Sondrel (holdings) Share Discussion Threads

[rivaldo] 13/2/2019 13:27

Good to see a buy at 105p this morning - new recent highs now.

[mfhmfh] 12/2/2019 08:50

finally some movement in the right direction. 103 being paid today.

[wednesday6] 05/2/2019 20:23

The bid is moving up, the large 50k and 25k's at 96p are i would assume buys so is it being held back for these trades?

[mfhmfh] 05/2/2019 19:25

consistent buys from last Wednesday but share price not moved.

[wednesday6] 05/2/2019 15:36

This ought to move up soon, now 95.1 to sell

[wednesday6] 24/1/2019 19:52

Comments from Paul Scotts small cap report read positive

Sanderson (LON:SND)
Share price: 94.5p
No. shares: 60.0m
Market cap: £56.7m

AGM trading update

Sanderson Group plc ('Sanderson' or 'the Group'), the specialist provider of digital technology solutions, innovative software and managed services for the retail, wholesale, supply chain logistics, food and drink processing and manufacturing market sectors...


I very much liked the good results, and lowly valuation, when reporting here in late Nov 2018, on this software group's results for FY 09/2018.

Its update on Tue this week is also positive;

"Following strong, above target results for the year ended 30 September 2018, the Group has made a good start to the current financial year ending 30 September 2019.
At the end of the first quarter, to 31 December 2018,Group revenue and profit are approximately 20% ahead of the comparable prior year period reflecting organic growth and an additional two months contribution from the acquisition of the Anisa Group, which was completed in November 2017.
Sales order intake levels in the first quarter have also been encouraging with an increased number of new customers gained compared with the prior year period.
The order book has grown, providing a good level of confidence going into the second quarter of the financial year.


Cash sounds fine;

... positive net cash position of £3.38 million as of 21 January 2019
I'm not madly keen on the balance sheet here either, which also has negative NTAV, and a small pension deficit.



Outlook comments - sound a little cautious about Brexit, and the retail sector. But focusing on digital retailing, seems to be paying off.

Manufacturing sector is seeing protracted sales cycles.

Dividends - total for the year up 13% to 3.0p, giving a worthwhile yield of 3.2%

Valuation - current year forecast EPS is 8.1p - so the PER is only 11.7 - that seems very reasonable. Although forecast earnings growth is fairly modest.



My opinion - the figures look attractive to me. This software group makes good margins, has a decent growth track record, yet is valued on a modest PER - I'm not really sure why. Do any readers have any insights into why the market is not prepared to give this company a rating that reflects its good performance?

[mfhmfh] 22/1/2019 17:45

hopefully share price past this mini-resistance at 93-94p.

Next stop 100p hopefully.

[rivaldo] 22/1/2019 14:17

Very positive write-up from Investors' Champion:



Conclusion:

"Raised dividend

The recommended final dividend of 1.75p brings the full year dividend to 3.00p, a
13% increase over the previous year.

Broker estimates

House broker forecasts for the Financial Year ending September 2019 remain for
sales up 7.5% to £34.4m, adjusted pre-tax profit up 12.5% to £5.4m and adjusted EPS
up 5.2% to 8.0p.

The forecast 2019 dividend of 3.20p, covered 2.5x by adjusted earnings, equates
to a yield of approx. 3.3% at the current share price. Sanderson has now assembled
a software and services group supporting all elements of the supply chain, from manufacturing, through distribution, warehousing and retail.

It continues to look in excellent shape!"

[aishah] 22/1/2019 10:42

Techmarketview:

Sanderson off to a confident start

Sanderson Group is heading into its AGM in confident mood today, buoyed by above target results for FY18 (see Reassuring full year results from Sanderson) and a good start to FY19 with Q1 (to 31 December 2018) revenue and profit 20% ahead of the year ago period. Two months of contribution from the Anisa Group acquisition helped but the company cites organic growth too, alongside “encouraging” sales order levels and an increase in the number of new customers compared to the year ago period.

Many retailers are struggling but Sanderson’s Digital Retail division, which has been the growth engine for the company, is still pushing ahead with double digit revenue and operating profits. Ongoing pilot projects and sales activity within the existing customer base are reassuring, although the rate at which pilots are converted into broader implementations will be important as the year progresses. Given the challenges within the retail sector, ramping up the pace of digital change is a way forward for many organisations but technology investment still has to fight its way to the top on the list. Sanderson is benefitting from retailers moves to on line and mobile shopping however.

The Enterprise division which saw an uptick in H118 had an “encouraging” Q1 with improvements within the manufacturing sector (food and drink), “strong” sales momentum in wholesale distribution, and “robust results” and “strong sales prospect” in supply chain logistics. Sales cycles remain protracted in manufacturing, which has been the case for some time. The Enterprise segment is where Anisa with its integrated ERP and supply chain software is contributing but Sanderson also offers recently developed applications so has more than one string to its bow. All in all, Sanderson remains cautiously confident.

[podgyted] 22/1/2019 07:55

Time to buy some more if it hasn't gone up too much.

[rivaldo] 22/1/2019 07:41

Excellent AGM statement, with a good start to the year - 20% ahead of last year!

