Sanderson Design Group Plc · LSE:SDG
Sanderson Design — H1 FY26 Earnings Presentation
45 slides from Sanderson Design's earnings presentation, 2025
Slide 1: Interim Results Presentation FY26
AGENDA I N T E R I M R E S U LT S P R E S E N TAT I O N FY26 C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N | S C I O N | Z O F F A N Y | A N S T E Y W A L L P A P E R C O M P A N Y | S T A N D F A S T & B A R R A C K S
Slide 2: Agenda
AG E N DA HIGHLIGHTS FINANCIALS S T R AT E G Y OUTLOOK C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N | S C I O N | Z O F F A N Y | A N S T E Y W A L L P A P E R C O M P A N Y | S T A N D F A S T & B A R R A C K S PAGE 2
Slide 3: At a Glance
AT A G L A N C E We are Sanderson Design Group PLC, an international luxury interior furnishings company Journey to Sustainability that designs, manufactures, and markets wallpapers and fabrics together with strong licensing partnerships that produce a wide range of ancillary interior products. Desi
Slide 4: Highlights
HIGHLIGHTS • Group revenue of £48.3m (H1 FY25: £50.5m), adjusted underlying PBT at £2.2m (H1 FY25: £2.2m) • Licensing performed strongly, revenue up 6% to £4.4m (H1 FY25: £4.1m) and underlying revenue growth of 22% • Highgrove by Sanderson, launched May 2025, has been very well received internationa
Slide 5: Financials
FINANCIALS
Slide 6: Key Financial Indicators
K E Y F I N A N C I A L I N D I C ATO RS REVENUE REPORTED PBT ADJUSTED ADJUSTED ADJUSTED £M EBITDA £M UNDERLYING UNDERLYING EPS £M PBT £M PBT % H1 48.3 4.1 1.5 2.2 5% 2.22p FY26 H1 50.5 3.8 1.5 2.2 4% 2.21p FY25 C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N |
Slide 7: Key Financial Indicators (continued)
K E Y F I N A N C I A L I N D I C ATO RS ( CO N T I N U E D ) CAPITAL INVENTORY FREE CASH NET CASH EXPENDITURE £M FLOW POSITION £M £M £M H1 (0.3) 24.7 2.2 7.8 FY26 H1 9.6 (2.6) 27.2 (4.5) FY25 C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N | S C I O N | Z O F F
Slide 8: Group Revenue by Segment
G RO U P R E V E N U E BY S EG M E N T H1 FY26 H1 FY25 % CHANGE • Brand product £M £M v H1 FY25 Brand product 34.7 37.2 (7%) • Growth in North America Licensing 4.4 4.1 6% • Weakness in UK, Northern Europe and Manufacturing – external 9.2 9.2 (1%) Rest of World continued • Licensing Strong underlyin
Slide 9: Brand Product Revenue by Geography
B R A N D P RO D U C T R E V E N U E BY G EO G R A P H Y H1 FY26 H1 FY25 % CHANGE v H1 FY25 • North America £M £M REPORTED CER • Re-energized Harlequin UK 15.1 16.7 (9%) (9%) • Heritage brands strong North America 11.2 11.1 1% 4% Northern Europe 4.3 4.8 (10%) (9%) • Contract sector recovery Rest of
Slide 10: Brand Product Revenue by Brand
B R A N D P RO D U C T R E V E N U E BY B R A N D H1 FY26 H1 FY25 % CHANGE v H1 FY25 • Clarke & Clarke Weakness in the UK, 4% growth £M £M REPORTED CER in the North America Clarke & Clarke 9.4 10.6 (11%) (10%) • Morris & Co. North America up 6%; September Morris & Co. 8.8 9.2 (4%) (3%) launch of Hun
Slide 11: Manufacturing Revenue
M A N U FAC T U R I N G R E V E N U E H1 FY26 H1 FY25 % CHANGE • Revenue - external £M £M v H1 FY25 • Order books building Anstey 6.7 8.0 (17%) Standfast 7.8 9.2 (16%) • Higher mix of more profitable repeat business Total Manufacturing 14.5 17.3 (16%) Revenue – external 9.2 9.2 (1%) • Revenue - inte
Slide 12: Licensing Revenue
LICENSING REVENUE UNDERLYING PRIOR YEARS CURRENT YEAR PERFORMANCE ACCELERATED ACCELERATED IFRS £M £M INCOME £M INCOME £M Category Specialist 2.0 (1.0) 2.4 3.4 Retail Groups 1.9 (0.9) - 1.0 H1 FY26 3.9 (1.9) 2.4 4.4 Category Specialist 1.8 (1.0) 2.4 3.2 Retail Groups 1.4 (0.8) 0.3 0.9 H1 FY25 3.2 (1.
Slide 13: Licensing Underlying Performance
L I C E N S I N G U N D E R LY I N G P E R FO R M A N C E H1 FY26 H1 FY25 % CHANGE £M £M V H1 FY25 UK 1.8 1.4 29% • UK North America 1.3 0.9 44% • Clarke & Clarke agreement with Next Asia 0.6 0.7 (14%) products launched (and royalty payment Northern Europe 0.2 0.2 - commenced) May 2024 Underlying 3.
