Interim Management Statement

RNS Number : 3626W

Sage Group PLC

28 July 2009

 



Tuesday 28 July 2009

The Sage Group plc Interim Management Statement

Trading in-line with expectations

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 2009.

Results for the nine months to 30 June 2009 were consistent with management expectations.  Market conditions in the quarter ended 30 June 2009 have remained challenging but largely unchanged.  Subscription revenues continue to show solid growth and the cost base has been successfully reduced to address the slowdown in the market for software and software-related services.

Business performance

The UK, Mainland Europe and Rest of the World continue to be resilient in testing market conditions. North America is making good progress in its restructuring programme and we remain confident that its medium-term margin goals will be achieved.

Financial position

We have a robust balance sheet, with committed facilities of £810m in place until 2011. Cash generation remains strong and net debt at 30 June 2009 fell to £491m (31 March 2009: £558m).

Outlook

Paul Walker, Chief Executive, commented: 

'There has been no significant change in market conditions during the quarter ended 30 June 2009 and we are planning for markets to remain testing. However, our proven business model and large, geographically diverse, customer base give us confidence that we are well positioned for these conditions and the eventual market recovery. We expect to report results for the year ended 30 September 2009 in-line with market expectations.' 

Enquiries:

The Sage Group plc   [phone]	Tulchan Communications     [phone]
Paul Harrison, Group Finance Director	Stephen Malthouse
Beverley Jones, Group Financial Controller	Andrew Grant

Notes to editors: 

The Sage Group plc is a leading global supplier of business management software and services to 5.8 million small and medium-sized enterprises in over 30 countries.  Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and now employs over 14,500 people worldwide. 

Market consensus of the 24 analyst research notes published after 6 May 2009 for the year to 30 September 2009 is as follows: Revenues £1,452m, EBITA £328m and PBT (pre-amortisation) £306m.

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.

www.investors.sage.com

 

END

 

 

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