Sanderson - SND Stream Log

Panmure note out today: "We think that Sanderson is well placed – given it has a product set which delivers a strong ROI (revenue opportunities and cost savings) so it is more robust than investors think, and of course 53% of revenue is recurring in nature. An ‘In’ vote should see a substantial share recovery as investors stop fretting about a potential UK downturn in retail and general business. We remind that recent trading news (Interim Results, 8 June) featured; (i) operating profit back to the level at which Sanderson sold its EPOS business in 2012A, and (ii) strong cash conversion which fuelled an 11% DPS hike." scraped from research tree

"Sanderson fits the bill for investors looking for a combination of accelerating growth potential, healthy cash generation and growing dividends. This is a long-established provider of high quality ERP and retail systems to SMEs that has a good level of revenue visibility (50% recurring revenues and a £3.2m order book) and a strong IP base that includes connected retail and specialist solutions. Management has a clear and, in our view, highly achievable three-year plan for significant value creation and increasing returns to shareholders. Our revenue and margin targets represent sensible hurdles, while the current valuation is undemanding given the significant re-rating potential offered by growth in the Digital Retail business." N+1 Singer note out today on research tree

Panmure published a note this morning on Research tree: Sanderson delivers an in line set of interims. For us the highlight is twofold (i) operating profit is back to the level at which Sanderson sold its EPOS business in 2012A, and (ii) strong cash conversion which fuels an 11% DPS hike. The business model continues to strengthen - 53% of revenue is now recurring. Sanderson’s acquisitions are bedded-in, the new three-year plan is off to a strong start, the new divisional structure (Digital Retail & Enterprise) creates better product integrity and customer engagement.

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