Strong Balance Sheet, with £3.4m net cash. Much confidence in the outlook too. This paragraph sums it up:



"Following strong, above target results for the year ended 30 September 2018, the Group has made a good start to the current financial year ending 30 September 2019. At the end of the first quarter, to 31 December 2018, Group revenue and profit are approximately 20% ahead of the comparable prior year period reflecting organic growth and an additional two months contribution from the acquisition of the Anisa Group, which was completed in November 2017. Sales order intake levels in the first quarter have also been encouraging with an increased number of new customers gained compared with the prior year period. The order book has grown, providing a good level of confidence going into the second quarter of the financial year."

[mfhmfh] 21/1/2019 09:50

rising ahead of AGM tomorrow. GLA.

[podgyted] 19/1/2019 09:34

A company of this quality should be way over 100p - still bit-by-bit - I'm certainly expecting a positive AGM statement following on from the confident outlook statement in the 2018 accounts.

[mfhmfh] 09/1/2019 11:37

AGM on 22.01.19 - hopefully the company will issue a positive AGM statement.

[aishah] 09/1/2019 11:12

Added here recently. Well covered by Techinvest and a good write-up by SCSW last month.

[mfhmfh] 13/12/2018 09:50

H & S on the chart

[rivaldo] 13/12/2018 09:37

For the record, SCSW had a big Buy tip for SND at 96.5p in last weekend's monthly issue in its "Updates and Ideas" section.

I might post in full after a week or two, but the writer concludes that with £3m cash, and generating further cash "at a furious rate", they're "on the lookout for further deals".

They have a target to grow profit to £7.8m on £45m sales by 2021. This against £5.2m currently forecast.

[mfhmfh] 05/12/2018 09:24

Gresham House Asset Management Limited up to 9.6%

[rivaldo] 30/11/2018 14:29

N+1 Singer have a 121p share price target as follows:

"Full year ahead, forecasts upgraded

Sanderson has delivered full year results showing revenue and profit slightly ahead of expectations. Strong growth (+21%) from Digital Retail, a positive contribution from Anisa, improving momentum in Enterprise in H2 and strong cash generation were the highlights. Reflecting the full year outturn, a healthy order book and good sales prospects, we have upgraded our FY 2019/FY 2020 revenue and adj. operating profit estimates by 3%/3% and 5%/7% respectively.

The shares are currently trading on a FY 2019 EV/EBITDA of 7.6x, P/E of 10.5x, FCF yield of 8.0% and a prospective dividend yield of 3.9%. We think this unfairly reflects the broadened offering, good revenue visibility, the strength of existing customer relationships and strong cash generation.

Our valuation analysis supports an intrinsic value of 121p per share."

[mfhmfh] 30/11/2018 07:11

Adjusted EPS was 7.9p.

PE ratio of 15 gives share price of 118.5p - not demanding at all for a growing company.

All IMHO. GLA.

[podgyted] 29/11/2018 16:20

Seems to have broken 100.

[mfhmfh] 29/11/2018 11:08

rising slowly...

[mfhmfh] 28/11/2018 15:11

hopefully next stop 100p. GLA.

[rivaldo] 28/11/2018 14:28

Excellent presentation yesterday afternoon at Mello London. Management are nicely understated and seem competent and confident.

Nice summary of the results from Techmarketview:



"Monday 26 November 2018
Reassuring full year results from Sanderson

It didn’t make a point of it in the FY18 commentary but Sanderson achieved the £30m revenue target it set itself three years ago, delivering £32.05m in the year to 30 September 2018 – and profitably too with operating profit up 33% to £5.18m. Overall performance was ahead of the previous year and market expectations, and that along with continued cash generation and an increased dividend, sent shares up by as much as 9% at one point in early trading.

Although the November 2017 Anisa acquisition (integrated ERP and supply chain software) was a significant contributor, like for like revenue growth was up a modest but definitely there 6.5%, to £22.97m. As a group, enterprise software suppliers focussing on the SME sector are performing well.

The Digital Retail division continued to be a sustained growth driver, with 21% revenue growth to £8.82m while also increasing operating profit by a third to £1.56m, against a mixed retail market background due to the shift to online and mobile shopping channels. Sanderson’s omni channel solutions are well positioned, as evidenced by new customers such as womenswear retailer, ME+EM plus orders from existing customers including Richer Sounds plc and Beaverbrooks The Jewellers Limited. It also converted a broader pilot project with Hugo Boss into a phase one project and has another pilot with a formalwear retailer. While aware of market risks, the company remains upbeat about prospects for the division.

The larger Enterprise division (serving manufacturing, wholesale and supply chain logistics),which has struggled over recent years saw 62% acquisition-led growth to £23.23m with operating profit coming in at £3.62m vs. £2.71m. All the growth was down to Anisa as like for like revenue dipped almost 1% to £14.14m. Anisa added 8 news customers, including Port of Dover Cargo. Across the Enterprise division, Sanderson added 18 new customers. The division, that saw a welcome uptick in business in H2, has benefitted from investment in software product development particularly around wholesale. This resulted in new orders for the recently launched digital suite of products and early interest in the new business intelligence product.

After the bruises of FY17, management is cautiously confident and plans to continue with its strategy of investing in its products, particularly mobile and ecommerce to capture the digital transformation opportunity in retail, wholesale distribution and logistics, alongside judicious acquisitions."