Sanderson predicts increased revenues as it looks to exploit new technologies
RETAIL and manufacturing software and IT provider, Sanderson Group has said its year-end results are likely to be in line with expectations, with revenue rising.
In a trading update ahead of the announcement of its preliminary results for the year ended September 30, 2015, the Coventry-based group said revenue had grown to over £19m (2014: £16.4m) and adjusted operating profit to over £3.3m (2014: £2.8m).
Sanderson said it continued to invest in its product and service offerings, with a particular focus on its multi-channel retail business where it is looking to exploit digital and mobile technologies for the retail market.
It said the application of new and emerging digital technologies, in particular mobile and social media, was transforming the customer shopping experience. One iota, the group’s mobile commerce business focused on delivering cloud-based solutions accessed via mobile, tablet and in-store devices, achieved revenue growth of over 75% in the year.
The group said it expected this would continue to achieve significant growth in this rapidly developing digital retail market, as retailers sought to adopt technology in order to transform the shopping experience for their connected customers, as well as, to boost their revenues.
Within the manufacturing division, the part of the business which is focused on supplying customers operating in the food and drink processing market experienced slower trading conditions with some project and order delays. However, it said a large new customer order had been received since the year-end and trading prospects for the current financial year were much improved.
The group acquired Proteus Software, a provider of specialist warehouse management solutions in December 2014 and it said the acquisition had made a positive contribution in its first year as part of Sanderson.
Notwithstanding the ongoing investment in product development and complementary acquisitions which have been funded by the group’s cash generative business model, Sanderson said its balance sheet remained strong with a cash balance in excess of £4.4m at the year-end (March 31, 2015: £4.2m).
“The overall economic environment appears ‘mixed’ and sales cycles continue to be protracted,” it said.
“The deployment and use of mobile technologies is continuing to develop with market demand accelerating. In the coming year, management expects to focus further efforts on delivering growth across the group’s businesses but especially from the newly emerging digital retail market. Further complementary acquisitions will continue to be carefully considered by the board.”
It said the strong balance sheet and robust business model, meant the company was well positioned in its target markets.
“Together, these factors provide the board with a good level of confidence that, at this early stage of the new financial year, the group will make further progress and deliver trading results which are, at least, in line with market expectations,” it said.
It will publish its preliminary results on December 1, 2015.
