Sanderson stays positive after improved interims in tough market
COVENTRY-based software and IT services group Sanderson has said it remains positive for the year after delivering improved interim revenues and operating profit despite the tough trading conditions.
However, the group, which specialises in the multi-channel retail and manufacturing markets in the UK and Ireland, said it remained “very mindful” of the relatively low levels of business confidence and was adopting a cautious approach.
It said it was insulated to a degree due to its strong balance sheet and robust business model. This, coupled with a growing range of products, services and solutions and a good order book, provided the board with a good level of confidence of achieving market expectations for the current year, it added.
Results for the six months to March 31, 2013 show revenues improving to £6.37m (2012: £6.14m) and operating profit rising by over 13% to £0.91m (2012: £0.80m).
Christopher Winn, chairman, said: “Whilst general UK trading conditions remain challenging, Sanderson has continued to generate cash strongly and to invest both in its products and services as well as in its sales and marketing capacity and capability, together producing an improved performance in the first half.”
General UK trading conditions remained challenging during the period it said, and with no discernible improvement in customer and prospective customer confidence, some slippage of expected orders from the period into the second half year has occurred.
Despite the slippage, the group said it had continued to invest both in its products and services, as well as in its sales and marketing capacity and capability.
The group gained three new customers in the period (2012: nine) at an average value of £61k (2012: £76k). While taking into account the tough conditions, the group said activity levels had improved since the period end and the company had gained a further four new customers at an average initial contract value of over £200k.
“The board is very mindful of the relatively low levels of business confidence and of continuing challenging trading conditions within the UK and so continues to adopt a very cautious approach. The strong balance sheet and robust business model, coupled with a growing range of products, services and solutions and an improving order book, provide the Sanderson board and management with a good level of confidence of achieving market expectations for the current year,” added Mr Winn.
