Sanderson gains new customers despite Brexit fears

Sanderson, the AIM-listed software and IT services business, have recorded an increase in sales from new customers despite uncertainty surrounding Brexit.

The firm specialises in digital retail technology and enterprise software for businesses operating in the manufacturing, wholesale distribution and logistics sectors.

Trading results in terms of profit were in-line with the board’s expectations, whilst revenue was slightly ahead. Revenue grew 10% to over £21m for the year ending 30 September 2016, up from £19.18m in the previous period. Adjusted operating profit increased by over 10% to approximately £3.69m compared to £3.3m in 2015.

Sales order intake has grown to over £12m from £10m in 2015. Over £3.8m of this was gained from new customers, nearly twice the £2m gained during the previous year.

The company’s manufacturing business has gained over £1m orders from new customers. The businesses, which focus on the supply of solutions to the wholesale distribution and logistics sectors, gained a record value of new customers with overall intake up by 50%.

The group’s order book stood at £3m compared to £2.35m in 2015. Pre-contracted recurring revenues represented over 50% of total revenue at £10.76m, up from £9.85 in 2015.

The digital retail division revenue grew by 8.5% despite a slow start to the year to £6.4m. In anticipation of continued rapid growth in the division, the group has made further investment in management, sales and delivery capacity.

The enterprise division has made further progress as well as benefited from increased investment in its sales and marketing capability over the last two years.

The group’s net cash balance at 30 September 2016 was £4.3m, down from £4.61m in the previous period.

The board plans to enhance the strength of the group with complementary acquisitions and is confident that the group will continue to make further progress during the year ending 30 September 2017.

The share price rose 1.58% to 47.49p at 1415 BST on Wednesday.