3rd Mar 2016 08:44
LONDON (Alliance News) - The chairman of Sanderson Group PLC Thursday said the company has made a solid start to the current financial year, revealing trading is currently running around 10% higher than last year and showing that its order book has continued to grow.
Sanderson shares were trading up 7.9% to 77.99 pence per share on Thursday morning.
Speaking ahead of the company's annual general meeting to be held later Thursday, Chairman Christopher Winn said trading in the three months to the end of January was 10% higher than a year earlier.
Sanderson's order book has also continued to grow, standing at GBP3.2 million compared to GBP2.4 million at the end of September.
Business from new customers has also soared, totalling GBP1.5 million since September, which is higher than the GBP1.4 million generated in the whole of the last financial year.
"The group's Digital Retail businesses operate in very active markets and a number of prospective new customers and customer opportunities are being developed which are expected to come to fruition in the usually busier second half of the current year," said Winn.
"The Sanderson Enterprise businesses have made a very strong start to the current year and have converted a number of previously delayed projects into firm orders, with particularly strong order intake from the food & drink, logistics and wholesale cash & carry sectors," he added.
Winn said Sanderson remains robust, with over half if its revenue coming from existing customers, with good visibility as orders are pre-contracted for a minim of a year ahead, which will allow it to continue to deliver its progressive dividend policy.
Sanderson has proposed paying a final dividend of 1.2 pence for the last financial year ended in September, a 16% year-on-year rise, which shareholders need to approve at the AGM later Thursday.
"Notwithstanding potential uncertainty caused by the forthcoming [EU] referendum, the strong business model of the group, cash-backed balance sheet and 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 2016," said Winn.
By Joshua Warner; [email protected]; @JoshAlliance
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