Sanderson Design Group, a luxury interior design and furnishings group, has reported a higher pretax profit for the first half of fiscal 2024. This growth is attributed to strong licensing performance and success in the North American market, despite lower revenue caused by challenges in the U.K. market.
Profit Increase
For the six months ended July 31, Sanderson Design Group achieved a pretax profit of £6.2 million ($7.6 million), compared to £5.5 million during the same period in the previous year. The company attributes this increase to its successful licensing initiatives, continued growth in North America, and effective cost control measures.
Revenue Decline
While the company’s profit showed improvement, its revenue experienced a decline from £57.9 million to £56.7 million. This decrease was primarily due to lower market performance in the U.K., which represents half of the company’s brand product sales.
Licensing Success
Despite the challenges faced in the U.K. market, Sanderson Design Group achieved significant growth in its licensing revenue, which increased by 82% to reach £6.9 million. This growth is attributed to the acceleration of income from record licensing agreements signed during the first half of the fiscal year, amounting to £5.0 million.
Focus on U.S. Growth
Chair Dianne Thompson highlighted the outstanding performance of the company’s licensing activities in the first half and their continued contribution to profit growth. Sanderson Design Group is now focused on capitalizing on growth opportunities in the U.S. market while mitigating any weaknesses in the U.K. market through cost-saving measures.