Full-year growth at accounting software specialist Sage (SGE) may have largely stalled, but there was still some encouraging signs. Sage's cash generation still looks good, for example - operating cash flow fell just 5 per cent in the year to £383.8m versus £405m last year, while organic subscription revenue grew 6 per cent in the period to £922.7m.
A stronger second-half performance in North America also helped maintain the cash profit margin at above 25 per cent at the Americas division. The AAMEA (Africa, Australia, Middle East and Asia) unit, meanwhile, delivered organic sales growth of 12 per cent - although business there generates just 11 per cent of group sales. However, amidst tough economic condition, sales of software and software-related services, generated from licence fees, dropped 5 per cent organically in the period to £417.5m. The 'mid-market' accounted for most of the losses, with business in France and Spain looking the hardest hit. Indeed, the European operation, which generates 58 per cent of group sales, saw underlying cash profits squeezed by 1 per cent to £219m.
Broker Panmure Gordon expects adjusted pre-tax profit of £374.5m for 2013, giving adjusted EPS of 20.8p (from £355.8m and 20.3p in 2012).
SAGE (SGE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 305p | MARKET VALUE: | £3.69bn | |
| TOUCH: | 304.7-305p | 12-MONTH HIGH: | 326p | LOW: 245p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 114p* | NET DEBT: | 12% | |
| Year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 1.30 | 241 | 12.7 | 7.21 |
| 2009 | 1.44 | 267 | 14.5 | 7.43 |
| 2010 | 1.28 | 299 | 16.3 | 7.80 |
| 2011 | 1.33 | 331 | 19.4 | 9.75 |
| 2012 | 1.34 | 334 | 18.6 | 10.15 |
| % change | +1 | +1 | -4 | +4 |
Ex-div: 13 Feb Payment: 8 Mar *Includes intangible assets of £1.95bn, or 162p a share | ||||
