Sondrel (holdings) Share Discussion Threads

[rivaldo] 26/11/2018 22:34

Reported adjusted 7.9p EPS was well ahead of expectations.

N+1 Singer have increased their forecasts for this year. They now go for £5.4m PBT (from £4.8m last year) and 8.1p EPS, rising to 9p next year.

They also see a 3.3p dividend this year, so a good yield too.

They value SND at 121p per share, so there's plenty of upside from here, especially given the current year P/E of only 11.3.

And given the cash and Balance Sheet strength we may see further acquisitions too.

[ntv] 26/11/2018 10:12

sold to early but no growth in EPS so not one for me to have stayed put in anyway
stated figure after write downs anyway!

[mfhmfh] 26/11/2018 10:03

I was hoping for a positive write up from Paul Scott on Stockopedia.

The more positive coverage of this stock, the better.

[podgyted] 26/11/2018 09:11

Paul Scott on Stocko

"These results look good, with the summary saying;

The Group trading results for the year ended 30 September 2018 are significantly ahead of the prior year and also ahead of market expectations.

Revenue has increased by 49% to £32.05 million (2017: £21.56 million) and operating profit* by 33% to £5.18 million (2017: £3.90 million)


Note that most of the revenue growth has come from acquisitions.

Adjusted EPS of 7.9p means that the PER is only 10.8

This is a significant beat against broker consensus of 6.4p adj EPS, so the share price is likely to rise strongly today. It could be a good one to buy on the opening bell, although the market makers have already marked it up, and the spread looks wide.

Outlook - also sounds good;

The Group has a clear growth strategy. Organic growth is planned from the fast expanding Digital Retail division and renewed growth impetus from the enlarged Enterprise division. There is an ongoing plan to accelerate the Group's growth with selective acquisitions.
Sanderson has a good reputation having built-up a strong track record of delivering customer-centric solutions. Whilst the Board is mindful of potential ongoing uncertainty surrounding economic conditions post the Brexit outcome, the Board believes that Sanderson is well positioned in its target markets and has good sales prospects, backed by a healthy order book.

This provides a good level of confidence that, at this relatively early stage of the new financial year, the Group will make further progress and once again deliver trading results which are, at least, in line with market expectations for the year ending 30 September 2019.


Bear in mind that current market expectations are for only 6.9 adj EPS in 09/2019, so clearly that bar is currently set very low. Expect brokers to increase their forecasts, I imagine to at least 8.0p EPS for the new financial year.

Balance sheet - this is overall, weaker than I would like. NTAV is negative, at -£8.9m, this doesn't seem to be a problem - because the group receives cash up-front from customers - the debit entry is within cash, and the credit entry is in deferred income.

I'd like to know what the average cash/debt position is throughout the year, as the year end snapshot can often be unusually positive at many companies.

The pension deficit has come down from £6.2m to £3.8m, which is a trend we're seeing with many pension deficits, as bond yields rise.

My opinion - this looks an excellent share. Sanderson has a very good track record of profit growth. The figures today are way ahead of broker forecasts by the looks of it, and the outlook comments sound positive too.

Unless I've missed something, this share looks outstanding value, and I'm tempted to buy some. I'd see this being 100p+ very soon. It's a good example of a share which has drifted down generally with the market in recent months, of no good reason. Hence this looks a clear buying opportunity, in my view. As always, that's just my opinion, it's up to individual readers to do your own research, and not rely on my view."

[podgyted] 26/11/2018 07:32

Excellent results. Confident outlook.

"A large order was gained with Port of Dover Cargo Limited. " Sounds like Brexit may be working in the company's favour.

Lot to like.

[rivaldo] 26/11/2018 07:27

Terrific results, ahead of expectations - and an excellent outlook too.

That's 7.9p historic adjusted EPS, up from 6.4p EPS last year.

With a 3p dividend too. And 55% recurring income.

An extremely confident outlook statement, including:

"This provides a good level of confidence that, at this relatively early stage of the new financial year, the Group will make further progress and once again deliver trading results which are, at least, in line with market expectations for the year ending 30 September 2019."

