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Market Report: Sage wins plaudits across the City under new boss Stephen Kelly

 

Jamie Dunkley
Wednesday 06 May 2015 20:25 EDT
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Sage may be one of the least talked about companies on the FTSE 100 index but it’s starting to win plaudits across the City under new boss Stephen Kelly, who joined in November.

Sage specialises in accountancy software and has benefited as Mr Kelly – a former government adviser – stamps his mark on the group. So far, it has overhauled its fee structure and will reveal more changes at an investor day next month. Its shares soared 39.5p – or 7.9 per cent – as pre-tax profits rose 4.9 per cent in the six months to 31 March.

Trevor Green, head of UK equities at Aviva Investors – a top six shareholder in Sage – said: “It’s still early days under Stephen Kelly’s tenure but I am encouraged by the results and more importantly the initiatives he is already introducing.”

SuperGroup was also in favour with investors as Euan Sutherland’s turnaround at the fashion retailer began to bear fruit. (The former Co-op boss quit the “ungovernable” mutual last year.) However, his tenure started badly with a weather-related profits warning hitting shares last autumn; but they rose more than 74p – or 7.42 per cent – to 1,071p after a second successive quarter of strong growth. Analysts at Investec said: “We believe SuperGroup’s global growth opportunities continue to be undervalued and see material opportunity to improve UK efficiency and profitability in the short term.”

Overall, the FTSE 100 edged into positive territory ahead of the general election – up just 6.16 points to 6,933.74 – despite fears one of the closest political battles in recent memory could lead to chaos in the financial markets.

Insurer Legal & General was one of the big risers after a resilient set of first-quarter results. The company posted an 8 per cent rise in net cash generation for the period ending 31 March, but inflows to its asset management business fell. Despite this, its shares rose 1.8p to 259.1p.

At the other end of the table, Aberdeen Asset Management was the biggest faller on the FTSE 100, dipping 19.5p to 431.1p following a disappointing trading update on Tuesday.

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