Sage Group

Ticker SGE

Today's data summary

Market open
% change
+0.51%
Price Pence
628.20
Change
+3.20
As of 12:33 18 Jan 2019
Market cap. Pound sterling
6,819.83 million
As of 12:33 18 Jan 2019

Latest updates

Sage Group leads FTSE risers

Shares in Sage Group, the UK software firm, leapt to the top of the FTSE 100 risers after it said its organic service revenue grew by 7.6% in the first quarter to £465m.

Sage's share price rose 7.3% to 638.7p, closely followed by Primark-owner Associated British Foods whose stock added 5.7% to £23.00 after reporting its results.

Whitbread is one of the morning's biggest fallers, down 4.4% to £45.64, after the pubs and hotel operator gave a cautious outlook for its financial year.

The FTSE 100 is now down 0.47% at 6,830.56.

Fresnillo stock falls

Andrés Manuel López Obrador
Reuters

Software group Sage is leading the FTSE 100 risers on Friday morning, up 3% at 576.9p.

Precious metals miner Fresnillo is the blue chip index's largest faller, down 2.22% at 784.2p.

It is under pressure because of legislation proposed Mexico's new president Andrés Manuel López Obrador (pictured) which would make more difficult for miners to operate in the country.

The wider FTSE 100 is up 0.35% at 6,984.79.

The FTSE 250 is up 0.16% at 18,558.89.

Sage warns of slowing growth

Someone doing their accounts
Getty Images

Software firm Sage this morning warned of slowing growth in the short term as it accelerates a plan towards subscription services.

The accounting, payroll and human-resources company said organic revenue in the last year was up 6.8% at £1.819bn, slightly lower than forecasts of 7%.

The company has been seeking to migrate to cloud-based subscription services from packaged software, like most of its competitors.

More share movers

The FTSE 100 might be trading slightly higher, but a couple of companies are holding back its progress.

Shares in software group Sage are down 5.3% after Barclays cut its rating on the company to "underweight".

A ratings downgrade is also behind a 3.8% decline in Royal Mail's shares. HSBC has cut the mail firm to "hold" from "buy".

Sage move: chief executive departs

Graph of Sage share price
BBC

Shares in software firm Sage have fallen nearly 7% in trading this morning, making it the biggest faller on the FTSE 100.

That follows news that chief executive Stephen Kelly will be replaced after some lower-than-expected growth figures.

Back in May the firm blamed "inconsistent operational execution" for a shortfall in organic revenue growth.

But as the graph above illustrates, investors have doubted the firm's prospects since the start of the year.

Sage sees falling revenue growth

Business management software firm Sage has reported a 1.3% fall in sales for the six months ended 31 March, compared with the same period in the previous year.

The firm said this was due to a decline in recurring business from existing customers, and a decrease in price on new contract licence.

Sage said sales growth was below management's expectations, and as a result, it revised its sales forecast for sales growth down to 7% for the full year, down from 8%.