Sage Share Discussion Threads

[maddox] 23/5/2006 08:40

They are at it again!

Not a big acquisition but on a p/e of 16 its good value, but more significantly it brings in the Asian dimension and the growth potential that represents.

Excellent news!

Regards, Maddox

[lyntwyn] 23/5/2006 07:58

Sage Group (The) PLC - Sage Group PLC - Acquisitions

23 May 2006

Sage acquisition of majority shareholding in UBS and acquisition of Chinese
distributor

The Sage Group plc ('Sage') has agreed to acquire 50.2% of the share capital of
UBS Corporation Berhad ('UBS'), the leading vendor of business management
software for SMEs in Malaysia, listed on the Malaysian Stock Exchange. Sage
purchased the shares for a price of 0.98 Ringgit per share. The purchase
consideration for these shares is approximately £7m, to be paid in cash.

As a result of this transaction, and as required by Malaysian regulations, Sage
will make an offer to the remaining UBS shareholders to acquire all outstanding
shares, for the same price of 0.98 Ringgit per share. Details of this offer are
set out in a Notice of Mandatory Offer announced by UBS.

With over 100,000 customers, UBS is the leading vendor of business management
software for small and medium-sized businesses in Malaysia. UBS revenues for
the year ended 31 December 2005 were approximately £1.9 million* (2004: £1.7
million*). Earnings before depreciation and amortisation were approximately £
0.9 million* (2004: £0.7m*).

In addition, on 16 May 2006, Sage acquired a Chinese Sage distributor
comprising SWA Ltd. and Huatuo Software Ltd., for a small, undisclosed
consideration. This business, based in Shanghai, resells and implements Sage's
Chinese software products, ACCPAC and Adonix.

Paul Walker, Sage Chief Executive, comments, 'The acquisition of a controlling
interest in UBS, and of distribution capability in China, together represent
important early steps in our development of Sage businesses in the Asian
region. These businesses bring important local expertise and deep knowledge of
the requirements of Asian SMEs. We see significant potential to build on these
acquisitions whilst increasing our knowledge of the Asian business software
markets.'

*Financial information calculated on the basis of £1 = 6.84 Ringgit (Malaysia).

[lyntwyn] 20/5/2006 10:26

Sage dipped ½p to 226½p as analysts gave an upbeat reaction to a third-quarter update from Intuit, the accounting software group's US rival. Intuit beat expectations with its figures and raised its full-year targets. Third-quarter sales of its Quickbooks software were up 8 per cent against the same quarter last year, with subscriptions up 76 per cent on the same period. Analysts with Dresdner Kleinwort Wasserstein (DKW) said that this suggested solid demand in the US small and medium-size businesses market. George O'Connor, of Shore Capital, said Intuit and Sage shared "similar dynamics", with Sage offering scope for improvement.

The remarks come after Sage's latest results showed organic growth in the US that fell short of expectations.

[gkgdownie] 19/5/2006 13:59

Surely way overdone. Wills & Co. newsletter (printed last week) was still recomending these at 254p just this week. Maybe I was a bit premature at purchasing first at 238p but after recent buy at 224p I'm confident of recouping healthy gains.

[phooey] 19/5/2006 11:23

Must be cheap at these prices... good company good results... looking for a decent bounce...

[lyntwyn] 19/5/2006 11:16

WestLB trying to stem the downward spiral today with an upgrade in its rating for Sage Group to add from hold.

[maddox] 16/5/2006 14:17

Lyntwyn,

Great timing from ABN! What a load of nonsense their Analyst has spouted.

>> Intuit and Microsoft - nothing new there, and its not as if they have just come into the market or been sitting on their hands. Sage has been living with these guys for years.

>> SAP - come off it, they are in a different sector of the market and don't sell shrink wrapped solutions.

>> CRM - Sage's move into CRM is several years old and is now starting to appear to being paying-off.

>> BPO - Targeting particular sectors of the accounting software market by taking over firms with specialist packages is hardly BPO. It makes perfect sense to protect against the competitors like MSN and Intuit that are selling generic packages and improves Sage's pricing power.

