Accounting software group Sage saw underlying pre-tax profits rise 5 per cent in the period to £356m. And, while revenue was flat year-on-year, Sage did deliver organic growth in the second half - sales grew 3 per cent, after a similar decline in the first six months.
Indeed, the group delivered organic growth in the UK, continental Europe and the rest of the world units by 5 per cent, 2 per cent and 7 per cent respectively. But Sage continued to lose its grip in the key north American market, where sales fell 3 per cent. New chief executive Guy Berruyer hopes to stop that slide with a new US boss; the former Europe head, Pascal Houillon.What's more, Sage attracted 252,000 first-time customers in the period while, helped by cost reductions in 2009, the group's cash margin grew from 24 per cent to 25 per cent. Reflecting its success at selling support contracts, Sage remains a robust cash generator - that helped net debt fall by an impressive £219.6m in the year to £219.8m.
Broker Evolution Securities expects to raise its current 2011 adjusted EPS estimate of 19.3p to around 21p-21.5p (2010: 19.2p).
SAGE (SGE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 268p | MARKET VALUE: | £3.53bn | |
| TOUCH: | 268.2-268.5p | 12-MONTH HIGH: | 287p | 208p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 125p* | NET DEBT: | 13% | |
| Year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 0.94 | 221 | 11.8 | 3.59 |
| 2007 | 1.16 | 223 | 11.9 | 7.00 |
| 2008 | 1.30 | 241 | 12.7 | 7.21 |
| 2009 | 1.44 | 267 | 14.5 | 7.43 |
| 2010 | 1.44 | 320 | 17.3 | 7.80 |
| % change | - | +20 | +19 | +5 |
Ex-div: 9 Feb Payment: 11 Mar *Includes intangible assets of £2.2bn, or 168p per share | ||||
