Sanderson Design Group Plc · LSE:SDG
Sanderson Design — FY2021 Earnings Presentation
26 slides from Sanderson Design's earnings presentation, Jan 31, 2021
Slide 1: Year End Results 31 January 2021
YEAR END RESULTS 31 JANUARY 2021
Slide 2: Agenda
A G E N D A INTRODUCTION 3 FINANCIAL HIGHLIGHTS 4 STRATEGY UPDATE 13 CURRENT TRADING & OUTLOOK 25
Slide 3: Introduction
I N T R O D U C T I O N • FY21 defined by Covid-19 • Summary results stronger than anticipated with £93.8m revenues down 15.9%, £7.1m adjusted PBT (inc. £2.7m JRS) down 4.0%, EBITDA £12.6m up 4.0% • FY21 story of two halves, recovering strongly August to December 2020 • Strong progress against strat
Slide 4: Key Financial Indicators
Financial Targets K E Y F I N A N C I A L I N D I C A T O R S REVENUE REVENUE CHANGE ADJUSTED ADJUSTED ADJUSTED PBT PBT % EPS FY21 £93.8m (15.9%) £7.1m 7.5% 8.00p FY20 £111.5m (1.6%) £7.4m 6.6% 9.26p 4
Slide 5: Key Financial Indicators (Cont.)
Financial Targets K E Y F I N A N C I A L I N D I C A T O R S ( C o n t . ) NET FUNDS NET CASH FLOW INVENTORY CAPEX REPORTED EBITDA FY21 £15.1m £14.4m £20.8m £1.0m £12.6m FY20 £1.3m £0.9m £28.5m £2.4m £12.1m 5
Slide 6: Final Results: 12 Months Ended January 2021
F I N A L R E S U L T S 1 2 M O N T H S E N D E D 3 1 J A N U A R Y 2 0 2 1 FY21 FY20 HIGHLIGHTS Income Statement Change £’m £’m Revenue 93.8 111.5 (15.9%) Results reflect the impact of Covid-19 on the Group, including the temporary Underlying profit before tax 6.2 6.4 (2.5%) closure of manufacturin
Slide 7: Financial Results H1 vs H2
Contents F I N A N C I A L R E S U L T S H 1 V S H 2 Revenue £'m FY21 FY20 14.0 12.0 H1 H2 H1 H2 10.0 Revenue 38.8 55.0 55.9 55.6 8.0 Adjusted underlying PBT 0.4 6.7 4.9 2.5 6.0 4.0 2.0 • Adjusted underlying PBT of £7.1m (FY20: £7.4m) includes £2.7m of UK JRS monies - • H1 Adjusted underlying PBT of
Slide 8: Revenue Segmental Analysis
R E V E N U E S E G M E N T A L A N A L Y S I S FY21 FY20 Revenue £'m £'m Change • UK affected by the first half lockdown; sales down 15.3% Total Brands (inc. licensing) 76.3 90.2 (15.4%) Manufacturing 28.4 35.5 (20.2%) • North America sales down 13.3%. Improving performance from Kravet 104.7 125.7
Slide 9: Group Income Statement
Summary Income Statement G R O U P I N C O M E S T A T E M E N T Group Income Statement FY21 FY20 Change • Gross margin 60.8% (FY20 61.1%) held up, despite the disruptive effects of £'m £'m Manufacturing 28.4 35.5 (20.2%) Covid-19, Brexit and the enforced manufacturing operation closure for three Br
Slide 10: Group Cash Flow
Contents G R O U P C A S H F L O W FY21 FY20 • Increased liquidity and headroom of £30.5m at 31 January 2021 (2020: £13.8m) Cash flow £'m £'m • Net cash position of £15.5m (2020: £1.3m) Reported PBT 5.0 4.4 Interest, Depreciation and Amortisation 7.6 7.7 • Net cash position, including lease obligati
Slide 11: Net Funds
FY21 Net funds £1.3m EBITDA £12.6m Working capital £6.9m Net capex (£1.0m) Capital lease payment N E T (£3.0m) Pension (£2.1m) F U N D S Tax £0.0m Summary Income Statement Other £0.6m Interest (£0.3m) FY22 Net funds £15.1m 11
Slide 12: Group Balance Sheet
Contents G R O U P B A L A N C E S H E E T FY21 FY20 Balance Sheet • Net assets of the Group increased to £67.5m from £64.8m £'m £'m Intangible assets 28.3 29.8 • The Group has banking facilities provided by Barclays Bank PLC Property, plant & equipment 12.1 14.1 Right-of-use assets 5.8 8.4 • In Oct
Slide 13: Strategy Update
S T R A T E G Y U P D A T E “DESPITE THE EXTERNAL HEADWINDS, THE BUSINESS HAS SHOWN RESILIENCE”
Slide 14: Strategic Outlook
S T R A T E G I C O U T L O O K • ‘2019 Strategic Framework’ - business transformation - stabilised the business, simplified our brand and company structure, increased SKU efficiency and launched eight new websites • Culture and communication - building team spirit, organisational agility, and NEW S
