Sanderson Design Group PLC, the luxury interior furnishings group, has reported a slight decline in sales as profit increased.
According to its audited financial results for the year ended 31 January 2026, total sales fell 1% to £99.5m from £100.4m in 2025.
Adjusted underlying pre-tax profit resulted at £5.3m, up 22.2% from £4.4m compared to the previous year.
Licensing sales stood at £10.5m, down from £11m, with strong growth in underlying licensing revenue, up 36% at £9m. Third-party manufacturing sales rose 5% to £19m and Brand revenues were stable at £70m, with a strong performance from North America in line with strategy.
The group said that trading conditions in the UK remained “subdued” during the financial year although brand product sales at its top 10 UK customers were broadly flat on the prior year, suggesting that the “decline in brand product sales of -9% is largely attributable to independent retailers”.
“Our strategy in the UK is to focus on building strong relationships with interior designers, who often serve international markets in addition to high-end domestic and the hospitality sector.”
Looking ahead, group revenue in the new financial year to date is showing year-on-year growth, with similar trends to that seen in the second half of FY2026; and the strategic progress achieved in recent years means the Group is better positioned to withstand external events, aided by a lower cost base that will continue to provide annualised benefits in FY2027.
Dianne Thompson, Sanderson Design Group’s Chairman, said: “The Group has achieved strong progress against its strategic initiatives, prioritising digitalisation, North America as the key growth territory, and improving the efficiency of its manufacturing operations. Alongside the focus on inventory reduction, year-end net cash also increased substantially.
“We are proud to export our heritage, via products and designs, to clients in all corners of the globe. Our primary growth efforts are focused on North America, which remains our fastest growing and most profitable territory where the opportunity is considerable.
“The Board continues to monitor the external macro-environment with geopolitical volatility presenting a challenging backdrop for the financial year ahead. Against this, the Group entered FY2027 with good momentum which has been maintained and current trading is in line with full year expectations.
“The Board retains full confidence in the Group’s strategy, the strength of its brands, archive and balance sheet, and looks forward to continued progress in FY2027 and beyond.”
