09/06/2022 - Sanderson Design Group plc: ANNUAL REPORT

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Sanderson Design Group

Annual Report & Accounts 2022

live beautiful

WE ARE A

LUXURY

INTERIOR FURNISHINGS GROUP UNITED IN

A SINGLE

PURPOSE

"To Bring the Beautiful into People's Homes and Lives."

01

CONTENTS

Strategic Report

2/Highlights

4/Chairman's Statement

6/Chief Executive Officer's Strategy

and Operating Review

13/Live Beautiful

17/Greenhouse Gas Emission and Energy Consumption Reporting

18/Quintessentially British

38/Chief Financial Officer's Review

43/Key Performance Indicators

44/Principal Risks

47/Section 172 Statement

Governance

50/Board of Directors

52/Group Leadership Team

53/Corporate Governance

56/Report of the Directors

58/Statement of Directors' Responsibilities

59/Nomination Committee Report

60/Directors' Remuneration Report

64/Audit Committee Report

Financial Statements

66/Independent Auditors' Report to the Members of Sanderson Design Group PLC

71/Consolidated Income Statement

72/Consolidated Statement of

Comprehensive Income

73/Consolidated Balance Sheet

74/Consolidated Cash Flow Statement

75/Consolidated Statement of

Changes in Equity

76/Notes to the Consolidated

Financial Statements

107/Company Balance Sheet

108/Company Statement of

Changes in Equity

109/Notes to the Company

Financial Statements

119/Glossary

121/Five-Year Record

122/Shareholder Information

KEY READS

4/Chairman's Statement

6/Chief Executive Officer's Strategic

and Operating Review

13/Live Beautiful

Report Strategic

2022 Accounts & Report Annual  Group Design Sanderson

18/Quintessentially British

02

FINANCIAL HIGHLIGHTS

Revenue up 19.6% at £112.2m (FY2021: £93.8m; FY2020: £111.5m), reflecting the

receding impact of Covid-19 and the Group's strategy for growth.

-

Third party manufacturing sales up 30.9% from FY2021 and up 8.0% against FY2020,

with total sales (including sales to Group brands) up 46.8% from FY2021 and up

17.5% against FY2020 contributing substantially to Group profitability.

-

Brand product sales up 17.8% compared with FY2021 and up 0.8% compared with

FY2020 in constant currency:

  • Morris & Co. brand performing very well in all regions, up 32.4% on FY2021 and up 45.1% on FY2020 in constant currency.
    • North America has continued to deliver a very strong performance with all brands.
  • Licensing income delivered £5.2m (FY2021: £3.7m; FY2020: £5.5m) including accelerated licensing income of £1.4m (FY2021: £0.9m; FY2020: £2.3m) with strong and exciting collaborations with NEXT, Bedeck and Blinds2Go in the UK, Sangetsu,

  • Nishikawa and Kawashima in Japan and Williams Sonoma in the US.

-

Adjusted underlying profit before tax of £12.5m (FY2021: £7.0m; FY2020: £7.5m) reflecting stronger sales and the full-year impact of the operational measures introduced to reduce and control discretionary and fixed costs.

Reported profit before tax of £10.4m is up 112.2% on the year ended

31 January 2021 (FY2021: £4.9m; FY2020: £4.5m).

-

Liquidity and headroom of £31.6m (FY2021: £27.9m; FY2020: £13.8m)

with net cash of £19.1m (FY2021: £15.1m; FY2020: £1.3m).

-

Proposed final dividend of 2.75p per share (FY2021: nil; FY2020: nil) to give a total

dividend of 3.50p (FY2021: nil; FY2020: 0.52p).

OPERATIONAL HIGHLIGHTS

Morris & Co. sales driven in part by its 160th anniversary year in 2021 with a compilation of best-sellers performing significantly ahead of management expectations and the Simply Morris collection showing encouraging sales since its September 2021 launch.

-

Sanderson One Sixty compilation collection of re-worked classic designs, has exceeded

management expectations with the positive impact of the Very Sanderson media campaign, featuring British sports personality Maro Itoje, launched in April 2021.

-

Harlequin's Own The Room TV campaign launched in September 2021 renewed the

momentum in the brand.

-

Direct-to-consumer digital incubator projects advanced with the launch of

our direct-to-consumer website franchise collaboration, Scion Living | Uplifting Design For Your Home, and the online launch of Archive by Sanderson Design, a consumer brand targeting a new customer demographic for the Group.

-

Planet Mark certification for Year 4 of carbon reduction, reflecting our

Live Beautiful sustainability pledge.

HIGHLIGHTS

Sanderson Design Group PLC (AIM: SDG),

the luxury interior furnishings group, is pleased to announce its financial results for the 12-month period ended 31 January 2022.

£112.2m

£12.5m

Group revenue

Group adjusted underlying profit before tax*

2021: £93.8m (+19.6%)

2021: £7.0m (+78.6%)**

2020: £111.5m (+0.6%)

2020: £7.5m (+66.7%)**

11.1%

13.75p

Group adjusted underlying

Adjusted

profit before tax (%)

underlying EPS

2021: 7.5% (+3.6 bps)**

2021: 7.89p (+74.3%)**

2020: 6.7% (+4.4bps)**

2020: 9.35p (+47.1%)**

03

Report Strategic

Report Annual  Group Design Sanderson

£19.1m

Net cash***

2021: £15.1m (+26.5%)

2020: £1.3m (>1,000%)

9.2%

Group profit before tax (%)**

2021: 5.2% (+4.0 bps)**

2020: 4.0% (+5.2 bps)**

£10.4m

Group profit before tax 2021: £4.9m (+112.2%)**

2020: £4.5m (+131.1%)**

10.93p

Basic EPS

2021: 5.39p (+102.8%)**

2020: 5.41p (+102.0%)**

2022 Accounts &

  • Excluding share-based incentives, defined benefit pension charge and non-underlying items see reconciliation on note 11.
    • Refer to note 30 to the financial statement for details on the prior year restatements for FY2021 and FY2020.
      • Net cash is defined as cash and cash equivalents less borrowings. For the purpose of this definition borrowings does not include lease liabilities.

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Disclaimer

Sanderson Design Group plc published this content on 10 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 June 2022 19:24:14 UTC.

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