Interim Management Statement

RNS Number : 5026A

Sage Group PLC

04 August 2008

 



Monday, 4 August 2008

The Sage Group plc Interim Management Statement

The Sage Group plc ('Sage'), a leading global supplier of business management software solutions for small and medium-sized enterprises ('SMEs'), is releasing its Interim Management Statement on its unaudited results for the nine months to 30 June 2008.

Results for the 9-month period were consistent with management expectations.  We therefore expect to report results for the full year to 30 September 2008 in line with expectations. 

Regional Review

Our UK business reported a solid performance despite the uncertain market conditions.  North America, excluding Sage Healthcare Division, reported a satisfactory performance in challenging market conditions.  Sage Healthcare Division focused on driving operational improvements to meet medium-term objectives in margin and revenue improvement.  In more benign economic conditions, our businesses in Mainland Europe continued to perform strongly. As forecast at our half year results, growth in Spain moderated slightly, whilst growth in Germany/Switzerland improved.  France continued to perform well.  Rest of World again recorded strong organic growth. 

Financial position

Cash flow remained strong over the period, and, at 30 June 2008, net debt stood at £532m (31 March 2008: £556m).

Acquisitions

There were no new acquisitions since those of KCS and Tekton Group announced earlier in the year in the UK. 

Summary

Commenting on Sage's performance over the period, Paul Walker, Chief Executive, said: 'Our businesses continue to show resilience in uncertain and challenging markets. We remain cautious on the economic outlook although our large customer base, geographic diversity and strong product offering provide good support for our businesses going forward.'  

Sage will report preliminary results for the 12 months to 30 September 2008 on 3 December 2008.  

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Enquiries:

The Sage Group plc   [phone]	Tulchan Communications     [phone]
Paul Walker, Chief Executive	James Bradley
Paul Harrison, Group Finance Director	Stephen Malthouse
Cynthia Alers, Investor Relations Director	Lizzie Morgan

Notes to editors: 

The Sage Group plc is a leading global supplier of business management software and services to 5.7 million small to medium-sized enterprises.  Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and now employs over 14,800 people worldwide.

Market consensus of the 23 analyst research notes published after 8 May 2008 for the year to 30 September 2008 is as follows: Revenues £1,296m, EBITA £310m and PBT (pre-amortisation) £280m.

All financial information is based on unaudited management accounts. Certain statements made in this interim management statement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward-looking statements.  Nothing in this press release should be construed as a profit forecast. 

www.investors.sage.com  

 

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