Retail software firm Sanderson hails “strong progress” as revenues climb

Coventry-based Sanderson Group, which has an operations site in Sheffield, has seen revenues and pre-tax profits rise, but said it will remain “cautious in its approach”.

In its interim half year results for the six months to 31 March, the group saw revenues rise to £17.1m under the new IFRS 15 accounting standards, or an increase of 16% to £16.91m prior to bringing in the new standards.

Pre-tax profits for the group, which specialises in multi-channel retail software, reached £1.96m, up from £1.43m in the same period in 2018.

The SME software and IT business said its performance was well ahead of management expectations, and it anounced a dividend increase of 20% to 1.50p per ordinary share, up from 1.25p per share, as a result.

Sanderson said its Digital Retail business, which works with retailers such as Hugo Boss AG, Hotel Chocolat, Superdry and JD Sports, continues to perform strongly, with double-digit revenue and operating profit growth.

Earlier this month Sanderson announced that it had acquired Lancashire firm Gould Hall in a £4m deal, which the company said would be “earnings enhancing”in its first full year under Sanderson ownership.

Chairman, Christopher Winn, said: “The Group has made further strong progress during the six month period ended 31 March 2019, with trading results, stated under the new IFRS 15 accounting standard, ahead of management’s expectations with strong performances from both the Digital Retail and Enterprise Divisions.”

Group chief executive Ian Newcombe added: “The board continues to be cautious in its approach, monitoring the general economic environment carefully and being sensitive to market conditions.

“Nevertheless, following the strong trading momentum built in the first half of the year, a healthy order book, high recurring revenue and a strong, cash-backed balance sheet, combined with the Group’s proven reputation and track record, the board is confident that the Group is well positioned to make further progress in the current financial year ending 30 September 2019. “

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