In-line With Expectation Profits

Sanderson Group has announced its results for the 12-months ended 30th September 2016. Revenue came-in better than our expectations, increasing by 11% to £21.32m (2015: £19.18m), although adjusted operating profit was in-line with our expectations, increasing by 12% to £3.69m (2015: £3.30m). Another key highlight was a better than expected dividend payment of 2.4p (forecast of 2.3p), up by 14% on a year earlier. The board remains confident that the company will make further progress and deliver trading results which are at least in-line with market expectations for FY17. Accordingly, we have upgraded our FY17 forecasts and issued forecasts for FY18. We continue to classify the shares as a hybrid growth and income stock, with the shares offering investors exposure to the high-growth Enterprise Resource Planning software market as well as a decent prospective dividend yield of 4.11%.

In-line with expectations EBITDA

Blur Group has announced an update for the quarter ended 30th September 2016. While the period saw an overall reduction in completed project volumes on the quarter prior (Q2 2016), it also saw an improvement in EBITDA, costs and cash burn, making it the fourth consecutive quarter of improvement. The company also added that EBITDA continues to be in-line with management expectations. Blur also confirmed that it has now added the ability for organisations to source goods through its online marketplace, creating an offering that eliminates waste across all categories of indirect spend. On the back of the announcement, we have maintained our forecasts, and continue to value the stock as a growth stock, with the shares offering investors exposure to the high growth business services-commerce market.

Better Than Expected Trading Update

Sanderson Group has released a trading update ahead of its full-year results for the year ended 30th September 2016. The key highlights include better than expected revenue, adjusted operating profit in line with expectations, strong cash generation and an optimistic outlook. Accordingly, we have updated our FY16 revenue forecast and maintained our FY17 forecasts. We continue to classify the shares as a hybrid growth and income stock, with the shares providing exposure to the high growth enterprise resource planning software market and offering a decent dividend yield of 3.7%.

In-line With Expectations Trading Update

ServicePower has announced that trading in the six months ended 30th June 2016 has been in-line with management expectations, with revenue increasing by 5% to £6.4m on the comparable six-months earlier (H2 FY15: £6.1m). In addition, the UK technology company has announced a new contract win with an estimated value of in excess of £150k over three years and a contract entension with an estimated value of $1.5m over two years, further supporting our revenue forecasts. We have made one change to our forecast assumptions and that is the proportion of revenue invested in SG&A in FY17 decreases to 47.5% (from 50%), reflecting a higher focus on cutting costs. With the shares offering investors exposure to the high growth mobile workforce and field service management software market, we continue to classify the shares as a growth stock.

Interims

Blur Group has announced its interim results for the six months ended 30th June 2016. Revenue decreased by 62% to $632k on the comparable six months a year earlier, driven by a decrease in small business, lower margin project fees as blur increased its focus on higher quality, higher margin repeat enterprise customers. Enterprise platform pilot phases, that could lead to wider roll out phases, are in progress with a number of enterprise customers. Reflecting a decrease in administrative expenses, adjusted LBITDA (before share based payments and foreign exchange movements) reduced by 54% to $2.12 million. We have updated our forecasts in light of the announcement mainly to reflect a lower market share of its addressable market. Nevertheless, we continue to value the stock as a growth stock, with the shares offering investors exposure to the high growth business services-commerce market.