Sanderson chair urges shareholders to reject removal bid

Sanderson Design Group chair Dianne Thompson has urged shareholders to reject an investor’s attempt to remove her, ahead of an October 29 meeting.

Thompson’s letter, issued on Monday, defends the board’s succession plan and argues that an immediate change would disrupt the company’s recovery. The formal meeting notice confirms that LBV Actio seeks her removal as a director and the appointment of Stephen Brooke.

City AM describes the investor behind the campaign as LBV Asset Management, with a stake of about 12%. The meeting notice gives LBV Actio’s holding as approximately 11.854%. The challenge follows criticism of the company’s pace of change.

Shareholders supporting the campaign have questioned spending on new headquarters, expansion in the United States and executive remuneration. City AM reported their criticism that payments to Thompson and the chief executive amounted to 36% of group profit.

Thompson, 75, points instead to improved trading. Revenue rose 6% to £51 million and pre-tax profit increased by two-thirds to £2.5 million in the six months ending in July, according to City AM.

She says the company had already planned to begin a formal search for her successor in January 2027. The board backs her continued leadership during that process and says it has met the investor’s representatives 20 times since September 2024.

The wallpaper and interiors group holds a Royal Warrant and hosted King Charles at its new London headquarters earlier this year. Its Highgrove collection, inspired by the gardens of his Gloucestershire estate, received his approval. The board cites that collection’s performance in defending its strategy.

City AM reported shares rising 2.6% to 79 pence in early trading. The proposed board changes remain subject to the shareholder vote.