Shares in Sanderson Design Group PLC (AIM:SDG) rose 10% on Wednesday after the luxury interiors company reported steady profits and said it remained on track to meet full-year expectations despite weaker consumer markets in parts of Europe.
For the six months to 31 July, revenue slipped 4% to £48.3 million as softer demand in the UK and Northern Europe offset stronger sales in North America and from licensing.
Adjusted profit before tax held steady at £2.2 million, supported by cost-cutting measures announced earlier in the year.
Licensing performed particularly well, with revenue up 6% to £4.4 million, while factory restructuring helped stabilise manufacturing operations.
The group ended the period with £7.8 million in net cash, up from £5.8 million in January, following planned inventory reductions.
Sanderson said brand sales had risen 5% in the first nine weeks of the current half-year, giving management confidence it would meet annual forecasts.
Chairman Dianne Thompson said the company was “benefiting from actions to manage costs and with more momentum in the business than at this time last year.” However, she warned that global consumer markets remained unpredictable.
An interim dividend of 0.5p per share will be paid on 28 November.
The shares rose 4.53p to 52.03p.