||ORD 1 4/77P
||EPS - Basic
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|Software & Computer Services
Sage Group Share Discussion Threads
Showing 4726 to 4738 of 4750 messages
|Total dividend for year 2016 = 14.15p.
Write up in todays Mail,expansion mentioned.|
|Why the drop over the last week ??|
|Sage data breach update: There has been an arrest of a Sage employee:
...that's a result!!|
|If you haven't spotted it there is a very nice piece of detailed fundamental analysis by Phil Oakley hxxp://www.sharescope.co.uk/philoakley_article113.jsp You cannot argue with the numbers but I also like to take a strategic analysis approach to understand the underlying drivers and competitive positioning.
I think that there is still more to come, so I will add on any fall-back in the share price in the wake of any profit taking.
Sometimes it pays to buy expensive.....Sage is a case in point.
|There is a saying within the cyber security community 'that there are those businesses that have been hacked - and those that don't know that they have been hacked!' These announcements are unfortunately becoming a fact of business life, and destined to increase as mandatory reporting becomes the legal requirement.
Whilst, the news that Sage have suffered an internal breach of security is very disappointing it is unlikely this will cause a material cost to the business. Dido Harding CEO of TalkTalk was embarrassingly inept in handling the reporting their data breach incident last year - but long-term damage has been minimal and the share price recovered. It will be interesting to watch how well Sage respond and manage the PR. It is these, what I call, 'acid test' moments that provide a great insight into how good the management team of a business is. A serious challenge such as this, if well handled, can reinforce confidence that you can trust them with your personal investment in their business.
|Ouch, this could cost them.|
|Another jump in the share price today up 9.5p to 710.5p as I post.
I'm wondering whether this is market reaction to the Sage Summit in Chicago. It seems that CEO Stephen Kelly has made a step-change in the pace of product innovation and is making a good job show-casing them in Chicago. That, together with the new partnerships and market positioning of Sage 'championing entrepreneurs' is starting to change perceptions. I like the bold ambition of Stephen Kelly and, whilst it's still early days, I think it'll come through in the numbers.
If you have seen anything else that might be driving this share price rise - please post it up.
|Sage breaks 700p closing at 702.5p another high.
Q3 Trading Update (released at 5pm from Sage Summit in Chicago) - Sage on target with Group organic revenue increased by 6.0% in the third quarter, with growth of 6.1% for the first nine months of the year. So hitting their numbers whilst the conversion to Software As A Service (SAAS) - subscription pricing continues (up 33.2%).
Confident of achieving full-year guidance - at least 6% organic revenue and 27% organic operating margin. The H1 margin had slipped to 25% so the £50m cost reduction target in General & Admin expenses is coming through to get back to 27%.
No Brexit impact seen and consider Sage well placed to respond to any changes affecting their customers. Although, cannot be isolated from any general market slow-down.
So, on target and in-line, whilst the business transformation continues.
|Another good day for Sage investors as it has closed at another high at 655.5p.
A couple of interesting updates on the broker forecasts, JP Morgan Cazenove have re-iterated their 'Overweight' recommendation and upped their share price target to 700p from 670p.
Whereas, Credit Suisse have also re-iterated once again their 'Underperform' recommendation. However, it is worth noting that their share price target has also been increased to 600p from 560p of only 4th July. A year ago their recommendation was also 'underperform' and share price target 420p - so they've managed to increase their target by a whacking 43%!! So they haven't done their advisory clients any favours - being consistently well behind the curve.
|Ok so that's the brokers views so FWIW just run my own numbers and my share price target from now until 31 Dec 2016 is 675p.
|First Half Results - the highlights: Operating performance
‒ Improved organic revenue growth to 6.2% (H1 2015: 5.0%), achieving double digit recurring revenue growth of 10.0% (H1 2015: 8.1%);
‒ Accelerated software subscription growth to 35.3% (H1 2015: 25.4%) in line with planned transition and corresponding decline in SSRS revenue of 6.3% (H1 2015: -2.0%);
‒ Customers embracing closer relationships with a 50% increase in subscription contracts to 842,000 (H1 2015: 561,000);
‒ Strong results in Europe, North America and Africa were balanced by a slower performance in Asia, which benefited from non-repeating revenues in the prior period.
- An 8% increase of the interim dividend to 4.80p.
- Underlying cash conversion of 111%.
So the 22p drop in the share price is surprising and I presume in response to the fall in margins from 28.2% (full-year 2015) to 25.4%. However, this fall was flagged and due to an increase in marketing spend. The full-year target of 27% operating margin remains in place and the CEO and MD repeatedly stated that they are confident of hitting it and 6% revenue growth.
So IMHO little to be concerned about, in fact there was much to be optimistic about in these results. The transformation of Sage appears to be working albeit it's too early to be evident in the top-line figures. Growth in new product sales (all priced on a SAAS model)look very encouraging but primarily customer conversions rather than new customer wins thus far.
Also, this decisive transformation is causing some collateral damage with office closures and a shedding of staff in non-strategic areas. Seventy of the top one hundred staff have changed with thirty new recruits to execute the new strategy.
So with Mr Market taking a different view to my own I'm tempted to pick up a few more.
|Read Panmure Gordon & Co's note on SAGE GROUP PLC (SGE), out this morning, by visiting hxxps://www.research-tree.com/company/GB00B8C3BL03
"The wise guys Interim results headline with a small beat at revenue, in line profit, but a strong bounce back in the US performance. All in H1 which should replay the ‘it’s getting better’ theme – although Sage will stress that it is still “at the foothills”... While the shares look expensive on an earnings basis (PE 23 x) we think that ..."|
|Thanks for posting that Thomas. I'm surprised that the Panmure analyst isn't more up to date on Sage if he's covering Intuit. Sage's whole new strategy is a SAAS led cloud based model with a multi-centered Global product suite. They teamed up with Salesforce in May 2015:
•“Together with Salesforce, Sage is shaping the future of small business. Small business software no longer has to represent different systems or layers of complexity – it’ll be simple, collaborative, and real time. With Sage Life, we are delivering social, mobile, cloud-based innovation, powered by real-time accounting. Now running a small business can be as easy as updating your Facebook status,” said Stephen Kelly, CEO of Sage.
•“I̵7;m excited about the opportunity this partnership creates for our customers,” said Marc Benioff, Chairman and CEO, Salesforce. “Together, Sage and Salesforce are empowering fast growing companies to run their businesses on the world’s #1 enterprise cloud platform.”
'The Salesforce1 Platform, the world’s #1 enterprise PaaS, provides the capabilities companies and developers need to build great apps that are instantly social, mobile and connected. Our customers have built more than 4 million apps on the Salesforce1 Platform. More than 2 million developers are creating apps on the Salesforce1 Platform, and the Salesforce AppExchange hosts 2,700 enterprise apps that integrate with Salesforce. AppExchange apps have been installed more than 3 million times worldwide.
Sage is committed to supporting small businesses the world over, as well as the communities they serve. As part of the partnership, Sage, already an established leader in corporate philanthropy has also joined Pledge 1%, a philanthropic movement based on Salesforce’s 1-1-1 model.'
I wouldn't be surprised if Intuit's move is a response to Sage. Sage have also moved down to target smaller start-up business and offer attractive low entry-level pricing. This will be in direct competition with Intuit that have been struggling recently.