Sanderson Group – 46p

27 November 2012 – final results

Excellent results have been reported by software and IT group Sanderson for the year to 30 September with adjusted pre-tax profits on continuing operations increasing to £1.5m (2011: £0.4m) for earnings per share on the same basis of 3.0p (2011: 1.1p).  These are the first annual results to be reported since the sale of Sanderson RBS in January – the disposal has led to the group having net cash at the year end of over £4.0m  (2011: net debt of £6.72m) and this fed through to a much lower finance charge for the year.  The dividend for the year was raised by 60% to 1.2p (2011: 0.75p) as a sign of confidence in the future.  Further progress is expected in the current financial year with pre-tax profits forecast to increase to £2.1m for earnings per share of 4.1p.  With the strength of the balance sheet we rate the shares a BUY.

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