AGM Statement

RNS Number : 8501Y

Sanderson Group PLC

28 February 2013

 



For Immediate Release                                                                                                  28^th February 2013           

SANDERSON GROUP PLC

Annual General Meeting ('AGM') Statement

Sanderson Group plc ('Sanderson' or 'the Group'), the software and IT services busin  ess specialising in multi-channel retail and manufacturing markets in the UK and Ireland, will hold its AGM in Coventry at 10.00 am today.  At the AGM, Chairman, Christopher Winn, will make the following statement to shareholders:

"Following a strong finish to the financial year ended 30^th September 2012, I am pleased to report that Sanderson has made a solid start to the current financial year. After the first four months trading to 31^st January 2013, both sales and profit are ahead of the comparative period of the previous year.  Sanderson has a robust business model with over half of Group sales being derived from pre-contracted recurring revenues, the margin from which covers just over two-thirds of business overheads.  The Group has the focus, the commitment, as well as, the products and services to deliver practical, value for money solutions to customers and prospective customers in the multi-channel retail and manufacturing market sectors.

Whilst continued uncertainty surrounding the UK economy affects the confidence of customers and prospective customers in making investment decisions, the Group continues to focus its efforts on key market areas which offer the best opportunities for growth.  Sanderson has a strong and growing presence in the catalogue, online sales and ecommerce markets which have continued to achieve double digit annual growth rates.  In addition, over the past two years, the Group has increased its investment in both products and services, as well as, sales and marketing capability to further address the active food & drink manufacturing market.  The latest version of the Sanderson Unity product suite includes enhanced ingredient and raw material tracking which enables traceability not only through  the manufacturing process but also through the supply chain - a business critical issue for the food industry and very topical at the current time.  A large number of active sales prospects have been developed, some of which are at an advanced stage and are expected to be converted into firm orders during the current financial year.  Across all of its markets and businesses, the Group continues to develop a range of mobile solutions which are generating a strong level of interest from existing and new customers.  Further growth opportunities are expected from the development of these mobile solutions across all the Sanderson businesses.

The Group's cash generative business model, coupled with a strong balance sheet, provides the Board with the confidence to maintain the progressive dividend policy in the current financial year.

The strategy of the Sanderson Board is to achieve growth, both organically as well as, by selective, complementary and low risk acquisitions which become earnings and value enhancing.  A number of small opportunities are being considered and it is possible that one of these will be completed during the current financial year.  However, the Board is mindful of the relatively low levels of business confidence and tough UK trading conditions and so continues to adopt a very cautious approach. 

Sanderson has a strong and growing range of products and services, an improved market position,   a robust business model and a strengthened balance sheet. Together, they provide the Board with a good level of confidence for making further progress and achieving the current year targets."

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

 

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