Sector movers: Software stocks rise as Sage results impress

3rd Dec 2014 14:40

Software and computer services stocks were the best performers in London on Wednesday as a well-received annual report from Sage gave the sector a boost.Sage, the FTSE 100 company which makes business software for accounting, payrolls and forecasting, saw shares rise 5% in afternoon trade as it reported a 69.1% surge in pre-tax profit to £278m in the year ended 30 September.Revenues missed estimates by falling 5% to £1.31bn, but an improvement in margins helped adjusted earnings per share rise 8.2% to 22.6p, ahead of the consensus forecast of 22.9p.The company said it achieved all its key financial milestones with organic growth of 5% and said it is on track to deliver its 6% organic growth target this year."Our financial performance demonstrates the strength of Sage's global business and the quality of relationships it has with millions of SME customers worldwide," said chief executive Stephen Kelly.Westhouse Securities reiterated its 'add' recommendation and 467p target price for the stock, saying Sage delivered a "decent set of figures" and provided a "degree of reassurance following management change and a period of frustration over perceived lack of clarity and delivery".Others in the software sector were also making decent gains, including Enables IT, Outsourcery, Anite, Earthport, Blur Group, Aveva, Triad Group and Telecity.Top performing sectors so far todaySoftware & Computer Services 1,212.75 +2.69%Technology Hardware & Equipment 1,113.92 +2.36%Mining 15,084.68 +1.03%Food & Drug Retailers 2,759.84 +0.66%Aerospace and Defence 4,732.45 +0.51%Bottom performing sectors so far todayFixed Line Telecommunications 4,639.83 -2.03%Beverages 14,679.63 -1.35%Mobile Telecommunications 5,110.38 -1.26%Industrial Transportation 2,622.88 -1.16%Oil Equipment, Services & Distribution 17,853.70 -0.95%