Half Year Report

Sanderson Design Group PLC

12 October 2026

 

12 October 2026

Sanderson Design Group plc

("Sanderson Design Group", "Sanderson", the "Company" or the "Group")

Interim Results for the six months ended 31 July 2026

-      Sustained improvement in profitability and return to revenue growth

-      Continued strategic delivery with significant growth in North America

-      Strong Manufacturing performance following completion of restructuring

-      Highgrove collection the Group's most successful launch to date

-      In line with market expectations for the full year¹

Sanderson Design Group PLC (AIM: SDG), the luxury interior furnishings group, announces unaudited financial results for the six months ended 31 July 2026 ("H1 FY27").

Financial highlights

·    Group revenue up 6% to £51.4m (H1 FY26: £48.3m), reflecting continued strategic progress and prior management actions

·     Total Brand product revenue grew 2% to £35.5m (H1 FY26: £34.7m), with strong North America growth +16% more than offsetting UK softness

·      Third Party Manufacturing revenue up 19% to £11.0m (H1 FY26: £9.2m), driven by substantial US demand

·      Total Licensing revenue up 13% to £4.9m (H1FY26: £4.4m), including £1.4m accelerated income from Blinds2Go renewal

·    Direct-to-consumer revenue up 137% to £1.6m (H1 FY26: £0.7m), reinforcing its high-margin growth potential and demonstrating operational execution

·     Adjusted underlying PBT increased +47% to £3.3m (H1 FY26: £2.2m) driven by sustained improvement in Manufacturing, pricing actions taken, and strong Licensing performance

·      Net cash increased to £10.4m (31 January 2026: £9.8m) after £1.3m of EBT share purchases

·      Interim dividend 0.5p in line with last year

·      The Board expects full-year trading to be in line with market expectations¹

	Six months ended 31 July		% Change (reported)	Year ended 31 January
	2026 (H1 FY27)	2025 (H1 FY26)		2026 (FY26)
Revenue	£51.4m	£48.3m	+6%	£99.5m
Adjusted underlying profit before tax2	£3.3m	£2.2m	+47%	£5.3m
Adjusted underlying basic EPS2	3.32p	2.22p	+49%	5.39p
Statutory profit/(loss) before tax	£2.5m	£1.5m	+69%	£3.1m
Basic EPS	2.45p	1.41p	+74%	2.98p
Net cash3	£10.4m	£7.8m	+34%	£9.8m
Dividend per share	0.50p	0.50p	-	1.50p

¹  FY27 market expectations for adjusted underlying PBT are £6.5m, and revenues of £102.0m

² Excluding share-based incentives, defined benefit pension charge and non-underlying items as summarised in note 4.

³ Net Cash is defined as cash and cash equivalents less borrowings. For the purpose of this definition, borrowings does not include lease liabilities.

Operational highlights

·    Continued strategic progress to increase market position in North America, focusing on strengthening the Group's network of interior designers to ensure continued growth in the world's largest market

·      North America is now the Group's most profitable, highest-margin and fastest-growing territory

·     The Highgrove by Sanderson collection has been the most successful launch to date and created a clear halo effect on the broader Sanderson brand

·     Delivery of topline growth in Manufacturing, with performance driven by previous investment in capabilities at both factories. Positive order book for H2 FY27

·   Continued focus on Digitalisation driving efficiencies and strengthening relationships with trade customers. Direct-to-consumer websites now live for six brands with good momentum in the first half and the Designers Guild site now being developed for launch

·     Strong pipeline of future licensing opportunities, supported by the recent design launches including Morris & Co x The Huntington, the Highgrove Collection and the Voysey House collection

·   Post period-end, signed a 10-year worldwide licensing agreement to design, manufacture and sell Designers Guild wallpapers, fabrics, and paints, adding another globally-renowned brand to the Sanderson Design Group portfolio

Lisa Montague, Chief Executive Officer of Sanderson Design Group, commented:

"These results demonstrate the excellent progress we are making in evolving Sanderson Design Group into an internationally recognised design house with global distribution. We are generating strong momentum in North America and direct-to-consumer, reflecting our strategic focus on the areas where we see the greatest opportunities for long-term profitable growth. Our Manufacturing performance has also been a highlight of the first half, delivering profitable growth for the Group and supported by a healthy order book.

"Above all, this progress is a real credit to our people. The Group has been through a period of significant change, and our teams have shown tremendous resilience, commitment and energy. We have the right strategy, the right products and, importantly, the right people to build on the momentum we have created. This stronger platform is driving our return to revenue growth and sustained improvement in profitability, while enabling the expansion of our brand portfolio as demonstrated by the recent Designers Guild licensing agreement.

"There are exciting opportunities ahead and we are confident the Group is on track, with the outlook for the full year in line with market expectations, and we are excited about the future."

Webcast details

A virtual meeting for analysts and investors will be held at 10.00 a.m. on Monday, 12 October 2026. The presentation will be held on the Investor Meet Company platform. Questions can be submitted at any time during the presentation.

Investors can sign up for free to join the meeting and follow Sanderson via the following link: Follow Sanderson Design Group on IMC

Enquiries:

Sanderson Design Group PLC Lisa Montague, Chief Executive Officer Mike Woodcock, Chief Financial Officer David Gracie, Company Secretary	via Vigo Consulting
Singer Capital Markets Jen Boorer / Sara Hale / James Todd	Tel: [phone]
Vigo Consulting Fiona Hetherington / Guy Scarborough / Joe Quinlan / Safia Colebrook	Tel: [phone] [e-mail]

About Sanderson Design Group

Sanderson Design Group PLC is a global design house specialising in luxury interior furnishings. The Company designs, manufactures, and markets wallpapers, fabrics, and paints through trade suppliers and direct-to-consumer. In addition, the Company derives licensing income from the use of its designs on a wide range of products such as bed and bath collections, rugs, blinds, and tableware.

Sanderson Design Group's brands include Zoffany, Sanderson, Morris & Co., Harlequin, Clarke & Clarke, Scion and Designers Guild, spanning luxury, heritage and contemporary names.

The Company has a vertically integrated model with a strong UK manufacturing base comprising Anstey wallpaper factory in Loughborough and Standfast & Barracks, a fabric printing factory, in Lancaster. Both sites manufacture for the Company and for other wallpaper and fabric brands.

Sanderson Design Group employs approximately 500 people, and its products are sold worldwide. It

has showrooms in London, New York and Chicago.

Sanderson Design Group trades on the AIM market of the London Stock Exchange under the ticker

symbol SDG.

