(Bloomberg) -- Sage Group Plc jumped to a record high after the UK software company announced a share buyback plan of as much as £400 million ($508 million) reflecting what it called a strong financial position.
The buyback will end no later than June, the company said in a statement on Wednesday alongside its financial results. Sage also said it expects organic revenue growth of 9% or more in fiscal 2025, in line with analysts’ estimates, according to the average of a Bloomberg survey.
The shares rose 16% to 1,250.5 pence at 8:45 a.m. in London after earlier gaining as much as 22% and touching a record intraday high.
“Sage delivered a solid end to the year,” Morgan Stanley analysts said in a note. The company’s results indicated that recurring revenue growth accelerated in the final fiscal quarter and “illustrates solid momentum” going into next year.
Sage shares have had strong reactions following results this year. The stock dropped as much as 20% after its second-quarter report in May raised concerns from some analysts that growth from the group’s customers, predominantly small- and medium-sized businesses, would slow.
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