?11.7m Disposal & Trading Update

RNS Number : 9675V

Sanderson Group PLC

23 January 2012

 



For Immediate Release                                                                                      23^rd January 2012

SANDERSON GROUP PLC

£11.7million Trade Sale of High Street Retail business &

trading update

Sanderson Group plc ('Sanderson' or 'The Group'), the software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, announces that on 20^th January 2012 it completed the sale of Sanderson RBS Limited ("Sanderson RBS"), the Group business which specialised in the sale of 'electronic point of sale' ("epos") solutions to major high street retailers, to Torex Retail Holdings Limited ("Torex").  Torex are a leading technology provider to the retail, hospitality and convenience and fuel markets.  The cash consideration of £11.5million is payable on completion with additional cash consideration of £0.15million being payable unconditionally on 6^th April 2012 and a further £0.1m payable dependent upon receipt by Sanderson RBS of specific customer payments. 

In the year ending 30^th September 2011, Sanderson RBS achieved sales of £12.36million, operating profit of £1.41million (stated before amortisation, share-based payment and allocation of group cost) and profit before taxation of £0.86million.  The net assets of Sanderson RBS at 30^th September 2011 were £3.56million.

The cash proceeds of the sale will enable the Group to repay its bank debt and leave a positive cash balance of approximately £4million.  The Board has a strategy to develop and expand the Group, to build shareholder value and to increase shareholder returns.  The cash will be used to invest in the further development of products and services, especially in the areas of online sales and ecommerce solutions.  The Sanderson strategy is to enhance the Group's presence in its core markets of multi-channel retail and manufacturing, both through further development of existing product suites, as well as by complementary acquisitions.  The Board will also consider taking advantage of the Group's strong cash generation to accelerate the Group's progressive dividend policy. 

Given the current challenging economic environment, Sanderson has maintained good trading momentum.  The new product suites launched over the last 18 months, which include Green IT, Software as a Service, Cloud Solutions and the very latest versions of the ecommerce software with modern functionality and features, have made the Group more competitive and have contributed to the improvement in trading and the gaining of new customers.  The Sanderson manufacturing business has continued to trade well as has the Group's multi-channel business, which has won new customers, especially from companies operating in the areas of catalogue and online sales, ecommerce and wholesale distribution.  At the end of the first quarter, to 31 December 2011, order intake in the manufacturing and multi-channel businesses was almost ten per cent ahead of the comparative period of the previous financial year. 

Sanderson now has a strengthened balance sheet, cash in the bank and continues to improve its competitive market position.  The Board is confident that the Group will make further progress during the current year and anticipates updating shareholders with progress at the Annual General Meeting which will be held on 15^th March 2012.

Commenting on the transaction, Chairman, Christopher Winn, said that:

"We believe that this is both a satisfactory transaction for Sanderson shareholders as well as a good opportunity for both the Sanderson RBS staff as well as for Torex, led by Steve Rowley.  I would, on behalf of the Board and the shareholders of Sanderson, thank especially David Mahoney, the Managing Director of Sanderson RBS for his leadership and Steve Watson, the management and staff, for their loyalty, hard work and support in making a strong contribution to the rebuilding of the Group's value since the very tough period from late 2008 through 2009."

Mr Winn, added:

"Looking ahead, our focus will be on the continued development of the Sanderson products and services, with special emphasis on further enhancement of the online sales and ecommerce solutions.  We intend to further expand the Sanderson customer base and to increase investment in our successful manufacturing business which is enjoying positive trading momentum. The Board strategy is to achieve growth both organically through investment in new products and services as well as by selective acquisitions as opportunities arise."

Enquiries;

Sanderson Group plc	02476 555466
Christopher Winn, Chairman
Charles Stanley Securities - Nominated Advisor and Broker	020 7149 6000
Mark Taylor/Darren Vickers
Winningtons Financial Paul Vann	0117 985 8989 or 07768 807631

 

END

 

 

DISUUUWRUNAAUAR