Interim Management Statement

RNS Number : 2272Y

Sage Group PLC

22 January 2014

 



22 January 2014

The Sage Group plc Interim Management Statement

The Sage Group plc ("Sage") is today issuing its interim management statement which covers the period from 1 October 2013 to date.

Financial performance

Trading across all regions remains in-line with expectations.  

In Europe, UK & Ireland delivered a good performance, with legislative change remaining one of the drivers of growth.  In mainland Europe, the improved performance in the second half of 2013 was maintained in the first quarter of 2014.  This represents a resilient performance given market conditions in France and Spain continue to make the execution of larger IT projects in the mid-market more difficult in those countries.   

The Americas maintained the strong performance reported in 2013.  In North America, the migration of customers to premium support and the traction achieved by Sage ERP X3 remained key features. 

AAMEA delivered another good performance, with our businesses in South Africa and broader African markets performing well.

Financial position

The Group's operating cash generation remains strong.  Since the year-end, a further 5.7m shares have been repurchased for a consideration of £19.1m.  Net debt at 31 December 2013 was £381.8m (£384.3m as at 30 September 2013).

Board changes

On 1 January 2014, Drummond Hall joined the Board as a Non-executive Director.  On 3 January 2014, Steve Hare joined the Board as Chief Financial Officer.

Guy Berruyer, Chief Executive, commented:

"Our performance in the first quarter is in-line with our expectations, with good growth maintained across all regions.  Through continued focus on our strategic cornerstones, we remain on course to deliver on our 6% organic revenue growth target in 2015, and anticipate making further progress during the year ahead."

Enquiries

The Sage Group plc [phone]

Guy Berruyer, Chief Executive
Steve Hare, Chief Financial Officer
Murdo Montgomery, Investor Relations

Tulchan Communications [phone]

David Shriver

Jonathan Sibun

About Sage

We provide small and medium sized organisations with a range of easy-to-use, secure and efficient business management software and services - from accounting and payroll, to enterprise resource planning, customer relationship management and payments.  Our customers receive continuous advice and support through our global network of local experts to help them solve their business problems, giving them the confidence to achieve their business ambitions.  Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999. Sage has over 6 million customers and more than 12,700 employees in 24 countries covering the UK & Ireland, mainland Europe, North America, South Africa, Australia, Asia and Brazil. For further information please visit www.sage.com

 

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