Interior design and furnishings group Sanderson Design Group has reported a small decline in sales while profit is expected to be in line with expectations.
According to its latest trading update for the financial year ended 31 January 2023, total group sales resulted at £112m, down slightly from £112.2m in 2022. This was due to a decline in third party manufacturing revenue, down 3% to £22.2m from £22.9m.
Brand product sales resulted at £83.4m, down 1% from £84.1m, while brand license sales rose 23% to £6.4m from £5.2m.
“Strong performances from the Morris & Co. brand, licensing and North America were offset by withdrawal from the Russian market, and a small decrease in manufacturing revenue against a strong comparator,” Sanderson said.
“Underlying profits are expected to be in line with Board expectations, reflecting the strength of licensing income, the implementation of price increases in February and August 2022 and careful cost control across the business to manage inflationary pressures.”
In brand product sales, Morris & Co. recorded strong growth of approximately 14% at constant currency. By region, North America delivered product sales growth of around 5% at constant currency (18% in reported currency) whilst the UK was almost unchanged at minus 1%. Product sales in Northern Europe were down 17% in constant currency, impacted particularly by the previously announced cessation of trade in Russia where prior year sales were £1.8m.
“The Group’s net cash position, excluding leases, remained robust at approximately £15.2m (31 July 2022: £15m) after the strategic investment made earlier in the year in inventory to ensure availability of key lines of wallpaper and fabric.”