Sage Group (The) Live Discussion

Maddoxx 28 Jul 2016

Sage powering ahead Another jump in the sp today up 15p to 716p as I post.I'm wondering whether this is market reaction to the Sage Summit in Chicago. It seems that CEO Stephen Kelly has made a step-change in the pace of product innovation and is making a good job show-casing them in Chicago. That, together with the new partnerships and market positioning of Sage 'championing entrepreneurs' is starting to change perceptions. I like the bold ambition of Stephen Kelly and, whilst it's still early days, I think it'll come through in the numbers. If you have seen anything else that might be driving this sp rise - please post it up. Regards, Maddox

JR710 20 Jul 2016

The Petition is gaining support Apologies for board hopping; but !The petition is going quite well; 6000+ signatures so far. ONLY 3 weeks to go !!![link] you hate seeing buys reported as sells etc!!!!!!Has already been sent to Martin Lewis, Daily Mail, Moneyweek & Watchdog.New chancellor, shaddow chancellor & lots of others inc Stock Exchange aim committee.If you follow tweeters etc, send it to them please!If this petition doesn’t reach 10,000; then imo we might as well have not bothered as it will almost certainly be filed B1N; @ 10,000 the government should respond.So – If you haven’t yet signed or indeed have but haven’t passed it on to others, then now’s the time to do so.

Simbrad 28 Jun 2016

"A blog post by Sage CEO Stephen Kelly in the wake of the Brexit vote reminds us of Rudyard Kipling’s poem ‘If’. Mr Kelly (himself of the stoic Best of British school) urges his key constituency, the UK entrepreneurs to in effect Keep Calm and Carry On. This is a necessary message in these times, when the body politic seem headless, and many CEOs are ‘doing an ostrich’. Tech’s wider stakeholder community (users, employees, supply chain partners and investors) need a guiding hand to give them (us!) some fixed compass point in these uncertain times and to encourage us to think that “Ours is the Earth and everything that's in it”. Hat tip Mr Kelly. We expect Sage to update guidance at the forthcoming Q3 update (for us: Sage wins on translation from the US dollar and better execution there, flags up new economic uncertainties in the UK and euro area) but all in it should set a reassuring tone." Panmure note out today on research tree

gamesinvestor 20 Jun 2016

Re: Can sage tap into Salesforce pixie dust? ""div and 2% FCF yield"""makes you wonder why Terry Smith as this in his portfolio when considering his mantra of only investing in companies with 6% Free cash flow yield.Sage is well short of this.Any views on threats from Xero or other software packages (Quickbooks etc). Having read a few forums, it appears most users complain bitterly that the Sage software support is almost non-existent or of such poor quality, it seems that way. They also seem to be laughing at the concept of Sage Live (or Life) as an online solution, since non of their existing packages allow data transfer and there is a very big concern about Sage's lax approach to security of passwords. Vital I guess for a cloud based solution.Many of the obviously disgruntled users comment that the only two things Sage are good at is marketing and billing -- harsh I suppose and possibly a minority - I don't know.Any users here that can comment on these observations (I must stress, not my own views).Games

Simbr 03 Jun 2016

Can sage tap into Salesforce pixie dust? Panmure's note from this morning: Following our trip to Salesforce World Tour (19 May) we decided to dig some more into the marketing efforts around Sage Live. Spending time on the Sage marketplace (investor think of it as Sage’s ‘appstore’ we note what appears to us to be a record number of new additions of independent software vendors... our view is that Sage only has to tap into a fraction of the Salesforce pixie dust (200,000 customers) to have a large success on its hands... if there is upside to our FY/2016E estimates (ended 31 September) it is unlikely to be from Sage Live, but we did not expected that anyway. The valuation remains on the high side on PE 23.9x, 16.0x EV/EBITDA – with 2.3% div and 2% FCF yield. Pulled it from Research Tree

