Sage is one of the leading global suppliers of business management software and services to small and medium-sized enterprises ("SMEs"). Operating in 26 countries worldwide, we help our customers manage their businesses more efficiently through the provision of locally tailored products and quality customer support.
Chairman's welcome
"Our large and international customer base, the flexibility of our business model and our consistently strong cash flows position us favourably to manage the current market conditions."
Tony Hobson,
Chairman
Group overview
Sage have direct operations in 26 countries and a presence in many more countries through our indirect network of 30,000 business partners and 40,000 accountancy practices.
Group strategy and performance
"Innovation is at the heart of our strategy. We continue to adapt and evolve our products and services offering to meet the changing needs of our 5.8 million customers."
Paul Walker,
Chief Executive
Our business and markets
"Our principles of Simplicity, Trust, Integrity, Innovation and Agility drive everything we do
- how we think, how we plan, how we
make decisions."
Financial review
"The Group remains highly cash generative with operating cash flow of £342.0m, representing 114% of EBITA†."
Paul Harrison,
Finance Director
Corporate responsibility ("CR")
Sage is committed to acting as a responsible corporate citizen. We take a pragmatic approach to CR which enables us to focus our commitment on areas most relevant to Sage, our people and where we believe we can make a difference.
Key performance indicators ("KPIs")
Adjusted EPS**
growth
+3%
2007: +13%
EBITA†
margin
23%
2007: 24%*
Organic revenue
growth (excluding Sage Healthcare Division)
+6%*
2007: +7%*
Cash generation
from operations
114%
2007: 112%
Renewal rates
on maintenance and support contracts
81%
2007: 81%
* Foreign currency results for the year ended 30 September 2007 have been retranslated based on the average exchange rates for the year ended 30 September 2008 of $1.97/£1 and €1.31/£1 to facilitate the comparison of results.
† Earnings before interest, tax and amortisation of intangible fixed assets ("EBITA").
** Pre-tax profit and earnings per share figures stated prior to amortisation of intangible fixed assets and after neutralisation of foreign exchange movements.
Notice of AGM
Corporate strategy
While we are locally focused in serving our
customers, we work together as one organisation
towards one future. Our strategy sets out a clear
vision supported by a set of goals towards which
all of our operating companies around the world are
working.