By Sean Farrell
Date: Thursday 04 Mar 2021
LONDON (ShareCast) - (Sharecast News) - Sage is planning to buy back up to £300m of its own shares using the proceeds of recent disposals to return cash to shareholders.
The business software group said the buyback would run until 4 September at the latest. Since the start of December the company has sold businesses in Asia, Australia and Poland for a total of £161m.
Sage also said the buyback would be supported by strong continuing cash generation. The FTSE 100 group reported strong recurring revenue in January.
"The share buyback programme is consistent with the group's disciplined approach to capital allocation, and reflects the sale proceeds from recent disposals and strong ongoing cash generation," Sage said. "The group continues to have considerable financial flexibility to drive the execution of its growth strategy, supported by its robust financial position."
Sage shares rose 2.2% to 592p at 11:00 GMT.
Unlike other companies that cut or scrapped shareholder payouts during the coronavirus crisis, Sage increased its dividends as its business held up during the pandemic.