The share price reaction to Sage Group’s full-year figures was an odd one, a fall of almost 5 per cent in opening trading, after which they recovered completely to end ½p up at 577p.
There are several explanations. Stephen Kelly, the chief executive for the past year, inherited some tough targets, to raise revenues by 6 per cent and margins to 28 per cent. There was a tiresome change to accounting policy, which meant that, although the targets were hit under the old basis, margins apparently undershot under the new one. That may explain, as the market digested this, the share price recovery.
The shares have come up from about 350p before Mr Kelly came on board, so some may have been taking the