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Sanderson Group plc - Preliminary Results

For the year ended 30 September 2006

Sanderson Group plc (‘Sanderson’ or ‘the Group’), the software and IT services business specialising in commercial markets in the UK and Ireland, announces its Preliminary Results for the year ended 30 September 2006. Sanderson provides software and IT services to businesses with annual revenues between £5 million and £250 million.

Key Points
• Revenue of £16.15 million (2005: £15.46 million) up 4.5%
• Operating profit* of £3.13 million (2005: £2.91 million) up 7.6%
• Statutory operating profit of £2.17 million (2005: £1.27 million)
• Improvement in gross margin to 84% (2005: 80%)
• Recurring revenues 55% of total revenue (2005: 53%)
• Proposed final dividend of 1.5 pence per ordinary 10 pence share making a total for the year of 2.6 pence (2005: 2.5 pence) up 4.0%
• Sanderson Retail Systems acquisition integrated and performing profitably
• 25 new customers won during the year (2005: 17)
*Before amortisation of intangible assets, share based payment expense and 2005 non-recurring administrative expense.

Commenting on the results, Christopher Winn, Chairman said:
“The results reflect 10% growth in gross margin, achieved on increased revenues. This improvement is due to an increase in the proportion of the Group’s own software and services supplied and demonstrates the benefit of Intellectual Property Rights (IPR) ownership.

Our strategy is to develop the Group by a combination of organic growth complemented by selective acquisitions. Our primary aim is to continue to deliver shareholder value through a progressive dividend policy which is made possible by a business model that delivers high levels of profit and cash. We continue to work on bringing a number of acquisition opportunities to fruition in the coming year.

We are encouraged by the substantially increased level of sales prospects across the Group and notwithstanding challenges in some of our markets there are clear opportunities, especially within the Multi-Channel Sales sector, and we intend to accelerate the rate of progress over the coming year”.

Enquiries:
Christopher Winn, Executive Chairman
Tel: 02476 555466

David O’Byrne, Managing Director
Tel: 01709 787787

Adrian Frost, Finance Director
Tel: 01709 787787

Paul Vann, Winningtons Financial
Tel: 020 7256 9445
Mobile: 07768 807631

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