Sanderson’s outlook gives 'confidence for FY'

Sanderson provided an update on trading for its first half today, revealing “a small reduction in turnover” but an improvement in profitability. Gross margins are higher because the retail and manufacturing SITS firm is selling more of its ‘owned’ software. H1 profits are therefore ahead of the comparative period last year. The outlook for the full year is sufficiently encouraging to give the Board “a good level of confidence” despite some caution on the general economic outlook for the UK. Sanderson reports a surge in orders for its latest manufacturing products (the overall order book was £3.25m at the end of March, up from £2.6m last year); strong cash generation and falling net debt (down £1.5m to £7.5m). The strong demand for its new SaaS products is particularly encouraging (see Sanderson launches SaaS offering on schedule), and suggests its competitive position is improving.