Software and IT provider Sanderson posted a slight improvement in group revenues to £13.8 million in its preliminary results for the year to the end of September - up from £13.37 million in the previous 12 months.

The retail and manufacturing software specialist, headquartered in Coventry, said it was set to meet market expectations, and it expects to make further progress this year despite challenging markets.

It said its expansion of its sales and marketing activities had driven the value of contracts signed with new customers up 10 per cent to over £1.6 million.

The firm added: “By supplying customers with more of the group’s own products and services, gross margins have continued to improve, rising to over 87 per cent from 83.6 per cent in 2012.

“Investment has been concentrated on further extending the products and services which are based upon the group’s own proprietary solutions, especially those which enable warehouse and manufacturing automation, together with solutions designed for deployment on mobile devices, including smart phones and tablets.

“While general economic conditions have shown some slight improvement in 2013, the outlook continues to be uncertain and business confidence, still appears quite fragile.”

The statement continued: “The group’s strong order book, improved market position and the two recent acquisitions provide the board with an expectation that Sanderson will achieve significant progress during the current financial year.”