Sanderson is a publicly owned, UK provider of software solutions and IT services. We supply innovative, market-focused solutions primarily to the multi-channel retail and manufacturing sectors.

Highly experienced in the markets we serve, we forge long-term relationships with our customers. This allows us to consistently deliver real business benefit and help our clients achieve rapid return on their investment in IT.

Established in 1983, Sanderson has a multi-million pound turnover and track record of profitable growth. We employ around 150 people nationwide and continually invest in developing technology skills and business know-how.

We strive to be the best in our chosen fields and achieve market leadership through the quality of our products, people and services.
Sanderson is an established and profitable software and IT services business specialising in the multi-channel retail and manufacturing markets. Operating primarily in the UK and Ireland, the Group delivers solutions to organisations with turnovers typically between £5m and £250m. Sanderson maintains a strong market position due to the quality of its products and services and its successful track record.

The Group has a strong revenue model, with approximately 50% of revenue arising from recurring licence, support and maintenance contracts. A further 40% is derived from the existing customer base, with the balance represented by revenue from new customers.

Sanderson is a resilient business. The strength of the Group's large, well established customer base is expected to enable Sanderson to trade robustly in the current financial year, subject to general market conditions prevailing within the UK economy. Our focus on all aspects of multi-channel retail, including the active and growing online sales sector, provides a level of protection from the uncertain market conditions currently affecting retail.

The Sanderson business was founded in 1983 and grew organically and by acquisition to over £119m revenue. In December 2003, the original Sanderson Group was demerged into three separate, independent entities with the present Group retaining the Sanderson name and brand. Sanderson is a name widely recognised as an established provider of software and IT services.

The Group's industry knowledge, proven revenue model, track record and acquisition experience, gives Sanderson the confidence that it is well placed to deliver both organic and acquisition-led growth in the future


http://www.sanderson.com/

AGM Statement
RNS
RNS Number : 9685E
Sanderson Group PLC
15 February 2018



FOR IMMEDIATE RELEASE 15 FEBRUARY 2018

SANDERSON GROUP PLC

Annual General Meeting ('AGM') Statement

Sanderson Group plc ('Sanderson' or 'the Group'), the software and IT services business specialising in digital retail technology and enterprise software for businesses operating in the manufacturing, wholesale distribution and logistics sectors, will hold its AGM in Coventry at 11.00 am, today. At the AGM, Chairman, Christopher Winn, will make the following statement to shareholders:

"The Sanderson Group was expanded by the acquisition of the Anisa Group ('Anisa') in November 2017, almost two months into the current financial year ending 30 September 2018. The expanded Group is expected to have revenue in excess of £30 million, a high gross margin in the region of 80% and around 800 customers who are supported by over 300 skilled and specialist staff. Anisa has made a good start as part of Sanderson and the overall trading performance of the Sanderson Group is in line with management's expectations. Up to the end of January, four months into the new financial year, total Group revenues are approximately one-third ahead of the comparative four-month period to the end of January in 2017. Excluding Anisa, like-for-like Sanderson revenues are around 5% ahead and operating profit is approximately 10% ahead of the comparative results for the four-month period to the end of January 2017. The order book at 31 January is also strong and partly reflecting the large order gained in June 2017 (over half of which is yet to be fulfilled), the `like-for-like` order book is over 20% ahead of the level as at the end of January 2017.

The Board is committed to maintain a strong balance sheet and notwithstanding the acquisition of Anisa for cash and shares, the Group continues to hold net cash 'at bank'. The acquisition resulted in the issue of 3,990,653 consideration shares which represent 6.73% of the Group's current issued share capital of 59,326,321 ordinary shares. The Anisa directors hold 2,828,384 of these consideration shares representing 4.77% of the issued share capital of Sanderson and in turn, Mr David Renshaw, the Chief Executive of Anisa, owns 2,068,545 of these shares, representing 3.48% of Sanderson share capital. All of these consideration shares are subject to a three year lock-in expiring on 23 November 2020.

The Group's Digital Retail businesses which operate in continuing active markets have made a good start to the new financial year with both revenue and operating profit continuing to grow at double-digit rates. Whilst sales cycles continue to be long, a number of new customer prospects and continued strong levels of activity provide a good level of confidence going into the remaining eight months of the financial year.

The Sanderson Enterprise businesses have made a solid start and sales prospects are well ahead of last year, though sales cycles remain protracted. A new, innovative digital platform for the wholesale distribution market was announced at the beginning of the financial year. This has been very well received by existing and prospective new customers with overall interest ahead of expectations. We are excited about the future prospects in the wholesale distribution sector of the market.