Slide 14: Gross Profit
G RO S S P RO F I T H1 FY26 H1 FY25 % CHANGE £M £M v H1 FY25 Brands 34.7 37.2 (7%) • Brands Manufacturing 14.5 17.2 (16%) • Market/channel mix Licensing 4.4 4.1 6% Unallocated (5.3) (8.0) (34%) • Increase in the cost of stock provision due to timing of liquidation activity Total Revenue 48.3 50.5 (4
Slide 15: Group Income Statement
G RO U P I N CO M E STAT E M E N T H1 FY26 H1 FY25 % CHANGE • Net distribution & selling expenses £M £M v H1 FY25 • Change from book scheme to new loyalty Revenue 48.3 50.5 (4%) model, delivering a net saving of £0.7m Cost of Sales (15.3) (15.7) 3% Gross Profit 33.0 34.8 (5%) • £0.5m saving from ren
Slide 16: Group Cash Flow
G RO U P C A S H F LOW • Net funds £7.8m and £10.0m undrawn committed RCF • Licensing Impact of IFRS15 on accelerated income • Pension Prior year impacted by one off contribution of £2.3m to buy in smaller Abaris scheme • Capital expenditure No major projects planned for FY26 • Inventory £2.5m reduc
Slide 17: Strategy
2) ie STRATEGY —
Slide 18: Strategic Progress
ST R AT EG I C P RO G R ES S Accelerated transformation in Manufacturing and Omnichannel and protecting Cash North America • Growth with momentum strengthening into second half • Key team talent recruited and in place • Tariff communications +6% surcharge • Highgrove by Sanderson well received • Mor
Slide 19: Strategic Vision
ST R AT EG I C V I S I O N I N T E R N AT I O N A L L EA D E RS I N I N T E R I O R D ES I G N Our focus is on Interior Design studios, Wallpaper and the US market, underpinned by Digital Innovation, Creative Talent & Cultural Transformation for a seamless, enhanced customer experience. • Interior D
Slide 20: 5-Year Key Strategic Framework
5 - Y EA R K E Y ST R AT EG I C F R A M E WO R K LIVE BEAUTIFUL CUSTOMERS BRANDS PRODUCTS GEOGRAPHIES INTERIOR DESIGNERS SANDERSON WALLPAPER FOCUS ACCELERATE & & & GROWTH OMNICHANNEL M O R R I S & CO. LICENSING IN THE USA PLATFORM Digital Innovation PEOPLE Cultural Transformation PLANET S t r i v i
Slide 21: Brands
BRANDS
Slide 22: Brand Positioning Pyramid
BRAND POSITIONING PYRAMID LUXURY Laser focused on high-end interior design partnerships H E R I TA G E Continue to build the legacy. Strong collaborations, DTC and licensing opportunities CONTEMPORARY DTC and key retail partnership potential C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I
Slide 23: The Heritage Brands Strategy
T H E H E R I TA G E B R A N D S S T R AT E G Y GROWTH FOCUS: USA FIRST APPROACH INSPIRE & DELIGHT INTERIOR DESIGNERS DRIVE OMNICHANNEL FOR INSIGHTS BUILD BRAND AWARENESS IN USA LEVERAGE ICONS & ARCHIVE LEAD MARKET IN WALLPAPERS BUILD LIFESTYLE OFFER THRU LICENSING CULTURALLY RELEVANT CAMPAIGNS VIRA
Slide 24: Morris & Co. x The Huntington
MORRIS & CO. X THE HUNTINGTON C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N | S C I O N | Z O F F A N Y | A N S T E Y W A L L P A P E R C O M P A N Y | S T A N D F A S T & B A R R A C K S PAGE 24
Slide 25: Morris & Co. x The Huntington
MORRIS & CO. X THE HUNTINGTON C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N | S C I O N | Z O F F A N Y | A N S T E Y W A L L P A P E R C O M P A N Y | S T A N D F A S T & B A R R A C K S PAGE 25
Slide 26: Highgrove by Sanderson
HIGHGROVE BY SANDERSON C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N | S C I O N | Z O F F A N Y | A N S T E Y W A L L P A P E R C O M P A N Y | S T A N D F A S T & B A R R A C K S PAGE 26
Slide 27: The Contemporary Brands Strategy
T H E C O N T E M P O R A R Y B R A N D S S T R AT E G Y GROWTH FOCUS: GROWTH FOCUS: USA FIRST USA FIRST APPROACH APPROACH W E AV E S WAL L PAP E R & STRENGTH W E AV E S G R O W WAL L PAP E R DRIVE OMNICHANNEL K R AV E T P R O R I T Y HIGHLIGHT GROW VOLUME UK BESTELLERS BUILD CONTRACT SING PRODUCT B
Slide 28: Digital
DIGITAL
Slide 29: Digital Transformation to Omnichannel
D I G I TA L T R A N S F O R M AT I O N T O O M N I C H A N N E L • Unlock Direct to Consumer channel, high margin revenue • Overhaul customer experience, winning new trade advocates • Build powerful Brand Hubs and storytelling portals • Future-proof the business in changing market landscape • Build
Slide 30: Omnichannel Touch Points
