Sanderson sees first-half adjusted profit growing 30%; ahead of expectations
Source - SMW
Software provider Sanderson Group said its first-half adjusted profit had grown by over 30%, beating its expectations.
Operating profit, excluding amortisation of acquisition-related assets, share-based payment charges and non-recurring items, for the six months trough March to £2.8m, up from £2.1m on-year.
Revenue rose 16% to £17.0m, or by 15% to £16.9m on a comparable basis, excluding the impact of IFRS 15.
On that measure, operating profit rose more than 20% to £2.5m.
The order book stood at around £8.0m at the period-end.
Digital retail continued to perform 'strongly', achieving further double-digit revenue and operating profit growth.
'This division has continued to benefit from increased investment in sales and marketing capability with the sales order intake being above prior year levels and continued strong sales prospects,' the company said.
The enterprise division continued to make good progress, it added.
'The board continues to be cautious in its approach, sensitive to both market conditions as well as to monitoring the general economic environment carefully,' Sanderson said.
'However, following the strong trading momentum built in the first half of the year, a healthy order book, high recurring revenues and a strong, cash backed balance sheet, the board has confidence that the group is well positioned to make further progress in the rest of the full financial year ending 30 September 2019.'
'This will enable the board to maintain its progressive dividend policy and continue to build shareholder value.'