Sanderson has a robust business model and with the acquisition of Anisa, the Group's pre-contracted recurring revenues now represent around 55% of total revenue. This recurring revenue stream results in more predictable cash generation which, in turn, supports the Board's progressive dividend policy. A recommended final dividend of 1.55 pence per share, for approval at today's AGM, will make a total dividend for last year's results of 2.65 pence per share, representing an increase of over 10% from the previous year (and an increase of 50% over the last three years, from the 1.8 pence paid for the year ending 30 September 2014). The Board remains cautious and conservative in its approach, but the good start made by Anisa, the strengthening and robust business model of Sanderson, the cash-backed balance sheet and the positive business momentum provide the Board with a good level of confidence that the Group will make continued progress in the current financial year ending 30 September 2018."

Pre-Close Trading Update
RNS
RNS Number : 4870M
Sanderson Group PLC
30 April 2018

FOR IMMEDIATE RELEASE 30 APRIL 2018

SANDERSON GROUP PLC
Pre-close Trading Update
"Results slightly ahead of management's expectations; positive trading momentum maintained with strong balance sheet; November acquisition makes a good start; current order book now standing at £8 million."

Sanderson Group plc ('Sanderson' or 'the Group'), the software and IT services business specialising in digital retail technology and enterprise software for businesses operating in the manufacturing, wholesale distribution and logistics sectors, issues the following trading update ahead of the announcement of its interim results for the six months ended 31 March 2018, which are scheduled to be released on 23 May 2018.

Sanderson Group was expanded and enhanced by the acquisition of the Anisa Group ('Anisa') on 23 November 2017, for an enterprise value of £12 million. Anisa specialises in the delivery and support of world-class integrated supply chain and enterprise resource planning ('ERP') solutions on a global basis. The size and strength of the Sanderson Enterprise division has been significantly enhanced and Anisa has made a good start as part of Sanderson.

The Group's trading results for the six months ended 31 March 2018 are slightly ahead of management's expectations with revenue and profit growing by over 30%. Group revenue was just above £14.5 million (H1 2017: £10.9 million) and operating profit (stated before the amortisation of acquisition-related intangibles, share-based payment charges, acquisition-related and restructuring costs) increased to over £2 million (H1 2017: £1.55 million). On a 'like-for-like' basis, excluding the acquisition, revenues have risen to just over £11 million (H1 2017: £10.9 million) and operating profit, reflecting a more efficient and lower cost of the delivery of Group solutions, at over £1.7 million (H1 2017; £1.55 million) is more than 10% ahead. Gross margins continue to run at a high level of over 80% and growing pre-contracted recurring revenues increased to above £8 million ('like-for-like' excluding Anisa, H1 2018: £5.9 million compares with H1 2017: £5.40 million). The Group continues to focus on building recurring revenues including growing subscription, cloud and managed services revenues.

Sales order intake continues to be good and the value of the Group order book measured on a 'like-for-like' basis at the end of March 2018, was over 15% ahead of the comparable order book value at the end of March 2017. The order book is much better balanced and is now at a more manageable level across the Group's businesses. The total order book, which now includes the acquisition and reflects the remaining element of the large order gained in June 2017, is now valued above £8 million.

The Board is committed to maintaining a strong balance sheet and Sanderson continues to generate cash in line with operating profit. Following the acquisition in November 2017 which was satisfied from the Group's own cash resources, by the assumption of Anisa's utilised five-year repayable term debt facility of £4.12 million and by the issue of 3,990,653 Sanderson shares (which are effectively 'locked-in' until November 2020), the net cash balance at 31 March 2018 stood at over £1.3 million (31 March 2017: £4.51 million).

Digital Retail Division
Digital Retail, which operates in very active and rapidly developing markets, continues to make strong progress. In the six-month period to 31 March 2018, revenue grew by over 20% compared with the comparable period in the prior year, profits almost doubled and the order book at 31 March was up by over 50% compared with the order book at 31 March 2017. Following a successful pilot scheme, a Phase One order has been secured with a well-known global iconic fashion brand. Sales prospects remain strong with pilot schemes for a number of prospective customers being planned for initial deployment in the current financial year.

Enterprise Division
The Group's Enterprise businesses, which have benefited from increased investment in sales and marketing capability, have continued to make progress. The Manufacturing business is increasingly driven by the food and drink processing sector where the Group has a strong presence and the profit achieved was higher than for the comparable prior year period. The Group businesses which focus on the supply of solutions to the wholesale distribution sector remained very profitable with revenue and profit being sustained at levels close to the comparable prior year period. We expect this part of the business to deliver an improved result for the second half year, which has started well. Anisa has made a good start as part of Sanderson with a number of exciting sales prospects being developed. The managed service product offerings provide an opportunity to exploit and to accelerate expected market trends towards subscription and cloud options for product delivery and for access at customer sites. Anisa considerably enhances the proven range of products, services and solutions which Sanderson now offers to prospective and existing customers in the target market sectors. The Enterprise division enters the second half of the financial year with a strong recurring revenue base, a good order book and a good list of sales prospects.

