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Sage cancels £250m share buyback; warns of revenue, margin miss

By BFN News | 07:27 AM | Monday 06 April, 2020


Software company Sage canceled a £250m share buyback programme, while warning that it was expected to miss its full-year revenue and margin guidance. The company had suspended the share buyback on 18 March. In a trading update for the six months through March, Sage said organic recurring revenue, which represented around 90% of its sales, was ahead of full-year guidance. Other revenue, however, declined in line with Sage's strategy, although the decrease accelerated towards the end of March as a result of Covid-19. Looking to the second half, Sage said it expected the pandemic to lead to customers deferring purchase decisions and a higher business failure rate. Consequently, Sage said revenue growth for the full year would likely be below its 8-9% guidance range, with some impact on margin. Sage said it had a 'strong' balance sheet, with about £1.3bn of cash and available liquidity as at 31 March. To further support the Group's financial strength, the Board has now decided to cancel the £250 million share buy-back programme, which was suspended on 18 March 2020 after £6 million of shares had been purchased. Story provided by StockMarketWire.com

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