[mfhmfh] 23/11/2018 09:18

final results out on Monday, last day to buy before then. share price below it's highs.

this from the last trading statement:

'...and the trading results of the enlarged Group (which remain subject to audit) are not only significantly ahead of the prior year, but also slightly ahead of current market expectations.'

GLA.

[advfn_sales] 21/11/2018 17:30

Here is your chance to meet with Sanderson Group:

Using this unique discount code, ADVFN25, you will be able to get £25 off at Mello London 2018, a 2 day investor conference from the 26th – 27th November 2018 at the Clayton Hotel, Chiswick, London.



Tickets are normally priced at £99 for two days and £79 for one.

Type in ADVFN25 as the discount code.

Many Thanks and take advantage of this premium offer.

See you there.

[maddox] 19/11/2018 15:52

I see Sanderson are presenting at Mello London next Tuesday. hxxp://melloevents.com/mello-london/

Good opportunity to assess whether their momentum is continuing despite retail travails and Brexit uncertainty.

[ntv] 12/11/2018 08:23

sold a few this morning

[davidosh] 11/11/2018 20:58

Just to mention that Sanderson will be exhibiting and presenting at our MelloLondon investor event in Chiswick W4 next month. MelloLondon is a two day event and starts on Monday 26th November through to Tuesday 27th November which is the day that Sanderson will be attending. You can find out more here...



There will be 60 quality companies exhibiting and presenting plus some very well known investors, entrepreneurs, fund managers and market commentators providing excellent keynote talks on a range of investment subjects. A number of investment workshops will be available each day and a ShareSoc MasterClass on the final day.

[ntv] 30/10/2018 10:33

had a bit of a nibble here as is first support level
next level is down 10% from here
a/cs look ok and so does the dividend
last trading statement looked ok as well

[rivaldo] 11/10/2018 10:22

Good summary on Investors Champion - SND "looking a bargain":



Conclusion:

"Broker estimates

House broker forecasts for the Financial Year ending September 2018 were for adjusted EPS of 6.4p and 6.9p for FY 2019.

The shares have been very weak lately on the back of the global technology sell-off and at the current share price of 74p the rating of 10.7x forecast earnings looks modest for a business benefiting from such a high level of recurring revenue.
The forecast 2018 dividend of 2.9p, covered over 2x by adjusted earnings, equates to a yield of approx. 3.9% at the current share price.

Look out for the full year results statement on 26 November 2018."

[rivaldo] 10/10/2018 10:54

Nice summary from Techmarketview:



"Wednesday 10 October 2018

Sanderson Group makes significant progress

According to today’s trading update, Sanderson Group has made “significant progress and year-end results will be slightly ahead of market expectations” for the year ended 30 September 2018.

Revenue (which remain subject to audit) was up approximately 48% to c.£32m (2017: £21.6m). Although much of that improvement stems from the acquisition of Anisa in November last year, the trading update indicates that on a like-for-like basis excluding the effect of the acquisition, revenue improved by c.5%. This represents a stronger performance from the business in H2 (see Sanderson Group strengthening in 2018 for performance at H1).

Sanderson reports all businesses trading strongly in H2, highlighting the performance of its Digital Retail business which grew at over 20%. The acquisition of Anisa appears to be going well and it has made a good start as part of the Sanderson Group. Earlier this month it secured a deal to supply the software for Port of Dover's new Refrigerated Cargo Terminal.

Operating profit increased by 30% to over £5m (2017: £3.9m) and on a like-for-like basis is “expected to be slightly ahead of last year”. The order book at the end of the financial year stood at over £7m (2017: £5.8m) and it reports good sales prospects going forward. The Board is confident that the business will make further progress in the current financial year. Full results are due 26 November."

[rivaldo] 10/10/2018 09:01

N+1 Singer will likely upgrade their numbers after the final results as per the below, but understandably are pretty positive this morning...

They already forecast 6.9p EPS for the current year, but this should probably be increased now to say 7.2p or so after today. That's a current year P/E of 12 - pretty cheap for a company with such a strong record of delivery and high recurring income.