For further information please visit: www.sandersondesign.group  

For investor news and updates, follow Sanderson Design Group on Investor Meet Company: www.investormeetcompany.com/companies/sanderson-design-group-plc

CHIEF EXECUTIVE OFFICER'S REVIEW

Overview

We made strong progress against our strategic priorities in the first half of the year, and our results demonstrate that the strategy is working. We remain on track to deliver full-year trading in line with market expectations.

Group revenue increased 6% to £51.4m, with growth in North America, a focus on e-commerce and Manufacturing demand more than offsetting the UK market softness. Net cash strengthened in the half year to £10.4m at 31 July 2026, compared with £9.8m at 31 January 2026, after the planned purchase of £1.3m of shares into the EBT.

Our growth in North America accelerated in the period, with brand product sales in this key strategic market up 16% to £13.0m. The Highgrove by Sanderson collection has been the Group's most successful launch to date and has created a clear halo effect on the Sanderson brand, driving a 45% increase in Sanderson brand sales in North America.

Licensing revenue, an important strategic focus for the Group and a key profit driver, grew 13% to £4.9m in the first half.

Digitalisation continued to gain traction. Direct-to-consumer ("DTC") revenue more than doubled to £1.6m (H1 FY26: £0.7m), as the channel matured and awareness grew following the launch of the Group's brand sites across the UK and US, ahead of schedule. H1 FY27 marked the first full period in which the whole portfolio has operated DTC, adding another high-margin channel to our brand product sales. The re-platformed Trade Hub, now live across all our brands and acting as a key interface with our trade customers, drove notable growth in Sanderson's contract category.

The factory restructuring, which completed last year, has transformed our manufacturing operations with a more agile workforce and increased adoption of digital printing techniques. Third-party Manufacturing revenue grew by 19% to £11.0m on strong demand from US brands and buyers, taking total Manufacturing revenue, including internal sales, up 19% to £17.2m. Having returned Manufacturing to profitability at the FY26 year end, we are pleased to see that momentum has continued into the new financial year.

Adjusted underlying PBT increased 47% to £3.3m driven by a combination of the strong Manufacturing performance, broader pricing actions taken, together with increased Licensing revenue, underpinned by the Blinds2Go renewal. This also reflects management's prior actions to reduce the cost base and the Group is committed to maintaining a prudent approach to cost control.

Revenue

The table below shows the Group's sales performance in the half year ended 31 July 2026, compared with the period ended 31 July 2025. It includes our three key revenue streams of Brand product sales, Licensing income and Manufacturing and gives the geographical performance for our Brand product sales.

	H1 FY27 £m	H1 FY26 £m	Change reported currency %	Change constant currency %
Brands
United Kingdom	14.0	15.1	-7.8%	-7.8%
North America	13.0	11.2	16.3%	19.0%
Northern Europe	4.4	4.3	1.7%	-2.6%
Rest of World	4.1	4.1	-0.5%	-1.1%
Total Brands	35.5	34.7	2.1%	2.0%
Manufacturing
External	11.0	9.2	19.3%	19.3%
Internal	6.2	5.3	17.6%	17.6%
Total Manufacturing	17.2	14.5	18.7%	18.7%
Licensing	4.9	4.4	12.7%	12.7%
Total	51.4	48.3	6.3%	6.3%

Brands

Our brand assets comprise the heritage brands Morris & Co., Sanderson and Zoffany and contemporary brands Clarke & Clarke, Harlequin and Scion, the latter being a primarily licensed brand. The table below shows the sales performance of each brand during the first half.

	H1 FY27 £m	H1 FY26 £m	Change reported currency %	Change constant currency %
Morris & Co.	9.3	8.8	5.1%	4.7%
Sanderson	8.0	6.8	17.0%	17.0%
Zoffany	3.4	3.3	2.6%	2.9%
Clarke & Clarke	8.2	9.4	-12.9%	-13.0%
Harlequin	6.0	6.0	0.4%	0.8%
Scion	0.5	0.3	62.5%	61.8%
Other	0.1	0.1	-	-
Total	35.5	34.7	2.1%	2.0%

North America

As the world's largest interiors market, North America remains a clear strategic priority for the Group and an important driver of high-margin growth. In H1 FY27, US brand product sales demonstrated clear forward momentum, increasing 16% in the period to £13.0m.

The Group's expanded distribution network, and its ability to leverage its extensive archive to launch collections that resonate with the US market, is now translating into real demand from buyers and designers with North America now the Group's most profitable, highest-margin and fastest-growing territory.

The US market is dominated by high-net-worth customers, supporting strong pricing power across our brands. As the market is led by interior designers, rather than retail customers, we have focused on deepening our relationships within the US design community, which remains key to ensuring continued growth in the market. The Group recently joined the Design Leadership Network, a US-based invitation only, not-for-profit foundation aimed at bringing together high-end luxury interior leaders, and we remain a lead sponsor of Design Destination London, an annual event that brings American interior designers to London to meet leading players in the industry. The Group has established an exceptional reputation across the business, both at global leadership level and on the ground with the team. This is led by Scott Christopher Hans, who was promoted to President of the North American business in February 2026 and is exceptionally well networked across the region.  

On the ground, our Florida showroom has been relocated to a larger space to improve profile and outreach in an important state, and we have further expansion planned in the second half through additions at Michael S Smith's Jasper showroom in Los Angeles and a new satellite showroom in The New York Design Centre, further driving visibility and awareness of our brands across key target audiences.

Brands

Across our brands, Highgrove by Sanderson has been the standout success since it launched in May 2025, being the best performing collection and highest grossing launch ever in its first year. This has supported the growth of the Sanderson brand and has been particularly well received in the US, with Highgrove achieving the highest proportion of US sales of any new collection.

Morris & Co. has continued to see increased sales on a like for like basis, buoyed by The Huntington collection, which brought previously unproduced archive designs to the market for the first time and contributed to a 14% increase in the brand's North America sales. Post period, the Group has launched Voysey House Volume I, a landmark wallpaper collection by its heritage brand, Morris & Co., which reimagines the original designs of C.F.A. Voysey and adapts them for today's interiors.

Zoffany's collaboration with Michael S. Smith is another example of a genuine, designer-led collaboration, to launch a collection of sophisticated, high-end indoor-outdoor products.  Michael S Smith is one of the top interior designers in the US and the partnership gives Zoffany credibility and profile it could not achieve through conventional marketing. Additionally, it demonstrates the importance of cultivating a strong network of relationships with leading designers in the US market.

At Clarke & Clarke - which trades at the more value conscious end of the market - the performance has been more muted, with US sales constrained by a delayed launch by our US partner and continued softness in the UK market. As we have entered the second half, trading has showed signs of improvement, and we remain optimistic for the brand's potential going forward.

