Sondrel (holdings) Share Discussion Threads

[rivaldo] 14/5/2018 23:14

Worth saying twice apeman :o))

Enjoying the ride - the results should bring some more attention here, but I do like a quiet thread!

[return_of_the_apeman] 14/5/2018 16:47

105p paid, is pushing on nicely to the results next week

Just you and I here Rivaldo, bodes well :-)

[return_of_the_apeman] 14/5/2018 16:47

105p paid, is pushing on nicely to the results next week

Just you and I here Rivaldo, bodes well :-)

[rivaldo] 10/5/2018 09:59

Good to see the share price pushing on again - less than 2 weeks until the results now.

[rivaldo] 03/5/2018 09:31

New highs (and above 100p).

[return_of_the_apeman] 02/5/2018 11:39

Yep, looking forward to the results on the 23rd and the analysis thereafter

[rivaldo] 02/5/2018 06:52

Nice distinction apeman :o))

And good to see Graham Neary at Stockopedia is keen on SND:



"Sanderson (LON:SND)
•Share price: 93.5p (+6%)
•No. of shares: 60 million
•Market cap: £56 million

Pre-close trading update

This is a software company providing industry-specific solutions to a range of sectors.

Checking my prior notes, I last covered Sanderson when it made a large (£12 million) acquisition late last year. At the time, I had a positive impression of prospects. Customer concentration was material but perhaps at an acceptable level - the biggest customer accounted for 12% of sales.

Today's update is nice. Key points:

•The acquired business has "made a good start"
•Trading results are "slightly ahead of management's expectations with revenue and profit growing by over 30%".

Helpfully, Sanderson also reports comparable "like-for-like" growth rates, excluding the acquisition. Organic sales are about flat, up from £10.9 to £11 million. Like-for-like operating profit is up 10% (efficiency gains) and the like-for-like order book is up 15%.

I'll refrain from any further analysis until we get more detailed results (due on 23 May), but for now I maintain my positive impression of the company and would suggest that it is worthy of additional research. The StockRank is a mighty 97."

[return_of_the_apeman] 01/5/2018 15:10

Thanks Rivaldo

In the article below I note the board say

trading results for the six months ended 31 March 2018 were slightly ahead of management expectations, with revenue and profit growing by over 30%

And then say

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.”

If they only view a 30% uplift in revenue and profits as "slightly" then what uplift can we expect from "significant" in the second half



Oh and a close around this price today is new breakout, blue skies from now on :-)

Target of £1.50 - £2 in 6 months, with no sleepless nights

[rivaldo] 01/5/2018 07:29

Here's a link to Investors Champion's latest write-up on SND, which reads rather well (free to read if registered):

[return_of_the_apeman] 01/5/2018 02:02

Very quite here, which I view as a positive, perhaps without the effect of traders hopefully this will now make a series of small gains avoiding any significant pullbacks

Stockopedia has this as an overall stock rank of 97/100 with a fantastic quality rating of 92/100

[return_of_the_apeman] 30/4/2018 08:20

Very bullish, note the use of the words "good" and "significant"

"The Board has a good level of confidence that Sanderson will make significant further progress during the current financial year ending 30 September 2018."

[return_of_the_apeman] 30/4/2018 08:11

Breakout coming :-)

[soundbuy] 30/4/2018 07:30

That'll do.........

[rivaldo] 30/4/2018 07:20

Terrific trading update today - ahead of expectations, with order books looking great, high recurring revenues, lots of confidence going forward etc etc.....



"Pre-close Trading Update

"Results slightly ahead of management's expectations; positive trading momentum maintained with strong balance sheet; November acquisition makes a good start; current order book now standing at £8 million."

Sanderson Group plc ('Sanderson' or 'the Group'), the software and IT services business specialising in digital retail technology and enterprise software for businesses operating in the manufacturing, wholesale distribution and logistics sectors, issues the following trading update ahead of the announcement of its interim results for the six months ended 31 March 2018, which are scheduled to be released on 23 May 2018.

Sanderson Group was expanded and enhanced by the acquisition of the Anisa Group ('Anisa') on 23 November 2017, for an enterprise value of £12 million. Anisa specialises in the delivery and support of world-class integrated supply chain and enterprise resource planning ('ERP') solutions on a global basis. The size and strength of the Sanderson Enterprise division has been significantly enhanced and Anisa has made a good start as part of Sanderson.

The Group's trading results for the six months ended 31 March 2018 are slightly ahead of management's expectations with revenue and profit growing by over 30%. Group revenue was just above £14.5 million (H1 2017: £10.9 million) and operating profit (stated before the amortisation of acquisition-related intangibles, share-based payment charges, acquisition-related and restructuring costs) increased to over £2 million (H1 2017: £1.55 million). On a 'like-for-like' basis, excluding the acquisition, revenues have risen to just over £11 million (H1 2017: £10.9 million) and operating profit, reflecting a more efficient and lower cost of the delivery of Group solutions, at over £1.7 million (H1 2017; £1.55 million) is more than 10% ahead. Gross margins continue to run at a high level of over 80% and growing pre-contracted recurring revenues increased to above £8 million ('like-for-like' excluding Anisa, H1 2018: £5.9 million compares with H1 2017: £5.40 million). The Group continues to focus on building recurring revenues including growing subscription, cloud and managed services revenues.

Sales order intake continues to be good and the value of the Group order book measured on a 'like-for-like' basis at the end of March 2018, was over 15% ahead of the comparable order book value at the end of March 2017. The order book is much better balanced and is now at a more manageable level across the Group's businesses. The total order book, which now includes the acquisition and reflects the remaining element of the large order gained in June 2017, is now valued above £8 million.

