Sanderson Design expects in-line trading as first-half revenue rises
(Alliance News) - Sanderson Design Group PLC on Friday released an optimistic trading update, with its chief executive saying its performance "demonstrates the strength of our brands".
The London-based interior design and furnishings group said revenue for the six months ended July 31 rose 6.4% to GBP51.4 million, from GBP48.3 million the year before.
Total brand product revenue increased 2.3% to GBP35.5 million from GBP34.7 million, while manufacturing revenue jumped 19% to GBP17.2 million and licensing revenue climbed 13% to GBP4.9 million.
For brand products, UK revenue fell 8% year-on-year to GBP14.0 million, but North America revenue jumped 16% to GBP13.0 million.
Direct-to-consumer revenue, meanwhile, more than doubled to GBP1.6 million from around GBP700,000.
Looking ahead, Sanderson forecast full-year trading in line with market expectations, which it said include GBP6.5 million in adjusted underlying pretax profit.
"This H1 performance demonstrates the strength of our brands and the successful execution of our strategic priorities," Chief Executive Officer Lisa Montague said. "Continued momentum positions us well to deliver full year results in line with expectations...We are particularly excited about our prospects in the US, where trading has been excellent with a clear upward trend. The US represents a major growth opportunity where our strategy to develop relationships with and collaborate with industry experts and celebrated designers has proven key to stimulating demand."
She added that Sanderson's "competitive advantage and the strength of our brands...alongside our exceptional design talent, international mindset, commercial agility and manufacturing expertise," have "delivered a strong first half and an encouraging pipeline."
"As we look ahead, we remain focused on delivering our strategic priorities and are confident in the group's ongoing ability to generate profitable growth," Montague concluded.
Shares in Sanderson Design were up 0.9% at 78.22 pence on Friday afternoon in London.
The company intends to announce its half-year results on October 21.
By Emma Curzon, Alliance News reporter
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