Digital tech company Sanderson “ahead of expectations”
Coventry-based Sanderson Group, which has a major presence in Sheffield, has reported positive news in a trading update this morning.
The group, which provides digital technology, software and managed services for the retail, wholesale, logistics and manufacturing sectors, has said its performance is already ahead of management’s expectations.
It also managed to pay the last £500,000 deferred consideration payment in respect to its November 2017 acquisition of the Anisa Group – the cash consideration having been entirely satisfied by the group’s own cash resources.
The group adopted International Financial Reporting Standard 15 with effect from 1 October 2018 on a retrospective basis, so that the prior year comparatives have not been restated.
On a comparable basis (excluding the impact of IFRS 15) revenues have risen by over 15% to £16.9m and operating profit (stated before amortisation, share-based payment charges and ‘one-off’ non-recurring items) has increased by over 20% to £2.5m.
The group’s Digital Retail division has performed well, achieving double-digit revenue and operating profit growth. Its Enterprise division has also made “good progress”, with sales from the manufacturing sector growing 10% from the previous year.
Sanderson said it remained cash generative and as of 31 March 2019, net cash balance stood at £3.29m up from £1.39m in the six months to 31 March 2018 – well ahead of management expectations.
The board said in a statement that it “continues to be cautious in its approach, sensitive to both market conditions as well as to monioring the general economic environment carefully” its strong trading momentum and high recurring revenues meant it was well positioned to progress even further this year.
The group’s interim results are due to be released on 15 May 2019.
