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SAP profit warning saps UK strength

German company blames Japanese woes

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SAP issued a profits warning and caused shares in UK IT companies to fall on the Stock Exchange this morning. The German software company said that while sales for 1998 rose by 40 per cent, its earnings growth at 15 per cent was below its expectations, due to falling sales in the Japanese market. Shares in CMG fell by 75 pence to 1,525 pence, Misys fell by 10.75 pence to 453 pence and Logica by 12 pence to 519 pence. However, UK SAP partners, including Diagonal plc and Druid Group plc were not affected by the warnings. ®

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