Half Year Trading Update
Summary by AI BETAClose X
7 August 2026
SANDERSON DESIGN GROUP PLC
("Sanderson Design Group", the "Company" or the "Group")
Half Year Trading Update
Trading in line; double-digit growth in North America and Manufacturing; Licensing and D2C momentum
Sanderson Design Group PLC (AIM: SDG), the luxury interior design and furnishings group, announces its trading update for the six-months ended 31 July 2026 ("H1 FY27").
H1 FY27 highlights
· Group revenue increased 6% to £51.4 million (H1 FY26: £48.3 million), benefiting from sustained strategic progress in focus areas and prior management actions.
· Total brand product revenue up 2% to £35.5 million, with significant growth in North America (+19%) more than offsetting anticipated UK softness (-8%).
· Third Party Manufacturing revenue improved significantly versus the comparative period last year increasing 19% to £11.0 million, with excellent demand from US brands and buyers.
· Total Licensing revenue up 13% to £4.9 million, driven by the renewal of the global Blinds2Go agreement (£1.4 million of accelerated income).
· Direct-to-consumer revenue in H1 2027 significantly exceeded that achieved in H1 FY26, up 137% to £1.6m compared with £0.7m and representing an important, high margin, growth area.
· The Group's balance sheet remains strong with a net cash position at period-end of £10.2 million (31 January 2026: £9.8m), having purchased £1.4m of shares into the EBT in H1 FY27 as previously announced.
· Overall, the Board expects full-year trading to be in line with market expectations. **
Brand product, manufacturing and licensing revenue
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Six months ended 31 July (£ million) |
Change (%) |
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2027 (H1 FY27) |
2026 (H1 FY26) |
Reported |
Constant currency |
|
Brand product |
||||
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UK |
£14.0m |
£15.1m |
(8%) |
(8%) |
|
North America |
£13.0m |
£11.2m |
16% |
19% |
|
Northern Europe |
£4.4m |
£4.3m |
2% |
(3%) |
|
Rest of the World |
£4.1m |
£4.1m |
- |
(1%) |
|
Total Brand product revenue |
£35.5m |
£34.7m |
2% |
2% |
|
Manufacturing |
||||
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External |
£11.0m |
£9.2m |
19% |
19% |
|
Internal |
£6.2m |
£5.3m |
18% |
18% |
|
Total Manufacturing revenue |
£17.2m |
£14.5m |
19% |
19% |
|
Licensing |
||||
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Total Licensing revenue |
£4.9m* |
£4.4m |
13% |
13% |
|
Group total revenue |
£51.4m |
£48.3m |
6% |
6% |
* Licensing revenue is split with £3.6m expected accelerated income and £1.3m expected net underlying income.
Strong progress against core strategic priorities
North America
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 19% revenue growth and accelerated momentum reflect 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 Group's rich design archive underpins the strength, integrity and attractiveness of these brands. Further, the Morris & Co. x The Huntington Collection has brought to life designs from its archive, produced for the first time and generating "new" collections, which contributed to a 14% increase in Morris & Co. sales in North America.
North America continues to be the Group's highest margin and most profitable region as well as the fastest growing in line with the Board's strategic plans.
Brands
Launched in May 2025, the Highgrove Collection by Sanderson, is creating a 'halo effect' on the Sanderson brand, with very strong sales growth in every region and ahead of Management's expectations. Highgrove has been particularly well received in the US, where Sanderson brand sales are up significantly (+45%), epitomising the Group's high-end design capabilities and the strength of the team's relationships with key designers and showroom partners. In February 2026, Sanderson launched a National Trust Collection (Volume Two), a fabrics collection in which hand-painted prints, embroideries and weaves bring the Trust's Herefordshire-located Brockhampton Estate to life.
The Group continues to benefit from deep relationships with high-profile designers in all its territories, an example of which was the successful launch of the Zoffany x Michael S Smith Indoor Outdoor Fabrics collection in May 2026. Working collaboratively with world-renowned designers such as Michael S Smith reinforces the Group's strategy and epitomises Management's proactive approach to cultivating strong relationships with the best in the world.
Manufacturing
The proactive restructuring of operations together with the "Future Factory" initiative has sustained a strong recovery in the segment's financial performance, up 19% on prior year. The significant improvement in (external) Third Party Manufacturing performance, 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 its 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 continues to drive momentum into H2 FY27.
Digitalisation
Management continues 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 overall efficiency and contributing to growth in Sanderson's contract category.
Lisa Montague, Chief Executive Officer of Sanderson Design Group, said:
"This H1 performance demonstrates the strength of our brands and the successful execution of our strategic priorities. Continued momentum positions us well to deliver full year results in line with expectations. Our balance sheet remains strong with net cash of £10.2m on 31 July 2026 after having purchased £1.4m of shares into the EBT.
"We are particularly excited about our prospects in the US, where trading has been excellent with a clear upward trend. The US represents a major growth opportunity where our strategy to develop relationships with and collaborate with industry experts and celebrated designers has proven key to stimulating demand. We have been invited to join the global Design Leadership Network, an exclusive non-profit organisation for high end designers, architects and like-minded professionals, which deepens our access to the very best in our industry and provides valuable market insights.
"We were thrilled to welcome His Majesty King Charles III to our London headquarters at Voysey House in May. As a Royal Warrant holding business, we enjoyed the opportunity to show His Majesty some historically relevant designs from our archive as well as presenting him with new patterns, including The King's Rose, which launched at RHS Chelsea Flower Show and was adapted from an early 20th-century wallcovering in our archive. The archive underpins our competitive advantage and the strength of our brands, which, alongside our exceptional design talent, international mindset, commercial agility and manufacturing expertise, have together delivered a strong first half and an encouraging pipeline.
"As we look ahead, we remain focused on delivering our strategic priorities and are confident in the Group's ongoing ability to generate profitable growth."
Notice of Results
Sanderson Design Group expects to announce its interim results for the six months ended 31 July 2026 on Wednesday 21 October 2026
** FY27 market expectations for adjusted underlying PBT are £6.5m
For further information:
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Sanderson Design Group PLC |
c/o Burson Buchanan +44 (0) 20 7466 5000 |
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Lisa Montague, Chief Executive Officer |
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Mike Woodcock, Chief Financial Officer |
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David Gracie, Company Secretary |
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Singer Capital Markets |
+44 (0) 20 7496 3000 |
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Sara Hale / Jen Boorer / James Todd |
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Burson Buchanan |
+44 (0) 20 7466 5000 |
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Helen Tarbet / Sophie Wills / Toto Berger / Abigail Gilchrist |
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Notes for editors:
About Sanderson Design Group
Sanderson Design Group PLC is a luxury interior furnishings company that designs, manufactures and markets wallpapers, fabrics and paints. 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 and Scion.
The Company has 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.sandersondesigngroup.com.
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