Although Sage’s results for the full FY13 (see Sage making progress) were well received with a near 10% rise in its share price early on, they did report a major decline in basic EPS from 18.63p to 3.97p due to losses on disposals. However, underlying EPS grew 14% from 19.87p to 22.27p.
As long-term readers know, Sage and Capita were the only current holders of the Holway Boring Awards (search archive or see The Last Time) given for uninterrupted EPS growth. In Sage’s case since their 1989 IPO.
The problem is that, on whatever measure you use, Sage has suffered a reversal – indeed both underlying and basic EPS fell in FY12 – basic EPS fell again in FY13. Should have spotted that last year, of course. Mind you, the record - see chart - is still pretty impressive with EPS up around 90x since 1989.
So now Capita is the only Boring Award holder left. Would be good to give a new one. Mike Phillips at Micro Focus made a point in his recent announcement. Now only two years to go!. See Micro Focus edges closer to Boring Award.
Also good to see our Peter Roe quoted in Sally Davies’ article on Sage in the Financial Times today