Strong first half for acquisitive IT group
Sheffield-based Sanderson, the software and IT services business, has hailed a strong first half with revenue and profits rising as it continues to eye up potential acquisition opportunities to support its growth plans.
For the six months to the end of March, the company saw revenue increase by 34% to £14.6m, up from £10.9m in the prior year period while operating profit rose by 34% to £2.08m. Pre-tax profit was £1.4m, up from £1m.
The group, which acquired Anisa Group for £12m last November, said selective acquisition opportunities are under continued consideration to supplement organic growth.
Chairman Christopher Winn, said: “Sanderson continues to generate cash in line with operating profit and is committed to maintaining a strong balance sheet. The board remains focused on continuing to deliver both organic and acquisitive growth, achieving ‘on target’ results, increased earnings, good cash generation and a robust balance sheet, thereby further increasing shareholder value and growing dividend returns.”
On current trading and outlook, group chief executive, Ian Newcombe, added: “We continue to be measured in our business approach, sensitive to the general economic environment and we monitor customer confidence and market conditions carefully.
“Whilst the group has not detected any major loss of confidence amongst its customers and that the value of prospects is increasing, sales cycles can still be protracted, especially where major projects are under consideration. Notwithstanding any potential uncertainty surrounding the ongoing Brexit negotiations, Sanderson, now strengthened by the November acquisition, has a large order book, robust recurring revenue and a healthy balance sheet.
“Combined with the group’s proven reputation, well-established track record and continuing sales momentum, the board has a good level of confidence that Sanderson will make significant further progress during the current financial year ending 30 September 2018.”
