Sanderson’s H1 trading update indicates that trading is in line with the revised expectations set out in late June. We make three key points: 1) July trading at the dominant Brand products division was much more positive; 2) The balance sheet is in a healthy net cash position; and 3) Investment, cost savings and strategic progress in the business should leave it well positioned when the macro environment improves. On our unchanged forecasts the shares trade on an undemanding P/E of 10x, 4.6x EV/EBITDA and yield >4%. We stay at Buy with a 120p TP.