Furnishings group grows profit; UK division impacted by low confidence

Furnishings group Sanderson Design has reported consistent sales while growing its bottom line.

According to its audited financial results for the year ended 31 January 2023, total revenue was slightly down by 0.2% to £112m from £112.2m in 2022.

Adjusted underlying pre-tax profit resulted at £12.6m, up 0.8% from £12.5m year-on-year, while statutory pre-tax profit increased 4.8% to £10.9m.

Licensing momentum continued with revenue up 25% at £6.5m including accelerated licensing income of £2.4m. Brand products sales were down 0.8% at £83.4m, although the Morris & Co. brand continued to perform well with reported sales up 15.9%.

North America continued to deliver a strong performance with reported sales up 19.3% to £19.8m, driven by the Morris & Co., Sanderson and Clarke & Clarke brands, while consumer confidence in the UK resulted in a decline of 2.5% in UK brand product sales to £42.6m.

Northern Europe sales were down 18.2% to £10.8m, while rest of the world revenues fell 3.8% to £10.2m. Third party manufacturing sales performed robustly against a strong comparator with sales down 3.1% to £22.2m.

During the year, Sanderson secured significant licence renewals including Bedeck, NEXT and Williams Sonoma along with strong generation of new collaborations and a “resilient performance from core bedding and Japanese partnerships”.

“The momentum has continued into the current financial year, with the announcement of a further agreement with NEXT and a new agreement with the Sainsbury’s brands Habitat and Tu. Both of these agreements highlight our strategic emphasis on collaborating with larger companies.

“Harlequin’s Own the Room campaign gained momentum with colour panel events, colour pods in two top John Lewis stores and an exclusive edit with Brewers. Further investment in digital printing with two new printers installed at the Anstey wallpaper factory, introducing new capability in design,” the group added.

Dianne Thompson, Sanderson Design Group’s Chairman, said: “Our full year results reflect the strategic progress we have made in difficult market conditions. We will continue to deliver our strategy, to control costs carefully and to focus resources on international market opportunities given the ongoing uncertainty in the UK consumer environment.

“As we start the current financial year, inflationary pressures on input costs persist but the US market continues to perform well, licensing income has performed strongly and hospitality contract orders are encouraging. We are also excited by recent and upcoming launches from our brands and through collaborations, including Sophie Robinson for Harlequin and the vintage Disney Home x Sanderson collection. The Board’s expectations for the year remain unchanged.”

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