Company News 

Sage investors cautious after sales downgrade

Sage investors cautious after sales downgrade

Shares in Sage (SGE) closed the day 8 per cent down, after the accounting software group cut its sales guidance for the full year by one percentage point to 7 per cent. This stemmed from “inconsistent operational execution” during the six months to March. Translation: while two geographies underperformed, trading was generally good elsewhere. The two problematic regions were Northern Europe, largely the UK and Ireland, and Africa/ Middle East. Overall, organic revenue growth for the first-half came in at 6.3 per cent versus 7.4 per cent a year earlier, and software subscription growth was 25.3 per cent versus 30.7 per cent – below management’s expectations.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now