Sanderson Design Group (AIM:SDG) expects full-year trading to be in line with market expectations, the AIM-listed luxury interior design and furnishings group said in a trading update covering the six months to 31 July, or H1 FY27.
Group revenue rose 6% to £51.4 million, up from £48.3 million a year earlier, with North American brand product sales up 19% offsetting an anticipated 8% decline in the UK.
Third-party manufacturing revenue climbed 19% to £11.0 million on strong demand from US brands, while total licensing revenue rose 13% to £4.9 million, boosted by £1.4 million of accelerated income from the renewed global Blinds2Go agreement. Direct-to-consumer revenue more than doubled, up 137% to £1.6 million from £0.7 million, a channel the company calls an important, high-margin growth area.
Net cash stood at £10.2 million at period end, up from £9.8 million at 31 January, after the company spent £1.4 million buying shares into its employee benefit trust.
"We are particularly excited about our prospects in the US, where trading has been excellent with a clear upward trend," said chief executive Lisa Montague.
North America remains the group's highest-margin and fastest-growing region, with Sanderson brand sales there up 45%, helped by the Highgrove Collection launched in May 2025.
Interim results for the six months to 31 July are scheduled for 21 October. Market expectations for full-year adjusted underlying pre-tax profit stand at £6.5 million.
News Intelligence what this means for the company
Sanderson Design Group reported 6% H1 revenue growth to £51.4 million, with North America brand sales up 19% and direct-to-consumer revenue surging 137%, offsetting an 8% UK decline. The company confirmed full-year trading will meet market expectations (£6.5 million adjusted pre-tax profit), matching the guidance trajectory it held in early July, suggesting momentum has held but no material upside surprise has emerged.
The update reinforces Sanderson's US-led growth story—North America brand sales up 45% and third-party manufacturing revenue up 19%—and validates the high-margin direct-to-consumer channel as a structural growth lever. However, the on-guidance stance and persistent UK headwinds (8% decline) leave no room for multiple expansion; the investment case rests on whether US momentum and DTC scaling can sustain growth as the company laps easier comparatives.
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