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(Alliance News) - Sanderson Design Group PLC saw its share price jump after it said on Tuesday that annual revenue would be slightly ahead of estimates, and profitability would be significantly ahead.
The Uxbridge, England-based luxury interior design and furnishings company said revenues for the year ending January 31, 2022 would be GBP112.0 million. This is a 19% increase from financial 2021's GBP93.8 million.
Sanderson Design said its profitability has been boosted by the operational gearing effect of manufacturing sales and increased license income at a higher margin. It expects adjusted pretax profit of at least GBP12.0 million for the year, a near 70% increase from a figure of GBP7.1 million in financial 2021.
Sanderson's share price rose by 17% to 180.00 pence each in London on Tuesday morning.
Sales were as expected, with strong growth of 40% on a constant currency basis in North America, making up around 19% of total product sales. Third party sales are up around 33% year-on-year, following increased domestic demand for UK production following Brexit and Covid-related supply chain disruption. Manufacturing operations have had "very strong" order books.
Licensing agreements in the second half of financial 2022 delivered strong returns, notably with Next PLC for Morris & Co. products.
Cash at the end of January is expected to be higher than July's amount of GBP15.4 million.
Full results will be announced in April.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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