Sector movers: Sage drags IT sector lower after full-year results

5th Dec 2012 14:57

A sharp fall by Sage saw the software and computer services sector drop to the bottom of the pile on Wednesday afternoon.SageAccountancy software group Sage reported broadly in-line full-year figures with organic revenue growth up 2%, marking a slowdown from the 4% growth in 2011.Chief Executive Guy Berruyer said a feature of the year had been the variable trading performance by geography: "Europe's performance reflected good growth by the UK and Germany, offset by the impact of weaker markets in France and Spain." Shares were down 3.66% at 299.8p this afternoon.Both Investec and Panmure Gordon reiterated their 'sell' ratings for the stock today, while Canaccord Genuity reduced its recommendation to 'hold'. Analysts at Jefferies (which kept its 'hold' stance), said: "Organic growth is likely to remain a challenge in FY13E and we posit that management needs to remain on the front foot with respect to acquisition opportunities in higher-growth regions and segments."InnovationSector peer Innovation Group was subdued today in spite of beating profit forecasts in the year to September 30th.Shares were broadly unchanged in afternoon trade as investors shrugged off "a tidy set of results", according to Panmure Gordon analyst George O'Connor. The company, which specialises in business process services and technology, reported a full-year adjusted profit before tax of £18.5, ahead of the £17.7m estimate.Aanalyst Julian Yates from Investec said that Innovation's strong margins in the second half "sets the business up well for earnings momentum into FY13E and FY14E".GloboMobile solutions and 'software-as-a-service' provider Globo was a heavy faller on AIM, a day after announcing the sale of a stake in its Greek operations.The company yesterday morning that it is to sell a majority stake (51%) in its subsidiary Globo Technology for €11.2m, comprising all Greek-related e-business software operations, the company said.Top performing sectors so far todayIndustrial Metals & Mining 2,531.10 +2.68%Food & Drug Retailers 4,140.40 +2.29%Mining 18,608.23 +1.98%Automobiles & Parts 5,267.66 +1.44%Electronic & Electrical Equipment 3,596.87 +1.27%Bottom performing sectors so far todaySoftware & Computer Services 922.36 -1.31%Tobacco 37,513.68 -0.97%Technology Hardware & Equipment 920.30 -0.77%Food Producers & Processors 6,390.64 -0.44%Insurance (non-life) 1,631.36 -0.33%Bc