Sanderson Group PLC (LON:SND) shares rose on Monday as the software and IT specialist said its trading results for the six months ended 31 March 2018 were slightly ahead of management expectations, with revenue and profit growing by over 30%.
In a trading update, the AIM-listed firm said its revenue was just above £14.5mln, up from £10.9mln a year earlier, while operating profit increased to over £2mln from £1.55mln.
Sanderson said on a like-for-like basis, excluding the acquisition of Anisa Group, revenues have risen to just over £1mln from £10.9mln and the operating profit rose to over £1.7mln from £1.55mln at the same period a year ago.
The IT services firm said the group order book is now valued at above £8mln and sales order intake continues to be good.
Sanderson said the size and strength of its Enterprise division has been ‘significantly enhanced’ with the acquisition of Anisa Group, the supply chain and enterprise resource planning company, while the revenue of its Digital Retail division grew by 20%.
The company said it continues to be cautious in its approach, sensitive to market conditions and endeavours to monitor the general economic environmental carefully, but, notwithstanding any potential uncertainty surrounding the ongoing Brexit negotiations, the group now strengthened by the acquisition, has a large order book, robust recurring revenues and a healthy balance sheet. .
Sanderson said: “The Group has a good reputation, a strong track record and with continuing sales momentum in its target markets, the Board has a good level of confidence that Sanderson will make a significant further progress during the current financial year ending 30 September 2018.”
In mid-morning trading, Sanderson’s shares were 5.6% higher to 93.50p.