Profit to be “substantially ahead of expectations” at furnishings group

Interior furnishings group Sanderson Design Group has announced continued improvement following a strong performance in its key autumn selling period.

Group revenue during the current financial year has continued on the improving trend from April 2020 as previously announced. In the 10 months to 30 November 2020, Group revenue was down approximately 14.6% compared with the same period last year whereas, in the six months to 31 July 2020, it was down 30.6%.

In the nine-week key selling period of October and November 2020, the Company’s brand product sales were up approximately 7% in reportable currency compared with the same period last year. The Company’s manufacturing operations have performed well, with both the wallpaper and fabric factories now running at a similar level to last year.

The Company believes that this demand reflects a widely reported trend in the home improvement and furnishings sector, with consumers having directed discretionary spending on their homes during the Covid-19 pandemic.

The improvement in sales during October and November 2020 was also reflected in profitability, which has also benefited from the programme of cost reduction measures implemented by management in the current and last financial years.

As a result, it is now expected that profit before tax for the year ending 31 January 2021 will be substantially ahead of management’s previous expectations.

The group added: “The Company’s balance sheet remains robust, with improved cash levels and a stronger liquidity position, as compared with 31 July 2020. This further improvement in the Company’s financial position prepares the business for a very uncertain trading outlook in the remainder of the current financial year and in the next financial year.”