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Highlights

  • Due to challenging consumer environment, SDG’s revenue declined by around 3% in FY24
  • SDG had a higher current ratio of 3.33x and a higher gross margin of 67.8% in FY24, beating the industry median of 3.04x and 21.3%, respectively.
  • SDG has declared a final dividend of 2.75 pence per share, scheduled to be paid on 09 August 2024

Sanderson Design Group PLC (LSE: SDG) is a UK-based publicly traded company that specializes in designing and manufacturing wallpaper and fabrics, boasting a history spanning over a century. The company has a market capitalization of GBP 78.48 million and is listed on the FTSE AIM All-Share index.

In FY24, SDG witnessed a marginal decline in revenue (-3%) due to a challenging consumer environment. The company’s net cash stood at GBP 16.30 million, a YoY growth of 5.8%. However, the company had a higher current ratio of 3.33x and a higher gross margin of 67.8% in FY24, beating the industry median of 3.04x and 21.3%, respectively.

Recent business update

SDG has declared a final dividend of 2.75 pence per share. It is scheduled to be paid on 09 August 2024. It has an ex-dividend date of 11 July 2024.

Earlier in January, SDG announced that its Morris & Co. brand signed a licensing agreement with ENVOGUE International. A five-year exclusive agreement, covering the USA and Canada, allows ENVOGUE International to produce Morris & Co. bed linen, bath linen, and tote bags. Non-exclusive rights extend to a wide range of Morris & Co. products. Initial launches are slated for Spring/Summer 2024, with an expected licensing income of GBP 0.7 million this year.

Company outlook

SDG has significant license renewals with Bedeck, NEXT, and Williams Sonoma. It also has new collaborations from core bedding and Japanese partnerships. Additionally, the company had numerous exciting product launches with renowned parties.

Considering the ongoing uncertainty in the UK consumer environment, the company plans to prioritize international market opportunities.

Top 10 Shareholders

The top 10 shareholders of SDG together account for approximately 60.03% of the total shareholdings in the company. Octopus Investments Limited holds the largest shareholding at approximately 10.98%, followed by Close Brothers Asset Management at around 9.99%, as shown in the chart below:

Stock performance

The share price of SDG has increased by about 9.22% in the last one month and over the last six months, it has decreased by around 9.06%. The stock has a 52-week low and 52-week high of GBX 95.31 & GBX 132.50, respectively. At present, it is trading lower than the average of its 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 03 June 2024. The reference data in this report has been partly sourced from EODHD/Others.