We have maintained our position as market leader in the UK, a market which faces both cyclical and structural challenges, and we are working closely with customers to help them navigate these conditions. Whilst still an important market, our strategic focus is on North America, which is our most profitable market and soon expected to overtake the UK as the Group's largest market.

Post period end, we signed a 10-year licensing agreement with Dunelm, granting Sanderson the sole worldwide rights to the Designers Guild design archive across wallpapers, fabrics, and paint. As an internationally recognised brand with exceptional design heritage, Designers Guild makes an excellent addition to our portfolio of brands and a clear strategic fit with our business. The agreement reflects the significant progress we have made in reshaping and strengthening the Group to support and develop outstanding interiors brands. As the market continues to evolve and consolidate, we believe this positions the Group strongly to take advantage of opportunities as they arise.

Licensing

Licensing revenue improved 13% in the period to £4.9m (H1 FY26: £4.4m). First half accelerated income was £3.6m (H1 FY26: £2.4m), reflecting the signing of new licensees, renewals and extensions. Accelerated income, recognition of which is a requirement of IFRS 15, represents the total minimum guaranteed sales associated with newly signed contracts with a discount rate applied to them to reflect the timing of the future cash flows arising from the agreements. Over the course of the period, Sanderson signed licensing agreements/extensions with a number of parties, including Blinds2Go and Williams Sonoma.

Looking ahead, we are confident in the licensing opportunities created by our recent design launches, including Morris & Co x The Huntington, the Highgrove Collection and the Voysey House collection. Signing further licensing agreements remains an important focus: beyond the direct revenue generated by leveraging the Group's brands and design archives, it raises the profile of our designs more broadly, driving demand across the wider business.

Digitalisation

Digital investment remains a clear priority across the Group. Following the completion of its rollout last year, our DTC offering is now delivering. Our DTC websites are live across all six brands, and the channel has grown quickly. First-half revenue climbed to £1.6m from £0.7m a year earlier, reflecting contribution from the whole portfolio, and we expect to see the trend continue across the second half. This growth is aligned with our wider strategy, generating high-margin revenues and a particularly strong performance in the US market.

Our DTC offering targets a different customer we would not otherwise have reached, introducing them to the Group's portfolio of heritage and luxury brands. Through DTC, we are able to put our brands in front of more customers, designers and distributors, further raising awareness and channelling that demand into our existing network as much as into direct sales.

The re-platformed Trade Hub, now live across every brand, continues to sharpen efficiency for our B2B partners and has been a driver of strong growth in Sanderson's contract business, with excellent feedback from trade customers in the UK and internationally. We are working with our partners to further develop the platform and build additional capability which is progressing to plan. This is led by Charlotte O'Sullivan, who joined in January 2026 as Group Digital and Innovation Director.

Manufacturing

The Group holds a unique, vertically integrated model in the luxury interiors market. Through its two factories - Anstey and Standfast & Barracks - we are the only designer to control its own manufacturing across both fabrics and wallpapers, printing both for our own brands and third-party customers. We focus on delivering excellence across all aspects, including design, manufacturing, customer service and innovation.

Having returned Manufacturing to profitability last year through our Future Factory cost saving and restructuring initiative, our focus on topline growth is now delivering. Revenues performed strongly in the first half, increasing 19% to £17.2m (H1 FY26: £14.5m). This was driven by improved third-party manufacturing sales which increased 19% to £11.0m (H1 FY26: £9.2m), and internal manufacturing which recovered strongly, up 18% to £6.2m (H1 FY26: £5.3m). We have also continued to make progress with our inventory reduction strategy, which was reduced by a further £0.8m in the first half of the year.

Our workforce across both Anstey and Standfast & Barracks have shown real drive over the course of the first half of the year. I would like to take this opportunity to recognise the successful turnaround that has been delivered in our Manufacturing division under the stewardship of Tim Preston, who joined the team as Group Operations Director in 2024, and thank the broader team for their continued flexibility and dedication. The momentum in Manufacturing is set to continue with a positive order book moving into the second half.

We continue to invest in our capabilities across both factories, with digital printing now accounting for 64% of revenues (HY26: 60%). Total planned investment for the year will be second half-weighted as we continue to upgrade our digital printing capabilities, giving us both enhanced speed and flexibility as technology advances, and optimised productivity and efficiency across the sites.

Sanderson occupies a unique position in the market. We are a British manufacturer and a proud exporter of products around the world. The fact that we not only manufacture for our own brands but also for others, who are currently operating in a challenging market, emphasises the benefits to Sanderson of having vertical control in terms of quality, cost and margin. Looking ahead, we expect sustained third-party demand and are working closely with key customers in each of our target regions to offer a more integrated service across both fabrics and wallpaper.

Voysey House

In May 2026, we welcomed His Majesty King Charles III to Voysey House, our London headquarters, marking the centenary of Sanderson's Royal Warrant. The visit reinforced the value of our move to Voysey House, which is both a cost-effective home and commercially valuable asset for the Group and sees the Group relocate to a building which was commissioned in 1902 by C.F.A Voysey as a wallpaper factory for A. Sanderson & Sons, reconnecting the Group with its heritage. It is a place where our 75,000-piece archive comes to life, acts as a base for visits, events and collaborations and it continues to reinforce its worth to every one of our brands, well beyond any single occasion.

Our unrivalled design archive, which is located at Voysey House, is a central pillar of our business. The Morris & Co. brand is a vibrant, living legacy of William Morris and the Arts and Crafts movement. It emerged as a response to the mechanisation and human alienation of the Industrial Revolution, championing authorship and craft over the anonymity of the machine. As AI now raises equivalent questions for the 21^st Century, those same values feel more relevant than ever.

Board

Dame Dianne Thompson, Non-Executive Chair, will have reached nine years' tenure in the role in February 2028. In line with corporate governance best practice, the Board is managing Chair succession in an orderly and considered manner, and intends to appoint independent consultants in January 2027 to oversee the search for a successor for Dame Dianne. The focus will be to appoint an individual who brings the required skillset, experience and independence to support the continued delivery of the Group's stated strategy.

CURRENT TRADING AND OUTLOOK

We are pleased to have delivered a solid performance in the first half of the year and that the positive momentum we've seen across Manufacturing and US sales has continued into the second half of the year. We are on course to deliver full year results in line with current market expectations.

Strategically, our focus on the US is starting to demonstrate real momentum and we are confident we have the right product, distribution network and teams in place to deliver continued growth in the world's largest market. Our focus continues to be on further building our international footprint.

Whilst the market in the UK and EU remains challenging amid soft consumer sentiment, we have successfully maintained and defended our market leading position in these regions. Our unique, vertically integrated model, gives us a competitive advantage to control more elements of the supply chain, and we are well positioned to capitalise on opportunities in a consolidating market, as demonstrated by our strategic licensing agreement for the Designers Guild brand.  

