The Sage Group plc (”Sage”) is today issuing its interim
management statement which covers the period from 1 April 2012 to
Despite a toughening economic environment, trading remains
broadly in-line with expectations at the time of the interim
results announcement on 9 May 2012.
North America continued to demonstrate the sequential quarter by
quarter improvement in trading which was anticipated to be a
feature of the year.
The variable trading performance evident in the first half in
Europe continued in the third quarter. The UK and Ireland business
demonstrated good growth although conditions in mainland European
markets have toughened. Overall performance in Europe has been flat
and the anticipated improvement in growth over the first half has
not yet materialised.
AAMEA continues to perform well, with growth driven by strong
performances by South Africa and Australia. The expansion into the
wider African continent continues to be a feature of the South
African growth whilst Australia continues to grow ahead of GDP.
Acquisition of Folhamatic Group (”Folhamatic”)
On 28 June 2012, we completed the acquisition of a controlling
interest in Folhamatic, a leading provider of accounting, tax and
payroll and regulatory content software in Brazil for an expected
total consideration of £125m (R$398m) for 75% of the equity.
Folhamatic has a leading market position in a large and growing
economy and the acquisition represents an important step in
building Sage’s presence in a key emerging market.
The Group`s strong operating cash generation has continued and,
during the quarter, the return of the £200m proceeds from the
disposal of Sage Software Healthcare LLC to Vista Equity Partners
was completed, with 71m shares repurchased. As previously
announced, the share buyback programme is continuing and, to date,
a further 6.2m shares have been repurchased for a consideration of
£17.6m. Net debt at 30 June 2012 was £121.7m (£122.1m net cash at
31 March 2012).
Guy Berruyer, Chief Executive, commented:
“The main trends we highlighted at our interim results in May
continue to be a feature of our trading performance. Whilst we
remain cautious on the outlook for Europe, and watchful of this
region’s economic climate, the strong fundamentals of our business
model remain and we continue to make good progress in executing
against our business priorities. We look forward to tomorrow’s
investor day where we will be sharing our plans for the future
growth of the business.”
About The Sage Group plc
The Sage Group plc is the leading global supplier of business
management solutions to small and medium-sized enterprises. Formed
in 1981, Sage was floated on the London Stock Exchange in 1989.
Sage has over 6 million customers and more than 12,300 employees
worldwide. We operate in over 23 countries covering the UK,
mainland Europe, North America, South Africa, Australia, India and
China. For further information please visit www.sage.com
The Sage Group plc +44 (0)191 294 3068
Guy Berruyer, Chief Executive
Paul Harrison, Group Finance Director
Murdo Montgomery, Investor Relations
Tulchan Communications +44 (0)20 7353 4200