Proactive Investors - Run By Investors For Investors

Sage Group names Steve Hare, currently its interim COO and CFO, to vacant CEO role

Hare was appointed to the additional post of interim COO on 31 August 2018, when Stephen Kelly stood down as the blue-chip software group’s CEO
Sage Group stand
Kelly’s departure came after a profit warning in April, with the group blaming “inconsistent operational execution” for the cut in full-year guidance

The Sage Group PLC (LON:SGE) has appointed Steve Hare, currently its interim chief operating officer and chief financial officer, to the role of chief executive officer with immediate effect.

The FTSE 100-listed software group said it has initiated a process to find a new chief financial officer with Hare to combine his duties as CFO with those as CEO until an appointment is made.

READ: The Sage Group parts company with chief executive, Stephen Kelly

Hare, who joined Sage’s board as CFO on 3 January 2014, was appointed to the additional post of interim COO on 31 August 2018, when Stephen Kelly stood down as the group’s CEO.

Kelly’s departure came after a profit warning in April, with the group blaming “inconsistent operational execution” for the cut in full-year guidance.

Even the revised guidance was heavily caveated, with the group saying achieving it depended on closing a number of enterprise management opportunities before the end of the financial year, which runs to the end of September.

In today’s statement, Donald Brydon, Sage’s chairman, commented: "As we looked externally for the experience, vision and deep knowledge required to accelerate operational execution it very quickly became clear through Steve's early decisions and his clear prioritisation that he is the right person to lead Sage."

Appointment welcomed

In a note to clients, analysts at Shore Capital commented: “We welcome Mr Hare’s appointment as CEO and believe the shares will react positively to the news.

“In our view, Sage is now unlikely to make any radical departures from the current strategy, as some had speculated, as Mr Hare has been central to the current direction of travel.”

The analysts added: “We believe the current strategy will continue to bear fruit as Sage continues along the journey towards a fully subscription-based business. We, therefore, do not believe any material departures from the target operating model or guidance are likely.”

In early morning trading, Sage Group shares were 3.8% higher at 570.60p.

 -- Adds analyst comment, share price --

View full SGE profile View Profile

Sage Group Timeline

Related Articles

lock
October 18 2018
Managed services revenue jumped 52% in the first half of 2018 with the order book standing at £2.4mln.
Background check
May 13 2019
The company provides background check and medical screening solutions for employers to give them reliable information when hiring new staff.
1543399827_shutterstock_130609865.jpg
November 06 2018
it aims to become one of the leading firms within the health benefits industry in Canada and to launch in the US and globally

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use