Sanderson Group - Strong Trading Update

Sanderson Group Strong Trading Update In a trading update ahead of its full-year results, Sanderson has announced full-year revenue of £13.8m, in-line with our expectations, and that operating profit will be in-line with market expectations. We keep our forecasts untouched for FY13, but upgrade them for FY14. We will be providing FY15 forecasts on the back of the results, which are scheduled for release on 26th November 2013. We continue to be impressed by the software and IT services company’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. Our stance remains buy, with a target price of 72p. Click to Download Full Report Table: Financial overview Year to 30th Sep. 2011A 2012A 2013E 2014E Revenue* (£m) 14.1 13.4 13.8 16.0 PBT(£m) 0.4 1.5 2.0 2.7 EPS* (p) 1.1 3.0 4.09 4.42 Dividend (p) 0.75 1.20 1.50 1.60 Yield (%) 1.19% 1.90% 2.37% 2.53% Source: GECR and company Notes: *Continuing operations Buy Target price 72p Key data Share Price 63.25p 52 week high/low 65.50p / 44.00p Primary exchange AIM EPIC SND Shares in issue 51.48m Market Cap £32.56m Sector Software & Computer Services Important: All disclaimer information can be found on the last page of the document

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