11th Oct 2007 07:00
Embargoed until 7am, Thursday, 11 October
Sage releases trading update; announces management changes
The Sage Group plc ("Sage"), a leading global supplier of business managementsoftware solutions, is today providing an update on its trading performance(unaudited) for the full year ended 30 September 2007. Sage confirms that itexpects results to be in line with market consensus.Group revenues for the year are expected to be ‚£1,158m (2006: ‚£892m^) andearnings before interest, tax and amortisation ("EBITA")* will be approximately‚£283m (2006: ‚£239m^). Organic revenue growth for the year will beapproximately 7%^. A summary of regional analysis is provided in the followingtable:‚£m Revenues EBITA* Organic revenue growth----------------------------------------------------------------------
UK 224 83 7%^ Mainland Europe 349 80 10%^ North America 508 100 4%^ Rest of World 77 20 17%^
---------------------------------------------------------------------- Group Total 1,158 283 7%^
Full details of Sage's financial performance for the year will be provided in the preliminary results announcement on 28 November 2007.
Management changes
Following a review of its North American business, the Board has concluded thata change in leadership is required to realise the full potential of thisbusiness. With immediate effect, Ron Verni (CEO, North America) and JimEckstaedt (Chief Financial Officer, North America) have left the business. MrVerni has also resigned as a director of the Sage Board. Messrs Verni andEckstaedt formed part of the North American head office team.Sage's North American business isorganisedinto four operating divisions, eachunder the direction of an executive team. This senior management structurewill remain in place, now reporting directly to Paul Walker, Chief Executive ofSage, until a new regional CEO is appointed. Andrew Griffith, Group Directorof Treasury and Mergers & Acquisitions, formerly Group Financial Controller,will be acting Chief Financial Officer, North America, with immediate effect,located in Sage North America's office in California. The process to recruit anew regional chief executive officer and regional chief financial officer isunderway. Sage in North America is a strong and competitive business with market-leadingbrand names. The Board remains confident about the opportunities to developthis business and to deliver further growth going forward.Enquiries: The Sage Group plc Tulchan
Communications
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Paul Walker, Chief Executive Andrew Grant Paul Harrison, Group Finance Director Stephen Malthouse Cynthia Alers, Investor Relations Director Tel: +44 (0) 191 294 3068 Tel: + 44 (0)207 353 4200 Notes to editors:The Sage Group plc is a leading global supplier of business management softwaresolutions and related products and services, principally for small tomedium-sized enterprises. Formed in 1981, Sage was floated on the London StockExchange in 1989 and now employs over 13,000 people worldwide.
Market consensus is based on analysts' forecasts with revenues at ‚£1,166m and EBITA ‚£287m. Earnings per share calculations should be based on 1,300m shares.
*Earnings before interest, tax and amortisation is an approximate estimate.
^Foreign currency results for the prior year ended 30 September 2006 have been retranslated based on the average exchange rates for the year ended 30 September 2007 of $1.98/‚£ and ¢â€š¬1.48/‚£ to facilitate the comparison of results.
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