Sage update fails to convince the markets
Punished by rumour
UK accountancy software firm Sage has failed to convince the stock markets that all is well despite issuing a statement saying that it expects results for the half year ended 31 March 2008 to be in line with expectations.
Sage shares are down three per cent at the time of writing in a market which is down one per cent. It is not clear what is causing the bad feeling, but rival companies like Intuit have lowered their expectations. Analysts were predicting profit of £266m for 2008.
The company predicted a decent 2008 and expected to see the benefits of changes to its US business - a new president and CEO were appointed in March.
Chief executive Paul Walker said in November 2007: "While we recognise the current uncertainties in the macro-economic situation, the defensive characteristics of our business model lead us to view 2008 with confidence."
Sage will announce its results on 8 May 2008. ®