Highlights

  • Adjusted underlying profits are expected to reach at least GBP 5.0m in FY25, with net cash rising to GBP 9.8m.
  • North America delivered mid- to high-single-digit brand sales growth, with recovery recorded in the second half.
  • Underlying licensing revenue increased 35% to GBP 9.0m, while manufacturing revenue rose to GBP 18.9m.

Sanderson Design Group PLC (LSE:SDG) has released its trading update for the financial year ended 31 January 2026, outlining performance across brand sales, licensing, manufacturing, and direct-to-consumer channels. The update highlights increased overseas sales, improved profitability, and a higher net cash position, while UK trading conditions remained subdued throughout the second half.

Revenue and Profit Performance

Group revenue for the year is expected to be GBP 99.5m, compared with GBP 100.4m in FY2025, representing a marginal decline in reported currency and flat performance on a constant currency basis. Adjusted underlying profits are expected to be at least GBP 5.0m, up from GBP 4.4m in the prior year, supported by cost-saving initiatives implemented across the Group.

Net cash increased to approximately GBP 9.8m at 31 January 2026, compared with GBP 5.8m a year earlier, driven by inventory reductions, working capital management, and controlled capital expenditure.

Overseas Markets and Brand Sales

North America remained a key growth market, with underlying brand product sales up 5% in reported currency and 9% in constant currency. Sales in the US recorded double-digit growth early in the year, followed by a decline in the second quarter linked to uncertainty around tariff arrangements, before recovering in the second half.

Including surcharges introduced to offset tariff costs, brand product sales in North America increased by 6% in reported currency and 10% in constant currency. Brand sales in Northern Europe and other international markets also improved in the second half, supported in part by contract-led orders.

Licensing and Manufacturing Activity

Total licensing revenue for the year was GBP 10.5m, compared with GBP 11.0m in FY2025. Underlying licensing revenue, excluding IFRS 15 impacts, increased by 35% to GBP 9.0m, supported by minimum guaranteed payments and revenue above contractual thresholds.

Accelerated income under IFRS 15 was GBP 6.1m. Licensing renewals and extensions signed during the year included agreements with Ruggable and Sangetsu, expanding product ranges and extending existing Morris & Co. partnerships.

Third-party manufacturing revenue increased by 5% to GBP 18.9m, benefiting from improved order book momentum. Manufacturing operations are expected to have achieved slightly above break-even for the year.

Direct-to-Consumer Expansion and Leadership Updates

Direct-to-consumer sales reached GBP 1.8m, up from GBP 0.4m in the prior year, with growth largely driven by Morris & Co. and increased US customer reach. All brands now operate DTC websites.

During the year, Sanderson strengthened its senior leadership team with appointments focused on digital development and North American growth.

Sanderson Design Group’s FY26 trading update outlines overseas sales growth, higher adjusted profitability, increased cash balances, and continued expansion of licensing and DTC channels. The Group expects to announce its full-year results in late April 2026.

FAQ

Q1: What was Sanderson Design Group’s expected revenue for FY26?
A1: Group revenue is expected to be GBP 99.5m for the year ended 31 January 2026.

Q2: How did licensing perform during the year?
A2: Total licensing revenue was GBP 10.5m, with underlying licensing revenue increasing 35% to GBP 9.0m.

Q3: What were direct-to-consumer sales in FY26?
A3: DTC sales reached GBP 1.8m, compared with GBP 0.4m in the previous financial year.