Sanderson Design Group Improves Profitability and Cash Position as US and Online Channels Strengthen

Sanderson Design Group PLC (LSE:SDC) said trading for the year ended 31 January 2026 was in line with management expectations, with group revenue broadly unchanged at £99.5m. Despite flat sales, adjusted underlying profit is expected to increase to at least £5m, reflecting the impact of ongoing cost reduction initiatives. The group closed the year with net cash of approximately £9.8m, supported by lower inventory levels, disciplined working capital control and limited capital expenditure.

Performance across channels and geographies was mixed. Brand sales grew strongly in North America and other international markets, licensing income proved resilient, and direct-to-consumer revenue rose sharply, led in particular by the Morris & Co. brand. UK trading conditions remained challenging, however. Third-party manufacturing revenue improved over the year, with the division expected to deliver a small profit, slightly above break-even. Recent senior appointments in digital and US leadership roles highlight a strategic focus on accelerating e-commerce growth and expanding the group’s presence in the North American market as momentum builds in these areas.

The outlook continues to be weighed down by structural profitability and cash flow challenges, which remain key investor concerns. Share price technicals point to broadly neutral momentum, while valuation metrics are constrained by weak earnings. A recent director share purchase offers a modest positive signal but does not materially offset the underlying financial pressures.

More about Sanderson Design Group PLC

Sanderson Design Group PLC is a UK-based luxury interior furnishings company that designs, manufactures and sells wallpapers, fabrics and paints to customers worldwide. The group also licenses its designs for use across a wide range of home products, including bedding, rugs, blinds and tableware. Manufacturing operations are based in Loughborough and Lancaster, supported by showrooms in London, New York and Chicago.

The company owns a portfolio of well-known heritage and contemporary brands, including Zoffany, Sanderson, Morris & Co., Harlequin, Clarke & Clarke and Scion, and employs around 500 people globally. Listed on AIM, Sanderson Design Group combines own-brand production with third-party manufacturing services for other wallpaper and fabric brands.