Sanderson Design Group PLC (SDG) AI Stock Analysis

• Market Cap: £41.55M
• Dividend Yield: 3.45%
• Average Volume (3M): 136.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -4.23%
• EPS Growth: -435.86%
• Country: UK
• Employees: 550
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.02
• Shares Outstanding: 72,264,620
• 10 Day Avg. Volume: 141,814
• 30 Day Avg. Volume: 136,079
• PEG Ratio: <0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -6.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): £104.38M

• Rating: 49 Neutral
• Price Target: 63.00p ▲(43.18% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held down mainly by weak financial performance (loss-making period, declining revenue, and negative operating/free cash flow). Technicals are supportive due to strong momentum and price above key moving averages, but extreme overbought signals add risk. Valuation is mixed: a moderate dividend yield helps, while a negative P/E reflects current losses.

Positive Factors

Brand portfolio & licensing revenue

A dual revenue model of product sales plus licensing provides durable, lower-capital income streams. Licensing royalties and brand rights can drive recurring revenue, improve margin mix and enable scale without proportional manufacturing capex, supporting steadier cash flows long-term.

High equity ratio and conservative leverage

A strong equity base and conservative leverage reduce refinancing and solvency risk, giving management financial flexibility. This balance sheet strength supports investment in collections, cushions cyclical downturns, and lowers the likelihood of forced asset sales or distressed funding needs.

Design-led heritage brands with global distribution

Heritage and design-focused brands drive differentiation and pricing power in interiors. Coupled with global wholesale and licensing, this supports geographic diversification and long-term brand equity, helping sustain product repeatability and premium positioning across cycles.

Negative Factors

Declining revenue and negative profitability

A falling top line and recurring negative EBIT/net income signal weakened demand or margin compression. Persistent operating losses erode retained earnings, constrain reinvestment in product development and marketing, and can impair the firm's ability to execute strategic growth initiatives.

Weak operating and free cash flow

Negative OCF and FCF reduce internal funding for inventories, launches and licensing rollouts. Poor cash conversion increases dependence on reserves or external finance, raising execution risk for brand-led strategies and limiting capacity to absorb supply-chain cost shocks.

Decreasing cash reserves and total assets

Shrinking cash and asset base narrows strategic optionality—less buffer for marketing, collection development or supply diversification. Combined with weak cash flow and losses, declining reserves heighten the risk of underinvestment and operational strain during recovery windows.

Sanderson Design Group PLC Business Overview & Revenue Model

Company Description

Sanderson Design Group plc designs, manufactures, markets, and distributes interior furnishings, fabrics, and wallpapers worldwide. The company operates in two segments, Brands and Manufacturing. The Brands segment designs, markets, sells, distributes, and licenses Sanderson, Morris & Co., Harlequin, Zoffany, Scion, Clarke & Clarke, and Archive by Sanderson Design brands. This segment offers wallpapers and fabrics, homewares, window coverings, furniture items, bedding products, cushions, rugs, paints, tableware, scarfs, and leather goods. The Manufacturing segment manufactures wallcoverings and printed fabrics. The company operates showrooms in Chelsea Harbour, London; and Manhattan, New York. It serves designers, retailers, distributors, and architects. The company was formerly known as Walker Greenbank PLC and changed its name to Sanderson Design Group plc in November 2020. Sanderson Design Group plc was incorporated in 1899 and is headquartered in Denham, the United Kingdom.

How the Company Makes Money

Sanderson Design Group generates revenue primarily through the sale of its interior design products, including wallpapers, fabrics, and home accessories. The company operates through various brands, each targeting specific customer segments, which allows for a diversified revenue stream. Key revenue sources include direct sales to consumers through retail channels, wholesale distribution to independent retailers, and partnerships with interior designers and architects. Additionally, SDG earns revenue from licensing agreements and collaborations with other design firms and brands, further expanding its market reach. The company's emphasis on high-quality, innovative designs and its strong brand recognition contribute to its financial performance.

Sanderson Design Group PLC Financial Statement Overview

Summary

Financials are pressured: revenue fell 7.6% YoY and the latest period shows negative EBIT and net income. Cash flow is particularly weak with negative operating and free cash flow, although the balance sheet is a stabilizer with ~71% equity ratio and conservative leverage.

