Insider Media Limited

Sanderson Group, the software and IT services business, has recorded a slight drop in revenue to £13.1m for the six months to 31 March. The Coventry-based company said it "continued to be impacted" by the slow pace of the UK recovery.

Despite a £200,000 drop in revenue, the company increased operating profit to £800,000, up from £700,000 in the comparable 2010 period.

Cash generated from operations amounted to £1.7m (2010: £1.8m), while net debt had dropped from £9m to £7.2m at the period end.

Christopher Winn, chairman at Sanderson Group, said: "Whilst the group's trading has continued to be impacted by the slow pace of recovery in the UK economy, improvements in the group's competitive market position driven by the introduction of new products and services, have resulted in a continued recovery from the financial year ended 30 September 2009.

"Improved trading momentum has been maintained with pre-contracted recurring revenues continuing to grow and with both gross margin and order book values increasing. As with the previous financial year, we expect the benefits of the larger order book to be reflected in the result for the second half year, during which most of the projects are scheduled for implementation and delivery."

The company's order book at the period-end increased to £3.3m (2010: £3.0m), with much of it scheduled for delivery in the second half of current financial year.

Winn added that the company's "improved competitive market position, latest products and strong order book give the Board confidence regarding the outlook for the financial year ending on 30 September 2011".