Sage says year EBITA up 18 percent

LONDON (Reuters) - The country's biggest software company, Sage Group (LSE: SGE.L - news) , said on Thursday its results for the year ended September 30 would meet market expectations as it announced an 18 percent rise in core full-year earnings.

The Newcastle-based accounting and sales software specialist also said in a statement the chief executive and finance director of its North American unit, Ron Verni and Jim Eckstaedt respectively, had left the company with immediate effect.

"Following a review of its North American business, the board has concluded that a change in leadership is required to realise the full potential of this business," Sage said.

"Sage in North America is a strong and competitive business with market-leading brand names. The board remains confident about the opportunities to develop this business and to deliver further growth going forward.

Sage, whose North American business generated just under half of group revenues in the six months to end-March, said it had earnings before interest, tax and amortisation (EBITA) of 283 million pounds in the year to September 30 on revenues up 30 percent to 1.158 billion pounds.

Sage said the market consensus was for revenues of 1.166 billion pounds and EBITA of 287 million pounds.

Sage shares, which have underperformed the software and computer services sector by 14 percent over the past 12 months, closed at 251.75 pence on Wednesday to value the business at 3.28 billion pounds.

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