Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Co- Co- Co-, it's magic:
https://www.sage.com/en-gb/sage-ai/
The new artificial intelligence integration looks cool maybe a Nvidia like boost :D
The Sage centre in Gateshead has been renamed the Glasshouse, because Sage have bought the naming rights to a new arena being built next to it: https://exhibitionworld.co.uk/sage-strikes-naming-rights-deal-for-new-newcastle-arena-in-the-uk
Revenue in North America increased by 13%
High quality, sustained growth
The Sunday Times (summarized in The Week):
This “home-grown tech giant” provides accounting, HR and payroll software to small- and medium-sized businesses. Not cheap, but integrating AI into products will put “new boosters” under shares. Buy.
The Daily Telegraph (summarized in The Week):
Shares in the payroll and accounting systems provider have soared 43%, thanks to strong pricing power and recurring revenues. Solid finances will make it easier to scale up and improve efficiencies. Hold. £11.34.
Fund managers Lindsell Train have increased their holding slightly to 5%. Big ticket, get on board, etc
Analysts have been divided about Sage's prospects following results, but Bank of America pointed out a few days ago that Sage was at a 40% discount to it's American listed rival, Intuit, in terms of EV/EBITDA. America is Sage's largest and fastest growing market, and to them the SP apparently still looks relatively cheap. Maybe UK analysts aren't seeing the big picture?
In the next few days.
Results give a weighted average of 1.02 billion shares, elsewhere it's reported as 1.03 billion. The £350m buyback program should therefore bring it very close to a simple billion. Those who don't like sharing remain disgruntled, but fans of round numbers will be dancing in the streets (in a circle)
Interesting strategy casapinos. I don't have any discipline and often don't pay attention (:
Selling always seems a harder decision than it should be - better too early than too late, but there's always a slight irrational regret over either, because timing can never be perfect. "Let's look at what you COULD HAVE won" - emotion trumps logic
Blah, I tend to both buy and sell in tranches, but I'm more disciplined on the buy side. I set targets on shares that have/are falling and if I'm feeling brave add as they fall further (though almost always confined to large-cap, stable earners). when it comes to selling, I invariably sell too soon (see RR, and MKS lately!!). If the situation obtains where I can sell most at a good profit and run the rest "free" I sometimes do.
As a very long-time investor, I am gradually moving my folio to defensive positions, more bonds, pref. shares, gilts, and stable high divi earners. I'm essentially trying to minimize/eliminate risk.
Fair enough casapinos. It seems a little odd to keep 30% when cashing out, especially when you stated that you could not see significant SP growth, but clearly you were trimming and hedging rather than out. Congratulations on your success and good luck with your reinvestment
Yeah absolutely true BBD. I sold 70% of my holdings in August at 926 p and the remainder this am at 1102 p. My view remains that I'm happy to have collected a reasonable profit and will redeploy the revenues elsewhere where I think prospects are now better. Good luck to you if you continue to hold.
That's curious casapinos, because you said exactly the same thing in August, when you claimed to have "cashed out".
The SP was a lot lower then too, so your repetition of the phrase "I cannot see significant SP growth from here" doesn't seem like something to rely on - anyone who heeded it last time has lost out substantially. No problem with anyone taking a profit here, but your comments are inconsistent.
I don't dispute that the SP is likely to drop back from a surge, but there are possible reasons why it might go higher. Sage occupy a space that a lot of big American companies would like to get their hands on. Takeover has often been rumoured, but the premium now would be a lot higher. They have a good grip on margins, and on market share, and a strategy which works, so they are likely to be highly rated anyway, as a rare "growth" company which is actually growing strongly, where most are struggling
The market is so fickle and has its favourites.
How is a P/E of 40 here justified?
Excellent results - the transformation is now clear to anyone that cares to look. The share price has run-up in advance but it looks like these results are good enough to justify the valuation. Against a pretty grim market back drop it's very pleasing to see the performance SGE is achieving.
Highlights
>> Underlying recurring revenue increased by 12% to £2,096m;
>> Margin increasing by 140 bps to 20.9% (constant currency);
>> Underlying basic EPS increased by 22% to 32.3p;
>> Cash conversion of 116%;
>> Final dividend of 12.75p, increasing the full year dividend by 5% to 19.3p;
>> Share buyback programme of up to £350m announced.
SGE have a clear winner with SGE Intacct and are aggressively rolling out geographically as well as investing in developing tailored versions for specific market verticals - for manufacturing, construction etc.
The successful transformation to a SaaS business is clear in the metrics:
>> Renewal rate by value of 102% (FY22: 101%), ahead of last year driven by more sales to existing customers and retention.
>> Sage Business Cloud penetration of 84% (FY22: 75%);
>> Subscription penetration of 79% (FY22: 75%).
Really good to see this strong underpinning that is hugely attractive.
With high quality revenue; evident pricing power; growing operating margins; generating surplus cash and growth - these are very impressive results.
A very good set of results shows the benefit of Sage's migration of their customer base to automated systems, which held back revenue growth for a year or two. I have held here since late last year and slightly reluctantly, I'm taking my near 100% profit. I still believe that Sage is a well-run company with products that meet their market BUT at a P/E of 50+ that's just too rich for me.
I wish continued holders all the best, but I cannot see significant SP growth from here. As is often the case I think the price has been running ahead of events for a while. In the event of a significant retrace, I'll be back but for now, I take my profits and will invest elsewhere.
GLA
Market seems to have cooled a little on Sage, but hopefully Q4 numbers will generate some renewed interest.
Unlike most countries, overall GDP in the US seems to be increasing at an impressive rate, and we can reasonably expect tangible further growth, at least from that region
Walid Abu-Hadba, Chief Product Officer bought shares worth about £100K yesterday (see RNS)
Surprising there's not more discussion on this board, because there is clearly plenty of interest in the market for Sage, they are riding high
JP Morgan have recently agreed with my comment (from back in July) about Sage's progress in the US:
https://www.sharecast.com/news/broker-recommendations/jp-morgan-on-sage--14605416.html
Looking forward to Q4, hopefully it will underscore the recent re-rating by demonstrating substantial further growth. The company looks in very good shape, imo: platform modernized, product offerings enhanced and compatibiity improved, margins strengthened. Fidelity obviously concur
RNS seems to state that Fidelity have taken a 5% stake
Strong finish incoming ?