We are excited by the collections we have launched recently. While such launches typically take 12-18 months to build meaningful sales, we have been delighted by their reception to date and believe they have huge potential, particularly in the growth market of North America.   

The recent licensing agreement for Designers Guild adds an iconic, highly complementary brand to our portfolio, and our manufacturing, distribution and licensing capabilities put us in a strong position to unlock its global potential.

Lisa Montague

Chief Executive Officer

9 October 2026

CHIEF FINANCIAL OFFICER'S REVIEW

Key financial indicators

We set out below a summary of the Group's key financial indicators.

	6 months to 31 July 2026	6 months to 31 July 2025	% change (reported)
Revenue (£m)	51.4	48.3	+6%
Profit before tax (£m)	2.5	1.5	+69%
Earnings per share - Basic (pence)	2.45	1.41	+74%
Adjusted underlying profit before tax (£m)	3.3	2.2	+47%
Adjusted earnings per share - Basic (pence)	3.32	2.22	+49%
Net cash (£m)	10.4	7.8	+33%
Inventory (£m)	20.6	24.7	-17%
Capital expenditure (£m)	1.0	0.3	+180%

Revenue

Reported revenue for the six months ended 31 July 2026 (H1 FY27) was £51.4m, up 6.3% compared with the £48.3m reported in H1 FY26.

	6 months to 31 July 2026 £m	6 months to 31 July 2025 £m	% change (reported)
Brands	35.5	34.7	2.1%
Licensing	4.9	4.4	12.7%
Manufacturing - external	11.0	9.2	19.3%
Total revenue	51.4	48.3	6.3%

Within the Brand Product segment, Management's strategic priority to expand the Group's presence in North America, the world's largest market for textiles and wallpapers, continues to deliver results. The 16% revenue growth is evidence of accelerated momentum and reflects the strength of the Group's expanded network and its ability to create designs aligned to significant demand from US buyers for Sanderson's heritage British brands and sought-after designs.

The UK market, which represents approximately 40% of total brand product revenue, continues to be challenging for all operators, with sales in our home territory 8% down year-on-year.

We continue to focus on engaging and attracting new audiences to the Group's brands. Performance of the direct-to-consumer ("DTC") sales channel, via brand websites, has been particularly strong, with revenue in H1 FY27 more than doubling compared to the prior period. This growth reflects the channel becoming better established following its launch in the UK (September 2024) and the US (April 2025). The re-platformed Trade Hub has improved order management and sampling for B2B customers, enhancing our overall efficiency and providing us with greater insights into customer behaviour.

The proactive restructuring of operations together with the "Future Factory" initiative has resulted in a strong recovery in the Manufacturing segment's financial performance, with external (third party) revenues up 19% on the prior year. This significant improvement, continuing to strengthen from H2 FY26, highlights the successful realignment of the Group's manufacturing capabilities with modern market demands. The Group's two sites - Standfast & Barracks in Lancaster and Anstey in Loughborough - exemplify our roots as a proud British manufacturer and key exporter of high quality, beautiful designs around the world. Demand from external brands and businesses for the Group's unique design proposition, range of print techniques and service has continued to drive momentum into H2 FY27.

Licensing revenue was up 13% at £4.9m (H1 FY26: £4.4m) with underlying revenue, which excludes the impact of the IFRS 15 accounting standard, growing to £4.1m (H1 FY26: £3.9m) and contributing to the Group's cash generation.

First half accelerated income was £3.6m (H1 FY26: £2.4m), reflecting the signing of new licensees, renewals, and extensions. This growth was driven primarily by the renewal of the global Blinds2Go agreement which contributed £1.4m of revenue and therefore licensing revenue in FY27 is expected to be broadly in line with FY26.

Gross profit

Gross profit for the period was £35.5m compared with £33.0m in H1 FY26 with improved performance across all segments.

Six months to 31 July 2026	Brands £m	Licensing £m	Manufacturing £m	Eliminations £m	Total £m
Revenue - external	35.5	4.9	11.0	-	51.4
Revenue - internal	-	-	6.2	(6.2)	-
Total revenue	35.5	4.9	17.2	(6.2)	51.4
Cost of sales	(11.4)	-	(10.4)	5.9	(15.8)
Gross profit	24.1	4.9	6.8	(0.3)	35.5
Gross profit %	67.9%	100.0%	39.7%	-	69.2%

Six months to 31 July 2025	Brands £m	Licensing £m	Manufacturing £m	Eliminations £m	Total £m
Revenue - external	34.7	4.4	9.2	-	48.3
Revenue - internal	-	-	5.3	(5.3)	-
Total revenue	34.7	4.4	14.5	(5.3)	48.3
Cost of sales	(11.3)	-	(9.6)	5.6	(15.3)
Gross profit	23.4	4.4	4.9	0.3	33.0
Gross profit %	67.5%	100.0%	33.6%	-	68.3%

Our overall gross profit percentage increased by 90 basis points to 69.2% (H1 FY26: 68.3%).

The key driver behind this improvement was in the Manufacturing segment where a combination of sales growth and numerous efficiency projects across both factories saw gross profit increase by 610 basis points to 39.7%.

Within the Brands segment, the increase was driven by the strong performance of both the higher margin North American market and the higher margin Direct to Consumer channel.

Profit before tax

Profit before tax for the period was £2.5m, up from £1.5m in the first half of the prior year.

	6 months to 31 July 2026 £m	6 months to 31 July 2025 £m
Revenue	51.4	48.3
Cost of sales	(15.8)	(15.3)
Gross profit	35.5	33.0
Distribution and selling expenses	(11.3)	(11.9)
Administration expenses	(23.3)	(21.6)
Other operating income	1.0	1.7
Profit from Operations	1.9	1.2
Net finance income	0.5	0.3
Profit before tax	2.5	1.5

Other operating income comprises consideration received from the sale of marketing materials (mainly pattern books) to support the Group's core products. The cost of these marketing materials is included in Distribution and selling expenses. The net cost of these pattern books is in line with H1 FY26 despite the reduction in other operating income to £1.0m (H1 FY26: £1.7m). 

Aside from the impact of pattern books, Distribution and selling expenses have remained broadly flat with increases in carriage costs arising from fuel prices and tariffs being offset by various efficiency programmes.

Administration expenses increased by £1.8m compared to H1 FY26 due to investments in the Group's IT and DTC infrastructure, the timing of certain marketing expenditure and inflationary increases.

Adjusted underlying profit before tax

Adjusted underlying profit before tax was £3.3m, 47% higher than the £2.2m reported in H1 FY26.

In calculating the adjusted underlying profit before tax, the Group excludes material non-recurring items or items considered to be non-operational in nature and that do not relate to the operating activities of the Group. Share-based payment charges are excluded as they are a non-cash measure.

