Friday May 9, 12:33 PM
Sector movers: Sage downgraded to "hold"
LONDON (ShareCast) - Business software group Sage ran up good gains yesterday following results but sees most of them evaporate today after Investec Securities downgraded the stock to "hold" from "buy". Sage reported yesterday that pre-tax
profit in the six months to 31 March 2008 rose to £122.6m from £108.6m a year earlier on revenue that grew from £574.7m to £640.4m. The group remains strongly cash generative, enabling the board to recommend an increased interim dividend of 2.43p, compared with 1.27p last year. Outside of North America, where revenue was flat at £248.6m, all of Sage's businesses showed good revenue growth. Revenues in North America were held back by the poor performance by the healthcare division, which represents 11% of total group revenues. Excluding the Sage Healthcare Division organic revenue growth was 9%, while with it organic growth was reduced to 5%. Engineer IMI (Milan: ISP.MI - news) said revenues for the four months to April 2008 show organic growth of around 7%, with all its five businesses contributing to the growth. The group also said it is benefiting from the weak sterling in the first four months of 2008, which has had a positive impact on the translation of its revenues and profits. Its end markets remain firm with no change in order momentum in recent months. Prospects for the oil and gas and power markets look positive for its Severe Service business, it said. "Providing end markets remain supportive and notwithstanding some inflationary pressures on input costs, the combination of growth from new products, strong emerging markets growth and the benefits from our restructuring programme gives us confidence for good progress in 2008," said the group. Top performing sectors so far today
Health Care Equipment & Services 3,418.70 +0.83%
Industrial Engineering 3,726.50 +0.45%
Food Producers & Processors 4,577.00 +0.19%
Pharmaceuticals & Biotechnology 7,193.20 +0.08%
Aeronautics and Defence NULL 0.00% Bottom performing sectors so far today
Banks 8,027.40 -2.71%
Life Insurance (LINS.PK - news) 5,028.50 -2.67%
Software & Computer Services (CSVI.PK - news) 462.80 -2.61%
General Retailers 1,655.80 -2.23%
Fixed Line Telecommunications 2,867.50 -2.19%
|
Send Article by Email
