Sanderson (SND)

Sanderson SND Logo

Software and IT services business specialising in digital retail technology and enterprise software for businesses operating in the manufacturing, wholesale distribution and logistics sectors.

30-Oct-2017 – 72p – £39.7m – PER 12.4

Trading Update For The 12 Months To End September 2017 – An in-line update, Revenue up 8.2% and EBITDA up 16.3%.

This looks OK but somethings are just tingling the spidey senses here. Can’t see what really caused that drop off at the end of May, results looked OK. There’s a new FD (4-Sep). And this statement in the latest update “Whilst the Group has not yet detected any major loss of confidence from either existing or from prospective customers, the Sanderson Board will continue to monitor the situation carefully“ – What’s that all about? Actually I don’t really care, there’s just too much here for me to want to look any further.

28-Nov-2017 – 73p – £40.2m – PER 12

Final Results For The 12 Months To End September 2017 – I looked at these numbers a couple of times (in my limited morning period) and can just take away what these results seem – Just OK.

I’m Neutral here and why does the Chief Exec insist on stating “Whilst the Group has not yet detected any major loss of confidence from either existing or prospective customers, the Board and senior management continue to carefully monitor market conditions, customer confidence, as well as the development of sales prospects and the progression of these sales prospects into customers”?

15-Feb-2018 – 86.9p – £51.6m – PER 13.7

AGM Statement –  Board cautious but has a good level of confidence it will make continued progress.

Based on the fundamentals alone this looks like a decent company but I just can’t get excited about it.

30-Apr-2018 – 90p – £53.7m – PER 13.8

Trading Update For The 6 Months To End March 2018 – “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”.

Still quite like this but just can’t get past remaining Neutral.

23-May-2018 – 105p – £62.8m – PER 15.8

Interim Results For The 6 Months To End March 2018 – Slightly ahead of management’s expectations, Revenue up 34% to £14.61m (2017: £10.90m), Operating Profit up 34% to £2.08m (2017: £1.55m). Confident on FY.

Looking good here, will add it to my Watchlist at 95p.

10-Oct-2018 – 83.5p – £50.1m – PER 12.3

Trading Update For The 12 Months To End September 2018 – Revenue expected to be slightly ahead at £32m (£21.6m last time), Operating Profit up 30% to over £5m (£3.9m last time). Pre-contracted Revenue 55% of next year total.

Quite a lot to like here and was on my Watchlist at 95p – I may well consider paying up this week.

Subsequent note: Further research suggests this is over valued here on a 1 and 2 year view – I am going Neutral again for now.

26-Nov-2018 – 85p – £51.0m – PER 12.3

Preliminary Results For The 12 Months To End September 2018 – “Group trading results and cash ahead of market expectations; increased Final Dividend”. Revenue up 49% (£32m), Operating Profit up 33%, Adjusted EPS up 25% or so – The FY Dividend is up 13%. Confident that FY this year will be at least in-line with market expectations.

Even with this impressive set of results, don’t see real value at <10% forecast EPS growth and a 3% or so yield – Will keep an eye out for upgrades.

Subsequent note: I did actually decide to buy in here today.

Subsequent note: Sold out here in March 2019, details in the monthly reports.

15-Apr-2019 – 93.5p – £56m – PER 10.9

Trading Update For The 6 Months To End March 2019 – Ahead of managements expectations.

An ex-holding which I considered fairly valued around this level – This ahead of may change that though so I will keep an eye out for upgraded Broker notes.

1-Aug-2019 – 127p – £77m – PER 14

140p Take-Over – By Aptean Bidco.

Not much of a premium but looks like a done deal.

Stockopedia Banner