Sanderson Group plc, which supplies market-specific IT software and services to the multi-channel and manufacturing markets in the UK and Ireland, is planning to make more acquisitions.
Sanderson Group plc, which supplies market-specific IT software and services to the multi-channel and manufacturing markets in the UK and Ireland, is planning to make more acquisitions.
The Coventry-based company plans to spend up to £30 million on two or three UK acquisitions in the next year.
“We’re looking to make one or two acquisitions within the next six months, spending between £3-10 million per company,” said executive chairman Christopher Winn. “The acquired companies will definitely be in the IT software solutions sector,” he added.
Sanderson, which employs more than 250 people nationwide, has made three acquisitions since July 2005, most recently K3 plc in February this year for £2.5 million.
Sanderson floated on AIM in December 2004, raising £5.1 million, and according to Winn will look to Royal Bank of Scotland to provide financial advice and additional funding if needed. Its current share price stands at 52.50p, after an initial pricing of 50p, with a market cap of £21.95 million.
The company’s interim results for the six months to March 31, 2007 show revenue from continuing operations of £8.12 million, up from £7.3 million in 2006. Its profit after tax from continuing operations fell to £540,000 from £690,000 made in 2006.
Sanderson’s interim results stated that the group’s multi-channel business performed well, while the manufacturing business continued to experience difficult trading conditions.
“Notwithstanding the continued challenges of business in the manufacturing sector, the multi-channel markets are proving to be very active and rewarding for the group and overall we anticipate an improved business performance in the second half,” Winn said.
“Sanderson has re-positioned itself to enjoy greater repeat revenues and a lesser reliance on the manufacturing sector. A stable client base and products that cater specifically to today’s multi-channel markets give us a very good base to continue to grow organically and by acquisition,” he added.
