Last checked at 20 Apr 2011 07:00
For Immediate Release 20 April 2011
SANDERSON GROUP PLC
Trading Update
"Positive Trading Momentum Continues"
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 interim results for the six month trading period ended 31st March 2011, due to be released on May 18th, 2011.
The Group continues to trade well with profitability ahead of the comparative period last year. Higher gross margin, resulting from the delivery of more of our 'owned' software and services, has more than offset a small reduction in turnover. Recurring revenues have continued to grow, the Group has continued to improve its competitive market position and the level of the sales prospects has increased. During March, the Group's Manufacturing business experienced a surge in orders for its latest products and this contributed to an increase in the overall Group Order Book to £3.25million at the period end (31st March 2010: £2.6million). Most of this increase in the value of the Order Book is scheduled to be delivered to customers during the second half of the current financial year.
Cash generation has remained strong and net debt has continued to fall rapidly. At 31st March 2011, net debt was under £7.5million, representing a reduction of over £1.5million from the comparative period in the previous financial year at 31st March 2010 (£9.0million). In the past three years, since its peak at 31st March 2008 (£12.5million), the Group's net debt has reduced by forty per cent (£5.0million). The Board anticipates further reductions in future periods.
Whilst the Board remains cautious with regard to the general economic outlook for the UK manufacturing and retail markets in which the Group operates, its improved competitive market position, latest products and strong order book provide the Board with a good level of confidence regarding the outlook for the financial year ending on 30th September 2011.
For further information please contact:
Sanderson Group plc 02476 555466Christopher Winn, ChairmanAdrian Frost, Finance Director
Charles Stanley Securities - Nominated Advisor and Broker 020 7149 6000Mark Taylor
Winningtons Financial 0117 985 8989Paul Vann/Tom Cooper or 07768 807631