Slide 15: A Sustainable Growth Strategy
A S U S T A I N A B L E G R O W T H S T R A T E G Y
Slide 16: Our live beautiful Vision
O U R l i v e b e a u t i f u l V I S I O N “ To lead the interiors industry in transforming the way we design, manufacture and distribute, enriching people’s lives, helping them to live beautiful”
Slide 17: Key live beautiful Milestones
K E Y l i v e b e a u t i f u l M I L E S T O N E S Y1 Y3 Y5 • Plan produced for us to • Reduced our net carbon • Reduced our net carbon achieve Net Carbon zero emissions by 30% emission by 50% including by 2030 scope 3 • 60% on response on survey • 50% on response on for positive employee • 70% on
Slide 18: Progress Against Key Strategic Milestones
P R O G R E S S A G A I N S T K E Y S T R A T E G I C M I L E S T O N E S 15 MONTHS TO JAN’21 27 MONTHS TO JAN’22 39 MONTHS TO JAN’23 Leadership team effective Rebrand group • Group re-established as market leader in UK Brands differentiated Brand-led communications • Growth in all brands
Slide 19: Collection Management and Process Improvement
C O L L E C T I O N M A N A G E M E N T A N D P R O C E S S I M P R O V E M E N T EFFICIENCY RESPONSIVENESS I N N O VAT I O N • Control SKUs • Brexit • Promote heritage • 1,293 new vs. 2,311 • Made in Britain • Bring the archive to life • Fewer stronger collection • Digital printing • Digital collec
Slide 20: Digital Highlights
D I G I T A L H I G H L I G H T S TRADE HUB • Services wholesale customers with faster, more efficient electronic order processing, stock look-ups and tailored reports 7 CONSUMER SITES • Individual website destinations for each of our brands • Increased traffic by 15% • New inspiration sections link
Slide 21: Marketing Highlights
M A R K E T I N G H I G H L I G H T S BRANDS ELEVATED • Social Media increased by 39% across Brands (now at 50%) • Total Instagram following reached 423,000 (FY20: 282,000) • Morris & Co. Instagram followers now exceed 120,000 • Morris & Co. revenues grew by 9% despite of the pandemic • Maro Itoje t
Slide 22: Licensing Highlights
L I C E N S I N G H I G H L I G H T S MOMENTUM CONTINUES • Core licensing up 3.3% on the previous year driven by internet partners • Extended current partners including Bedeck, John Lewis, Next and Blinds2Go EXPANDED LICENSING WITH NEXT • Scion partnership launched August 2020 in Homeware, Nursery a
Slide 23: Customers
C U S T O M E R S UK & IRELAND • Diverse customer group, with top 20 contributing 32% of total UK Sales (12 Online and 8 Retailers) • Online Retailers in total have grown from 8% to 34% INTERNATIONAL • USA • Regional presence developed with new agent showrooms in Atlanta and Los Angeles • New intern
Slide 24: People Highlights
P E O P L E H I G H L I G H T S LIVE BEAUTIFUL • Focused on engagement • Ambition to be industry Employer of Choice • Commitment to the Real Living Wage DIVERSITY • Korn Ferry reports only female leadership duo • Design for Diversity Pledge • Equal pay and opportunities for all TALENT • Sanderson Fu
Slide 25: Current Trading & Outlook
C U R R E N T T R A D I N G & O U T L O O K • Current sales trends in February, March and April 2021 are slightly ahead of our expectations reflecting increased demand for home interiors • Morris & Co. brand continues to perform very strongly • This year, we celebrate the 160th anniversary of Sander
Slide 26: In Summary…
In Summary… • Cultural change underway • Agile organisation with a focus on talent • Steadfast on strategy with focus on efficiency • Digital progress with focus on building capability • Continued focus on elevating the brands
Sanderson Design Group — FY2021 Earnings Presentation on 6ix