Sondrel Plc Regulatory News (SND)

For Immediate Release 23 October 2012

SANDERSON GROUP PLC

Pre-close Trading Update

"Strong Trading Momentum Maintained"

Sanderson Group plc ('Sanderson' or 'The Group'), the software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, announces the following trading update ahead of the announcement of its preliminary results for the year ended 30th September 2012, due to be released on Tuesday, 27th November 2012.

Following the sale of Sanderson RBS in January 2012 for a cash consideration of £11.7million, the Group has concentrated on developing and further growing its businesses both in the expanding multi-channel retail and ecommerce markets, as well as, in selected manufacturing markets. Investment has focused upon developing new products and services, such as warehouse automation and increasingly, mobile applications, as well as upon strengthening the Group's sales and marketing capabilities. This investment strategy has contributed to an improved competitive market position resulting in an increase of over ten per cent in the Group's overall sales order intake for the financial year. The multi-channel business, with its online sales and ecommerce offerings, has achieved an increase in sales order intake of over 15% during the year.

The trading results for the year ended 30th September 2012, are slightly ahead of market forecasts and the Group's cash balance as at 30th September 2012 has further improved to £4million.

Notwithstanding the uncertain outlook for the general economy, the strong order book provides improved future visibility and gives the Board a good level of confidence that Sanderson will make further positive progress during the year ending 30th September 2013.

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