Last checked at 3 Mar 2016 07:00
FOR IMMEDIATE RELEASE 3 MARCH 2016
SANDERSON GROUP PLC
Annual General Meeting (AGM) Statement
Sanderson Group plc (Sanderson or the Group), the software and IT services business specialising in digital retail technology and enterprise software for businesses operating in the manufacturing, warehousing and logistics sectors, will hold its AGM in Coventry at 10.00 am today. At the AGM, Chairman, Christopher Winn, will make the following statement to shareholders:
"Following a strong trading performance in the previous year ended 30 September 2015, the Group has made a good start to the current financial year ending 30 September 2016, with trading results to the end of January 2016 being over ten per cent ahead of results for the same period last year.
Reflecting the investment which the Group has made in its sales and marketing capability over the last few years, total sales order intake is over fifteen per cent ahead of the same stage last year and the Group`s total order book has risen from £2.35 million at year-end, to over £3.21 million currently. Business gained from new customers trading with Sanderson for the first time, has been very strong with over £1.5 million orders in the current year, which has exceeded the £1.4 million gained in the whole of the last financial year.
The Group`s Digital Retail businesses operate in very active markets and a number of prospective new customers and customer opportunities are being developed which are expected to come to fruition in the usually busier second half of the current year.
The Sanderson Enterprise businesses have made a very strong start to the current year and have converted a number of previously delayed projects into firm orders, with particularly strong order intake from the food & drink, logistics and wholesale cash & carry sectors.
Sanderson customers and prospective customers are generally small and medium-sized (SME) businesses who naturally adopt a cautious approach. However, there is continued willingness to invest in IT products and solutions which deliver tangible business benefits. The Group targets its development and marketing investment at supplying and delivering cost effective, well supported solutions which provide the necessary additional business and cost benefits to customers.
Sanderson is a robust business, with over half of all revenues being recurring (pre-contracted for a minimum of a year ahead). The recurring revenue stream provides the Group with a cash generative business model, supporting the Group`s progressive dividend. A recommended final dividend of 1.2 pence per share, for approval at today`s AGM, will make a total dividend for last year of 2.1 pence per share, representing an increase of 16% over the previous year. Notwithstanding potential uncertainty caused by the forthcoming Referendum, the strong business model of the Group, cash-backed balance sheet and positive business momentum provide the Board with a good level of confidence that the Group will make continued progress in the current financial year ending 30 September 2016."
Sanderson Group plc 0333 123 1400
Christopher Winn, Chairman
Ian Newcombe, Chief Executive Officer
Adrian Frost, Finance Director
Panmure Gordon (UK) Limited 020 7886 2500
Nominated Advisor
Erik Anderson / Fred Walsh
Walbrook PR 0117 985 8989
Paul Vann or 07768 807631