Sage expects to fall into line after improved Q3 growth
Biz software biz buzzes
UK-based software maker Sage reported this morning “improving organic growth trends” in its third quarter, and said that its full-year results would be in line with market expectations.
The company’s CEO Paul Walker said Sage’s second half of the year looked set to follow on from the good performance it had put in during its first two quarters.
"However, the economic environment remains uncertain and we continue to manage our cost base prudently, whilst investing to enhance our competitive position," Walker said.
"Our strong balance sheet, healthy cash flow and large, international customer base, positions us well for the future."
Walker will be replaced by the firm’s mainland Europe and Asia ops boss Guy Berruyer on 1 October this year.
The company said its cash generation remained strong and net debt fell to £280m as of 30 June 2010. It had stood at £305m at the end of March.
Meanwhile, rumours surfaced yesterday that claimed tech giant Hitachi could be eyeing up Newcastle-based Sage as a possible takeover candidate.
Analysts speculated about which IT services biz Hitachi was looking to buy to bolster its information and communications system business, according to Reuters. Sage was mentioned among 10 possible acquisition targets.
Shares in Sage are currently trading down 1.65 per cent at 244.4p on the London Stock Exchange. ®