Adjusted measures are used as a way for the Board to monitor the performance of the Group and are not considered to be superior to, or a substitute for, statutory definitions. They are provided to add further depth and understanding to the users of the financial information and to allow for improved assessment of performance. The Group considers adjusted underlying profit before tax to be an important measure of Group performance and is consistent with how the business is reported to and assessed by the Board and is used within the Group's incentive plans. 

	6 months to 31 July 2026 £m	6 months to 31 July 2025 £m
Statutory profit before tax	2.5	1.5
Amortisation of acquired intangible assets	0.1	0.1
Restructuring and reorganisation costs	-	0.4
Underlying profit before tax	2.6	2.0
Share-based payment charge	0.3	0.0
Defined benefit pension charge	0.4	0.2
Adjusted underlying profit before tax	3.3	2.2

Items excluded for the purposes of calculating the adjusted underlying profit before tax comprise:

-     Amortisation of intangible assets in respect of the acquisition of Clarke & Clarke in 2016

-     Restructuring and reorganisation costs £nil (H1 FY26: £0.4m that arose out of changes to head office functions and both factories)

-     Share based payment charges of £0.3m (H1 FY26: £0.0m) are excluded as they are a non-cash measure

-     Administration costs of £0.4m (H1 FY26: £0.2m) related to the Group's two legacy defined benefit pension schemes

Taxation

Tax for the period is charged on profit before tax based on the forecast effective tax rate for the full year. The estimated effective tax rate (before adjusting items) for the period was 27.0% (H1 FY26: 30.1%) as a result of permanent differences such as ineligible depreciation and share-based payment charges.

Capital expenditure

Capital expenditure in the period totalled £1.0m (H1 FY26: £0.3m). Additional investment is expected in H2 FY27 as we continue to upgrade our digital printing capabilities.

Minimum guaranteed licensing receivables

In accordance with IFRS 15, the Group recognises the fair value of fixed minimum guaranteed income that arises under multi-year licensing agreements, in full upon signature of the agreement, provided there are no further performance conditions for the Group to fulfil. A corresponding receivable balance is generated which then reduces as payments are received from the licence partner in accordance with the performance obligations laid down in the agreement (usually the passing of time). Licensing revenues above the fixed minimum guaranteed amount are recognised in the period in which they are generated. Because of the way minimum guaranteed revenue is recognised, the revenue profile can be uneven depending on when contracts are signed and the guaranteed minimum royalty arrangements contained within them.

During the first half of FY27, the group recognised £3.6m of accelerated licensing income. Despite cash inflows from agreements signed in previous periods, on 31 July 2026, minimum guaranteed licensing receivables had grown with the amount due after more than one year at £13.3m (year-end 31 January 2026: £12.6m; H1 FY26: £11.5m) and those due within one year grew to £5.3m (year-end 31 January 2026: £4.4m; H1 FY26: £3.9m).

Inventories

Reducing inventory levels was a key area of focus in FY26 with net Inventories falling by £5.7m during the year to £21.5m on 31 January 2026. We continue to look for opportunities to reduce this number further and are pleased to report that net inventory has declined by an additional £0.8m in H1 FY27.

Trade and other receivables

Net trade and other receivables increased to £14.9m against the year-end 31 January 2026 of £13.1m. This increase is due to an increase in prepayments with a number of annual contracts for Insurance and IT being paid in the first half of the year.

Our business model means that most customers for our Brand Product segment do not hold inventory. We are able to quickly react to any aged accounts to mitigate potential credit risks. As a result, despite the current economic environment, we have experienced limited bad debts in the first half. The aging profile of trade debtors shows that most customers are within terms although the wider economy presents an enhanced level of credit risk.

Cash position and banking facilities

Net cash increased to £10.4m on 31 July 2026 from £9.8m on 31 January 2026. Net cash generated from operating activities was £4.3m (H1 FY26: £3.7m).

The principal driver for the year-on-year improvement is the higher level of operating profit.

All foreign currencies are bought and sold centrally on behalf of the Group. Regular reviews take place of our foreign currency cash flows. The Group undertakes hedging only where there are highly probable future cash flows and to hedge working capital exposures. The strong performance of the Group's North American business creates a requirement to put in place a limited level of hedging contracts against the US dollar surplus that is expected to arise.

The Group's banking facilities are provided by Barclays Bank plc. The Group has an undrawn £10.0m multi-currency revolving credit facility which was last renewed in February 2024 and matures in February 2029. The agreement also includes a £7.5m uncommitted accordion facility to further increase available credit. This provides substantial headroom for future growth. Our covenants under this facility are EBITDA and interest cover measures which have both been met throughout the period.

Net defined benefit pension

The Group operates two defined benefit schemes in the UK. These comprise the Walker Greenbank Pension Plan and the Abaris Holdings Limited Pension Scheme. These were both closed to new members and to future service accrual from 30 June 2002 and 1 July 2005, respectively.

Up until March 2025 contributions to the Walker Greenbank Pension plan were made on deficit contribution schedules previously agreed with the plans' trustees and included payments towards the ongoing expenses incurred in the running of the scheme.  From April 2025, following the finalisation of the plan's triennial actuarial valuation, the Group ceased making deficit contributions but continues to make payments towards scheme expenses. In H1 FY27 these administrative costs were £0.2m.

In FY25, the Group made a one-off contribution of £2.3m to the Abaris Holdings Pension Scheme to support a Trustee decision to transfer all of the scheme's risks to an insurer under a buy-in insurance policy investment. In addition to the agreed cash amount, the insurer also received the Abaris Scheme's existing investments. The core financial and demographic risks associated with funding member benefits have transferred to the insurer. The formal winding up of the Abaris Scheme commenced on 31 August 2025 and is scheduled to be completed in H1 FY28. Until then, the Group will continue to pay the administration and advisory costs associated with the wind-up. In H1 FY27 these administrative costs were £0.2m. 

The Group has reported a surplus of £3.3m on 31 July 2026 consistent with the surplus of £3.3m on 31 January 2026.

Dividend

A final dividend of 1.00p in respect of the year ended 31 January 2026 was paid on 7 August 2026 to the shareholders on the Company's register on 10 July 2026.

The Board is announcing an interim dividend, of 0.50p for the six months ended 31 July 2026 (H1 FY26: 0.50p), payable on 27 November 2026 to shareholders on the register on 23 October 2026. The ex-dividend date is 22 October 2026.

Capital allocation policy

We remain committed to maintaining a strong balance sheet.

Our forward capital expenditure programme is closely aligned to our Live Beautiful strategy towards a low-carbon and resource smart future with capital maintenance projects only approved if they can be proven to help us on our journey.

