Sanderson Group - Acquisition of Ecommerce Business

Sanderson Group Acquisition of Ecommerce Business In a move to augment its existing multi-channel retail business, Sanderson Group has acquired Catan Marketing Limited for a maximum consideration of £644,660. We see the acquisition as a good fit, and anticipate that the revenue and cost synergies created will more than outweigh the attractive price paid, given the strong similarities between these businesses and the strong market opportunity. While we believe that we could see the synergies begin to emerge within the next 12 months, we prefer to be prudent and are waiting for signs of growth before upgrading our forecasts. With that said, we continue to be impressed by Sanderson's high level of recurring revenues, strong and growing range of products and services, growing presence in the catalogue, online sales and ecommerce markets, strong balance sheet and cash generation. Accordingly, we retain our buy stance, with a target price of 66p. Click to Download Full Report Table: Financial overview Year to 30th Sep. 2011A 2012A 2013E 2014E Revenue* (£m) 14.1 13.4 13.8 14.6 PBT(£m) 0.4 1.5 2.0 2.3 EPS* (p) 1.1 3.0 4.09 4.34 Dividend (p) 0.75 1.20 1.50 1.60 Yield (%) 1.52% 2.42% 3.03% 3.23% Source: GECR and company Notes: *Continuing operations Buy Target price 66p Key data Share Price 49.50p 52 week high/low 56.50p / 37.00p Primary exchange AIM EPIC SND Shares in issue 43.8m Market Cap £21.68m Sector Software & Computer Services Important: All disclaimer information can be found on the last page of the document

If you do not wish to receive such emails please use the following link to unsubscribe.

UK-Analyst.com is owned by t1ps.com Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA).

The share tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the share tips contained here should seek independent advice from a Financial Services Authority authorised Stockbroker or Financial Adviser. So, while we would not wish to reduce our liability under the FCA regulatory regime, we cannot otherwise be held liable if individuals suffer losses through following share tips contained on this site or emailed out as free share tips.

The value of investments can go down as well as up. The past is not necessarily a guide to future performance. Investing in shares can lose you part or all of your capital although the potential returns are theoretically unlimited.

The difference between the buy share price and the sell share price for smaller company shares (penny shares) can be significant. Profits from dealing in shares may be liable to tax - the level of tax and bases of relief from tax are subject to change. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Financial spread betting is a high risk investment, losses from which are potentially unlimited.

Some of the share tips on this site will be smaller company shares. By their nature such investments can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares (or 'small caps'/'penny shares'). UK-Analyst.com defines a smaller company share as any stock traded on AIM or ISDX or which has a market capitalisation of less than £300 million.

The appearance of an advert does not mean that we endorse the advertiser's goods or services. While we will not knowingly run an advert that is untrue, T1ps.com is not responsible for the accuracy of any advertising material or the accuracy of the description of an advertised product or service anywhere on our websites. 

We do not recommend or endorse any vendor/trainer/product/service other than our own. It is up to each member to decide whether what an advertiser offers is right for you. We take every care to ensure that scams and spamming are not run on this website, but we recommend that any purchaser/service user take every precaution possible to satisfy themselves of the authenticity of any service/product purchased and responsibility for this lies solely with the purchaser. 

The appearance of an advert on the site does not mean that we endorse the advertiser's goods or services. While we will not knowingly run an advert that is untrue, UK-Analyst.com is not responsible for the accuracy of any advertising material or the accuracy of the description of an advertised product or service anywhere on our websites. 

We do not recommend or endorse any vendor/trainer/product/service other than our own. It is up to each member to decide whether what an advertiser offers is right for you. We take every care to ensure that scams and spamming are not run on this website, but we recommend that any purchaser/service user take every precaution possible to satisfy themselves of the authenticity of any service/product purchased and responsibility for this lies solely with the purchaser.