Sondrel (holdings) Share Discussion Threads

[rivaldo] 20/5/2019 13:49

Here's a direct link:



Conclusion:

"Broker estimates

The strong first half performance, combined with the acquisition of Gould Hall, has
resulted in the house broker lifting forecasts for both the 2019 and 2020
financial years.

Forecast revenue for 2019 is lifted £900k to £35.3m with pre-tax profit left unchanged at £5.4m but EPS increased from 8.0p to 8.1p. For 2020, revenue forecasts are raised £2.8m to £39.0m and pre-tax profit by £100k to £6.0m, pushing forecast fully diluted EPS number from 9.0p to 9.1p.

Sanderson continues to look in great shape with organic growth planned from the fast expanding Digital Retail division and renewed growth impetus from the enlarged Enterprise division.

- Outlook

With a strong sales pipeline, management expressed confidence in being able to make
further progress in the second half of the year."

[aishah] 15/5/2019 10:44

TechMarketVIew:

Sanderson confirms strong H1
Sanderson Group confirmed the bright H1 performance indicated in its most recent trading update when releasing results for the six months to 31 March 2019: an 18% revenue increase to £17.2m (16% on a comparable basis, excluding IFRS 15 impact), with operating profit rising 34% to £2.8m (20%+ excluding IFRS 15 impact).

The Digital Retail division contributed £5.98m revenue (vs. £5.91m pre IFRS 15 and £5.37m in 2018) and operating profit of £1.22m (£1.10 m pre IFRS 15 and £0.94m in 2018). This compares to Enterprise division revenue of £11.20m (pre IFRS 15 revenue of £11m) and £1.57m operating profit (£1.44m pre IFRS 15 and £1.14m in 2018); the division benefitted from contribution from the Anisa acquisition.

The important metrics of recurring revenue, cash generation and order intake are strong with both existing customers investing further (Richer Sounds, Office Holdings, NHS Blood and Transplant, Centrica), and new customers coming on board (Hawes & Curtis, Rhodes Freight Services).

The rate of revenue growth declined from the acquisition fueled 34% of the year ago period but with 11% organic growth in the previous year, the most recent growth rate appears to be closer. Looking forward, there is a lot to build on, including the launch of the "Lean Retailer" initiative. This is aimed at continually improving operational efficiency within retailers and Sanderson says it is generating a good level of early interest. These sorts of supplier initiatives, that help organisations with the ‘how’ of transformation, are important value offerings demonstrating the ability to think beyond the technology.

Elsewhere, the company continues to invest, particularly in mobile and ecommerce solutions and business intelligence across the retail, wholesale and supply chain logistics sector domains. Food and Drink processing is an up and coming sector for Sanderson and one where it is looking to further build its presence. It also sees opportunities to expand subscription, cloud and managed services revenue. With its retail division plus three segments within the Enterprise division, the company has several levers it can work to impact performance and balance risk and due to the growth within Digital Retail, is a better balanced business than it was a few years ago.

[rivaldo] 15/5/2019 10:28

I note a seller just now got a premium at 119p - 2p above the bid price - so the published spread can often be ignored (and earlier on the spread was down to just 1p).

[return_of_the_apeman] 15/5/2019 10:17

Solid again, spread as always the only downside

[rivaldo] 15/5/2019 07:17

Great H1 results today:



4.1 EPS at H1 means SND are highly likely to beat forecasts of 8.1p EPS for the year, especially given the new post year end acquisition..

I note that £3.3m net cash at year end is much higher than the forecast £2.8m.

SND as usual are prudent in their outlook, but are as bullish as they've ever been given the high (55%) recurring revenue and order books.

Note too how quickly the results have been produced after the period end. Always a good sign.

[harry6804] 14/5/2019 14:55

Hopefully... so just had some more?

[snadgey] 14/5/2019 11:58

Tree shake..?

[xajorkith] 07/5/2019 14:50

All time high as well :-)

Looking very strong ahead of next week's interims.

[rivaldo] 07/5/2019 14:48

New highs now.

[rivaldo] 03/5/2019 08:45

Apeman, it is indeed lovely and quiet here - which is often a feature of the best quality companies :o))

However, there are some others who've been following SND for a while, including Investors' Champion who've updated here post the latest acquisition:

[return_of_the_apeman] 02/5/2019 20:49

Quiet round here, even more noteable by the breakout confirmation at close today

I wonder what they have their new company working on? Those incentives will certainly focus the minds
:-)

[davidosh] 02/5/2019 18:13

Just to mention that Sanderson will be presenting at Mello2019 in Chiswick, London on Thursday 16th May
Mello is an event created by investors, run by investors and most certainly for investors. It is a ticket only event.

