IT firm Sanderson Group has slipped into the red after it saw annual sales fall by almost 10 per cent.
The Coventry-based group reported a pre-tax loss of £2.03 million for the financial year ended September 30 compared to a pre-tax profit of £901,000 last year.
Sanderson (SND) said its trading performance was affected by challenging market conditions due to the general economic recession, particularly during the first half of the financial year.
The company is organized in two divisions: manufacturing and multi-channel. It operates primarily in the UK and Ireland.
Chairman Christopher Winn, said: “Trading conditions in 2009 were undoubtedly difficult, particularly during the first half of the financial year. However whilst we reduced our cost base and improved efficiencies, we continued to develop both our sales effort and our portfolio of products and services for our clients.
“Supported by a noticeable upturn in business activity and order intake, these efforts produced a marked and welcome increase in profit in the second half.”
Sanderson reported an operating loss of £330,000 in 2009, compared to £1.75 million profit last year, primarily due to a £1.5 million charge against the value of goodwill attributable to its manufacturing division amid reduced levels of profitability.
Total sales for the year dropped to £24.9 million from the £27.5 million revenue reported last year.
Manufacturing revenue declined to £5.7 million from £6.5 million.
Mr. Winn said he remained cautious about prospects for an improvement in the marketplace.
He said: “Our outlook remains cautious, but we believe that the group’s significant presence in its core markets, together with the increasing sales and marketing momentum and further development of new products and services, places the group in a good position to weather the economic storm and to prosper as market conditions stabilise and improve.”