We continue to support the defined benefit Walker Greenbank Pension Plan and continue to evaluate as to whether there is appropriate action which could be taken to help reduce the risks of this Plan within our wider business objectives.

During the period, the Board determined to maintain the dividend, and fund the purchase of 2,176,000 shares at a cost of £1.3m by our EBT to satisfy the future vesting of share schemes. The Group's strong balance sheet allows the Board to maintain flexibility to take advantage of strategic opportunities as they arise.

Going concern

The Directors reviewed a Management Base Case model and considered the uncertain political and economic environment in which we are operating. In our assessment of going concern the Directors consider that, having reviewed forecasts prepared by the management team which have been stress tested, the Group has adequate resources to continue trading for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the interim financial statements. Further details of the review are disclosed in note 1 to the interim financial statements.

Mike Woodcock

Chief Financial Officer

9 October 2026

Unaudited Consolidated Income Statement

For the six months ended 31 July 2026

	Note	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
Revenue	2	51,376	48,319
Cost of sales		(15,831)	(15,315)
Gross profit		35,545	33,004
Net operating (expenses)/income:
Distribution and selling expenses		(11,297)	(11,930)
Administration expenses		(23,303)	(21,552)
Other operating income		993	1,669
Profit from operations		1,938	1,191
Finance income		875	665
Finance costs		(359)	(401)
Net finance income		516	264
Profit before tax	2	2,454	1,455
Tax expense	3	(680)	(439)
Profit for the period attributable to owners of the parent		1,774	1,016
Earnings per share - Basic	4	2.45	1.41
Earnings per share - Diluted	4	2.40	1.37
Adjusted earnings per share - Basic*	4	3.32	2.22
Adjusted earnings per share - Diluted*	4	3.24	2.16

*  These are alternative performance measures.

All of the activities of the Group are continuing operations.

Unaudited Consolidated Statement of Comprehensive Income

For the six months ended 31 July 2026

	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
Profit for the period	1,774	1,016
Other comprehensive (expense)/income:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension schemes	226	(351)
Deferred tax (charge)/credit relating to pension scheme liabilities	(57)	36
Corporation tax credit relating to pension scheme contributions	-	53
Investment-related defined benefit pension costs	-	(1)
Cash flow hedge	17	(54)
Total items that will not be reclassified to profit or loss	186	(317)
Items that may be reclassified subsequently to profit or loss
Currency translation losses	70	(256)
Other comprehensive expense for the period, net of tax	256	(573)
Total comprehensive income for the period attributable to the owners of the parent	2,030	443

Unaudited Consolidated Balance Sheet as at 31 July 2026

	31 July 2026 £000	31 January 2026 £000
Non-current assets
Intangible assets	10,071	10,387
Property, plant and equipment	10,715	10,881
Right-of-use assets	8,673	9,719
Retirement benefit surplus	3,301	3,260
Minimum guaranteed licensing receivables	13,342	12,553
	46,102	46,800
Current assets
Inventories	20,648	21,465
Trade and other receivables	14,920	13,133
Minimum guaranteed licensing receivables	5,255	4,442
Corporation tax debtor	97	1,086
Financial derivative instruments	36	53
Cash and cash equivalents	10,429	9,808
	51,385	49,987
Total assets	97,487	96,787
Current liabilities
Trade and other payables	(12,283)	(11,038)
Lease liabilities	(2,708)	(2,977)
Corporation tax payable	-	(131)
Provision for liabilities and charges	(23)	(122)
	(15,014)	(14,268)
Net current assets	36,371	35,719
Non-current liabilities
Lease liabilities	(7,494)	(8,355)
Deferred income tax liabilities	(3,017)	(3,274)
Provision for liabilities and charges	(974)	(974)
	(11,485)	(12,603)
Total liabilities	(26,499)	(26,871)
Net assets	70,988	69,916
Equity
Share capital	723	723
Share premium account	18,682	18,682
Retained earnings	12,239	11,237
Other reserves	39,344	39,274
Total equity	70,988	69,916

Unaudited Consolidated Cash Flow Statement

For the six months ended 31 July 2026

	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
Cash flows from operating activities
Profit from operations	1,938	1,191
Intangible asset amortisation	519	476
Property, plant and equipment depreciation	929	1,161
Right-of-use asset depreciation	1,208	1,247
Share-based payment charge	214	32
Defined benefit pension charge	482	243
Employer contributions to pension schemes	(203)	(386)
Decrease in inventories	817	2,453
Increase in trade and other receivables	(1,761)	(1,044)
Increase in minimum guaranteed licensing receivables	(947)	(552)
Increase/(decrease) in trade and other payables	1,242	(505)
Decrease in provision for liabilities and charges	(109)	(296)
Tax paid	(37)	(281)
Net cash from operating activities	4,292	3,739
Cash flows from investing activities
Finance income received	125	-
Purchase of intangible assets	(203)	(310)
Purchase of property, plant and equipment	(754)	(32)
Net cash used in investing activities	(832)	(342)
Cash flows from financing activities
Repayment of lease liabilities	(1,645)	(1,094)
Purchase of shares held in trust	(1,272)	-
Interest paid	(10)	(73)
Net cash used in financing activities	(2,927)	(1,167)
Net increase in cash and cash equivalents	533	2,230
Net foreign exchange movement	88	(281)
Cash and cash equivalents at beginning of period	9,808	5,814
Cash and cash equivalents at end of period	10,429	7,763

Unaudited Consolidated Statement of Changes in Equity

For the six months ended 31 July 2026

	Attributable to owners of the parent
	Share   capital £000	Share premium account £000	Retained earnings £000	Other reserves* £000	Total equity £000
Balance at 1 February 2025	720	18,682	9,534	39,796	68,732
Profit for the period	-	-	1,016	-	1,016
Other comprehensive income/(expense):
Remeasurements of defined benefit pension schemes	-	-	(351)	-	(351)
Investment-related defined benefit pension costs	-	-	(1)	-	(1)
Deferred tax credit relating to pension scheme liabilities	-	-	36	-	36
Corporation tax credit relating to pension scheme contributions	-	-	53	-	53
Cash flow hedge	-	-	(54)	-	(54)
Currency translation differences	-	-	-	(256)	(256)
Total comprehensive income/(expense)	-	-	699	(256)	443
Transactions with owners, recognised directly in equity:
Issuance of share capital for share-based payment vesting	1	-	(1)	-	-
Share-based payment equity charge	-	-	32	-	32
Related tax movements on share-based payment	-	-	35	-	35
Balance at 31 July 2025	721	18,682	10,299	39,540	69,242
Profit for the period	-	-	1,132	-	1,132
Other comprehensive income/(expense):
Remeasurements of defined benefit pension schemes	-	-	805	-	805
Deferred tax charge relating to pension scheme liabilities	-	-	(274)	-	(274)
Corporation tax credit relating to pension scheme contributions	-	-	72	-	72
Investment-related defined benefit pension costs	-	-	-	-	-
Cash flow hedge	-	-	126	-	126
Currency translation losses	-	-	-	(266)	(266)
Total comprehensive income	-	-	1,861	(266)	1,595
Transactions with owners, recognised directly in equity:
Dividends	-	-	(1,082)	-	(1,082)
Issuance of share capital for share-based payment vesting	2	-	(2)	-	-
Share-based payment equity charge	-	-	181	-	181
Related tax movements on share-based payment	-	-	(20)	-	(20)
Balance at 31 January 2026	723	18,682	11,237	39,274	69,916

