News blog

Sanderson Group

  • BY: Andrew Hore |
  • POSTED: 17/05/2010 |

Enterprise software provider Sanderson Group reported a recovery in underlying pre-tax profit for the six months to March 2010.

There was a modest rise in revenues from £13m to £13.3m and gross margins fell because of keen pricing in order to win new contracts. However, a £600,000 reduction in operating costs helped profits improve from £93,000 to £748,000.

Some of the cost savings have come from temporary four day a week working but most has come from permanent cost cutting.

New customers are starting to spend money and the order book has grown. The manufacturing division has been helped by investment by food manufacturers. Most of the growth in new orders has come from retail customers. Retailers are investing e-commerce systems and in upgrading their tills so that they comply with the new rules of the credit card industry. Store owners are investing in software that makes sure that their tills are automatically upgraded with new software and are put into hibernation when not being used so power consumption is reduced.

April was slow but trading has picked up in May. The £3m order book should mostly come through in the second half.

Net debt is declining and was £9m at the end of March 2010.

Charles Stanley forecasts a full year profit of £1.9m, compared with £1.07m the year before.

At 23.5p a share, Sanderson is valued at £10.2m. The shares are trading on six times prospective 2009-10 earnings. A 0.6p a share total dividend would leave the shares yielding 2.6%.

© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds