Sanderson Electronics Plc of Sheffield, whose logo has been seen across the chests of Sheffield Wednesday football team in its defeats by Arsenal at the Coca Cola and FA cups this season, suffered poor contributions from associated companies and could only match pre-tax profit of UKP1.8m in the half to March 31 with last time’s identical result. The Sanderson group consists of Sanderson Computers Ltd, General Automation Ltd, CFL Ltd, Sanderson NI Ltd, Cotswold Computers Ltd, Insight Terminals Ltd and Astralogic Ltd. UK operating profit was up 8% at UKP2m, and while Sanderson NI and Cotswold achieved record profits in the half, the reaining five subsidiaries are still operating at well below their peak levels of profitability, said chairman Paul Thompson. Cotswold made progress in the insurance sector and in the food processing market where its newest product, Formul8, uses MRP and capacity planning technology for food and formulation industries. Managing director Philip Noden said all companies were profitable, but dependence on recession-hit industries such as manufacturing and printing, had a knock-on effect on their fortunes. As these markets pick up again, and Sanderson detects signs of growth already, it expects profits to rise. Noden said costs are continually being cut, but he said redundancies are unlikely; instead, future recruitment plans will be put on hold. Turnover was up 14% to UKP12.1m, of which around UKP5m came from annually recurring revenues from maintenance, software licence fees and service and support contracts, which covers 74% of overheads. Sanderson is still seeking compatible acquisitions, following its purchase in December 1992 of a 70% share in Sanderson CBT Ltd, a computer-based training systems supplier. Sanderson continues to spend around UKP1m a year on marketing, and Wednesday will get its quarter share of this as usual, despite its defeats.
