ANALYST VIEWS: IS SAGE OUT OF THE WOODS?

 
Steve Dinneen
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JULIAN YATES | INVESTEC

The results were overall in-line, driven by slightly better revenues but due to higher financing costs, earnings per share were just one per cent ahead. The US remains a concern with underperformance at both the top and bottom line.

PAUL MORLAND | PEEL HUNT

Growth momentum has continued, but investment in sales and marketing is restricting margins and earnings per share progress is sluggish. Although we remain fans of Sage’s cash-generative business model, we are concerned that current levels of investment may need to continue.

DAVID TOMS | NUMIS

Sage’s interims delivered no significant surprises. Growth improved in North America, but appears to have levelled out in Europe. Healthcare’s long term outlook still seems positive, but the medium term is cloudy. Margins slightly beat, and management targets increasing margins from full-year 2012.