Sage left to keep FTSE 100 flag flying
Accounting software company Sage is now the only technology stock in the FTSE-100 after the blue chip index downgraded high-tech stars Logica and ARM Holdings.
The re-jigged benchmark FTSE index was announced last Wednesday, based on Tuesday’s closing prices.
Logica stock, a major player among accountancy based equities, which was worth nearly 3,000p per share at the height of the technology boom, closed at Tuesday 11 June at just 218.5p.
A spokesman from the company told Accountancy Age Logica was disappointed that its low share price had caused it to be deleted from the FTSE-100.
But he added Logica remains the same as when it was at the height of its popularity. ‘We have a good strategy, good management and we make money. We have a balanced portfolio and are committed to remaining profitable,’ he said.
Recently, the company has suffered from a dip in the telecoms market and announced last month it was restructuring its mobile telephone business.But although the spokesman was confident the company would eventually return to its former glory, he added: ‘In the current climate it’s going to be tougher but we will be able to do it.’
And Sage’s position remains perilous if it does not reassure investors about the sturdiness of its business following Microsoft’s recent acquisition of Danish competitor Navision.
The company’s share price has lost nearly 20p in the last month and its price is currently lower than Logica’s.