28 February 2014 – AGM statement
The software and IT services business has announced that trading in the current financial year to 30 September 2014 has been good so far with order intake and the order book being ahead of last year on a like-for-like basis. One iota which was acquired on 7 October has also made a very positive start. Although the general manufacturing business remains weak, strong growth is being seen in the food and drink processing market which is one of the fastest growing sectors in UK manufacturing and Sanderson is well placed to benefit from this with its excellent product suite. Over half of group sales come from pre-contracted recurring revenues which also helps to provide visibility of future earnings. With the UK economy improving and a strong balance sheet the group is well-placed to benefit and further significant progress is expected this year. Following some weakness in the share price we upgrade our recommendation to BUY.