Software company reports steady annual results
Sheffield-based Sanderson Group, the software and IT services business, has reported slight increases on revenues for its financial year ended 30 September .
Its revenue increased to £21.56m, up from £21.32m last year, while its pre-tax profits remained at £2.7m. The firm, which recently acquired Anisa for £12m, said it continued to see strong cash generation with net cash balance of £6.18m, when compared to £4.24m last year which it said this was “well ahead of market expectations.”
Sanderson has a proposed increased final dividend up 11% to 1.55 pence per share (2016: 1.4 pence), making total dividend for the year of 2.65 pence (2016: 2.4 pence).
The firm’s sales order intake increased 12% to £13.69m and its order book at 30 September stood at £5.79m (2016: £3.2 million), which includes a significant new order from an existing customer for delivery over next two financial years.
Chairman, Christopher Winn, said: “The Group’s continuing strong cash generation enables the Board to maintain a progressive dividend policy whilst continuing to invest in the further development of the Group’s businesses. The Board remains focussed upon further increasing shareholder value by continuing to deliver both organic and acquisitive growth, achieving “on target” results, increasing earnings, achieving strong cash generation and maintaining a robust balance sheet.”
Group chief executive, Ian Newcombe, added: “The Board will continue to invest in its digital retail solutions and in its enterprise software businesses in order to ensure that product offerings continue to both attract new customers, as well as to maximise and to encourage additional investment in system enhancements and new technological developments from existing customers.
“The combination of more rapid growth available via the Digital Retail Division and renewed impetus for growth from the Enterprise business is expected to enable the Group to meet its strategic targets over the course of the coming years.
“Whilst the Group has not yet detected any major loss of confidence from either existing or prospective customers, the Board and senior management continue to carefully monitor market conditions, customer confidence, as well as the development of sales prospects and the progression of these sales prospects into customers.”
