IT firm set for positive results
Software and IT services business Sanderson Group is expecting to report revenues of £21.5m and profits of £3.9m, it announced in a trading update today ahead of its results publication.
The group, which has a large Sheffield base, shared details of its preliminary accounts for the year ended 30 September. Sales order intake totalled £13.7m (2016: £12.26m). It said that its sales order book stood at an optimal level of £5.8m, up from £3m in 2016, which included a significant order from an existing customer which is scheduled to be delivered over the course of the next two financial years.
The firm has non-recurring cost items in the region of £500,000 relating to potential acquisitions during the year, the consolidation of office premises with internal reorganisation, as well as the costs incurred in changing the Group Finance Director. Cash balance was ahead of market expectations at over £6m.
Sanderson’s Digital Retail Division, which operates in very active and rapidly developing markets, continued to make good progress and comfortably achieved double digit growth.
The report said: “We previously reported that a large new retail customer had been gained towards the end of the financial year ended 30 September 2016 (‘prior year’); this was Richer Sounds and with a high level of effort and teamwork, both from the excellent Richer team, as well as from our own support team, the Sanderson solution was successfully installed and implemented during the financial year ending 30 September 2017.”
Following the receipt of an initial order worth over £200,000, a large pilot scheme is now underway with a leading global fashion brand.
The firm’s Enterprise Division delivered another solid year’s trading performance and though sales prospects are good, sales cycles do remain extended.
The Manufacturing business is very much driven by activity in the food and drink processing sector. A large order gained during the ‘prior year’ was successfully delivered during the course of the current year to DPD Logistics, one of the UK’s major delivery, logistics businesses. The Enterprise business has good sales prospects but as ever, the timing of the receipt of sales orders will be critical to business performance.
The report said: “Whilst the Group has not yet detected any major loss of confidence from either existing or from prospective customers, the Sanderson Board will continue to monitor the situation carefully.
“The Board remains keen to enhance the strength of the Group by selective complementary acquisitions. Management will continue to adopt a careful and measured approach to acquisitions with the priority being very much focused on continuing to deliver shareholder value.
“Sanderson has a good order book and together with a healthy balance sheet, strong reputation and good track record in its markets, the Group is well positioned to make further progress during the current year ending 30 September 2018.”
