The Sage Group plc Interim Management Statement
The Sage Group plc ("Sage") is today issuing its interim management statement which covers the period from 1 October 2012 to date.
Financial performance
Trading across all regions remains in-line with expectations at the time of the full year 2012 results announcement on 5 December 2012.
In Europe, revenue trends continue to vary by geography. The UK and Ireland business demonstrated good growth in the first quarter, whilst conditions in mainland Europe remain challenging. Sage Pay delivered very strong growth in the quarter.
In North America, the stronger trading performance reported for the second half of 2012 has continued in the first quarter. Our Brazilian business delivered good growth and progress remains in-line with our expectations.
AAMEA continues to perform well, with South Africa in particular growing strongly.
Acquisitions
On 11 October 2012, as previously reported, the Group acquired EBS Empresa Brasileira de Sistemas Ltda. ("EBS") for a cash consideration of up to £10.5m. This important in-fill acquisition strengthens Sage's market leadership position in the accounting firm market in Brazil and extends the geographic breadth of its offering, particularly in the Southern region.
Financial position
The Group's operating cash generation remains strong. The share buyback has continued since the year-end and, to date, a further 32.4m shares have been repurchased for a consideration of £99.3m. Net debt at 31 December 2012 was £212.7m (£161.5m as at 30 September 2012).
Guy Berruyer, Chief Executive, commented:
"Overall, trading remains solid and in-line with expectations. Economic conditions for our customers are challenging across our markets and we remain particularly watchful of the uncertain market environment in mainland Europe. However, the strong fundamentals of our business model and our continued progress in executing against our strategy, underpins our confidence in the future growth prospects of the business."
