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Highlights:

  • Sanderson Design Group reported H1 FY26 sales of GBP 48.3 million, down 4% YoY
  • Net cash improved to GBP 7.5 million following planned inventory reductions
  • Sanderson Design Group saw 22% growth in underlying licensing revenue

Sanderson Design Group PLC (AIM:SDG), a UK-based luxury interior design and furnishings company, has issued its trading update for the six months ended 31 July 2025, confirming that performance remains in line with the Board’s expectations for the full year, despite a modest decline in overall sales.

Group revenue for the half year was reported at GBP 48.3 million, a 4% decrease compared to GBP 50.5 million in the same period last year. On a constant currency basis, the decline was 3%. The company noted that although sales in June and July were slightly below the prior year, they outperformed the broader half-year trend, indicating a possible stabilisation in trading conditions. Licensing revenue rose to GBP 4.4 million, compared to GBP 4.1 million in H1 FY25. Excluding accelerated income recognised under IFRS 15, the company recorded a 22% increase in underlying licensing revenue. 

Sanderson’s strategic efforts to expand in North America contributed to a 4% year-on-year increase in brand product sales in the region on a constant currency basis, though this was slightly lower than the 6% growth recorded in the first half of the prior year. The company completed a previously announced restructuring programme across its manufacturing operations during the period. As a result, the manufacturing division’s financial performance improved, and Sanderson maintains its expectation that manufacturing will break even, or deliver a modest profit, in the current financial year.

The group is continuing efforts to reduce central overhead costs. A new cost-efficiency initiative is underway, which management expects will deliver approximately GBP 1 million in annualised savings. As of 31 July 2025, Sanderson reported a net cash position of approximately GBP 7.5 million, up from GBP 5.8 million at 31 January 2025. The increase was primarily attributed to targeted reductions in inventory levels. the company's balance sheet provides the group with greater flexibility heading into the second half of the year.

Looking ahead, the Board has reiterated its full-year expectations. While trading conditions remain uncertain, particularly in core UK markets, recent activity suggests a potential stabilisation. 

SDG is trading 8.80% higher at GBX 54.40 per share as of 7 August 2025.