A UK luxury interior design group has reported a significant decline in sales and profit for the financial year ending 31 January 2025, citing weak consumer demand and market uncertainty.
© Sanderson Design Group PLC
Sanderson Design Group PLC saw total sales fall by 7.6% to £100.4m, down from £108.6m the previous year. Adjusted underlying pre-tax profit dropped 63.9% to £4.4m, while a statutory loss of £13.9m was reported, compared to a £10.4m profit in 2024. The results include a £16.3m non-cash impairment charge linked to goodwill from its 2016 acquisition of Clarke & Clarke.
Sales were down across all regions: UK sales declined 14% to £32.8m, EU revenues dropped 7% to £9.1m, and sales in the Rest of the World fell 12% to £8.4m. The US market showed more resilience, with only a 2% decline to £21m.
The group has undertaken a restructuring of its UK manufacturing operations to reduce costs and align with anticipated volumes and the growing shift toward digital printing. Sanderson noted that North America remains a "key growth opportunity" and that early figures for the current financial year show strong performance in the US, with double-digit growth in core brand sales.
However, the company acknowledged that the announcement of new tariffs in April has affected global order intake and could dampen consumer confidence. Despite this, Sanderson maintains a robust financial position with over £5.0m in cash and an undrawn £10.0m bank facility.
Chairman Dianne Thompson stated that the company is "accelerating strategic initiatives" and remains confident that the full-year outcome will meet expectations, despite ongoing market challenges.
Source: www.bigfurnituregroup.com