Sage Share Discussion Threads

[lyntwyn] 29/11/2006 11:17

yes agree, SGE has not disappointed, yet again. Looks like the share price has also survived this mornings press conference which I believe was held at 9.30.
What about that rerating now? Initial reaction looks favourable, -

Teather 'buy with 280p tgt; Bridgewell 'overweight'

[nil pd] 29/11/2006 07:13

Results out. I think SG are gonna eat their words BIG time!!!

These figures are very impressive...




SAGE ANNOUNCES RESULTS FOR YEAR ENDED 30 SEPTEMBER 2006

FOR IMMEDIATE RELEASE 29 November 2006

SAGE EARNINGS PER SHARE^ RISES 20% TO 12.54p FOR YEAR ENDED 30 SEPTEMBER 2006

The Sage Group plc ("Sage"), a leading supplier of business management software
solutions for small-and-medium enterprises ("SMEs"), announces its unaudited
results (prepared under International Financial Reporting Standards, "IFRS")
for the year ended 30 September 2006.

Financial highlights

* Revenues increased by 22%* to £935.6m (2005: £766.4m*)

* EBITA increased by 23%* to £249.3m (2005: £203.3m*)

* Pre-tax profit after amortisation charges rose by 14% to £221.2m (2005: £
193.6m)

* Adjusted earnings per share^ increased by 20% to 12.54p (2005: 10.49p)

* EBITA margin of 27% (2005: 27%*)

* Operating cash flow represented 107% of EBITA (2005: 119%)

* Proposed total dividend raised 25% to 3.59p per share (2005: 2.88p)

Operational and strategic highlights

* Total licence growth of 12%*, total growth in services of 28%*

* 7%* organic growth for the full year, reflecting 8%* organic growth in the
second half of the year

* Growth across all regions and strong performance in established product
lines such as Line 50 (UK), Line 100 (France), MAS 500, Peachtree, Simply
Accounting (all North America) and Pastel (South Africa)

* Customer Relationship Management ("CRM") products delivered global organic
growth of 8%*

* Customer base expanded to 5.2m businesses (2005: 4.7m)

* Significant acquisition activity, broadening both geographic reach and
product range

[maddox] 28/11/2006 13:34

Sitbacky,

Tend to agree, Dollar v SG is more likely cause for the drop.

Lyntwyn,

The other point pulled out from the SG analysis - competition for acquisitions - is pure speculation. Sage has only once in the last two years had competition for an acquisition. In that instance it was a 'special purpose vehicle' created by one of the substantial shareholders for that single purpose; and Sage pulled out stating that they were not going to overpay.

I may be wrong but Private Equity tends to go for cash generative, refinance plays not niche technology growth companies. Can anyone point to an example of what SG describes?

Regards, Maddox

[lyntwyn] 28/11/2006 09:36

We'll find out tomorrow whether SG have done their homework/guesswork properly!
I see they refer to the old MSFT chestnut again.

27.11.06 : an unfavourable broker note from SG Securities in which it reiterated its 'sell' recommendation, ahead of Wednesday's FY results, due to increasing competition issues. The broker said it believes risks are increasing for Sage with competitive pressures intensifying, especially for the company's US business, this could lead to weaker-than-expected growth, pricing pressure and potentially lower margins. It added that the need for larger acquisitions to sustain current growth levels, combined with an increased interest from private equity in the sector, may make acquisitions more difficult and more expensive to close. It concluded that it fears that Sage may indicate that operating expenses will increase in 2007 as investments in sales and marketing, along with R&D, are required to match increasingly competitive offerings, particularly from Microsoft.

[sibacky] 27/11/2006 19:35

I'm a bit long on SGE ahead of results but the main knock back is the dollar weakness. Sage are exposed to the US market quite heavily, even more so in the light of their recent aquisitions. Probably going to bail tomorrow if I can get back anything above 440 but good luck for results - especially if dollar picks up(DOW not looking too good though).

[nil pd] 27/11/2006 14:36

Thanks Maddox. That's very reassuring and I'm glad you concur that it is against the trend. Very disappointing to see the share price marked down so much on such a weak note from SG. They should know better than to mess about with their own reputation like this.

[maddox] 27/11/2006 12:43

Nil Pd,

SG are in the minority on this one. It reads as though they made a decision to recommend a sell and then rationalised it afterwards. The 'competition' explanation is very easy to chuck in. The competitive environment has not changed markedly and Sage's strategic purchases have mitigated those pressures.

Regards, Maddox

[nil pd] 27/11/2006 11:23

This is just not cricket and goes against the trend. Why do different analysts see such a different picture? I was given to believe a re-rating was in order, largely on the strength of which I bought in - only to find this.

Based on former news, I conclude that SG don't have a clue what they are talking about or they have a short position. I will hold tight in the belief that this is manipulation of the worst kind.

[lyntwyn] 27/11/2006 10:57

SG knocking SGE ahead of results. Fingers crossed that we can reverse this trend later in the week.

* SG Securities has a sell and 225p fair value for Sage Group

[loss-leader] 22/11/2006 16:23

we are close to a 6 month high

ll

[maddox] 17/11/2006 23:12

Amt,

Sage are getting into the payments market - now that's a market I understand. The price is not significant, and this is why. Payments fit hand in glove with accounting packages, it a natural complementary product offering. So, whilst Protx is small beer - its services can be offered across the Sage client base. If its services are effectively integrated with the software package then it becomes a pretty compelling choice.

This is an associated market entry strategy - a perfectly rationale move for Sage. Its different to the specialist niche strategy mostly seen in recent acquisitions but can be leveraged to greater effect on the bottom line. Neat!