Simbrad 03 Jun 2016

Panmure published a note on Sage this morning: "Following our trip to Salesforce World Tour (19 May) we decided to dig some more into the marketing efforts around Sage Live. Spending time on the Sage marketplace (investor think of it as Sage’s ‘appstore’) we note what appears to us to be a record number of new additions of independent software vendors... our view is that Sage only has to tap into a fraction of the Salesforce pixie dust (200,000 customers) to have a large success on its hands... if there is upside to our FY/2016E estimates (ended 31 September) it is unlikely to be from Sage Live, but we did not expected that anyway. The valuation remains on the high side on PE 23.9x, 16.0x EV/EBITDA – with 2.3% div and 2% FCF yield." From Research Tree

Simbrad 25 May 2016

Read Panmure Gordon & Co's note on Sage Group, out this morning on Research Tree: "While Intuit shares fell after hours, nonetheless the company beat Q3 and raised FY guidance. The readacross for Sage is that it was Intuit’s online edition of Quickbooks which was at the heart of the beat – Sage needs to up its cloud game. Intuit reported Q3 EPS US$3.43 ex-items vs consensus (source FactSet) US$3.21 with revenue +8% to US$2.30Bn vs consensus US$2.25Bn. Q4 Guidance: EPS breakeven vs consensus..."

Maddoxx 06 May 2016

First Half Results Highlights: Operating performance‒ Improved organic revenue growth to 6.2% (H1 2015: 5.0%), achieving double digit recurring revenue growth of 10.0% (H1 2015: 8.1%);‒ Accelerated software subscription growth to 35.3% (H1 2015: 25.4%) in line with planned transition and corresponding decline in SSRS revenue of 6.3% (H1 2015: -2.0%);‒ Customers embracing closer relationships with a 50% increase in subscription contracts to 842,000 (H1 2015: 561,000);‒ Strong results in Europe, North America and Africa were balanced by a slower performance in Asia, which benefited from non-repeating revenues in the prior period.- An 8% increase of the interim dividend to 4.80p.- Underlying cash conversion of 111%.So the 22p drop in the share price is surprising and I presume in response to the fall in margins from 28.2% (full-year 2015) to 25.4%. However, this fall was flagged and due to an increase in marketing spend. The full-year target of 27% operating margin remains in place and the CEO and MD repeatedly stated that they are confident of hitting it and 6% revenue growth.So IMHO little to be concerned about, in fact there was much to be optimistic about in these results. The transformation of Sage appears to be working albeit it's too early to be evident in the top-line figures. Growth in new product sales (all priced on a SAAS model)look very encouraging but primarily customer conversions rather than new customer wins thus far.Also, this decisive transformation is causing some collateral damage with office closures and a shedding of staff in non-strategic areas. Seventy of the top one hundred staff have changed with thirty new recruits to execute the new strategy.So with Mr Market taking a different view to my own I'm tempted to pick up a few more at the 582p he's offering.Regards, Maddox

gamesinvestor 05 May 2016

Re: Panmure Gordon note - Research Tree Reasearch is wonderful, but it still looks ludicrously overpriced.What's worrying here is the dividend growth rate dwarfs the earnings growth rate over the last 5 years -- on a P/E of 23 and a growth rate so low something has to give. Some argue the ROA is the significant factor, but that's not stellar at around 8%.Bemused as to why Terry Smith has so much sunk into this one -- maybe I should keep reading.Games

Maddoxx 27 Jan 2016

1Q trading - on target for 6% organic growth Q1 Trading Update today - basically in-line and on target (i.e. 6%, Op margin 27%), with Group organic revenue growth up at 6.6%. The transition to subscription billing and away from software licence sales is continuing, which has the effect of depressing revenue growth in the short-term. So, all good, no slip-ups and strategic plan being executed - just what I hoped/expected. However, what is interesting is the market reaction to this update - sp up 37p to 604.5p (6.5%)as I write - against the backdrop of a very nervous market. It strikes me that the scepticism is waning and Sage's attractions are starting to become more apparent. So anyone that took advantage of the recent turbulence to get in at the 550-570p range will find themselves with a nice short-term gain of 6% plus and the final dividend of 8.65p xd 11th Feb in prospect.

