Sanderson Design shares slide as it issues profit warning

(Alliance News) - Sanderson Design Group PLC said it expects full-year profitability to be ...

Alliance News 20 January, 2025 | 1:50PM
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(Alliance News) - Sanderson Design Group PLC said it expects full-year profitability to be hampered by poor market conditions as the firm remained optimistic about future trading.

The London-based furnishings and interior design company says it expects financial 2025 group sales to decrease on-year by approximately 7.0% to GBP101 million from GBP108.6 million the prior year. This represents a less than 5% shortfall of the firm's previous expectations, said Sanderson.

Shares in Sanderson Design were down 11% at 48.00 pence on Monday afternoon in London.

Brand product sales are anticipated to be down by around 9% on-year from GBP78.8 million in financial 2024, following "a recent worsening of trading conditions".

Sanderson noted that brand sales of wallpaper and fabrics in the first two weeks of January were down 13% on-year, reflecting a downturn in consumer confidence in the UK, the firm's largest market.

Compounding the effect on brand product sales has been a softness in the contract market in North America, said Sanderson. However, it noted that its pipeline of potential contract orders remains strong.

Despite some success in new business wins, the firm said third party orders in Manufacturing have reflected a difficult consumer and industry environment, with prior expectations of improved circumstances failing to materialise.

The firm said demand for higher-margin repeat orders declined recently, with some customers pushing back planned launches.

Sanderson Design revised down its pretax profit guidance for the full-year ended January 31 to between GBP4.0 million and GBP4.8 million. This contrasts with the GBP8 million guided by the firm back in June.

"The group is continuing to accelerate strategic changes and focusing on efficiency and cost savings to better position the business for the current trading environment and for future growth," said Sanderson. "The board remains confident in the group's future performance once trading conditions improve."

Sanderson intends to report its financial 2025 results in April.

By Christopher Ward, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Sanderson Design Group PLC Ordinary Shares 47.50 GBX -12.04 -

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