Income Statement

The income statement shows a concerning downturn in performance. The company reported a negative EBIT and net income for the latest period, indicating operational inefficiencies or significant expenses. Revenue decreased by 7.6% compared to the previous year, signaling potential demand issues or market competition. While historical data shows profitability, current negative margins highlight urgent areas needing improvement.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio of approximately 71%, indicating a low reliance on debt. The debt-to-equity ratio is conservative, suggesting good financial stability. However, there is a noted decrease in cash reserves and total assets over the recent period, which could limit future investment flexibility.

Cash Flow

Cash flow performance is weak, with negative operating and free cash flows in the latest period, highlighting potential cash management issues. The operating cash flow to net income ratio worsened, indicating inefficiencies in converting earnings into cash. Previous periods showed positive cash flows, suggesting recent operational challenges.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	98.16M	100.39M	108.64M	111.98M	112.20M	93.76M
Gross Profit	65.00M	68.44M	73.68M	70.30M	69.56M	49.47M
EBITDA	6.74M	-7.75M	16.11M	12.68M	17.12M	12.53M
Net Income	-15.26M	-15.24M	8.20M	8.82M	7.76M	3.83M
Balance Sheet
Total Assets	96.25M	97.20M	110.64M	107.33M	105.73M	99.68M
Cash, Cash Equivalents and Short-Term Investments	7.76M	5.81M	16.34M	15.40M	19.05M	15.55M
Total Debt	10.88M	11.23M	5.15M	5.12M	3.90M	6.29M
Total Liabilities	27.01M	28.47M	24.11M	26.01M	26.02M	32.92M
Stockholders Equity	69.24M	68.73M	86.53M	81.32M	79.71M	66.76M
Cash Flow
Free Cash Flow	4.03M	-6.14M	5.83M	856.00K	6.78M	16.85M
Operating Cash Flow	4.92M	-2.06M	9.09M	5.64M	8.91M	17.92M
Investing Cash Flow	-1.88M	-3.95M	-3.04M	-4.79M	-2.13M	-1.00M
Financing Cash Flow	-4.61M	-4.57M	-4.95M	-4.90M	-3.22M	-2.55M

Sanderson Design Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDG, the sentiment is Positive. The current price of 44 is below the 20-day moving average (MA) of 57.10, below the 50-day MA of 49.91, and below the 200-day MA of 48.12, indicating a bullish trend. The MACD of 2.68 indicates Positive momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDG.

Sanderson Design Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFX	78 Outperform	£56.82M	9.04	19.42%	0.55%	2.64%	23.89%
DFS	68 Neutral	£434.44M	17.97	10.06%	―	4.38%	―
ULTP	68 Neutral	£40.39M	7.06	12.08%	11.65%	-3.45%	-44.02%
CHH	64 Neutral	£40.14M	7.92	8.35%	7.98%	-3.45%	-35.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SDG	49 Neutral	£41.55M	-2.71	-19.58%	3.45%	-4.23%	-435.86%
PMP	48 Neutral	£13.30M	153.41	0.17%	―	-3.72%	―

Sanderson Design Group PLC Corporate Events

Sanderson Design Group Lifts Profit and Cash as US and Online Sales Gain

Sanderson Design Group PLC, the AIM listed luxury interiors group, reported that trading for the year to 31 January 2026 was in line with expectations, with group revenue broadly flat at £99.5 million and adjusted underlying profit expected to rise to at least £5 million due to ongoing cost saving measures. The company ended the year with net cash of about £9.8 million, reflecting inventory reductions, tight working capital management and restrained capital expenditure.

The group saw strong brand sales growth in North America and other overseas markets, resilient licensing income and a sharp increase in direct to consumer sales, particularly from the Morris & Co. brand, while UK trading remained subdued. Third party manufacturing revenue improved and the division is expected to be slightly above break even, while recent senior hires in digital and US leadership underscore a strategic push into e commerce and the North American market as momentum builds in these growth areas.

The most recent analyst rating on (GB:SDG) stock is a Hold with a £45.00 price target. To see the full list of analyst forecasts on Sanderson Design Group PLC stock, see the GB:SDG Stock Forecast page.

Sanderson Design Group Announces Total Voting Rights Update

Sanderson Design Group PLC announced that as of November 30, 2025, its issued share capital consists of 72,264,620 ordinary shares, each with one voting right, and none held in treasury. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules. This update reflects the company’s commitment to transparency and regulatory compliance, potentially impacting shareholder engagement and market perception.

The most recent analyst rating on (GB:SDG) stock is a Hold with a £42.00 price target. To see the full list of analyst forecasts on Sanderson Design Group PLC stock, see the GB:SDG Stock Forecast page.