Sanderson fits the bill for investors looking for a combination of accelerating growth potential, healthy cash generation and growing dividends. This is a long-established provider of high quality ERP and retail systems to SMEs that has a good level of revenue visibility (50% recurring revenues and a £3.2m order book) and a strong IP base that includes connected retail and specialist solutions. Management has a clear and, in our view, highly achievable three-year plan for significant value creation and increasing returns to shareholders. Our revenue and margin targets represent sensible hurdles, while the current valuation is undemanding given the significant re-rating potential offered by growth in the Digital Retail business. There are risks with execution, but we are confident that management has the experience and domain knowledge to manage these. We initiate coverage with a Buy and 100p Target Price.