Sondrel (holdings) Share Discussion Threads

[johnsoho] 23/1/2012 07:53

A nice RNS for the Monday morning:

GBP11.7million Trade Sale of High Street Retail business &

trading update

Sanderson Group plc ('Sanderson' or 'The Group'), the software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, announces that on 20(th) January 2012 it completed the sale of Sanderson RBS Limited ("Sanderson RBS"), the Group business which specialised in the sale of 'electronic point of sale' ("epos") solutions to major high street retailers, to Torex Retail Holdings Limited ("Torex"). Torex are a leading technology provider to the retail, hospitality and convenience and fuel markets. The cash consideration of GBP11.5million is payable on completion with additional cash consideration of GBP0.15million being payable unconditionally on 6(th) April 2012 and a further GBP0.1m payable dependent upon receipt by Sanderson RBS of specific customer payments.

In the year ending 30(th) September 2011, Sanderson RBS achieved sales of GBP12.36million, operating profit of GBP1.41million (stated before amortisation, share-based payment and allocation of group cost) and profit before taxation of GBP0.86million. The net assets of Sanderson RBS at 30(th) September 2011 were GBP3.56million.

The cash proceeds of the sale will enable the Group to repay its bank debt and leave a positive cash balance of approximately GBP4million. The Board has a strategy to develop and expand the Group, to build shareholder value and to increase shareholder returns. The cash will be used to invest in the further development of products and services, especially in the areas of online sales and ecommerce solutions. The Sanderson strategy is to enhance the Group's presence in its core markets of multi-channel retail and manufacturing, both through further development of existing product suites, as well as by complementary acquisitions. The Board will also consider taking advantage of the Group's strong cash generation to accelerate the Group's progressive dividend policy.

Given the current challenging economic environment, Sanderson has maintained good trading momentum. The new product suites launched over the last 18 months, which include Green IT, Software as a Service, Cloud Solutions and the very latest versions of the ecommerce software with modern functionality and features, have made the Group more competitive and have contributed to the improvement in trading and the gaining of new customers. The Sanderson manufacturing business has continued to trade well as has the Group's multi-channel business, which has won new customers, especially from companies operating in the areas of catalogue and online sales, ecommerce and wholesale distribution. At the end of the first quarter, to 31 December 2011, order intake in the manufacturing and multi-channel businesses was almost ten per cent ahead of the comparative period of the previous financial year.

Sanderson now has a strengthened balance sheet, cash in the bank and continues to improve its competitive market position. The Board is confident that the Group will make further progress during the current year and anticipates updating shareholders with progress at the Annual General Meeting which will be held on 15(th) March 2012.

Commenting on the transaction, Chairman, Christopher Winn, said that:

"We believe that this is both a satisfactory transaction for Sanderson shareholders as well as a good opportunity for both the Sanderson RBS staff as well as for Torex, led by Steve Rowley. I would, on behalf of the Board and the shareholders of Sanderson, thank especially David Mahoney, the Managing Director of Sanderson RBS for his leadership and Steve Watson, the management and staff, for their loyalty, hard work and support in making a strong contribution to the rebuilding of the Group's value since the very tough period from late 2008 through 2009."

Mr Winn, added:

"Looking ahead, our focus will be on the continued development of the Sanderson products and services, with special emphasis on further enhancement of the online sales and ecommerce solutions. We intend to further expand the Sanderson customer base and to increase investment in our successful manufacturing business which is enjoying positive trading momentum. The Board strategy is to achieve growth both organically through investment in new products and services as well as by selective acquisitions as opportunities arise."

[effortless cool] 29/11/2011 09:29

Double price is incredibly optimistic, in my opinion.

Results were marginally better than my model, but revenue is going nowhere and that is unlikely to change, given the sectors that they operate in.

Looks a solid hold for the risk averse, but can't see any reason to buy.

[stegrego] 28/11/2011 19:15

Three write ups today.

Investors Champion
UK Analyst round up
GECR

All very positive siting double the share price targets.

I'm inclined to agree.

[battlebus2] 28/11/2011 18:43

Yes looking good for future years.

