1 December 2015 – final results
The software and IT services group Sanderson has released its final results for the year to 30 September and these were much in line with expectations with revenue increasing by 17% to £19.2m (2014: £16.4m) and adjusted pre-tax profits rising by the same amount to £3.17m (2014: £2.71m). Adjusted, diluted earnings per share rose to 4.9p (2014: 4.4p) and the dividend for the year was increased to 2.1p (2014: 1.8p). Net cash at the year end stood at £4.61m (2014: £6.16m) after investments of £3m of which £1.9m was in respect of acquisitions. Although the performance of the division supplying manufacturing industry was disappointing a good start has been made to the current financial year and a much improved result is expected. On the other hand, the larger multi-channel retail business saw its revenue increase by 31% with operating profits rising 39% with further progress expected in the current financial year. We have raised our forecasts for the current financial year and 2017 on the back of these results with pre-tax profits expected to come out at £3.4m for earnings per share of 5.1p. We continue to rate the shares as a BUY.