26th Nov 2013 13:33
LONDON (Alliance News) - Software and IT services company Sanderson Group PLC Tuesday reported higher profits and revenues for the year ended September 30, driven by strong trading momentum, recent acquisitions and new business wins.
The company, which specialises in multi-channel retail and manufacturing markets in the UK and Ireland, said it was cautious about the economic outlook, but said it is confident in its business outlook for the new financial year.
"The strong order book, improved market position and the two recent acquisitions provide the Board with an expectation that Sanderson will achieve significant progress during the current financial year," said Chairman Christopher Winn in a statement.
Sanderson maintained its progressive dividend policy, by increasing its total dividend for the year to 1.5 pence per share, up from 1.2 pence last year.
"The value of the order book at the year end has provided a solid platform from which to make further progress in the current year," said Winn.
Sanderson said that its pretax profit from continuing operations rose to GBP1.9 million, up from GBP1.5 million a year earlier.
The company reported total revenue of GBP13.8 million for the year ended September 30, up from GBP13.4 million in revenues a year earlier.
It reported an increase in revenues in both its manufacturing division and its multi-channel retail division, which benefited from new customer wins.
The group also reported a higher level of pre-contracted recurring revenue, which accounted for around 57% of total revenue.
Sanderson reported net cash at year end of GBP3.7 million, having acquired Catan Marketing Limited during the period.
Since year end, the group also acquired One iota Limited for up to GBP5.4 million, having raised GBP3.5 million before costs in a share placing in October.
Sanderson shares were up 9.2% Tuesday afternoon at 73.70 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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