Sondrel Plc Regulatory News (SND)

FOR IMMEDIATE RELEASE 16th March 2012

SANDERSON GROUP PLC

Result of AGM

At the Annual General Meeting of 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, held in Coventry at 10.00 am yesterday, all resolutions put to shareholders were duly passed.

Chairman, Christopher Winn, made the following statement to shareholders on current trading and outlook:

"During the current financial year, the Group has continued to maintain good trading momentum in what remains a challenging economic environment. The new product suites which the Group has launched over the last two years have continued to be successful, particularly the latest versions of the e-commerce software in the multi-channel business and the factory and warehouse automation software in the manufacturing division. Together these have made the Group more competitive and have contributed to both the winning of new customers, as well as an improvement in trading. The Group is planning to increase investment in its ecommerce software business and to expand the Sanderson presence in the fast growing market for online, catalogue and internet sales in order to drive further growth. Up to the end of February, order intake is around ten per cent ahead of the comparative period of the previous financial year and the order book is strong.

The Group announced on January 23rd that it had completed the sale of Sanderson RBS Limited ('Sanderson RBS'), the Group business which specialised in the sale of 'electronic point of sale' ('epos') solutions to major high street retailers, to Torex Retail Holdings Limited for a cash consideration of £11.5 million, which was paid on completion on January 20th. Additional cash consideration of £0.15 million is payable unconditionally on 6th April 2012 and a further £0.1 million is payable dependent upon receipt by Sanderson RBS of specific customer payments. The proceeds from the sale have enabled the Group to repay its bank debt and to leave a positive cash balance of approximately £4 million.

The strengthened balance sheet, the elimination of debt and the continued strong cash generation of the Group, provide the Board with the confidence to substantially increase the annual dividend in the coming year from 0.75 pence to 1.2 pence, representing an increase of over 50%.

The strategy of the Sanderson Board and management is to achieve growth both organically through investment in new products and services as well as by selective acquisitions as opportunities arise. The Group has made an encouraging start to the current financial year and whilst the Board is mindful and cautious in the face of general economic conditions, the improved competitive market position of Sanderson provides the Board with a good level of confidence for achieving the current year targets."