Sanderson Design Group (AIM:SDG) reported group revenue up 6% to £51.4 million for the six months to 31 July, against £48.3 million a year earlier.
The AIM-listed luxury interior furnishings group, which makes wallpapers, fabrics and paints under the Sanderson and Morris & Co. brands, said adjusted underlying pre-tax profit rose 47% to £3.3 million from £2.2 million, while statutory pre-tax profit climbed 69% to £2.5 million from £1.5 million. Basic earnings per share rose 74% to 2.45p, with adjusted underlying basic EPS up 49% to 3.32p.
North America was the standout performer, with brand product sales up 16% to £13.0 million, offsetting a 7.8% decline in UK brand sales to £14.0 million.
Sanderson brand sales in North America rose 45%, helped by the Highgrove by Sanderson collection launched in May 2025, which the company described as its most successful launch to date and said has created a "clear halo effect" on the wider Sanderson brand.
Third-party manufacturing revenue rose 19% to £11.0 million on strong US demand, taking total manufacturing revenue, including internal sales, up 19% to £17.2 million; the division returned to profitability at the last financial year-end following completion of the Future Factory restructuring programme.
Licensing revenue increased 13% to £4.9 million, including £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, with websites now live across all six brands.
Net cash rose to £10.4 million at 31 July from £9.8 million at 31 January, after £1.3 million spent buying shares into the employee benefit trust. The board declared an interim dividend of 0.5p, unchanged from last year.
Chief executive Lisa Montague said the results reflect "the excellent progress we are making in evolving Sanderson Design Group into an internationally recognised design house with global distribution", citing momentum in North America, direct-to-consumer and manufacturing.
Post period-end, the company signed a 10-year worldwide licensing agreement to design, manufacture and sell Designers Guild wallpapers, fabrics and paints, adding the brand to its portfolio.
The board said it expects full-year trading to remain in line with market expectations, which stand at £102.0 million revenue and £6.5 million adjusted underlying pre-tax profit for the full year.