Sanderson Design Group Share Price (SDG)

"Trading conditions more challenging than expected" Sleeping on the job then. No surprise to shareholders. Time to sell and leave a sinking ship with a dodgy captain .

Sanderson Design Group posted very soft Interims this morning. Revenue was £50.5m down 11% from H1 FY24: £56.7m, reflecting a challenging market in the UK, although there was some growth delivered in North America. Brand product sales were down 8% as a whole with UK performance the weakest at -14% yoy. Licensing performance was in line with Board expectations with revenue at £4.1m in reported currency against a strong comparator of H1 FY24: £6.9m. Profit performance was even worse. Adjusted underlying PBT was down -68% to £2.2m, with statutory profit even weaker and down 78% to £1.0m. Basic EPS was down 78% to 1.46p ...from WealthOracle

wealthoracle.co.uk/detailed-result-full/SDG/879

I'm not a holder as I was predicting that these results would be bad due to sales of wallpaper lagging house transactions by up to a year but this is worse than I expected. Multiple red flags:

> o Decrease in net cash includes a £2.3m one-off payment to facilitate an insurance buy-in transaction for one of the Group's pension schemes as announced on 19 June 2024 along with an inventory increase and one-off capital expenditure items

Net cash is down materially. This pension payment is insanely stupid of management btw, they did this payment AFTER interest rates & inflation rose up which caused their pensions liabs to shoot up and in turn the cost to insure against this will have risen dramatically, a good CEO/CFO would have insured against this when insurance premiums were low, before the inflation rise.

£9.5m in cash is just bad. Looks like they might need to raise debt/equity.

Managament has cash tied up in inventory so you can expect an inventory impairment soon. The dividend is stupid imo, they shouldn't be paying a dividend at all right now.

> Delivery of the Board's expectations is reliant on a projected improvement in trading during the remainder of the financial year, which includes our important pre-Christmas selling period

So this is essentially a profit warning for AIM companies now. They won't hit their expectations and the next trading update they will probably say this and the stock will drop more.

I would like to remind all shareholders here to read the past 2 annual reports and look at CEO compensation. Lisa Montague got paid bonuses EVEN though she missed the targets by a mile, just because of 'macro' issues. All this while shareholders lose money. Is that acceptable to you?

Stock should be lower than it is.

LM appears to be a marketing specialist imv.

Can LM effectively run the non marketing side ..?.

Are we looking at a H1 loss come next month ?.

Couldn’t agree with you more their options are aligned against US growth as if their major UK and European markets don’t matter -I thought Lisa Montague was very able but I’m not sure now - lots of costly initiatives that don’t seem to result in profits just good for another celebrity photoshoot -they need to start delivering for shareholders