Shares in The Sage Group (LON:SGE) have taken a plunge in London in today’s session as the company updated investors on its first-quarter performance this morning, unveiling continued weak performance in France. The software specialist, however, posted a rise in revenues during the reported period and reiterated its full-year forecasts.
As of 10:25 GMT, Sage’s share price had given up 5.55 percent to 775.80p, weighing on the benchmark FTSE 100 index which has slipped marginally into the red and currently stands 0.31 percent lower at 7,708.04 points. The group’s shares have added some 23 percent to their value over the past year, as compared with more than a seven-percent rise in the benchmark index.
Sage posts first-quarter results
The Sage Group announced in a statement today that its organic revenue had increased 6.3 percent in the three months ending December 31, with strong growth seen in North America. The company, however, reported that France had continued to underperform the rest of the group, weighing on both organic revenue and recurring revenue growth with recovery expected in the second half of the year.
Sage’s chief financial officer Steve Hare noted that the first-quarter results were in line with the company’s expectations, and reiterated the company’s full year guidance of around eight-percent organic revenue growth and around 27.5-percent organic operating margin.
Analysts weigh in on performance
“Implicit in today’s statement and unchanged guidance is that organic revenue growth will accelerate through the year, potentially reaching 8-10% during H2 FY18,” analysts at Shore Capital said, as quoted by Proactive Investors, as they retained their ‘buy’ stance on the software group, based on the potential for an acceleration of organic revenue growth through the current year and beyond.