oldjoe1 03 Dec 2015

SGE Issues Dividend........... <b>The Sage Group plc (SGE) to Issue Dividend of GBX 8.65December 2nd, 2015 • 0 comments • Filed Under • by ABMN Staff</b>The Sage Group plc logoThe Sage Group plc (LON:SGE) declared a dividend on Wednesday, December 2nd, Market Beat.com reports. Shareholders of record on Thursday, February 11th will be given a dividend of GBX 8.65 ($0.13) per share on Friday, March 4th. This represents a yield of 1.5%. The ex-dividend date is Thursday, February 11th. The official announcement can be accessed at this link.The Sage Group plc (LON:SGE) traded up 0.09% on Wednesday, reaching GBX 577.00. The company’s stock had a trading volume of 7,365,081 shares. The stock’s 50 day moving average is GBX 547.01 and its 200-day moving average is GBX 531.82. The Sage Group plc has a 52 week low of GBX 363.39 and a 52 week high of GBX 587.50. The firm’s market capitalization is GBX 6.21 billion. A number of research analysts have recently issued reports on SGE shares. Citigroup Inc. reaffirmed a “buy” rating and set a GBX 585 ($8.80) price objective on shares of The Sage Group plc in a report on Tuesday, August 11th. Panmure Gordon reiterated a “hold” rating and set a GBX 516 ($7.76) target price on shares of The Sage Group plc in a research report on Monday, September 28th. AlphaValue restated an “add” rating and issued a GBX 565 ($8.50) price objective on shares of The Sage Group plc in a research report on Thursday, August 6th. Bryan Garnier & Cie reiterated a “neutral” rating and issued a GBX 520 ($7.82) target price on shares of The Sage Group plc in a research note on Tuesday, October 6th. Finally, Numis Securities Ltd upped their price target on The Sage Group plc from GBX 563 ($8.47) to GBX 573 ($8.62) and gave the stock an “add” rating in a research note on Tuesday, October 6th. Five investment analysts have rated the stock with a sell rating, ten have issued a hold rating and three have given a buy rating to the company’s stock. The Sage Group plc has a consensus rating of “Hold” and a consensus target price of GBX 525.72 ($7.91).The Sage Group plc is a United Kingdom-based company, which provides small and medium sized enterprises (LON:SGE) with a range of business management software and services, including accounting, human resource (HR) and payroll, enterprise resource planning (ERP), payments, customer relationship management (CRM), mobility and business intelligence. The Company operates through three segments: Europe, which includes operations in France, the United Kingdom and Ireland, Spain, Germany, Switzerland, Poland, Portugal and Sagepay; Americas, which includes the United States, Brazil and Canada, and AAMEA, which include Africa, Australia, Middle East and Asia. The Africa operations are based in South Africa and the Middle East, and its Asia operations are based in Singapore, Malaysia and the United Arab Emirates. Its products include Sage One, Sage 100, Sage 50, Sage ERP X3, Sage Payment Solutions, Sage Office Line, Sage Murano, Sage Pastel, Sage VIP Payroll, Sage Handisoft and Sage 200.

oldjoe1 03 Dec 2015

SGE, Comment..... missed this yesterday...Reuters Insider – Online format seeing ‘tremendous growth’: Sage CEO02-12-2015 120Click the following link to watch video: [link] Source: CNBC Description: Stephen Kelly, CEO of Sage, says they’ve seen 100 percent compound growth on their flagship online accounting software. (To access all exclusive Reuters Insider programming visit: [link] Link: [link]

oldjoe1 03 Dec 2015

Re: SGE, SAGE BROKER COMMENT...... SGE SAGE GROUPUPGRADESage Group (The) PLC SGE Numis Add 584.75 577.00 - 640.00 Upgrades

