Sanderson Design Group
Website:
Sanderson Design Group
Index:
AIM
EPIC: SDG
Supersector:
Personal and Household Goods
Sector:
Household Goods and Home Construction
Subsector:
Furnishings
Market Cap:
£56.01M
Payout Frequency: Semi-Annual
Sanderson Design Group Dividend Analysis and Summary
Key Dividend Details
- Final dividend: 1.00p per share (FY2025: 1.00p)
- Total DPS for FY2026: 1.50p (unchanged year-on-year)
- Ex-dividend date: 09/07/2026
- Record date: 10/07/2026
- Payment date: 07/08/2026 (subject to AGM approval)
- Interim dividend paid: 0.50p on 28/11/2025
- Earnings cover: c.3.6x on adjusted EPS (5.39p), and c.2.0x on statutory EPS (2.98p)
- Cash cover: very strong; FY2026 operating cash flow £8.4m vs dividends paid £1.08m (~7.8x)
- Balance sheet support: net cash £9.8m; undrawn RCF £10.0m (total liquidity headroom £19.8m)
Dividend Sustainability and Growth Outlook
- Maintained DPS at 1.50p reflects a cautious stance despite improved profitability (Adjusted PBT up 22% to £5.3m; adjusted EPS 5.39p).
- Cover metrics are healthy: ~3.6x on adjusted EPS and ~2.0x on statutory EPS; cash generation comfortably funds the payout.
- Balance sheet and liquidity (net cash, undrawn facilities) underpin sustainability; capex remained low at £0.7m.
- Operational footing improved: factories returned to profitability (ex-exceptionals); annualised cost savings of £2.5m bolster margin resilience.
- Growth drivers medium term: North America momentum (most profitable territory), strong underlying licensing (+36%), and DTC roll-out should support earnings and future dividend capacity.
- Trajectory: flat DPS for now; scope for future growth exists if US momentum and licensing cash inflows persist and UK stabilises.
Capital Allocation and Structural Factors Affecting Future Dividends
- Policy signal: Board to maintain the dividend and fund EBT share purchases (1.51m shares bought post year-end for c.£0.86m) rather than raise DPS, citing book value > market price.
- Pension de-risking/cash flow: Walker Greenbank Plan ceased deficit contributions from April 2025; Abaris scheme buy-in executed in FY2025; Group shows a £3.3m net surplus — supportive to free cash flow.
- Operating structure: manufacturing reorganisation and digital-first printing are structural cost improvements that enhance dividend capacity over time.
- No M&A, demerger or share consolidation announced; no explicit buyback for cancellation (EBT purchases mitigate dilution rather than return capital to shareholders).
Risks and Watchpoints
- Macro and UK demand: UK brand sales down 9%; management highlights geopolitical and economic volatility — potential drag on near-term growth.
- US tariff regime: previously disruptive; surcharges now embedded in US price lists from 1 Feb 2026, but policy unpredictability remains a risk.
- Licensing revenue recognition: IFRS 15 “accelerated income” (£6.1m) makes reported revenue uneven; minimum guaranteed licensing receivables increased (total >£17m), so timing of cash and renewals should be monitored.
- FX exposure: North America growth increases USD sensitivity; limited hedging in place.
- Capital allocation prioritisation: ongoing EBT purchases could constrain near-term DPS growth despite strong cover.
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Sanderson Design Group Annual Dividend Yield - 1.94%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/07/2025 |
08/08/2025 |
Final |
1.00p |
GBX |
| 23/10/2025 |
28/11/2025 |
Interim |
0.50p |
GBX |
Total (Annual Dividends Per Share):
1.50p
Dividend Yield =
Annual Dividends Per Share (1.50p)
÷ Share Price (77.5p)
= 1.94%
Sanderson Design Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/07/2026 |
07/08/2026 |
Final |
1.0000p |
GBX |
| 23/10/2025 |
28/11/2025 |
Interim |
0.50p |
GBX |
| 10/07/2025 |
08/08/2025 |
Final |
1.00p |
GBX |
| 24/10/2024 |
29/11/2024 |
Interim |
0.50p |
GBX |
| 11/07/2024 |
09/08/2024 |
Final |
2.75p |
GBX |
| 19/10/2023 |
24/11/2023 |
Interim |
0.75p |
GBX |
| 13/07/2023 |
11/08/2023 |
Final |
2.75p |
GBX |
| 27/10/2022 |
25/11/2022 |
Interim |
0.75p |
GBX |
| 14/07/2022 |
12/08/2022 |
Final |
2.75p |
GBX |
| 14/07/2022 |
12/08/2022 |
Q4 |
2.75 |
|
| 21/10/2021 |
26/11/2021 |
Interim |
0.75p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
0.500 |
2.750 |
GBX |
3.250 |
-7.140 |
| 2023 |
0.750 |
2.750 |
GBX |
3.500 |
-44.000 |
| 2022 |
0.750 |
2.750 |
|
6.250 |
733.330 |
| 2021 |
0.750 |
|
GBX |
0.750 |
|
Sanderson Design Group Dividend Calculator
Sanderson Design Group Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
14.87%
|
| Years of Growth |
–
|
| Payout Ratio |
50.37%
|
| Buyback Yield |
-4.33%
|
| Shareholder Yield |
-2.38%
|
| P/E Ratio (TTM) | 27 |
|---|
| Forward P/E | 12.15 |
|---|
| P/FCF | 6.82 |
|---|
| Earnings Yield | 3.84% |
|---|
| FCF Yield | 14.66% |
|---|
| ROE | 3.1% |
|---|
| ROCE | 3.06% |
|---|
| Profit Margin | 2.16% |
|---|
| Operating Margin | 2.69% |
|---|
| Gross Margin | 69.07% |
|---|