Sage Share Discussion Threads

[brummy_git] 30/7/2021 15:18

Sage was discussed briefly here on today's Vox 'Stock Picking' videocast (starts 31:10).

www.linkedin.com/posts/paul-hill-a5994116_stocks-to-follow-with-justin-waite-and-paul-activity-6826865195483242496-ww3t

[maddox] 29/7/2021 17:39

Hi Spacecake,

Yep it looks fairly anemic growth at +2.6% for the 9 months if you look at the total revenue, but a more interesting picture emerges if you look further.

They are nudging up their guidance to +5% for the full year. Also, the Q3 Annualised Recurring Revenue (ARR) growth was 6.1%. So, the ARR growth rate is accelerating whilst drag from legacy non-cloud discontinuing business is rapidly diminishing. That revenue line dropped 18% and now represents under 9% of total revenue (less than 7% in Q3).

The FY22 Analysts' Consensus growth estimate is between 7% - 8% and Sage seem on course to hit that. There were a number of encouraging points made in response to the Analysts' questions today.

A recording of the Q3 Analyst Briefing is here:



Regards Maddox

[spacecake] 29/7/2021 10:19

"Total Group revenue increased by 2.6% to GBP1,329m in the first nine months of the year, and by 5.0% to GBP440m (Q3 20: GBP419m) in the third quarter."

It's a headline number near the bottom of the RNS, you know like their embarrassed by it :-)

[maddox] 29/7/2021 09:31

Hi Spacecake - I don't see your figure of 2.6% growth anywhere?

[spacecake] 29/7/2021 08:44

9 month revenue growth 2.6%
Maybe it's just me, but the guided revenue growth seems a bit low, 5%+ for 12 months.
Intuit are guiding 22% for the year 2021, (2020 13%, 2019 13%)

I see why Terry Smith sold Sage and retained Intuit.

[nhb001] 29/7/2021 07:51

I can't see any negatives in there. It all depends if it is already in the price. I will attend the results conference at 8.30 am.

[amt] 29/7/2021 07:46

Good update.onwards and upwards

[nhb001] 20/7/2021 09:55

Has the trader working the buy back gone on holiday or has he spent his budget? Anyone know?

[spacecake] 01/7/2021 20:05

I was quite disappointed with the effort Sage is putting into FutureMakers programme.
They could become a Raspberry Pi corporate partner.


They could become a supporter


Who would have thought the humble £35 to £73 credit card sized board could be built into a web server platform.

[p1nkfish] 24/6/2021 07:14

SAGE - GREAT TO SEE UK REGION SPECIFICALLY ASSISTED.
There's a need to invest here and promote opportunitry here.
You get my support.
More UK companies need to be doing this and do it properly, with commitment.

"Sage aims to tackle economic inequality by supporting people from underrepresented communities around the world to start or grow their own business. Initiatives include partnering with social enterprise MyKindaFuture and JobCentrePlus to provide mentoring and training support to disadvantaged people in the UK to start their own businesses, and partnering with non-profit lending platform Kiva to improve financial inclusion in communities that find it hard to start or grow businesses. 

Sage is also dedicating its technology, time and experience to supporting digital equality and diversity, by providing 10,000 children in deprived areas in the North of Tyne Combined Authority with access to STEM skills education, and through further investment in its FutureMakers programme to give young people access to Artificial Intelligence education and awareness."

[techno20] 20/6/2021 10:57

Buy recommendation in today’s Telegraph.

[maddox] 02/6/2021 23:16

I listened to the Fundsmith AGM and whilst obviously disappointed by the share price performance their discussion of the pluses and minuses was inconclusive. They tend not to run away at the first signs of a problem; and to back managers that are doing the right thing. In fact, Terry Smith is very opportunistic and will often buy a 'quality' company when the share price is depressed due to a short-term difficulty.

I think that due to the repeated AGM questions about SGE Terry decided to exit in the opportune circumstance of the buy-back programme. A rare example of Terry playing to the gallery.

FWIW I think he should have bought more SGE and that he'll regret it. And as a Fundsmith investor I might be penning a question for the AGM.

[I do very much admire Terry Smith - I have a signed fist addition of his book 'Accounting for Growth' ('the book they tried to ban') and Fundsmith is my only fund investment.]

[spacecake] 02/6/2021 11:57

Write up in the Telegraph today + SGE came up in the Fundsmith AGM Q&A so it's no surprise to Fundsmith Equity holders who watched the virtual AGM.
Surprised SGE has not attracted an activist investor by now.

[p1nkfish] 02/6/2021 09:38

Since about July 19, quick glance, it's still making lower highs. Turning, but slowly.

[p1nkfish] 02/6/2021 09:35

No surprise if he made intentions clear to SGE management so exit could be orderly for the benefit of everyone. Value elsewhere in his eyes.

[maddox] 02/6/2021 09:08

Thanks Spacecake

So basically, Terry Smith has taken advantage of the share buy-back programme to sell out without depressing the price too much.

Considering Fundsmith has held onto SGE for a long period selling when the green shoots are starting to appear is a bit surprizing.

[spacecake] 01/6/2021 19:22

see: - Portfolio comment for May 2021

[nhb001] 01/6/2021 18:06

Spacecake : Can you share where you saw that?

[spacecake] 01/6/2021 16:09

Fundsmith has sold out of SGE, no longer in Terry's worry box.

[nhb001] 19/5/2021 23:06

Interesting that there have been no buyback RNS's for a few days. I thought there was a problem with my data feed but one today states only ~6K shares bought. Obviously they are not buying while the share prices rises significantly. I note that they started buying at the low today.

[fuji99] 19/5/2021 17:33

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[grafter] 19/5/2021 01:45

Roland Head's UK Pick -

One UK tech stock I've been buying in recent months is FTSE 100 software group Sage (LSE: SGE). Although I wouldn't put my whole portfolio into any single stock, I think this business offers a decent mix of safety and long-term growth potential.

I see this as an opportunity to buy into a quality business at a reasonable price. But I could be wrong -
Sage might be left behind by smaller, more nimble competitors.

[blackdown2] 18/5/2021 20:03

A good finish to the day.