Sanderson Group PLC AGM Statement (9685E)
February 15 2018 - 2:00AM
UK Regulatory
TIDMSND
RNS Number : 9685E
Sanderson Group PLC
15 February 2018
FOR IMMEDIATE RELEASE 15 FEBRUARY 2018
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, wholesale distribution and logistics sectors, will
hold its AGM in Coventry at 11.00 am, today. At the AGM, Chairman,
Christopher Winn, will make the following statement to
shareholders:
"The Sanderson Group was expanded by the acquisition of the
Anisa Group ('Anisa') in November 2017, almost two months into the
current financial year ending 30 September 2018. The expanded Group
is expected to have revenue in excess of GBP30 million, a high
gross margin in the region of 80% and around 800 customers who are
supported by over 300 skilled and specialist staff. Anisa has made
a good start as part of Sanderson and the overall trading
performance of the Sanderson Group is in line with management's
expectations. Up to the end of January, four months into the new
financial year, total Group revenues are approximately one-third
ahead of the comparative four-month period to the end of January in
2017. Excluding Anisa, like-for-like Sanderson revenues are around
5% ahead and operating profit is approximately 10% ahead of the
comparative results for the four-month period to the end of January
2017. The order book at 31 January is also strong and partly
reflecting the large order gained in June 2017 (over half of which
is yet to be fulfilled), the `like-for-like` order book is over 20%
ahead of the level as at the end of January 2017.
The Board is committed to maintain a strong balance sheet and
notwithstanding the acquisition of Anisa for cash and shares, the
Group continues to hold net cash 'at bank'. The acquisition
resulted in the issue of 3,990,653 consideration shares which
represent 6.73% of the Group's current issued share capital of
59,326,321 ordinary shares. The Anisa directors hold 2,828,384 of
these consideration shares representing 4.77% of the issued share
capital of Sanderson and in turn, Mr David Renshaw, the Chief
Executive of Anisa, owns 2,068,545 of these shares, representing
3.48% of Sanderson share capital. All of these consideration shares
are subject to a three year lock-in expiring on 23 November
2020.
The Group's Digital Retail businesses which operate in
continuing active markets have made a good start to the new
financial year with both revenue and operating profit continuing to
grow at double-digit rates. Whilst sales cycles continue to be
long, a number of new customer prospects and continued strong
levels of activity provide a good level of confidence going into
the remaining eight months of the financial year.
The Sanderson Enterprise businesses have made a solid start and
sales prospects are well ahead of last year, though sales cycles
remain protracted. A new, innovative digital platform for the
wholesale distribution market was announced at the beginning of the
financial year. This has been very well received by existing and
prospective new customers with overall interest ahead of
expectations. We are excited about the future prospects in the
wholesale distribution sector of the market.
Sanderson has a robust business model and with the acquisition
of Anisa, the Group's pre-contracted recurring revenues now
represent around 55% of total revenue. This recurring revenue
stream results in more predictable cash generation which, in turn,
supports the Board's progressive dividend policy. A recommended
final dividend of 1.55 pence per share, for approval at today's
AGM, will make a total dividend for last year's results of 2.65
pence per share, representing an increase of over 10% from the
previous year (and an increase of 50% over the last three years,
from the 1.8 pence paid for the year ending 30 September 2014). The
Board remains cautious and conservative in its approach, but the
good start made by Anisa, the strengthening and robust business
model of Sanderson, the cash-backed balance sheet and the 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 2018."
0333 123
Sanderson Group plc 1400
Christopher Winn, Chairman
Ian Newcombe, Chief Executive
Richard Mogg, Finance Director
N+1 Singer - Nominated Advisor and 020 7496
Broker 3000
Mark Taylor
James White
Walbrook PR 0117 985
Paul Vann 8989
or 07768
807631
This information is provided by RNS
The company news service from the London Stock Exchange
END
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