Sanderson Group PLC Pre-Close Trading Update & Notice of Final Results (4896D)
October 10 2018 - 2:00AM
UK Regulatory
TIDMSND
RNS Number : 4896D
Sanderson Group PLC
10 October 2018
FOR IMMEDIATE RELEASE 10 OCTOBER 2018
SANDERSON GROUP PLC
Pre-Close Trading Update
&
Notice of 2018 Preliminary Results
"Significant progress and year-end results will be slightly
ahead of market expectations."
Sanderson Group plc ('Sanderson' or 'the Group'), the specialist
provider of digital technology solutions, innovative software and
managed services for the retail, wholesale, supply chain logistics,
food and drink processing and manufacturing market sectors, issues
the following early trading update ahead of the announcement of its
preliminary results for the year ended 30 September 2018, scheduled
to be released on Monday, 26 November 2018.
Sanderson was expanded and enhanced by the acquisition of the
Anisa Group completed on 23 November 2017 and the trading results
of the enlarged Group (which remain subject to audit) are not only
significantly ahead of the prior year, but also slightly ahead of
current market expectations. Group revenue rose to around GBP32
million (2017: GBP21.6 million) with gross margins continuing to
run at high levels of 80%. Operating profit (stated before the
amortisation of acquisition-related intangibles, share-based
payment charges and 'one-off' non-recurring items) increased by 30%
to over GBP5 million (2017: GBP3.90 million). On a like-for-like
basis excluding the effect of the acquisition, operating profit is
expected to be slightly ahead of last year with revenue growing at
over 5%, largely driven by pre-contracted recurring revenue growth
of over GBP1 million. Annually, pre-contracted recurring revenues
now total over GBP17 million, representing 55% of total
revenue.
In the second half of the financial year, the Group continued to
experience strong sales order intake and the order book at 30
September 2018 stood at over GBP7 million (2017: GBP5.79 million);
on a like-for-like basis, the order book increased by over 9%
(excluding the acquisition and the large order gained in June 2017
which is being delivered 'on schedule'). The Board remains
committed to maintaining a strong cash-backed balance sheet and at
30 September 2018, the cash balance was GBP6.45 million (2017:
GBP6.18 million). This balance was after the payment in the year of
GBP1.67 million in dividends and after a net outflow of GBP2.64
million, associated with the acquisition. In November 2017, as part
of the terms of acquisition, the Group had assumed a five-year term
debt facility with an outstanding balance of GBP4.12 million, which
after scheduled repayments, has been reduced to GBP3.44 million by
30 September 2018.
All Sanderson businesses traded strongly in the second half year
with the highlights being the performance of the Digital Retail
business which grew at over 20% and Anisa, which has made a good
start as part of the Group. The acquired business is well-managed,
has integrated into the Group very well and towards the end of the
financial year, gained a large initial order with Port of Dover
Cargo Limited. Across the Group, sales prospects continue to be
developed and further sales and marketing investment is
planned.
The Group has a good reputation and has built-up a strong track
record of delivering customer-centric solutions which provide
customers with the opportunity to maximise revenues, to improve
productivity and to effect efficiencies thereby saving costs. The
Board continues to adopt a cautious approach and whilst being
mindful of some ongoing uncertainty as to the economic outcome of
Brexit, is fully committed to take advantage of the improved sales
momentum and strong balance sheet to maximise the Group's trading
performance, in order to provide increasing returns to
shareholders.
Sanderson has a healthy order book following the strong order
intake in the second half of 2018 and with good sales prospects
going forward, the Board is encouraged and has a good level of
confidence that, at the start of the new financial year, the Group
will continue to make further progress in the coming year ending 30
September 2019.
Enquiries:
Sanderson Group plc 0333 123 1400
Christopher Winn, Chairman
Ian Newcombe, Chief Executive
Richard Mogg, Finance Director
Singer N+1 - Nominated Advisor and Broker 020 7496 3000
Mark Taylor
James White
Walbrook PR 020 7933 8780
Paul Vann or 07768 807631
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END
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