Food and drink market driving Sanderson on

SOFTWARE and IT services group Sanderson has seen an increase in orders on the back of a buoyant food and drink sector.

The Coventry-based group, which has an office in Sheffield and specialises in multi-channel retail and manufacturing markets in the UK and Ireland, is holding its AGM today.

Chairman Christopher Winn will tell shareholders the group has made a good start to the current financial year, ending 30 September 2014.

He will say:  “Order intake and the order book, measured on a ‘like-for-like’ basis, excluding acquisitions, are ahead of the comparative period and have been underpinned by a continued increase in the level of business from new customers. 

“One iota, which was acquired just after the start of the current financial year on 7 October, has made a very positive start.
 
“The Sanderson business which addresses the food and drink processing market, is driving the growth of the group’s manufacturing division and its performance is more than offsetting continuing weakness in the group’s general manufacturing business. 

“Food and drink processing represents one of the fastest growing sectors of UK manufacturing and Sanderson is well placed to continue growth in this sector, with an excellent product suite, which includes enhanced ingredient and raw material tracking ensuring traceability through the manufacturing process and supply chain, which is very ably supported by a team of experienced industry consultants.” 

Winn will also point out the group has a strong and growing presence in the online sales, ecommerce and catalogue sectors which are continuing to experience double digit growth rates, fuelled by the adoption of mobile solutions across all markets. 

“This growth is more than offsetting a gradual decline in the group’s business which addresses the traditional mail order market,” he will say.

Catan Marketing, trading under the name of Priam, which was acquired in August 2013, has made a steady start according to Winn.
 
“Sanderson continues to develop a robust business model with over half of group sales being derived from pre-contracted recurring revenues, the margin from which covers over two-thirds of business overheads,” Winn will tell the AGM.