Embargoed until 7am, Thursday, 11 October
Sage releases trading update; announces management changes
The Sage Group plc ("Sage"), a leading global supplier of business management
software solutions, is today providing an update on its trading performance
(unaudited) for the full year ended 30 September 2007. Sage confirms that it
expects results to be in line with market consensus.
Group revenues for the year are expected to be £1,158m (2006: £892m^) and
earnings before interest, tax and amortisation ("EBITA")* will be approximately
£283m (2006: £239m^). Organic revenue growth for the year will be
approximately 7%^. A summary of regional analysis is provided in the following
table:
£m Revenues EBITA* Organic revenue growth
----------------------------------------------------------------------
UK 224 83 7%^
Mainland Europe 349 80 10%^
North America 508 100 4%^
Rest of World 77 20 17%^
----------------------------------------------------------------------
Group Total 1,158 283 7%^
Full details of Sage's financial performance for the year will be provided in
the preliminary results announcement on 28 November 2007.
Management changes
Following a review of its North American business, the Board has concluded that
a change in leadership is required to realise the full potential of this
business. With immediate effect, Ron Verni (CEO, North America) and Jim
Eckstaedt (Chief Financial Officer, North America) have left the business. Mr
Verni has also resigned as a director of the Sage Board. Messrs Verni and
Eckstaedt formed part of the North American head office team.
Sage's North American business isorganisedinto four operating divisions, each
under the direction of an executive team. This senior management structure
will remain in place, now reporting directly to Paul Walker, Chief Executive of
Sage, until a new regional CEO is appointed. Andrew Griffith, Group Director
of Treasury and Mergers & Acquisitions, formerly Group Financial Controller,
will be acting Chief Financial Officer, North America, with immediate effect,
located in Sage North America's office in California. The process to recruit a
new regional chief executive officer and regional chief financial officer is
underway.
Sage in North America is a strong and competitive business with market-leading
brand names. The Board remains confident about the opportunities to develop
this business and to deliver further growth going forward.
Enquiries: The Sage Group plc Tulchan Communications
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Paul Walker, Chief Executive Andrew Grant
Paul Harrison, Group Finance Director Stephen Malthouse
Cynthia Alers, Investor Relations Director
Tel: +44 (0) 191 294 3068 Tel: + 44 (0)207 353 4200
Notes to editors:
The Sage Group plc is a leading global supplier of business management software
solutions and related products and services, principally for small to
medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock
Exchange in 1989 and now employs over 13,000 people worldwide.
Market consensus is based on analysts' forecasts with revenues at £1,166m and
EBITA £287m. Earnings per share calculations should be based on 1,300m shares.
*Earnings before interest, tax and amortisation is an approximate estimate.
^Foreign currency results for the prior year ended 30 September 2006 have been
retranslated based on the average exchange rates for the year ended 30
September 2007 of $1.98/£ and €1.48/£ to facilitate the comparison of results.
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Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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