[topvest] 28/11/2011 08:38

Good results again, so not sure why it drops a penny other than a few order deferrals. Order book looks in good shape and the company is very cash generative. One of the main drivers next year will be a reduced financing cost as a result of the re-financing, in my opinion. Two impacts - reduced and ever diminishing debt + significantly lower borrowing cost. Should improve dividend prospects further.

[stupidboypike] 31/10/2011 13:23

boyinthebubble,

I take it from the fact that you don't hold any that you do not see them as exceptionally good value at this price?

Best regards

SBP

[boyinthebubble] 27/10/2011 07:49

I used to work for Sanderson (1999-2002) and still keep an eye on what's going on as a private investor. I don't hold any shares.

Anyway, today's RNS



Exercise of options & Trading update (soon)

Exercise of Options

Sanderson Group plc ('Sanderson' or the 'Group'), the software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, announces that 142,000 ordinary shares ('New Ordinary Shares') have been issued to a former employee as a result of the exercise of options under a Long Term Incentive Plan ("LTIP"). Application has been made for the new shares to be admitted to AIM and admission is expected to take place on 1st November 2011.



The New Ordinary Shares will rank pari passu with the existing Sanderson ordinary shares. Following allotment of the New Ordinary Shares, Sanderson will have in issue 43,525,946 ordinary shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of Sanderson under the Disclosure and Transparency Rules.



Trading Update

During the first week of November, the Group will, as usual, provide investors with a Pre-Close Trading Update for the financial year ending 30th September 2011. The update will confirm that the Group's trading is in line with market expectations.



The Preliminary Announcement of the Group's Results for the year ending 30th September 2011 is expected to be made during the last week of November or the first week of December.

[envirovision] 17/10/2011 10:01

Seem like a cracking price have just taken a few.

[battlebus2] 02/8/2011 18:12

Yes really good news on a day there's very little about.

[topvest] 02/8/2011 17:41

The £300k annual saving should boost the dividend going forwards. More very good news here!

[windass] 02/8/2011 16:52

GE&CR update - target price raised

[choppa] 25/7/2011 13:20

Its always the quiet ones, hehe.

[windass] 19/7/2011 16:00

Up 33% since the GE&CR note. I see the Investor's Chronicle's target price is the same!

[2gekko] 18/7/2011 12:50

This has just been tipped by Investors Chronicle's Simon Thompson

Simon expects a re rating soon and has put a six month target of 47p on SND

[windass] 14/7/2011 11:53

moving in the right direction now

[envirovision] 13/7/2011 15:14

yea you were about that.

[windass] 13/7/2011 09:33

GE&CR has initiated coverage



Should see some movement today

[cb7] 07/6/2011 09:39

EC... agreed that "clean" profits always more preferable than adjusted ones, (before goodwill, amortisation etc) and some cos seem to be serial offenders, (all manner of deductions). But they are a fact of life and accounting methods.
SND has reduced its net debt by 20% in a year, margins are up and the order book is strong = reasons to be cheerful.

[effortless cool] 07/6/2011 07:35

I would see that adjusted eps is there to paint the picture that the management would prefer you to see, rather than the one that's actually hanging there.

Anyway, each to their own. I'm not claiming there's anything wrong with SND, I just don't like it at current valuations.

I'll leave you alone now.

[stegrego] 07/6/2011 07:30

Adjusted eps is there to paint a picture excluding one offs.
Looks reasonable to me.

[effortless cool] 07/6/2011 07:22

Thank you penpont, but actual eps was 0.7p. It's the acquisitions that bring the revenue; excluding the amortisation of the limited-life intangibles purchased and the cost of share-based payments is, I think, misleading. Cash per share is an interesting figure,but it is not a substitute for earnings per share.

[penpont] 06/6/2011 23:31

Adjusted eps at the halfway stage was 2.3p so doesn't seem unrealistic to hope for 5p eps for the full year, esp as the 2nd half is stronger. PE of around 6 makes them one of the cheapest small software stocks around.

[effortless cool] 06/6/2011 23:10

As I said, good luck to you, but I'd be interested to know why you think this is worth over 30p.

[battlebus2] 06/6/2011 22:29

Thanks for your effort but i'll remain a holder for the forseeable future.