If you would like to come and meet and speak with tens of listed companies at the event and watch this presentation it will take place in the late afternoon at Mello2019 held in Chiswick, London W4 and further details here



If you want discounted tickets to attend then the best code to use is ADVFN30 and you will get 30% off the one or two day prices

[return_of_the_apeman] 02/5/2019 14:11

Not long now to the interims on the 15th and expecting new contract wins to be announced shortly following this aquisition ;-)

Solid business which is well on course to significantly exceed management and market expectations come September

[rivaldo] 02/5/2019 09:37

N+1 Singer say they'll update their forecasts after the interims, and say the acquisition "should also deliver healthy earnings enhancement in the first full year of contribution".

So they leave their forecasts at:

this year to 30/9/19: 8.1p EPS, 3.3p divi, £2.8m net cash
next year: 9p EPS, 3.6p divi, £5m net cash

[xajorkith] 02/5/2019 08:16

Yep, nice fit given the initial outlay & deferred, performance based cost.

Slowly but surely closing in on the previous high.

[rivaldo] 02/5/2019 07:18

New acquisition which looks good value at £3.2m for a historic £0.3m PBT, with much of the consideration deferred and dependent upon performance, and plenty of opportunities for cross-selling and other synergies:



"Commenting on the acquisition, Group Chief Executive, Ian Newcombe, said:

"We are delighted to welcome the Gould Hall directors and team to Sanderson and we are excited by the opportunities that will arise from this complementary acquisition which further strengthens the range of Group solutions and services available to customers within the supply chain logistics and distribution sectors."

[rivaldo] 25/4/2019 10:01

For the record, N+1 Singer's note post-update summarised as follows:

"H1 trading ahead of expectations
N+1 Singer view

"Sanderson has issued an update indicating that first half trading is ahead of management’s expectations with all group businesses performing well. Digital Retail continues to deliver double-digit growth, Manufacturing sales order intake has grown over 10%, and Supply Chain Logistics made a good start to the year. A positive outlook is supported by good sales order intake in the half, strong sales prospects for H2 and a healthy order book (c£8.0m).

Despite this trading strength, we are adopting management’s cautious approach given underlying economic uncertainty and make no changes to our forecasts ahead of interim results on 15 May. We continue to believe that the current valuation (FY 2019 EV/EBITDA of 8.4x, falling to 7.5x for FY 2020) fails to reflect an attractive combination of strong trading momentum, good revenue visibility, healthy cash
generation and a decent dividend yield."

"Impact on earnings & valuation

This is another positive update from Sanderson, highlighting the strength of the offering and the group’s market positioning. While management remains cautious in its approach given the economic and political backdrop, strong trading momentum,
a healthy order book, high recurring revenues and a robust balance sheet provides confidence that further progress will be made in the rest of the year.

Although trading is clearly tracking ahead of expectations, we are adopting management’s cautious approach and leaving our existing headline forecasts unchanged for the time being given underlying economic uncertainty. We will revisit our group and divisional expectations when H1 results are released on 15 May. The current valuation (FY 2019 EV/EBITDA of 8.4x, falling to 7.5x for FY 2020) looks highly attractive given strong trading momentum, good revenue visibility, strong cash generation and an attractive dividend yield."

[master rsi] 16/4/2019 11:19

The bid further up to 102p, looking good for a BREAKOUT

The last Intraday high was 103.50p, but already higher than the closing high 102.50p

[master rsi] 16/4/2019 10:05

All buys this morning and with that the bid price has improved to 100p

The latest buys paying 103.89p very close to the offer 104p price

[rivaldo] 15/4/2019 13:55

N+1 Singer echo WHI's sentiments, leaving their forecasts prudently unchanged at 8.1p EPS this year rising to 9p EPS to 30/9/20, with 3.3p and 3.6p dividends respectively.

[rivaldo] 15/4/2019 10:40

WH Ireland today note the £3m+ cash pile and conclude as follows, noting that their forecasts of 8p EPS and 3.2p dividend are prudent and leave room for upside:

"Prudence dictates that we leave our FY2019 expectation unchanged this morning – given broader macro uncertainties. That said, if business confidence holds, the risk with respect to our full year expectations is certainly towards the upside. Our estimates look for revenue of £34.4m (FY2018: £32.1m +7.1% y-o-y) and WHI PTP of £5.4m (FY2018: £4.8m, +12.5% y-o-y), both relatively undemanding given the momentum seen in H1. EPS of 8.0p (PER: 11.8x) and DPS of 3.20p (yield 3.4%).

Sanderson expects to report interim results on 15 May 2019."