Sanderson Design Group PLC (AIM:SDG), the luxury interior design and furnishings group, saw its shares surge almost 12% higher in early trade on Wednesday after it signed its first “major” licensing agreement for its Clarke & Clarke brand with Next PLC (LSE:NXT).
In a statement, Sanderson Design said Next will hold a master agreement giving it exclusive rights to produce a very broad range of Clarke & Clarke homeware products, including bedding, towelling, tableware, furniture and lighting.
The products will be launched in spring/summer 2024 following a year of product development by Next. A five-year licence period will commence from the launch date.
The Clarke & Clarke licensed products will be available in Next stores and online at next.co.uk, and will also be wholesaled to third parties.
In connection with the deal, accelerated licensing income of £2.6mln will be recognised in Sanderson Design’s results in the current financial year.
Lisa Montague, Sanderson Design’s chief executive officer, described the Next deal as a “significant strategic development” for Clarke & Clarke, which is the company's largest brand by revenue.
Next already has a licence for Sanderson Design’s Morris & Co womenswear brand, which was signed in May 2021. That licence has since been extended and will see the launch of a new range of Next Morris & Co womenswear for autumn/winter this year.
Sanderson shares jumped 11.81% to 132.50p in early trading.