ABN Amro do serve a purpose I suppose in their pathetic analysis - in highlighting just what a quality company Sage are - and now cheap too!

Regards, Maddox

[lyntwyn] 16/5/2006 11:39

15.05.06 :-6.5, (240.5) ABN Amro downgraded its rating on the computer software group to 'hold' from 'buy', dealers said. In a note to clients, the broker said it feels Sage is facing increasing competitive pressure from Intuit and Microsoft in the US. Secondly, this phenomenon could spread to other geographies as software majors like SAP AG start to target the mid-market more aggressively. Furthermore, the broker has growing concerns about Sage's recent acquisition strategy of targeting Business Process Outsourcing companies outside its core accounting and CRM activities. And finally, the share price reached its target of 2.55 stg and the stock now looks fairly valued, ABN added.

[dm1] 16/5/2006 06:07

Don't worry found info. online. Appears ex-div on open Wednesday & about 1p.

[dm1] 15/5/2006 22:42

When does it go ex-div & how much is it worth please?
(Thanks in advance.)

[sks999] 15/5/2006 16:58

v tempted to buy back in (and get the modest divvy to boot!)

[lyntwyn] 15/5/2006 15:43

ABN again!!
ABN Amro downgrades to 'hold' from 'buy' - afx

[w.bramley] 15/5/2006 11:24

There are times to buy and there are times to sell (that is why the stock market beats putting money on deposit), now may be the time to add for the medium term.

[maddox] 15/5/2006 10:05

Market falls this morning on concerns of the weak US Dollar and disappointing technology company results. Heavy mark down of Sage as a result, this despite the good results and optimistic forward view. Nevertheless, it'll be looking like very good value at these levels and the Analyst's should be more positive in their short-term views.

Regards, Maddox

[maddox] 10/5/2006 17:21

Very, its just not the most interesting aspect of Sage as an investment.

Another feature that appears to have been ignored in these results is the dividend increase of 17%. Sage's stated intention is to increase the dividend payout reducing the dividend cover to x3.5 from x4.5 previously. Now against the current growth rate they will have increase the div by 39% y-o-y to achieve this all things being equal.

Accelerating growth and income too- its difficult to see what got the Analysts'knickers in a twist!

Regards, Maddox

[hotfinance14] 10/5/2006 15:47

Are you not impressed with it ?

[maddox] 10/5/2006 15:45

HF14,

The least interesting thing about Sage as an investment - is the software!

Regards, Maddox

[lyntwyn] 10/5/2006 09:03

"The share price has rallied in fits and starts over the past three years. The retreat of the past couple of months looks like a good opportunity to buy." Tempus,Times


Also from today's Times:
Sage, the accountancy software group, pledged to push on with plans to expand into Scandinavia after its recent attempt to buy Visma, its Norwegian rival, collapsed. Sage also reported a 19 per cent rise in half-year profits to £113.7 million.

[hotfinance14] 10/5/2006 08:15

Moneysage...what software is this then ?

[johnsmithbillion] 10/5/2006 06:41

Operating margins might be down 27bp, but it appears to me that underlying margins have actually increased!!!! Can someone please correct me if I have my figures wrong.


2006 2005

455.9 372.9 Revenues

118.8 98.2 Operating profit
26.06% 26.33% Margins -27bp

4.6 0.4 Intangible amortisation
-0.3 -0.4 Development costs
4.2 3.6 Share-based payments
-2.7 - Exceptional gain

124.6 101.8 Underlying operating profit
27.33% 27.30% Underlying operating margins +3bp

[moneysage] 10/5/2006 00:45

no hotfinance!!!

Access is just a database. doh!!

[plastow] 09/5/2006 23:28

look if your in tech companys get into csr thanks ..

[Abuse team] 09/5/2006 23:24

Post removed by ADVFN

[hotfinance14] 09/5/2006 22:59

Is the software called Access that is suppose to be very impressive.

[peter001] 09/5/2006 22:13

look like its bottomed out
Good time to buy i can see this up to 2.75 soon . DYOR