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Sanderson Sees FY18 Results Above Market View, Progress In FY19; Stock Up

Shares of Sanderson Group Plc (SND.L) increased around 5 percent in the early morning trading in London after the specialist provider of digital technology solutions Wednesday said its fiscal 2018 results are significantly ahead of the prior year, and also slightly ahead of current market expectations.

In its trading update ahead of the announcement of its fiscal 2018 preliminary results, scheduled for November 26, the company said its full-year Group revenue rose to around 32 million pounds from 21.6 million pounds last year. The results reflects the acquisition of the Anisa Group completed in November 2017.

Gross margins for the year continued to run at high levels of 80%. Operating profit increased 30% to over 5 million pounds. On a like-for-like basis excluding the effect of the acquisition, operating profit is expected to be slightly ahead of last year with revenue growing at over 5%, largely driven by pre-contracted recurring revenue growth.

In the second half of the financial year, the Group continued to experience strong sales order intake and the order book at 30 September 2018 stood at over 7 million pounds, up from 5.79 million pounds last year.

On a like-for-like basis, the order book increased by over 9%.

All Sanderson businesses traded strongly in the second half year with the highlights being the performance of the Digital Retail business which grew at over 20% and Anisa, which has made a good start as part of the Group.

Across the Group, sales prospects continue to be developed and further sales and marketing investment is planned.

Looking ahead, Sanderson said it has a healthy order book and with good sales prospects going forward, the Board is encouraged and has a good level of confidence that, at the start of the new financial year, the Group will continue to make further progress in the coming year ending 30 September 2019.

In London, Sanderson shares were trading at 87.85 pence, up 5.21 percent.

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