Sanderson Group Plc - Company Update
We had a management meeting with Sanderson after their successful round of investor updates post their 1H 2018 results. The group’s trading results were slightly better than management’s expectations, with both revenue and adj. operating profit increasing 34% YoY. On a like-for-like basis, excluding the Anisa acquisition, the top-line grew 3.6% (after adjusting for a small exceptional item in 2017) and operating profit by 12%, thanks to improved efficiency and cost of delivery. The management has a good level of confidence in making further progress for the remainder of FY2018, supported by a stronger and a more balanced order book and growing sales prospects. The total order book stood at £8.6mln with organic growth of 16%, largely driven by the Digital Retail division. Aside from consistently strong demand from existing customers for the mobile/omni-channel solutions, the company has secured a high-quality global luxury brand for a multi-year contract to deliver a digital store transformation. Within the Enterprise division, the flattish performance of the Wholesale Distribution business was offset by an improved performance by the Manufacturing business. Anisa has integrated well into the group, further enhancing Sanderson’s solutions and services.
Sanderson Group provides software solutions and information technology services to the retail, manufacturing, wholesale distribution and logistics sectors. Co.'s segments are: digital retail, which provides in-store technology; the back-office systems which process sales and fulfill customer orders as well as mobile and ecommerce systems which underpin online operations; and enterprise, which provides Enterprise Resource Planning software for manufacturing in engineering and food and drink processing businesses, as well as Industry-specific software and warehouse management systems, which control across wholesale distribution, cash and carry, fulfilment and logistics businesses.
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