Sanderson Group PLC Trading Update (9268K)

TIDMSND

RNS Number : 9268K

Sanderson Group PLC

22 April 2015

FOR IMMEDIATE RELEASE 22 APRIL 2015

SANDERSON GROUP PLC

Pre-close Trading Update

"Continued progress: solid growth backed by a good intake of sales orders"

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 months ended 31 March 2015, scheduled to be released on Tuesday 9 June 2015.

The Group's trading results for the six month period ending 31 March 2015 ('the period') will show revenue and profit growing by just over 10% compared to the six month period ending 31 March 2014 ('prior year period'). Revenue will show growth to GBP9 million, compared with just under GBP8 million in the prior year period. Sales order intake was GBP4.9 million, compared with GBP4.3 million in the prior year period, with the existing customer base being particularly active. The order book at 31 March 2015 was very strong at GBP2.8 million (31 March 2014: GBP2.5 million) and pre-contracted recurring revenues continue to represent over 50% of total revenue. The net cash balance was approximately GBP4 million at the period end on 31 March 2015.

The Sanderson businesses which address customers in the multi-channel retail markets, enjoyed continued growth very much driven by the expansion of mobile commerce and ecommerce. Proteus, which was acquired on 5 December 2014, has made a steady start as part of Sanderson and has made a positive contribution. The Sanderson businesses in the Manufacturing division, which are focused on supplying the manufacturing market sector with software and service solutions, delivered a flat trading performance as compared with the prior year period. The Manufacturing division's order intake improved in the period and there is a strong order book, with good sales prospects going into the second half year.

The general economic environment continues to show signs of improvement, though sales cycles continue to be protracted. The Group continues to seek complementary acquisitions, but during the current year, the priority of the management is to remain focused on delivering 'on target' results.

The Board remains cautious in its approach but a strong order book and healthy balance sheet together with a long list of sales prospects, provides the Board with a good level of confidence that the Group will continue to make further progress and deliver trading results in line with market expectations for the current year ending 30 September 2015.

 
 Sanderson Group plc                                                     0333 123 1400 
 Christopher Winn, Chairman 
 Adrian Frost, Finance Director 
 Ian Newcombe, Managing Director, Sanderson Multi-Channel 
  Solutions Limited 
 
 Charles Stanley Securities - Nominated Advisor 
  and Broker                                                             020 7149 6000 
 Mark Taylor/Kevin Ashton 
 
 Walbrook PR                                                             0117 985 8989 
  Paul Vann                                                            or 07768 807631 
                                                              paul.vann@walbrookpr.com

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