Order book strengthens Sanderson outlook

published 28 November 2011

Software and IT services firm Sanderson said while it remains cautious in its outlook, the strong order book and improved competitive market position provide gives it confidence for the year ahead.

Pre-tax profit increased to £749,000 for the year ended 30 September 2011 from £506,000 the year before. Revenue slipped to £26.4m from just under £27m previously.

Recurring revenues from annual software licences, support and managed service contracts, which represents 52$ of total revenues, rose to £13.70m from £13.66m in 2010.

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Commenting on the results chairman Christopher Winn said, "Sanderson has continued to trade well with a good level of momentum across its multi-channel retail and manufacturing businesses."

"Whilst trading has continued to be impacted by the slow pace of recovery in the UK economy and more challenging trading conditions on the high street, the new products and services introduced over the last two years have driven the improvement in the group's trading performance."

Operating profit rose to £2.09m from £1.69m and gross margins improved to 71.7% from 69% in 2010.

Sanderson said new and improved banking facilities successfully negotiated with HSBC in August. Net debt at the period end was reduced to £6.72m from £7.84m the year before.

A final dividend of 0.45p per share has been proposed, up from 0.35p in 2010.