23rd Oct 2014 07:56
LONDON (Alliance News) - Sanderson Group PLC saw its shares rise early Thursday after it said revenue and adjusted operating profit rose in its last financial year, and its trading results will meet market expectations.
In a trading update, the IT services business said revenue for the year to September 30 will be more than GBP16 million, up from GBP13.8 million in fiscal 2013, while adjuster operating profit will be more than GBP2.7 million, up from GBP2.2 million. The adjusted figure strips out amortisation of acquisition-related intangibles, share-based payment charges and acquisition-related costs
It also said its order book at the end of the year was 20% higher than a year earlier, at GBP2.4 million. Order intake rose 10% on a like-for-like basis over the year, while the value of contracts signed with new customers rose by more than 15% to GBP1.9 million.
Sanderson said it was making particular progress in warehouse automation that's being deployed on mobile devices like smartphones and tablets.
The company added that One iota, which it aquired in October 2013, has performed very well with revenue and profit more than doubled compared with the last full financial year before the acquisition. One iota secured its largest order to date, worth over GBP400,000, in September, it said.
Sanderson said its overall balance sheet remains strong, with a cash balance of just over GBP6 million at the end of September, up from GBP5.1 million at the end of March and GBP3.7 million a year earlier. It said it will maintain its progressive dividend policy and a healthy balance sheet.
It was cautious about the outlook for the market, but positive about its own prospects.
"Amongst small and medium-sized businesses, we believe that, to date, business sentiment has continued to show some improvement but prospective and existing customers remain cautious in their outlook," it said.
"The group's strong order book provides the board with a reasonable level of confidence, at this early stage of the new financial year ending 30 September 2015, that the group will make further progress," it added.
Sanderson shares were up 4.9% at 64.50 pence early Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
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