Sanderson Design Group (SDG.LN)

Sanderson Design Group (SDG.LN) is a publicly traded, London based portfolio of wallpaper and fabric brands. The company's core branded and manufacturing business is trading at less than 1x normalized EBITDA - very cheap relative to the mid-single digit pricing power and mid-teens earnings algorithm they have the potential to generate longer-term. Anchor Point believes recent margin declines are transitory, not structural and the management team that joined the company in 2019 has made progress structurally improving the business and enhancing its asset value (now ~80% of SDG's market cap).

In the below slide deck, we justify our conviction in the underlying bet that Sanderson's core branded and manufacturing business can return to normalized EBITDA and subsequently re-rate towards global luxury peers.