Strong interims provide Sanderson with platform for growth
MANUFACTURING and retail software specialist, Sanderson, is to develop a range of products for mobile and e-commerce platforms as it looks to continue its growth strategy.
The move was announced in the company’s interim results statement today. It said it would also be focussing on new packages for the food and drink processing sector and entry level systems in its manufacturing division.
Announcing the group’s interims, chairman Christopher Winn said: “Whilst the group will continue to invest across all of its businesses, particular emphasis will be placed on further developing the range of solutions for mobile and ecommerce businesses, for the food and drink processing sector and for entry level systems in the manufacturing division.
“Mobile solutions continue to be developed across all of the group’s target markets. To augment organic growth, selective acquisition opportunities will continue to be considered. However, in the current year, management intends to focus on delivering another set of ‘on target’ trading results.”
He said the general economic environment continued to show signs of improvement, though sales cycles remained protracted.
“The board remains cautious in its approach but a strong order book and healthy balance sheet together with a long list of sales prospects, provides the board with a good level of confidence that the group will continue to make further progress and deliver trading results in line with market expectations.”
The results for the six months of March 31, 2015, show revenue increased to £9.09m (2014: £7.94m), with pre-tax profit of £0.91m (2014: £0.78m). Pre-contracted recurring revenues of £4.76m (2014: £4.41m), representing approximately 52% of total revenue.
Multi-channel retail division revenue and operating profits increased to £5.96m (2014: £4.71m) and £1.01m (2014: £0.85m) respectively. There were also increased levels of business from new customers and a trend towards bigger orders from existing customers.
Manufacturing division revenue and operating profits were £3.14m (2014: £3.23m) and £0.36m (2014: £0.37m) respectively.
Operating profit* increased 13% to £1.37 million (2014: £1.21 million).
Basic earnings per share rose to 1.5p (2014: 1.4p) and the interim dividend was up 12.5% to 0.9p per share (2014: 0.8p).
The company has also confirmed the appointment of Ian Newcombe as group chief executive with immediate effect.
Winn said Newcombe had made “a major contribution to the formulation of the group’s strategy” and had personally driven the development of the multi-channel business.
