The pre-AGM statement from Sanderson shows the company is in good form with sales and profits for the first four months of the fiscal year (to January 31 2013) ahead of the same period last year. The positive trading update follows its encouraging year end results (see here). As a supplier of software and services to the variable multi channel retail and manufacturing markets, it can not afford to be complacent but with over half its sales from recurring revenue and the margin from this area covering just over two thirds of business overheads it can breath more easily. In terms of business focus, it is the catalogue, online sales and ecommerce markets with their double digit growth that continue to draw its focus but it will also be making more of the food and drink manufacturing market it entered over the past two years and is confident that new sales opportunities will convert to contracts before the end of the year.
Within the business overall it is confident enough to be looking at several potential acquisition targets and may close off on one during the year – we’d say something in ecommerce or mobile would be likely candidates. It is also continuing with in-house mobile product development. This is a welcome move and an important means of moving the business forward. Indeed in previous briefings Chairamn Chris Winn told us he had observed small businesses skipping over cloud technology and going straight to the mobile platform. We’ll certainly be watching Sanderson to see how this trend pans out.