Sanderson refinances

Sanderson, the software and IT services supplier, has replaced RBS with HSBC as its banker to refinance its term debt and working capital facilities. HSBC has advanced a four year term facility of £7.4m together with a £1m working capital facility. The new facility is expected to generate significant cost savings for Sanderson over the four year period of the facility compared with the previous arrangement. A one-off charge of around £0.4m will be recorded in the current period to 30th September 2011, as an exceptional finance expense representing the unamortised portion of RBS fees, including a repayment fee arising from the early repayment of the RBS facility. The annual savings will provide the company with an additional £300,000 (approx.) per annum.The company released a statement which said: "Notwithstanding the nervousness and challenging conditions on the high street, the group has maintained good trading momentum, built a strong order book and full year pre-taxation profits, stated before the charge associated with refinancing referred to above are expected to be in line with current market expectations. "The new banking facilities, which reflect positively on the cash generation and de-leveraging of the business over the last four years, will provide the capacity and flexibility to further improve the group's competitive position." The high street retail market is proving challenging for the group but it has continued to invest in product innovation, sales and marketing, and has improved its competitiveness, the company said.The share price was +5.33% to 39.50p at 16:03. NR HSBC Holdings