Sage shares are marked down

Apr 15 2008 by Peter McCusker, The Journal

THE UK stock market started the week in the red as the FTSE 100 Index ended the opening session down 63.9 points at 5831.6.

Companies in the mining sector were among the heaviest fallers with shares in financial companies also weak.

In The Journal 40, Sage Group, the Newcastle-based accountancy software specialist, issued a trading update for the six months to March 31, stating that it expects its results for the half year to be in line with forecasts.

The group’s interim results are expected to be released on May 8.

The US investment bank Merrill Lynch reiterated its “buy” stance on Sage Group shares with a price target of 270p and stated that the company remains its preferred defensive UK software company. Sage Group’s shares traded 6.1p lower and closed at 192.4p.

Arriva, the Sunderland-based travel group, was also in focus as the company announced that it is buying an 80% stake in Interbus Invest, the holding company of Hungary’s largest private bus operator, Eurobus Invest, for £25.4m. Eurobus Invest runs 840 buses and has operations in both Hungary and Slovakia.

The Hungarian regional bus industry is to be privatised and the Slovakian government intends to liquidate its interests in former state owned regional bus companies. Arriva’s chief executive, David Martin, said: “This is a significant milestone for Arriva to enter two new markets with a business ready to develop opportunities arising in those countries.”

Shares in the company closed 9p lower at 670.5p.

Fergus Westwood Fergus.westwood@brewin.co.uk