Sage has reassured investors with an in-line trading statement, rebuffing concerns about the impact of a US economic slowdown. While the business software group gave a nod to the "current uncertainties of the macro-economic situation", Sage said its "defensive characteristics" left it comfortable with market estimates of £1.25bn in sales. Over 70 per cent of Sage's business is in services, where revenues are largely maintenance contracts.
Deutsche Bank left its 2008 earnings forecast at 13.8p (2007: 13.3p), with analysts suggesting that "the worst is over" from risks in the US. Sage says its US healthcare business remains a "medium term" growth story, but the imminent appointment of a US chief executive should help it to achieve the projected 5 per cent growth there this year.