Strategy and Outlook
The Board continues to be cautious in its approach, sensitive to market conditions and endeavours to monitor the general economic environment carefully. Notwithstanding any potential uncertainty surrounding the ongoing Brexit negotiations, Sanderson, now strengthened by the acquisition, has a large order book, robust recurring revenues and a healthy balance sheet. The Group has a good reputation, a strong track record and with continuing sales momentum in its target markets, the Board has a good level of confidence that Sanderson will make significant further progress during the current financial year ending 30 September 2018.

2018 Interim Results
RNS
RNS Number : 9353O
Sanderson Group PLC
23 May 2018



FOR IMMEDIATE RELEASE 23 MAY 2018


SANDERSON GROUP PLC
Interim Results for the six months ended 31 March 2018
"Strong performance across the Group with EPS increasing by 44%; November acquisition has made a good start; Dividend up 14%; further significant progress anticipated."

Sanderson Group plc ('Sanderson' or 'the Group'), the software and IT services business specialising in digital retail technology and enterprise software for businesses operating in the manufacturing, wholesale distribution and logistics sectors, announces Interim Results for the six month period ended 31 March 2018.

Commenting on the results, Chairman, Christopher Winn, said:
"The Group trading results for the six month period ended 31 March 2018, are slightly ahead of management's expectations; revenue increased by 34% to £14.61 million (2017: £10.90 million) and operating profit* rose by 34% to £2.08 million (2017: £1.55 million). Sanderson continues to generate cash in line with operating profit and is committed to maintaining a strong balance sheet. To supplement organic growth, selective acquisitions are under continued consideration. The Board remains focused on continuing to deliver both organic and acquisitive growth, achieving 'on target' results, increased earnings, good cash generation and a robust balance sheet, thereby further increasing shareholder value and growing dividend returns."
Highlights - Financial
· Revenue increased by 34% to £14.61 million (2017: £10.90 million); 'like-for-like' revenue (excluding Anisa) rose to £11.08 million (2017: £10.90 million).
· Pre-contracted recurring revenue increased to £8.25 million (2017: £5.40 million), representing 56% of total revenue in the period (2017: 50%); 'like-for-like' recurring revenue grew by 11% to £5.99 million (2017: £5.40 million).
· Operating profit* rose by 34% to £2.08 million (2017: £1.55 million); 'like-for-like' operating profit (excluding Anisa) grew by over 12% to £1.74 million reflecting a more efficient, lower cost delivery of the Group's solutions.
· Continued cash generation in line with operating profit with net cash balance at 31 March 2018 of £1.39 million. The cash balance, excluding the Anisa loan (term debt facility of £4.12 million) remains strong at £5.06 million (2017: £4.51 million).
· Increased Interim Dividend declared, up 14% to 1.25 pence per share (2017: 1.10 pence).
· Basic earnings per share* increased 44% to 2.3 pence (2017: 1.6 pence).

* Operating profit and basic earnings per share are stated before amortisation of acquisition-related intangibles, share-based payment charges, acquisition-related and restructuring costs.


Highlights - Operational
· Strong performances from both Digital Retail and Enterprise divisions with order books of £3.42 million (2017: £0.84 million) and £5.19 million (2017: £1.93 million) respectively.
· Digital Retail revenue grew 20% to £4.25 million (2017: £3.54 million) whilst operating profit* more than doubled to £0.70 million (2017: £0.34 million); sales orders gained during period included Richer Sounds plc, Thorntons Limited, Beaverbrooks The Jewellers Limited and Scotts of Stow;
· Enterprise division, comprising manufacturing, wholesale distribution and logistics and supply chains, significantly enhanced and strengthened by acquisition of Anisa during the period; revenue and operating profit* (including Anisa) increased to £10.36 million (2017: £7.36 million) and £1.38 million (2017: £1.21 million) respectively. Anisa's global customer base, active during the period, with orders from Culina Group and DHL Supply Chain.
· Total Group order book at period-end (including Anisa) of £8.61 million (2017: £2.78 million); like-for-like order book rose 16% to £3.22 million (2017: £2.78 million).

On current trading and outlook, Group Chief Executive, Ian Newcombe, added:
"We continue to be measured in our business approach, sensitive to the general economic environment and we monitor customer confidence and market conditions carefully. Whilst the Group has not detected any major loss of confidence amongst its customers and that the value of prospects is increasing, sales cycles can still be protracted, especially where major projects are under consideration. Notwithstanding any potential uncertainty surrounding the ongoing Brexit negotiations, Sanderson, now strengthened by the November acquisition, has a large order book, robust recurring revenue and a healthy balance sheet. Combined with the Group's proven reputation, well-established track record and continuing sales momentum, the Board has a good level of confidence that Sanderson will make significant further progress during the current financial year ending 30 September 2018."