9th Jun 2014 10:08
LONDON (Alliance News) - Sanderson Group PLC Monday raised its interim dividend and expressed optimism that it would continue to make "significant" progress during the year, as it saw pretax profit decline slightly in the half year to end-March.
The software and IT services business posted an interim dividend of 0.8 pence per share, up from 0.5 pence.
Sanderson posted a pretax profit of GBP779,000, down from GBP852,000, as revenue rose to GBP7.9 million from GBP6.4 million, although this was offset by higher cost of sales and costs relating to its acquisition of One iota Ltd in October.
The company added new retail customers during the year, including WCF Home Shopping Ltd, jewellery brand Astley Clarke and online footwear retailer Cloggs, and added five new customers in its manufacturing division including Prima Goods UK and vineyard Rathfinny Estate.
Recurring revenues rose to GBP4.4 million from GBP4.0 million, as its target market of small and medium sized businesses showed improved confidence.
The acquisition of One iota contributed GBP788,000 to revenue and GBP154,000 to operating profit during the year, said the company.
Sanderson said it was continuing to consider selective acquisition opportunities, however its focus for the current year will be on delivering results and ensuring its acquisitions One iota and Catan Marketing Ltd are "successful additions."
The company said that whilst its economic environment was improving, there were still low levels of investments in products, and sales cycles were still protracted, leading it to maintain a cautious approach. However, its strong order book and recent acquisitions underpin its expectations of significant progress during the year, it said.
Shares in Sanderson were trading up 3.8% at 68.50 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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