O M N I C H A N N E L TO U C H P O I N T S TRADE HUB SHOWROOMS EVENTS SHOP IN SHOP DTC All Trade Interior Designer + Interior Designers End Consumers End Consumers Contracts C L A R K E & C L A R K E | H A R L E Q U I N | M O R R I S & C O | S A N D E R S O N | S C I O N | Z O F F A N Y | A N S T E
Slide 31: Omnichannel Roadmap
O M N I C H A N N E L ROA D M A P FY26 FY27 FY28 AND BEYOND INCUBATION ACCELERATION EXCELLENCE ● Adobe Commerce Platform ● DTC Optimisation Program ● Sector leading Marketplace ● New Trade Hub Live ● 6 DTC Single Brand Websites Live ● Design archive platformed adding Zoffany, Clarke & Clarke ● Speci
Slide 32: Commercial
COMMERCIAL
Slide 33: Interior Designers First
INTERIOR DESIGNERS FIRST B U I L D R E L AT I O N S H I P S W I T H I N T E R I O R D E S I G N E R S L eve ra g e t h e p owe r o f t h e i r p l a t fo r m a n d exc l u s i v i t y o f t h e Voys ey H o u s e C o l l e c t i ve Corey Damen Jenkins Isabel Ladd Michael S Smith Ben Pentreath C R E A
Slide 34: America First Roadmap
A M E R I C A F I RST ROA D M A P 2025/6 2026/7 2028/9 2029/30 Foundation & Expansion & Rep Key Account Growth Curated Product National Penetration & Dominant Player & Infrastructure Development Offering Market Leadership Known Source Key roles in place for next Expand network coverage in Monitor To
Slide 35: UK Roadmap
U K ROA D M A P 2025/6 2026/7 2028/9 2029/30 Laying the Foundations Activating Omnichannel & Driving Interior Design & Reinforce Market Leadership Trusted Partner in British Trade Tools Contract Influence through Visibility Luxury Interiors Trade Hub rebuilt as digital Digital insights enable Engage
Slide 36: International Roadmap
I N T E R N AT I O N A L ROA D M A P 2025/6 2026/7 2028/9 2029/30 Foundation for Global Partnership Expansion & Channel Diversification & Elevated Presence Through Established Global Luxury Growth Market Entry Cultural Localisation Brand-Led Storytelling Partner Establish priority markets: Build con
Slide 37: Licensing: Key Pillars
LICENSING: KEY PILLARS MORRIS & CO TERRITORY ENGAGING SANDERSON NURTURING FOCUS R E TA I L E R S BRANDS LEAD PA R T N E R S H I P S • Reach new audiences, US • Continue to build US, Japan • Secure partnerships with first, thanks to collaborations • Maintain 90% renewals, and EU partnerships market-l
Slide 38: Manufacturing
MANUFACTURING
Slide 39: Manufacturing
M A N U FAC T U R I N G SDG manufacturing role is to create business advantage through a vertically-integrated supply chain • CONTINUE design-led approach, uniquely vertical interiors group, innovating and leading in print and wallpapers • START planning projects, lean inventory, procuring smarter,
Slide 40: Live Beautiful
L I V E B EAU T I F U L • A transversal group ambition with non-hierarchical team engagement, delivering from the ground up • An end-to-end approach of the product lifecycle, continually challenging ourselves to minimise the impact our supply chain has on the planet, working on scope 3 • Carbon neut
Slide 41: Outlook
OUTLOOK
Slide 42: Outlook on Track to Meet Full Year Expectations
O U T LO O K O N T R AC K TO M E E T F U L L Y EA R E X P EC TAT I O N S • Markets remain challenged and uncertain • Sales momentum • June and July improving trend, although below prior year • August and September up 5% year on year • Strategic progress • Cost savings’ benefits will continue in H2 a
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Slide 44: Pre-IFRS 16 Income Statement
P R E - I F RS 1 6 I N CO M E STAT E M E N T Excluding IFRS 16 IFRS 16 Reported £000 £000 £000 Gross profit 33,004 33,004 Distribution and selling expenses (11,930) (11,930) Administration expenses (20,050) 1,382 (18,668) Other operating income 1,669 1,669 EBITDA 2,693 1,382 4,075 Depreciation and a
Slide 45: Adjusted PBT by Segment
A DJ U ST E D P BT BY S EG M E N T (Loss)/profit from operations Adjusted (loss) / profit before before intercompany Net finance (expense)/income Non-underlying items tax management charge £000 £000 £000 £000 Brands (545) (329) 400 (474) Licensing 4,388 598 - 4,986 Manufacturing (524) - 32 (492) Una
Sanderson Design Group — H1 FY26 Earnings Presentation on 6ix