Investors in digital retail technology and enterprise software specialist Sanderson Group were told of the company's performance since its expansion through the acquisition of the Anisa Group at its annual general meeting on Thursday.
The AIM-traded firm acquired Anisa in November, almost two months into the current financial year, which runs until 30 September 2018.
Its board said the expanded group was expected to have revenue in excess of £30m, a high gross margin in the region of 80% and around 800 customers who were being supported by over 300 skilled and specialist staff.
Chairman Christopher Winn told shareholders that Anisa had made a "good start" as part of Sanderson, and the overall trading performance of the Sanderson Group was in line with management's expectations.
"Up to the end of January, four months into the new financial year, total group revenues are approximately one-third ahead of the comparative four-month period to the end of January in 2017," Winn explained.
"Excluding Anisa, like-for-like Sanderson revenues are around 5% ahead and operating profit is approximately 10% ahead of the comparative results for the four-month period to the end of January 2017."
The order book at 31 January was also said to be strong, partly reflecting the large order gained in June last year - over half of which was yet to be fulfilled - with the `like-for-like` order book over 20% ahead of the level as at the end of January 2017.
Winn said the board was committed to maintaining a strong balance sheet and, notwithstanding the acquisition of Anisa for cash and shares, the group continued to hold net cash at bank.
The acquisition resulted in the issue of 3,990,653 consideration shares
which represent 6.73% of the group's current issued share capital of 59,326,321 ordinary shares.
Sanderson's digital retail businesses, which operated in continuing active markets, made a good start to the new financial year with both revenue and operating profit continuing to grow at double-digit rates, according to the board.
"Whilst sales cycles continue to be long, a number of new customer prospects and continued strong levels of activity provide a good level of confidence going into the remaining eight months of the financial year," Christopher Winn said.
The Sanderson enterprise businesses also made a solid start, and sales prospects were said to be well ahead of last year, although sales cycles remained protracted.
"A new, innovative digital platform for the wholesale distribution market was announced at the beginning of the financial year," said Winn.
"This has been very well received by existing and prospective new customers with overall interest ahead of expectations.
"We are excited about the future prospects in the wholesale distribution sector of the market."
Sanderson retained a "robust" business model, the board stated, and with the acquisition of Anisa, the group's pre-contracted recurring revenues now represented around 55% of total revenue.
That recurring revenue stream resulted in more predictable cash generation which, in turn, supported the board's progressive dividend policy.
"A recommended final dividend of 1.55p per share, for approval at today's AGM, will make a total dividend for last year's results of 2.65p per share, representing an increase of over 10% from the previous year - and an increase of 50% over the last three years, from the 1.8 pence paid for the year ending 30 September 2014," Winn explained to shareholders.
"The board remains cautious and conservative in its approach, but the good start made by Anisa, the strengthening and robust business model of Sanderson, the cash-backed balance sheet and the positive business momentum provide the board with a good level of confidence that the group will make continued progress in the current financial year ending 30 September 2018."