Here's N+1 Singer's view:

"Sanderson has released a reassuringly early full year update indicating continued strong trading from all group businesses, with both revenue and profit slightly ahead of expectations. Full year revenue increased to c£32m, delivering adjusted operating profit up over 30% to over £5m. Revenue visibility continues to improve, with recurring revenues growing c10% organically and like-for-like order book growth at similar levels. This, together with the slight beat to expectations and good sales prospects, gives us confidence in our forward numbers.

We will revisit our forecasts once full year results are released (26 November) and we have a more granular view of trading performance and order book development.

Consistent delivery has become a key tenet of Sanderson’s investment case, alongside the delivery of accelerating growth and scale, increasing revenue visibility and strong cash generation."

[rivaldo] 10/10/2018 07:11

Nice - results ahead of expectations and order books are up nicely.

Plus £3m net cash - even after the acquisition. And 55% recurring income. And a very, very strong outlook:



"Sanderson has a healthy order book following the strong order intake in the second half of 2018 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."

[rivaldo] 21/9/2018 14:29

News of three new contracts:



"More Landmark members sign-up for Sanderson wholesale solution
Posted by Rita Patel on Thu, Sep 13, 2018

Sanderson has gained more new customers for its specialist wholesale software and digital solutions. The latest customers include three members of Landmark Wholesale, which is one of the largest wholesale buying groups in the UK, with a turnover of nearly £3bn.

The Sanderson wholesale solutions have been chosen to automate and streamline operations, increase information accuracy and support these growing businesses. The new customers vary in size and are from food & drink and catering sectors.

The new food & drink wholesale customer is already reaping the benefits of its Sanderson solution which has increased control of warehouse operations and improved access to information across the business. The wholesaler carries a range of alcoholic and tobacco products which are managed by the Sanderson Bonded Warehousing system in accordance with HMRC regulations. The software automates the management of duties and inventory, giving complete traceability of bonded stock, and delivering a huge time saving.

The new catering customer has invested in Radio Frequency (RF) technology and digital solutions to increase control of its growing business and to provide excellent customer service. RF technology has been selected to increase accuracy in its warehouse operations. The latest digital solutions; web ordering software and mobile CRM will be implemented to increase sales and improve customer service when staff are out on the road.

The new cash & carry customer has selected the Sanderson solution, Swords, to increase control and visibility of operations and to take its business to the next level. The Radio Frequency system will accurately monitor stock and provide real-time stock information across the entire business. The company is looking forward to increasing efficiencies and supporting its ambitious growth plans with the scalable Sanderson solution.

These new customer contracts highlight that companies are investing in software solutions to strengthen operations, drive their businesses forward and help deliver outstanding service to their customers.

The Sanderson solution is ideal for companies looking for a single system to provide complete visibility of financial and operational performance, with key performance indicators to assist with decision-making."

[alotto] 16/8/2018 14:30

I have been holding for a while, anything in Sanderson's pipeline that can give a boost to the SP?

[mfhmfh] 08/8/2018 17:52

good to see some life in the share price

[rivaldo] 27/7/2018 15:42

RNS - Livingbridge have increased their holding. They had 8.8% previously and now have over 9%, with 5.44m shares:

[podgyted] 16/7/2018 09:01

Well they now have a chance to buy some more. Placing at 90p.

[rivaldo] 21/6/2018 07:12

RNS - Canaccord have been buying quite heavily. They're now up to 10.23%, or 6.13m shares. They've bought almost another 1m shares since their last disclosure:

[rivaldo] 25/5/2018 09:00

SND is still valued pretty reasonably imo.

For the new year starting in only 5 months' time SND will be on a P/E of 15.8, and a touch less if you strip out the net cash. Not particularly demanding in the current environment and with the potential for growth in Digital.

And the PEG is only 0.6 given 25% forecast EPS growth this year, which on Slater's measure indicates SND is very good value indeed.

Also, 56% recurring revenues normally warrants a premium rating from institutional investors.

Plus SND have indicated that they're after another acquisition, which would likely enhance earnings materially.

[rivaldo] 24/5/2018 10:52

Investors' Champion have produced a very thorough and positive review of the numbers, and conclude as follows:



"We are impressed how Sanderson has now assembled a software and services group supporting all elements of the supply chain, from manufacturing, through distribution, warehousing and retail.

A very positive first half of the year and the better-balanced order book bodes well for the future."