After growth in September and early October, Sanderson Design Group says it is on course to deliver on full-year expectations.
It comes after the fabric group saw increased licensing income, a boom in demand for the Morris & Co brand and stronger US sales. This saw pre-tax profits rise by 12.2% to £5.5m as sales edged 0.7% higher at £57.9m in the six months to 31 July.
Sales of the Morris & co brand rose by 20.8% in the UK and by 53% in North America (42% at constant currency).
‘Thanks to the group’s strong and rich portfolio of valuable brands, and the creative design talent and agility of our teams, we have managed to navigate the trading challenges of the first half, taking opportunities where possible to support the strategic progress of the group. I am delighted to see positive developments in North America, where we have been under-distributed in the past and where management continues to focus. The UK performance of our top customers is encouraging, whilst challenges abound in the wider economy,’ says Dianne Thompson, Sanderson Design Group chairman.
‘Our current year performance to date is testament to the diversity of our model, and we continue to anticipate meeting board expectations for the full year. Given the uncertainties in the current macroeconomic and consumer environment, we look forward with caution and continue to actively manage the headwinds. We have a high-quality brand portfolio, growing US presence and strong cash balances to support ongoing investment.’
