Sanderson back in the black but warns on economy

But the group warned that the general economy is still sluggish and is only slowly moving out of recession.

The Coventry-based company, which was formerly headquartered in Sheffield and still has several Yorkshire operations, provides software solutions and services to customers in retail and manufacturing.

It made a pre-tax profit of 34,000 for the six months to March 31 compared to a 2.1m loss for the same period the previous year.

Revenue inched up to 13.3m compared to 13m for the corresponding period last year.

Chairman Christopher Winn said: "The group has built up an improved level of business momentum since the late summer of 2009.

"However, we are mindful that the general economy is still sluggish and moving only slowly out of recession."

Many of Sanderson's customers still face tough trading conditions, although the firm was confident, based on its order book, that it would achieve "good" full year results.

Mr Winn said Sanderson has cut operating costs and improved its market position.

"The improved business momentum, experienced from the late summer of 2009 has continued into the current year and increased order intake has resulted in a larger order book at March 31, 2010," he said.

"We expect the benefit of this increased order intake to be reflected in the result for the second half year, during which many of the projects are scheduled for implementation and delivery."

Cash generated from operations in the six months to March 31 amounted to 1.8m, up from 1.5m.