Trading Update

RNS Number : 3151C

Sanderson Group PLC

30 April 2012

 



FOR IMMEDIATE RELEASE                                                                                             30^TH APRIL 2012

SANDERSON GROUP PLC

Trading Update

"Positive Trading continues following sale of High Street Retail Business in January;

Additional £0.25 million deferred cash consideration now received giving total sale proceeds of £11.75 million;

Group now debt-free with net cash; Increased Interim Dividend"

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 the following trading update ahead of the announcement of its interim results for the half year ended 31^st March 2012, scheduled to be released on 15^th May 2012.

At the half year stage, trading results for the Group's continuing operations, excluding Sanderson RBS, will show revenue in excess of £6 million and profit from operating activities of approximately £0.8 million, being some six per cent ahead of the comparable period to 31^st March 2011. 

Sanderson continues to invest in products and services across both of its manufacturing and multi-channel businesses.  Overall order intake was up by around 10 per cent during the period and at 31^st March 2012, the value of the order book had increased by over 30 per cent since the previous year end of 30^th September 2011.  The order intake in the Sanderson ecommerce software business, which addresses the fast growing market for online, catalogue and internet sales, was ahead over 25 per cent compared with the same period  in 2011.

During the period, the Group announced that it had completed the sale of Sanderson RBS Limited, which specialised in the provision of 'electronic point of sale' solutions for major high street retailers, to Torex Retail Holdings Limited for a cash consideration of £11.5 million, which was paid on completion.  Additional cash consideration of up to £0.25 million was conditionally payable and we are pleased to report that the maximum additional cash consideration totaling £0.25 million has been received.

Following the sale of Sanderson RBS, the Group has a strengthened balance sheet and is debt-free.  At the AGM, an announcement was made that Sanderson would pay a 1.2p dividend for the coming year and it is expected that the first payment will be a 0.5p interim dividend, payable in August 2012, an increase of 66 per cent compared with the 0.3p per share declared for the same period last year.

Notwithstanding the challenging UK economic environment, the improved order intake and strong order book provides the Board with a good level of confidence that Sanderson is on-track to achieve its financial targets for the full year ending 30^th September 2012. 

Sanderson Group plc	0333 123 1400
Christopher Winn, Chairman
Adrian Frost, Finance Director
Charles Stanley Securities - Nominated Advisor and Broker	020 7149 6000
Mark Taylor/Darren Vickers
Winningtons Financial Paul Vann	0117 985 8989 or 07768 807631

 

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