The Board is committed to maintaining a strong balance sheet and Sanderson continues to generate cash in line with operating profit. Following the acquisition in November 2017 which was satisfied from the Group's own cash resources, by the assumption of Anisa's utilised five-year repayable term debt facility of £4.12 million and by the issue of 3,990,653 Sanderson shares (which are effectively 'locked-in' until November 2020), the net cash balance at 31 March 2018 stood at over £1.3 million (31 March 2017: £4.51 million).

Digital Retail Division

Digital Retail, which operates in very active and rapidly developing markets, continues to make strong progress. In the six-month period to 31 March 2018, revenue grew by over 20% compared with the comparable period in the prior year, profits almost doubled and the order book at 31 March was up by over 50% compared with the order book at 31 March 2017. Following a successful pilot scheme, a Phase One order has been secured with a well-known global iconic fashion brand. Sales prospects remain strong with pilot schemes for a number of prospective customers being planned for initial deployment in the current financial year.

Enterprise Division

The Group's Enterprise businesses, which have benefited from increased investment in sales and marketing capability, have continued to make progress. The Manufacturing business is increasingly driven by the food and drink processing sector where the Group has a strong presence and the profit achieved was higher than for the comparable prior year period. The Group businesses which focus on the supply of solutions to the wholesale distribution sector remained very profitable with revenue and profit being sustained at levels close to the comparable prior year period. We expect this part of the business to deliver an improved result for the second half year, which has started well. Anisa has made a good start as part of Sanderson with a number of exciting sales prospects being developed. The managed service product offerings provide an opportunity to exploit and to accelerate expected market trends towards subscription and cloud options for product delivery and for access at customer sites. Anisa considerably enhances the proven range of products, services and solutions which Sanderson now offers to prospective and existing customers in the target market sectors. The Enterprise division enters the second half of the financial year with a strong recurring revenue base, a good order book and a good list of sales prospects.

Strategy and Outlook

The Board continues to be cautious in its approach, sensitive to market conditions and endeavours to monitor the general economic environment carefully. Notwithstanding any potential uncertainty surrounding the ongoing Brexit negotiations, Sanderson, now strengthened by the acquisition, has a large order book, robust recurring revenues and a healthy balance sheet. 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 significant further progress during the current financial year ending 30 September 2018."

[davidosh] 28/3/2018 00:32

Just to mention that Sanderson will have a stand and be presenting at our huge Mello2018 event in Derby on 26th/27th April and all shareholders and potential investors are welcome to attend

SND have presented at a Mello event before and we are very pleased to welcome them to this huge two day conference as it is an ideal opportunity to meet the management and hear about their strategy.

Do come and join us at this quality event and there will be at least 50 other companies to meet each day plus some fabulous keynote speakers

[rivaldo] 05/3/2018 13:41

A new interview with an analyst with the above Capital Network further discussing the delights of SND:

[rivaldo] 27/2/2018 08:34

The Capital Network have today issued a new report on SND - they have a 104p target price given "the company's healthy balance sheet and good earnings visibility".

They conclude the "current valuation looks attractive in our view":

[rivaldo] 19/2/2018 11:40

Very pleasing AGM statement last week whilst I was on hols. The 55% recurring income is indeed delightful! A strong outlook too, and the Anisa acquisition is looking good.

I too can see a continued re-rating.

Good coverage here:



"Thursday 15 February 2018

Sanderson: three year revenue target in sight

logoAs part of a three year plan Sanderson Group set itself the target of taking annual revenue to £30m and pre-tax profits to £4m-5m (see Sanderson still going strong). Currently in year three of the plan and the company has the revenue target in sight.

£30m revenue has looked like a stretch but the acquisition last November of ERP provider Anisa Group, with its revenue of £10m, PBT of £73K and impressive nett assets of £6.54m, in a cash and shares transaction valued at £12m, is helping bring that target closer. It looks like Anisa will complement the supplier of digital retail technology and enterprise software to the manufacturing, wholesale distribution and logistics sectors in several ways.

According to Sanderson’s AGM statement today, the impact of the acquisition is expected to take FY revenue (to September 30 2018) up to £30m+ (with a gross margin in the region of 80%). This builds on the £21.6m revenue at the end of the most recent full year. At we pointed out at the time of the acquisition, Sanderson is a UK company taking determined steps to scale up.

After a tight FY17, the current year started well. Four months in and total revenues were one third ahead of the year ago period. The like-for-like figure was 5% and not as good as this time last year, but the operating profit was 10% ahead and the order book 20% ahead.

Achieving the revenue (and profitability) target is not a done deal and management rightly remains cautious as sales cycles remain long in the Digital Retail business and “protracted” in the Enterprise business. However, with Anisa’s 800 customer base, Digital Retail showing double digit revenue and operating profit growth rates, a new digital platform within the Enterprise section for the wholesale distribution market (support for sub-verticals is so important now) and recurring revenue at 55% of total revenue, Sanderson does have the assets to work with."

[battyliveson] 15/2/2018 08:41

Positive AGM statement, although saying in-line, the acquisition and growth and order book all point to a strong business, with a good balance sheet. Can see this continuing on an upward trend in meantime if the overall market behaves itself.

B

[john09] 26/1/2018 18:34

Cheap again

[soundbuy] 26/1/2018 16:07

Naps and stops...........zzzzzzzzz

[rivaldo] 09/1/2018 14:42

Very nice - new highs again.

[return_of_the_apeman] 09/1/2018 14:18

Doesn't take much to move this - looking forward to the next trading update