Financial Planning

Sage shares plunge on sales report, FTSE 100 edges lower

Financial Planning
Published: 13 April 2018

Shares in Sage have tumbled as the company reported falling revenue growth while Hammerson shares took a dive as Klepierre pulled out of a takeover bid.

The blue chip share index fell 0.08%, down 6 points at 7,251.85 by 10.44 GMT.

Finance software producer Sage (LON:SGE) shares dropped 9.5% as it reported a 1.3% fall in sales for its first half ending 31st March. Sage has revised its full-year sales growth forecast to 7% from a previous 8%. The company said the drop was due to falling subscription renewals and a decrease in its new contract licences. CEO Stephen Kelly said: “Growth in (first half 2018) was lower than our expectations as the pace of execution has been slower than we planned.”

British Airways owner IAG (LON:IAG) shares rose 1.5% as the prospect of a takeover bid for Norwegian emerged.

Micro Focus International (LON:MCRO) shares gained 5.5% as US hedge fund Elliott Management Corp took an unknown stake in the software company.

Shares in Rolls-Royce (LON:RR) fell 1.4% as the jet engine maker said it would be performing additional tests on some Trent 1000 engines which would push up costs for 2018. In a statement, the company said: “The increased inspection frequency is driven by our further understanding of the durability of the Trent 1000 Package C compressor, a condition that we highlighted earlier this year.”

In the mid-caps, shopping centre owner Hammerson (LON:HMSO) shares sank 10.6% as French peer Klepierre said it would not be going forward with a bid for the company. Klepierre said: “The board of Hammerson did not provide any meaningful engagement with respect to the increased proposal and, after careful consideration, Klepierre has concluded that it does not intend to make an offer for Hammerson.”

On the currency markets, sterling rose 0.34% against the dollar to $1.4286 and gained 0.31% against the euro to €1.1583 to its highest rate in ten months.