gretel
23 May 2018
Terrific H1 results as hoped [link] 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)."SND still have net cash even after the Anisa acquisition, and there's a strong hint that there may be more acquisitions on the cards, especially as Anisa has been integrated successfully:"To supplement organic growth, selective acquisitions are under continued consideration"The order books look great going forward, and they support the rather bullish outlook by SND's normally cautious standards:"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."
gretel
02 May 2018
Re: Trading ahead of expectations.... Good to see Graham Neary at Stockopedia is keen on SND:[link] (LON:SND)•Share price: 93.5p (+6%)•No. of shares: 60 million•Market cap: £56 millionPre-close trading updateThis is a software company providing industry-specific solutions to a range of sectors.Checking my prior notes, I last covered Sanderson when it made a large (£12 million) acquisition late last year. At the time, I had a positive impression of prospects. Customer concentration was material but perhaps at an acceptable level - the biggest customer accounted for 12% of sales. Today's update is nice. Key points:•The acquired business has "made a good start"•Trading results are "slightly ahead of management's expectations with revenue and profit growing by over 30%". Helpfully, Sanderson also reports comparable "like-for-like" growth rates, excluding the acquisition. Organic sales are about flat, up from £10.9 to £11 million. Like-for-like operating profit is up 10% (efficiency gains) and the like-for-like order book is up 15%.I'll refrain from any further analysis until we get more detailed results (due on 23 May), but for now I maintain my positive impression of the company and would suggest that it is worthy of additional research. The StockRank is a mighty 97."
gretel
01 May 2018
Re: Trading ahead of expectations.... Here's a link to Investors Champion's latest write-up on SND, which reads rather well (free to read if registered):[link]
gretel
30 Apr 2018
Trading ahead of expectations.... Terrific trading update today - ahead of expectations, with order books looking great, high recurring revenues, lots of confidence going forward etc etc.....[link] Trading UpdateResults 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 DivisionDigital 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 g
gretel
06 Mar 2018
New analyst Buy report on SND The Capital Network have recently issued a new report on SND - they have a 104p target price given "the company's healthy balance sheet and good earnings visibility".They conclude the "current valuation looks attractive in our view":[link] a new interview with an analyst from the above Capital Network further discussing the delights of SND:[link]
Health Observer
27 Nov 2017
Re: Acquisition AgreeAs a long term shareholder I’ve been very patient!Happy with the dividends but capital appreciation has been weakI’m of the opinion that the business needs scale so for me the acquisition is positive Still has to be integrated and synergies achieved but I agree the vendors are taking a realistic viewResults due tomorrow so we may get some more information
Lavenonews
27 Nov 2017
Acquisition Worth being patient.Looks a good fit and nicely structured, a bit of reality on the part of the vendors given the range of outcomes facing the UK in coming years. Looking forward to seeing what the forecasts look like for the bigger business.
Lavenonews
31 Oct 2017
Strong cash performance Bit weak on top line but revenue is vanity.Margins better, which is sanity.Cashflow excellent which matters so much more.Financial firepower with 6m quid burning a hole and they could easily leverage just a little.Just need to get the right acquisitions, it requires patience to hold SND but at least we have a good dividend while we wait.
SundayTrader
16 Jun 2017
Re: Results Sentiment has turned negative on the retail sector where their customers are. I can only put it down to that and a tight market in the shares.I don't run stop losses on this sort of share, and anyway the price is not that much below my average purchase price. So I am leaving my holding alone.
musker ron
12 Jun 2017
Re: Results I am also surprised at the 25% drop since the results and now below the 200 day MA. The drop triggered my stop loss so am now out completely but at a profit. Should the decline continue, I will look to get back in at the appropriate time as my view on management hasn't really changed.
SundayTrader
11 Jun 2017
Re: Results Well, I got that one wrong, I should have been more patient with my buy order. It usually pays. I have held this for a couple of years now, and I agree about the management.
musker ron
25 May 2017
Re: Results Yes I'd noticed the cost increase impacting on operating profit and agree with your analysis. The forward order book is also slightly down on last years interims. Big spike in volumes both yesterday and today and the price has been punished accordingly. When investing in a small company like this, I always invest in the management not so much the product. My view is that it is extremely well managed and the board have made few mistakes so far.. If that continues then it will continue to be worth investing. I still have a target price of 101p slightly lower than the 102 I had before these interims.
SundayTrader
25 May 2017
Re: Results Earnings were depressed by a hefty increase in costs, and some acquisition costs. Also a slightly higher tax charge. I thought these were good results and I liked the dividend hike - unlike many software companies SND charges development spend as it is incurred, with the result that profit from sales growth doesn't come through immediately. I thought the words about lengthy sales cycle were situation normal for this sort of business - there was an unusual number of large new contracts last year. The real issue is the willingness of their customers, especially the retailers, to continue upping their software spend. New software projects, however valuable, are always dumped when money is tight.I was surprised too by the market reaction - I picked up some more as a limit order was triggered so we will see what happens.
musker ron
25 May 2017
Results Seems that the reduction in operating profit and consequent reduction in EPS has not gone down well with the market. Disappointing but not disastrous. Forecast growth is still positiveThe cautious outlook from the CEO of 'There does seem to be a slightly more considered approach from some customers.' hasn't helped but was the right thing to say in my view. SND is a well managed but a small company and is subject to more volatility than larger counterparts on news like this. I continue to be a buyer for the medium t
Ripley94
17 Apr 2017
Re: NEW ARTICLE: Stockwatch: A company with ... Share prophets claim they own "shed loads" .On one of there "dragons dens things " on blog yesterday.on a spike at present.seems pay 3% div .
