Sanderson feeling upbeat

Software and IT business Sanderson said it expected its full year results, due in late November, to be in line with market expectations.

In an upbeat trading update the company said that while it was cautious about the uncertain outlook in the general economy, it had achieved better banking terms, improved competitive market position, success of new products and a strong order book going forward.

The bullish tone impressed investors who pushed shares up 5% in morning trading.

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Sanderson said it continued to experience good trading momentum in its manufacturing and multi-channel businesses, but said the high street retail market was more challenging.

"The multi-channel business, having a focus on online sales, e-commerce and catalogue business, has performed particularly well during the year," the firm said.

Continued and increased investment in innovation, including its new cloud product, as well as in sales and marketing has further improved the group's competitive market position, it added.

In August Sanderson replaced RBS with HSBC as its banker to refinance its term debt and working capital facilities.

The company said that following the refinancing, the group's net debt had continued to fall and was now below £7m.

"Going forward, the annual savings from the re-banking with HSBC will save the group just over £300,000 in the coming year," the firm said.