Unaudited Consolidated Statement of Changes in Equity

For the six months ended 31 July 2026

	Attributable to owners of the parent
	Share capital £000	Share premium account £000	Retained earnings £000	Other reserves* £000	Total equity £000
Balance at 1 February 2026	723	18,682	11,237	39,274	69,916
Profit for the period	-	-	1,774	-	1,774
Other comprehensive income/(expense):
Remeasurements of defined benefit pension schemes	-	-	226	-	226
Deferred tax charge relating to pension scheme liabilities	-	-	(57)	-	(57)
Cash flow hedge	-	-	17	-	17
Currency translation differences	-	-	-	70	70
Total comprehensive income	-	-	1,960	70	2,030
Transactions with owners, recognised directly in equity:
Purchase of shares held in trust	-	-	(1,272)	-	(1,272)
Share-based payment equity charge	-	-	214	-	214
Related tax movements on share-based payment	-	-	100	-	100
Balance at 31 July 2026	723	18,682	12,239	39,344	70,988

*other reserves represent capital reserve, merger reserve and foreign currency translation reserve

Notes to the Consolidated Financial Statements

1. Basis of preparation

The interim financial statements have been prepared in accordance with the accounting policies that the Group expects to apply in its annual financial statements for the year ending 31 January 2027.

The accounting policies adopted in the preparation of these interim financial statements to 31 July 2026 are consistent with the accounting policies applied by the Group in its Annual Report and Accounts for the year ended, 31 January 2026.

The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 January 2026 prepared in accordance with UK adopted International Accounting Standards. All comparative information is for the six-month period ended 31 July 2025, except for the Balance Sheet information which is as at 31 January 2026.

No new standards and interpretations issued and effective for the period have had any significant impact on the preparation of the financial statements.

The interim financial statements do not represent statutory accounts for the purposes of section 434 'Requirements in connection with publication of statutory accounts' of the Companies Act 2006. The financial information for the year ended 31 January 2026 is based on the statutory accounts for the financial year ended 31 January 2026, on which the auditors issued an unqualified opinion and did not contain a statement under section 498 'Duties of auditor' of the Companies Act 2006 and have been delivered to the Registrar of Companies. The interim financial statements for the six-month period ended 31 July 2026 have not been audited. 

Critical accounting estimates and judgements

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 January 2026 - going concern assessment which is explained in further detail below, retirement benefit obligations, impairment of non-financial assets and absorption of overhead into inventory.

Going concern

In the context of the continuing economic and political uncertainties, the Board of Sanderson Design Group PLC has undertaken an assessment of the ability of the Group and Company to continue in operation and meet its liabilities as they fall due over the period of its assessment. In doing so, the Board considered events throughout the period of their assessment from the date of signing of the report to 31 January 2028, including the availability and maturity profile of the Group's financing facilities and covenant compliance. These interim financial statements have been prepared on the going concern basis which the Directors consider appropriate for the reasons set out below.

The Group funds its operations through cash generated by the Group and has access to a £10.0m (31 January 2026: £10.0m) Revolving Credit Facility ('RCF') which is linked to two covenants and was renewed on 1 February 2024. These covenants are tested quarterly at 30 April, 31 July, 31 October and 31 January each year until the facility matures on 1 February 2029. Throughout the financial period and up to the date of this report, the Company has met all required covenant tests and maintained available liquidity of over £5m (31 January 2026: £5.0m). The total available liquidity of the Group at 31 July 2026 was £20.4m (31 January 2026: £19.8m), including cash and cash equivalents of £10.4m (31 January 2026: £9.8m) and the committed facility of £10.0m (31 January 2026: £10.0m). The Group has access to an uncommitted accordion facility of £7.5m (31 January 2026: £7.5m).

A Management Base Case ('MBC') model has been prepared, together with alternative stress tested

scenarios, given the uncertainties regarding the impact of economic difficulties. These scenarios indicate that the Group retains adequate headroom against its borrowing facilities and bank covenants for the foreseeable future.

The actual results which will be reported will be undoubtedly different from the MBC and other scenarios

modelled by the Group. If there are significant negative variations from the MBC, management would act decisively to protect the business, particularly its cash position.

Having considered all the comments above, the Directors consider that the Group and the Company

have adequate resources to continue trading for the foreseeable future and will be able to continue operating as a going concern for a period of at least 15 months from the date of approval of the interim financial statements. For this reason, they continue to adopt the going concern basis in preparing the interim financial statements.

Principal risks

The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The interim financial statements do not include all of the risk management information and disclosures required in the annual report and accounts; they should be read in conjunction with the Group's Annual Report and Accounts on 31 January 2026. Information on the principal risks can be found on page 44 to 48 of the Group's 2026 Annual Report and Accounts on 31 January 2026 which comprise of competitor environment (international), trading environment, foreign exchange, supply chain pressure, talent and critical role retention, reputation risk, environmental risk, health and safety risk, major incident or disaster and IT. The Group has aligned its climate-related financial disclosures to the Climate-related Financial Disclosure Regulations 2022 (SI 2022/31) and reported climate-related risks and opportunities in the Group's Annual Report and Accounts on 31 January 2026. There have been no changes in either the nature of the principal risks or risk management policies since the year end, however some of the risks have become heightened during the period.

Approval of interim financial statements

The Board approved the interim financial statements on 9 October 2026.

2. Segmental analysis

The Group is a designer, manufacturer and distributor of luxury interior furnishings, fabrics and wallpaper. The reportable segments of the Group are aggregated as follows:

-     Brands - comprising the design, marketing, sales and distribution of Morris & Co., Sanderson, Zoffany, Clarke & Clarke, Harlequin and Scion brands.

-     Licensing - comprising the licensing activities of Morris & Co., Sanderson, Zoffany, Clarke & Clarke, Harlequin and Scion brands.

