Trading Update & Bank Refinancing Ahead of Plan

RNS Number : 5035L

Sanderson Group PLC

02 August 2011

 



EMBARGOED UNTIL                                                                                                                    7am, 2nd AUGUST 2011

SANDERSON GROUP PLC

Trading Update & Refinancing Ahead of Schedule 

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 successful conclusion of discussions regarding the refinancing of its term debt and working capital facilities.  HSBC Bank plc ('HSBC') has replaced the Royal Bank of Scotland ('RBS') as the Group's banker having advanced a four year term facility of £7.4million together with a £1million working capital facility.

The new facility is expected to generate significant cost savings for the Group over the four year period of the facility compared with the previous arrangement.  A one-off charge of c.£0.4m will be recorded in the current period to 30^th September 2011, as an exceptional finance expense representing the unamortised portion of RBS fees, including a repayment fee arising from the early repayment of the RBS facility.  The annual savings will save the Group around £300,000 per annum.

Sanderson continues to experience good trading momentum in its Manufacturing and Multi-Channel businesses, whilst the high street Retail market is more challenging.  The Group has continued to invest in product innovation, sales and marketing and improved its competitiveness.  There are a significant number of prospects for the new Green IT products especially in the Manufacturing customer base.  Since the half year end at 31^st March 2011, the order book has continued to grow and new customers have been won across all markets, including two new high street retailers.  The demand for e-commerce systems is still strong.

Notwithstanding the nervousness and challenging conditions on the high street, the Group has maintained good trading momentum, built a strong order book and full year pre-taxation profits, stated before the charge associated with refinancing referred to above are expected to be in line with current market expectations.  The new banking facilities, which reflect positively on the cash generation and de-leveraging of the business over the last four years, will provide the capacity and flexibility to further improve the Group's competitive position. 

For further information please contact:

Sanderson Group plc	02476 555466
Christopher Winn, Chairman
Adrian Frost, Finance Director
Charles Stanley Securities - Nominated Advisor and Broker	020 7149 6000
Mark Taylor
Winningtons Financial Paul Vann	0117 985 8989

 

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