Sanderson Design Group Share News (SDG)

(Sharecast News) - Sanderson Design said first-half trading was ahead of expectations after sales were boosted by pent-up demand and increased interest in British-made products after Brexit.
Sanderson Design said first-half trading was ahead of expectations after sales rose strongly helped by pent-up demand and increased demand for British products.

Sales soared 39.8% to £50.9m in the first 23 weeks of the financial year from a year earlier and by 6% from the same period two years before when results were unaffected by the pandemic.

Sanderson shares rose 13.4% to 167.2p at 11:30 BST as investors responded to the trading update and positive comments on the company's dividend.

The upmarket interior design and furnishings group said the comparison with 2020 was encouraging because its business continued to be affected by Covid-19 restrictions in the UK and other markets during the first half.

UK brand product sales rose 42.5% from a year earlier to £19.1m but fell 4% from 2020, led by strong business in the US as consumer confidence increased under the Biden administration. Manufacturing sales rose 51.6% to £19.4m from a year earlier and 20.5% from the same period in 2020.

Dianne Thompson, Sanderson's chairman, said: "Our trading performance in the first 23 weeks of the current financial year is ahead of board expectations, reflecting the strength of our UK manufacturing along with continued demand for home interior products and a sustained trend towards decorative styles."

Thompson said Sanderson's balance sheet was strong with net funds of £13.9m on 16 July and that the company wanted to return to dividend payments. It will update investors on trading and the dividend with interim results in mid-October.