Midlands software company beats full year expectations
SOFTWARE and IT group Sanderson is set to announce full year results slightly ahead of expectations.
The Coventry-based group, which serves the manufacturing, wholesale distribution and logistics sectors, said full-year revenue had grown 10% to exceed £21m (2015: £19.2m) – which was better than expected.
For the year to September 30, adjusted operating profit had also increased by over 10% to £3.69m (2015: £3.30m).
Sales order intake grew to over £12m (2015: £10.03m) and has included over £3.8m of business gained from new customers, nearly double the £2.0m gained from new customers during the previous financial year.
Reflecting the sales success, the group’s order book at September 30, 2016 stood at £3.0m (2015: £2.35m). Pre-contracted recurring revenues increased to £10.76m (2015: £9.85m) representing over 50% of total revenue.
The group’s net cash balance at year-end was £4.30m (2015: £4.61m) reflecting the group’s continuing strong cash generation. This balance also included deferred payments of £1.6m in respect of 2013 and 2014 acquisitions, as well as, total dividend payments in the year of £1.2m.
Digital Retail, which operates in rapidly developing markets continued to make progress, despite a slower first half. Digital Retail revenue finished the year strongly with revenues growing by approximately 8.5% to £6.40m (2015: £5.86m).
Looking ahead, sales prospects are said to remain good.
The Enterprise Division benefited from increased investment in its sales and marketing capability over the last two years and made further progress in the current financial year.
The Manufacturing business, very much driven by the food and drink processing sector, has gained over a £1.0m of orders from new customers.
“Sanderson has a strong order book and together with a healthy balance sheet, strong reputation and track record in its markets, the board is confident at this early stage of a new financial year that the group should continue to make further progress during the year ending September 30, 2017,” it said in a full year update.
