3rd Mar 2015 09:17
LONDON (Alliance News) - Sanderson Group PLC Chairman Christopher Winn Tuesday said the company's trading results and order intake were running ahead of the previous year in the first four months of its financial year, while the value of the order book has risen since the end of its last fiscal year.
In a statement that will be read out to shareholders at the company's annual general meeting later, Winn said trading results to the end of January are ahead of the comparative four months, sales intake is also ahead, while the value of its order book is higher than the GBP2.4 million it stood at on September 30 when its last financial year ended.
The chairman said the manufacturing unit has made a "positive" start to the year, winning six new customers, although the average initial order value is lower. The unit won nine new customers during the whole of the last financial year.
The software and IT services company's multi-channel retail division has experienced a slowdown in the wholesale distribution and cash and carry market, but has grown overall helped by increased penetration in the online sales, ecommerce and catalogue markets.
"One iota, focused on the rapidly developing mobile commerce market, continues to forge ahead and in the period achieved a higher revenue than in the whole of the full year prior to its acquisition in October 2013. The Proteus business which was acquired in December 2014, has also made a steady start as part of the group," Winn said.
He added that Sanderson is continuing to invest for the future, with product development spending running at a high level and the company making additional investment into operational management and sales and marketing. Winn said he doesn't expect the additional investment to dent profitability in the current financial year.
"UK capital expenditure has only recently recovered to 2008 levels and the group's customers and prospective customers, which are generally small and medium-sized businesses remain cautious. However, customers and prospective customers in the online sales, ecommerce and catalogue sectors are generally more optimistic albeit sales cycles are still prolonged," Winn said.
Sanderson Group shares were up 0.9% at 66.56 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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