oldjoe1 03 Dec 2015

Re: SGE, SAGE BROKER COMMENT...... SGE SAGE GROUP PLC (financial software)[link] Comment from Hargreaves Lansdown.....HL COMMENT (2 DECEMBER 2015)<b><i>Sage has released full year results. Organic revenue grew by 6%, with recurring revenue up 9%, driven by strong growth in software subscriptions and the roll-out of new products such as Sage One. Organic operating profit increased by 8% to £380m, and the organic operating profit margin rose to 27.1%. Underlying basic earnings per share increased by 12.6% to 25.00p, enabling the full year dividend to be lifted by 8% to 13.10p per share.The outlook statement was positive but margin guidance was a little light of analysts' expectations; the shares fell by around 4% in early morning trading.Key highlightsRevenue in Europe grew organically by 5%, North America: +4%, International (Africa, Brazil, Australia, Middle East and Asia): +14%.Free cash flow increased by 29.2% to £296m.Contract renewal rate increased to 84% (FY14: 83%).OutlookTargeting at least £50m of run-rate annualised savings by the end of FY16, to be reinvested in growth initiatives.Expect to deliver organic revenue growth of at least 6% and organic operating margin of at least 27% in FY16.Our view:We like Sage; it generates prodigious cash flows and benefits from a large base of high quality, recurring revenues. The company is very shareholder-friendly - dividends have been maintained or grown every year for the last two decades; and the shares currently offer a prospective yield of 2.5% (variable and not guaranteed).A key part of Sage's strategy is to increase the proportion of recurring revenues, by encouraging its customers to sign up to a subscription-based model. The group appears to be making good progress in this regard. Recurring revenue increased by 9% in FY15 and now represents 68% of the group total, up from 66% in FY14.Technology disruption is a risk in this industry, but Sage isn't sitting on its laurels. New products such as Sage One appear to be gathering momentum. The group is seeking to 'leap-frog' first generation cloud competitors through integrated latest generation cloud-platform products and through scalable digital distribution channels. Meanwhile, that large bank of recurring revenues makes it very hard for competitors to make significant inroads.Following a strong run the shares trade at the top end of their historical valuation range, on a forward price to earnings ratio (P/E) of 20.6x. But few companies offer the prospect of such reliable growth. We feel in an uncertain economic environment, businesses with recurring revenues, robust balance sheets and strong cash flows are likely to remain in demand, although there are no guarantees.All yield figures are variable and not guaranteed.</i></b>

oldjoe1 03 Dec 2015

SGE, SAGE BROKER COMMENT...... Broker Comment from Hargreaves Lansdown.....HL COMMENT (2 DECEMBER 2015)<b><i>Sage has released full year results. Organic revenue grew by 6%, with recurring revenue up 9%, driven by strong growth in software subscriptions and the roll-out of new products such as Sage One. Organic operating profit increased by 8% to £380m, and the organic operating profit margin rose to 27.1%. Underlying basic earnings per share increased by 12.6% to 25.00p, enabling the full year dividend to be lifted by 8% to 13.10p per share.The outlook statement was positive but margin guidance was a little light of analysts' expectations; the shares fell by around 4% in early morning trading.Key highlightsRevenue in Europe grew organically by 5%, North America: +4%, International (Africa, Brazil, Australia, Middle East and Asia): +14%.Free cash flow increased by 29.2% to £296m.Contract renewal rate increased to 84% (FY14: 83%).OutlookTargeting at least £50m of run-rate annualised savings by the end of FY16, to be reinvested in growth initiatives.Expect to deliver organic revenue growth of at least 6% and organic operating margin of at least 27% in FY16.Our view:We like Sage; it generates prodigious cash flows and benefits from a large base of high quality, recurring revenues. The company is very shareholder-friendly - dividends have been maintained or grown every year for the last two decades; and the shares currently offer a prospective yield of 2.5% (variable and not guaranteed).A key part of Sage's strategy is to increase the proportion of recurring revenues, by encouraging its customers to sign up to a subscription-based model. The group appears to be making good progress in this regard. Recurring revenue increased by 9% in FY15 and now represents 68% of the group total, up from 66% in FY14.Technology disruption is a risk in this industry, but Sage isn't sitting on its laurels. New products such as Sage One appear to be gathering momentum. The group is seeking to 'leap-frog' first generation cloud competitors through integrated latest generation cloud-platform products and through scalable digital distribution channels. Meanwhile, that large bank of recurring revenues makes it very hard for competitors to make significant inroads.Following a strong run the shares trade at the top end of their historical valuation range, on a forward price to earnings ratio (P/E) of 20.6x. But few companies offer the prospect of such reliable growth. We feel in an uncertain economic environment, businesses with recurring revenues, robust balance sheets and strong cash flows are likely to remain in demand, although there are no guarantees.All yield figures are variable and not guaranteed.</b></i>