Soaring profits boost Sage price

Nov 29 2007 by Graeme King, The Journal

SAGE Group led the afternoon rally on the FTSE 100 as the market recovered from early morning jitters to record outstanding growth.

So comprehensive was the market turnaround that, by the end of the day, not a single firm finished in negative territory with the market closing 165.5 points up at 6306.2.

Newcastle-based Sage Group which, in the last 25 years has become the UK’s largest software company, announced yesterday a 14% increase in adjusted profits to £251.3m and quickly declared a doubling of its dividend payment.

The day’s trading was in stark contrast to the company’s fortunes thus far this year, where they have lost over a third of their value following difficulty with the US wing of the business.

On the North American business, a Sage spokesperson said the firm has defensive qualities that should insulate it against the current macro-economic uncertainties in the region.

The spokesperson for Sage Group, which has made rapid expansion in recent years with five acquisitions in 2007 alone, declared that it would continue to look for acquisition targets in the coming year – whether smaller or otherwise a major strategic coup. Investors, no doubt, wait with bated breath. Shares in Sage Group closed 9.96% up, a nominal increase of 19.3p to 212.75p.

Bronwyn Huddleston, Portfolio manager, Barclays Wealth