Software and IT services firm Sanderson Group has seen profits rise by 48 per cent despite a slight fall in revenue.

Coventry-based Sanderson (SND) has posted pre-tax profits of £749,000 for the year to September 30, compared to £506,000 last year.

Revenue slipped to £26.4 million from just under £27 million previously.

Chairman Christopher Winn said: “The group has made good progress since 2009 notwithstanding challenging conditions in its core markets.

“The Sanderson business model, with strong cash flows and high levels of recurring revenue provides both good resilience in these challenging markets, as well as a solid foundation for future growth.

“The board remains cautious in its outlook and sensitive to conditions in the general economy, but the strong order book and improved competitive market position provide a reasonable level of confidence moving into the financial year ending 30 September 2012.”

The group gained a total of 26 new customers across the period, including Brown Thomas, B&M Retail, Twinings, Lewis’s Home Retail and Gardners.

Gross margins improved to 71.7 per cent, from 69.0 per cent last year, while net debt at period-end reduced to £6.72 million, down from £7.84 million the year before.