Regards, Maddox

[lyntwyn] 17/11/2006 10:37

16.11.06: +0, (249.25) an article in the Times reports: Sage Group rose 5.75p to 249.25p after Merrill Lynch reckoned that H2 results due on November 29, could prompt a rerating. Raimo Lenschow, analyst, points out that the shares have underperformed the FTSE 100 by 18% this year.

[lyntwyn] 14/11/2006 13:49

these guys seem to like it. Hopefully share price will build back up towards 280 by results on 29th Nov.

Sage Group 243-3/4 up 2

Citigroup 'buy'; UBS reiterates 'buy' - afx

[amt] 14/11/2006 07:23

6 times revenue - thats a lot to pay.

[lyntwyn] 13/11/2006 08:01

SGE still shopping!

LONDON (AFX) - UK software company Sage Group said it has bought UK online payment processor Protx Group Ltd for 20 mln stg in cash, in a move to broaden its range of services for small and medium-sized businesses.

For the six months to Sept 30 Protx's revenue was 1.5 mln stg, according to Sage. Protx processes payments online for more than 10,000 businesses.

Sage, which is the UK's biggest accounting software supplier, is seeking to boost its growth through acquisitions.

In August the Newcastle-based company bought US medical software supplier Emdeon Practice Services for 565 mln usd.

[e-mail] nh/ro

[mustafalee] 02/11/2006 15:33

what s happening to this share today anyone know anything

[lyntwyn] 12/10/2006 08:03

LONDON (AFX) - UK software company Sage Group PLC said trading for the year to Sept 30 was in line with market expectations.

The UK's biggest accounting software supplier, which bought US medical software supplier Emdeon Practice Services for 565 mln usd in August, said in a trading statement that it was on track to meet the full-year consensus forecast of pretax profit of 220 mln stg on full-year revenue on 927 mln stg.

Sage will announce its full year results on November 29.


* WestLB reiterates hold and 240p target for Sage Group
* Seymour Pierce has buy for Sage
* Bridgewell 'overweight' & 290p tgt;
* Investec ups to 'hold'

[maddox] 09/10/2006 16:04

amt,

Below is one reason why Mysis' troubles do not have a direct bearing on Sage. SGE have entered an adjacent market through acquisition, so its a more calculated move and its not the first time. This is part of a strategy to target particular 'verticals' in the SME market.

Regards, Maddox

Misys chairman admits products fall short
Misys chairman Dominic Cadbury has told shareholders that the UK vendor's technology is not currently good enough to compete with products from its competitors in the banking and healthcare markets.
Speaking at the company's annual meeting, Cadbury said Misys's product development had not "kept pace with the changing competitive products that are available in the industry".


He reportedly described the vendor's software as "not at the leading edge" and admitted that the company has not had "the most competitive products out there".


Cadbury said following the collapse of takeover talks last week, Misys will focus on developing the next generation of its software to compete with rival products in the company's core markets.


Cadbury also defended his handling of the three-month bidding process for Misys, which was prompted by an approach by former chief executive Kevin Lomax who proposed a management buyout.


Takeover talks were terminated last Friday after the firm failed to receive a single formal offer for the business. Lomax quit the company on Monday. Cadbury told shareholders that Lomax had wanted to take the company private but when that strategy failed it was clear "that his position was untenable".


When asked by a shareholder about a 'management walk-in' approach by former directors Ross Graham, Mike O'Leary and John Sussens, Cadbury said the company needs a new chief executive rather than a team of new managers, although he added that any of the three were free to apply for the chief executive's role.

[amt] 08/10/2006 20:21

Anyway I am sure the trading update will be excellent and send the shares up. It will be another 6 or 9 months before the latest acquisition starts to become a worry in my view.

[amt] 07/10/2006 22:50

Maddox - maybe but what I dont understand how they can move into a totally different market, which is very tough and complex and expect to do better than the existing companies in that sector. Microsoft talked about moving into that market several years ago but not much happened.

[maddox] 07/10/2006 00:18

amt,

Too early to write-off Sage in the healthcare market, they have a track record of taking over other firms and making a success of them. Reading across from Misys' performance is probably as misguided as using SAP, Intel or MS - which is the usual excuse for marking Sage down.

Regards, Maddox

[lyntwyn] 06/10/2006 10:26

Sage Group (The) PLC - Sage Group PLC - Notification of preliminary results date
Friday 6 October
Notification of preliminary results date and period-end trading update
The Sage Group plc ('Sage') will announce its preliminary results for the year
ended 30 September 2006 on Wednesday 29 November 2006.
Sage will announce a brief period-end trading update for the year to 30
September 2006 on Thursday 12 October 2006.

[amt] 04/10/2006 22:21

Moving into Healthcare in US looks to be badly timmed. Misys have come unstuck and they are the market leader. They noted very high competition. Probably explains why the previuos owners got out.

[lyntwyn] 21/9/2006 12:43

Accountancy software giant Sage is to sell Invu's document management software through its direct arm in the UK.

Interestingly, Invu non-executive chairman Daniel Goldman is the son of Sage founder, David, who died seven years ago.

Initially, the deal only covers the 14,000 accountancy practices to whom Sage sells direct, but Invu (NVU) has high hopes of striking a deal that gives it access to Sage's dealer network with its 600,000 UK customers.

Chief executive David Morgan says: 'Normally license deals like this are struck for pennies per user, but this is much more like a dealer contract'. This implies that Invu will get proper bucks for Sage sales.

full article @