Sanderson Group PLC Pre-Close Trading Update (1249W)
15 April 2019 - 4:00PM
UK Regulatory
TIDMSND
RNS Number : 1249W
Sanderson Group PLC
15 April 2019
FOR IMMEDIATE RELEASE 15 APRIL 2019
SANDERSON GROUP PLC
Pre-Close Trading Update
"Further strong growth in first half"
Sanderson Group plc ('Sanderson' or 'the Group'), the specialist
provider of digital technology solutions, innovative software and
managed services for the retail, wholesale, supply chain logistics,
food and drink processing and manufacturing market sectors, issues
the following trading update ahead of the announcement of its
interim results for the six months ended 31 March 2019, which are
scheduled to be released on 15 May 2019.
The Group's trading results for the six month period ending 31
March 2019, stated under the new IFRS 15 accounting standard, are
ahead of management's expectations with revenue growing to
approximately GBP17.0 million (H1 2018: GBP14.6 million) and
operating profit (stated before the amortisation of
acquisition-related intangibles, share-based payment charges and
'one-off' non-recurring items) increasing by over 30% to GBP2.8
million (H1 2018: GBP2.1 million). The Group adopted IFRS 15 with
effect from 1 October 2018 on a modified retrospective basis
meaning that the prior year comparatives have not been restated. On
a comparable basis, excluding the impact of IFRS 15, revenues have
risen by over 15% to GBP16.9 million and operating profit (stated
before the amortisation of acquisition-related intangibles,
share-based payment charges and 'one-off' non-recurring items) has
increased by over 20% to GBP2.5 million.
Sales order intake has continued to grow and the order book,
which continues to be well balanced across the Group's businesses,
stands at approximately GBP8.0 million at the period-end.
The Group continues to be cash generative and at 31 March 2019,
the Group's net cash balance stood at GBP3.29 million (31 March
2018: GBP1.39 million), ahead of management's expectations.
Excluding the five-year repayable term debt facility assumed with
the acquisition of the Anisa Group completed on 23 November 2017,
the Group's cash balance was GBP6.05 million (31 March 2018:
GBP5.06 million). During April 2019 the final deferred
consideration payment of GBP0.5 million was made in respect of this
acquisition, resulting in the initial and deferred cash
consideration having been satisfied entirely from the Group's own
cash resources.
Digital Retail Division
Digital Retail has continued to perform strongly in the six
month period ending 31 March 2019 and achieved further double-digit
revenue and operating profit growth. This division has continued to
benefit from increased investment in sales and marketing capability
with the sales order intake being above prior year levels and
continued strong sales prospects.
Enterprise Division
The Enterprise Division has continued to make good progress.
Sales order intake in the Manufacturing business grew by over 10%
against the previous year, with the business which focusses on the
food & drink processing sector performing particularly
strongly. The Group businesses addressing the supply chain
logistics sector, strengthened by the acquisition in November 2017,
have made a strong start to the current financial year with
continued growth which is expected to continue into the second half
of the financial year. Hosted managed solutions are now available
to customers in all Group businesses, leveraging the capability
acquired in November 2017 and considerably enhancing the range of
products, services and solutions which Sanderson is now able to
offer to its customers. The Group business which focuses on the
supply of solutions to the wholesale distribution market has
continued to trade well, benefitting from continued strong interest
in its new digital solutions suite of products launched in
2018.
Strategy and Outlook
The Board continues to be cautious in its approach, sensitive to
both market conditions as well as to monitoring the general
economic environment carefully. However, following the strong
trading momentum built in the first half of the year, a healthy
order book, high recurring revenues and a strong, cash backed
balance sheet, the Board has confidence that the Group is well
positioned to make further progress in the rest of the full
financial year ending 30 September 2019. This will enable the Board
to maintain its progressive dividend policy and continue to build
shareholder value.
Enquiries:
Sanderson Group plc 0333 123 1400
Christopher Winn, Chairman
Ian Newcombe, Chief Executive
Richard Mogg, Finance Director
Singer N+1 - Nominated Advisor and Broker 020 7496 3000
Mark Taylor
James White
Walbrook PR 020 7933 8780
Paul Vann or 07768 807631
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END
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