13 August 2013 – acquisition
The software and IT services group has purchased Catan Marketing Limited, a business providing e-commerce solutions to over 30 multi-channel retailers. The total consideration may be up to £645k, with £500k paid on completion and some of the balance dependent on certain performance criteria. For the year ending 31 August 2012, Catan had revenues of £895k and achieved a pre-tax profit of £27k although these figures are both significantly lower than the year before. There is therefore clear potential for Catan to improve its performance in a larger group. Sanderson itself is continuing to trade well in the second half of the year to 30 September with results expected to be in line with market forecasts. There are some signs of improving economic conditions which should also assist future organic growth at the group. Although this is only a small addition to the group, other acquisitions are being considered and we re-iterate our recommendation of BUY.