Sage flagged up Europe as an area to keep a careful eye on in its latest interim management statement, which is hardly surprising, but says it has made a ‘satisfactory’ start to the year (from October 1 2011) and trading is in line with expectations. The tone of the statement would probably raise warning flags if it came from another company but Sage is always conservative in its statements while generally delivering solid performance (see In praise of ‘Boring’ Sage).
The disposal of the ill performing US healthcare division to Vista Equity Partners was completed during the quarter bringing proceeds of £200m and more significantly removing this drag on overall performance. Cash reserves were up to £149.8m at the end of December and a share buyback programme is underway.
There was no news on the Australian court action by former Mind Your Own Business owner Archer Capital who was suing Sage for cAus$130m/£80m for pulling out of acquisition discussions (see Sage sued by former MYOB owner). Sage rejected the claim and a hearing date had been set for December 2 2011. No news could be good news.