-     Manufacturing - comprising the wallcovering and printed fabric manufacturing businesses operated by Anstey and Standfast & Barracks respectively.

This is the basis on which the Group presents its operating results to the Board of Directors, which is the CODM for the purposes of IFRS 8. Other Group-wide activities and expenses, predominantly related to corporate head office costs, defined benefit pension costs, long-term incentive plan expenses, stock consolidation adjustments in Brands and eliminations of inter-segment items, are presented within 'unallocated'. The segmental Income Statement disclosures are measured in accordance with the Group's accounting policies. Inter-segment revenue earned by Manufacturing from sales to Brands is determined on normal commercial trading terms as if Brands were any other third-party customer. Tax charges are not allocated or reviewed by segment, and therefore are not included in the segmental Income Statement disclosures.

a) Principal measures of profit and loss - Income Statement segmental information

Six months to 31 July 2026	Brands £000	Licensing £000	Manufacturing £000	Unallocated £000	Total £000
UK Revenue	13,976	1,803	6,302	-	22,081
International Revenue	21,493	3,142	4,661	-	29,295
Revenue - External	35,468	4,945	10,963	-	51,376
Revenue - Internal	-	-	6,199	(6,199)	-
Total Revenue	35,468	4,945	17,162	(6,199)	51,376
Cost of sales	(11,375)	-	(10,352)	5,896	(15,831)
Gross profit	24,093	4,945	6,810	(303)	35,545
Distribution and selling expenses	(10,381)	(316)	(600)	-	(11,297)
Administration expenses	(14,845)	(514)	(4,830)	(3,114)	(23,303)
Other operating income	1,002	-	(9)	-	993
Net finance (expense)/income	(250)	656	(1)	111	516
(Loss)/profit before tax	(381)	4,771	1,370	(3,306)	2,454
Management charge	(970)	-	-	970	-
(Loss)/profit before tax	(1,351)	4,771	1,370	(2,336)	2,454
Non-underlying and adjusting items	-	-	-	829	829
Adjusted underlying (loss)/profit before tax	(381)	4,771	1,370	(2,477)	3,283

Six months to 31 July 2025	Brands £000	Licensing £000	Manufacturing £000	Unallocated £000	Total £000
UK Revenue	15,161	2,407	5,473	-	23,041
International Revenue	19,580	1,981	3,717	-	25,278
Revenue - External	34,741	4,388	9,190	-	48,319
Revenue - Internal	-	-	5,271	(5,271)	-
Total Revenue	34,741	4,388	14,461	(5,271)	48,319
Cost of sales	(11,303)	-	(9,595)	5,583	(15,315)
Gross profit	23,438	4,388	4,866	312	33,004
Distribution and selling expenses	(11,154)	(95)	(681)	-	(11,930)
Administration expenses	(13,852)	(538)	(4,722)	(2,440)	(21,552)
Other operating income	1,656	-	13	-	1,669
Net finance (expense)/income	(329)	598	-	(5)	264
(Loss)/profit before tax	(241)	4,353	(524)	(2,133)	1,455
Management charge	664	-	-	(664)	-
Profit/(loss) before tax	423	4,353	(524)	(2,797)	1,455
Non-underlying and adjusting items	400	-	32	351	783
Adjusted underlying profit/(loss) before tax	159	4,353	(492)	(1,783)	2,238

b) Additional segmental revenue information

Brands revenue by geography	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
United Kingdom	13,976	15,161
North America	13,003	11,182
Northern Europe	4,379	4,307
Rest of the World	4,110	4,091
	35,468	34,741
Brands revenue by brand	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
Morris & Co.	9,279	8,827
Clarke & Clarke	8,217	9,437
Sanderson	7,987	6,827
Harlequin	6,043	6,017
Zoffany	3,389	3,304
Scion	494	304
Other brands	59	25
	35,468	34,741

Manufacturing revenue by division (including internal revenue)	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
Standfast & Barracks	9,347	7,771
Anstey	7,815	6,690
	17,162	14,461

3. Tax expense

	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
Corporation tax:
- UK current tax	(715)	(597)
- Overseas, current tax	(179)	(31)
Corporation tax	(894)	(628)
Deferred tax:
- Current period	214	189
Deferred tax	214	189
Total tax charge for the period	(680)	(439)

4. Earnings per share

4. (a) Earnings per share

Basic earnings per share ('EPS') is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of shares outstanding during the period, excluding those held in the Employee Benefit Trust ('EBT') and those held in treasury, which are treated as cancelled. The adjusted basic earnings per share is calculated by dividing the adjusted earnings by the weighted average number of shares.

	6 months to 31 July 2026 £000			6 months to 31 July 2025 £000
	Earnings £000	Weighted average number of shares (000s)	Per share amount Pence	Earnings £000	Weighted average number of shares (000s)	Per share amount Pence
Basic earnings per share	1,774	72,265	2.45	1,016	72,037	1.41
Effect of dilutive securities:
Shares under share-based payment		1,587			2,068
Diluted earnings per share	1,774	73,852	2.40	1,016	74,105	1.37
Adjusted underlying basic and diluted earnings per share:
Add back share-based payment charge	303			38
Add back defined benefit pension charge	388			175
Add back non-underlying items (see below)	138			570
Tax effect of non-underlying items and other add backs	(207)			(196)
Adjusted underlying basic earnings per share	2,396	72,265	3.32	1,602	72,037	2.22
Adjusted underlying diluted earnings per share	2,396	73,852	3.24	1,602	74,105	2.16

4. (b) Adjusted underlying profit before tax

The Group uses an Alternative Performance Measure 'adjusted underlying profit before tax'. This is defined as statutory profit before tax adjusted for the exclusion of share-based incentives, defined benefit pension charge and non-underlying items. This is recognised by the investment community as an appropriate measure of performance for the Group and is used by the Board of Directors as a key performance measure. The table below reconciles statutory profit before tax to adjusted underlying profit before tax.

	6 months to 31 July 2026 £000	6 months to 31 July 2025 £000
Statutory profit before tax	2,454	1,455
Amortisation of acquired intangible assets	138	138
Restructuring and reorganisation costs	-	432
Total non-underlying charge included in statutory profit before tax	138	570
Underlying profit before tax	2,592	2,025
Share-based payment charge	303	38
Defined benefit pension charge	388	175
Adjusted underlying profit before tax	3,283	2,238

5. Dividend

A final dividend of 1.00p in respect of the year ended 31 January 2026 was paid on 7 August 2026 to the shareholders on the Company's register on 10 July 2026.

The Board is announcing an interim dividend of 0.50p for the six months ended 31 July 2026 (H1 FY26: 0.50p), payable on 27 November 2026 to shareholders on the register on 23 October 2026. The ex-dividend date is 22 October 2026.

 

END