliant on a “projected improvement” in trading during the remainder of the financial year, which includes its important pre-Christmas selling period.
Dianne Thompson, Sanderson Design Group’s Chairman, said: “We remain focused on the strategic growth opportunity of North America, on careful cost control and on implementing strategic changes to respond to market conditions and to position the Company for future growth. Licensing has continued to perform well with a number of new contracts signed in the current half including an agreement between Ruggable and the Sanderson brand and a two-year extension with Bedeck.
“Trading conditions at the start of the second half have been more challenging than expected in almost all territories particularly in the UK and Northern Europe. Total brand product sales for the first eight months of the current financial year are -10%, which compares with -9% for the first 22 weeks of the financial year as announced on 27 June 2024. Delivery of the Board’s expectations is reliant on a projected improvement in trading during the remainder of the financial year, which includes our important pre-Christmas selling period.”
