Sage Group's third quarter in line with expectations

23rd Jul 2013 07:35

Sage Group is confident of delivering its targets as trading in the third quarter was in line with expectations. The supplier of business management software's operating cash generation remains strong, with robust performance in Europe and the Americas, according to a trading update on Tuesday.In Europe, the excellent results experienced in the UK and Ireland in the first half continued in the three months from April 1st. Businesses in mainland Europe proved resilient in weak market conditions, particularly in the company's larger markets of France and Spain. The firm's North American business has maintained the good performance reported for the first half, with the migration of customers to premium support and momentum with Sage ERP X3 remaining key features. South Africa and broader African markets also performed well. During the period, the group paid an ordinary dividend to shareholders of £42.8m and a special dividend of £198.7m. The share buyback programme continued and, since April 1st, a further 12m shares have been repurchased for a consideration of £40.5m. Net debt at the end of June was £445.1m , compared to £230.8m at the end of March. Guy Berruyer, Chief Executive, said: "We are encouraged by our performance in a trading environment which continues to vary across our markets. "We are driving significant change through the business, which is delivering results, and we remain confident that we will deliver on our strategic and financial goals."RD