Sanderson shoots up after profit growth and raised dividend

For the year ended 30 September, the enterprise resource planning software provider’s profit before tax increased to £3.2m, up by 19.2% compared to the prior year, as revenue grew by 48.7% to £32.1m.

Revenue was boosted by supply chain management firm Anisa, which Sanderson purchased in November last year for £12m as, excluding the acquisition, like-for-like revenue edged up 6.5% to £12.2m.

The AIM traded company, which counts Hotel Chocolat and Tottenham Hotspur among its clients, proposed final dividend of 1.75p per share which brought the full-year dividend to 3p per share, up 13% from last year, as cash and cash equivalents were up from £6.2m last year to £6.5m.

Ian Newcombe, chief executive of Sanderson, said: "The group has a clear growth strategy. Organic growth is planned from the fast expanding digital retail division and renewed growth impetus from the enlarged enterprise division. There is an ongoing plan to accelerate the group's growth with selective acquisitions."

The company’s order book at the end of the year stood at £7.6m, up from £5.8m the previous year and Newcombe stated that this provided “a good level of confidence” that the group would once again deliver results that are at least in line with expectations for its ongoing financial year.

"Sanderson has a good reputation having built-up a strong track record of delivering customer-centric solutions. Whilst the board is mindful of potential ongoing uncertainty surrounding economic conditions post the Brexit outcome, the board believes that Sanderson is well positioned in its target markets and has good sales prospects, backed by a healthy order book," said Newcombe.

Sanderson’s shares were up 10.47% at 93.90p at 1307 GMT.