New chief executive officer of accountancy software supplier Sage (SGE), Stephen Kelly, is assessing the group’s future and some analysts think there is scope to substantially bolster shareholder returns.

According to Numis Securities, the former government IT tsar could select a strategy to leverage the balance sheet and slash the number of shares in issue, potentially reaping £1.2 billion returns over the next three years.

According to Numis’ calculations, this could deliver an earnings per share (EPS) compound average growth rate (CAGR) of 14% through to September 2017, and a CAGR in total shareholder return (TSR) of 17%.


Issue Date: 16 Dec 2014