Sanderson Group lifts FY pretax profit, dividend

Sanderson Group said its trading results for the year ended 30 September 2016 are in line with market expectations in terms of profit whilst revenue is slightly ahead of expectations.

"Gross margin remains strong at 84% (2015: 85%), reflecting a continuing emphasis on the supply of Sanderson proprietary software and services," said chairman Christopher Winn in a statement.

"Sales order intake grew by over 20% to £12.26 million (2015: £10.03 million) and this increase included over £3.83 million of business gained from new customers.

"Sanderson has a strong, cash-generative business model which has enabled the Board to maintain a progressive dividend policy whilst continuing to invest in the further development of the Group's businesses."

HIGHLIGHTS:

- Revenue increased by 11% to £21.32 million (2015: £19.18 million).

- Pre-contracted recurring revenue grew 10% to £10.75 million (2015: £9.77 million), representing approximately 50% of total revenue in the year (2015: 51%).

- Operating profit increased 12% to £3.69 million (2015: £3.30 million). Profit before tax of £2.78 million (2015: £2.03 million), an increase of 37%.

- Diluted earnings per share of 4.4 pence (2015: 3.4 pence), an increase of 29%.

- Adjusted diluted earnings per share of 5.5 pence (2015: 4.9 pence).

- Cash balance at year-end of £4.34 million (2015: £4.61 million) after acquisition related cash consideration payments of £1.66 million and dividend payments during the year of £1.21 million.

- Proposed final dividend up 16% to 1.4 pence per share (2015: 1.2 pence).

At 9:43am: (LON:SND) Sanderson Group PLC share price was +2.5p at 71.5p