Sage Q1 revenues grow, Playtech urges shareholders to accept takeover offer

London pre-open

The FTSE 100 was being called to open 56.7 points higher ahead of the bell on Wednesday after closing 1.02% firmer in the previous session at 7,371.46.

Stocks to watch

Software firm Sage said on Wednesday that total revenues had grown in the three months ended 31 December thanks to a £31.0m jump in recurring revenues.

Recurring revenue grew 8% to £429.0m, underpinned by a 21% rise in Sage Business Cloud revenue to £280.0m and continued strength in new customer acquisition. Software subscription revenues grew 13% to £336.0m, increasing subscription penetration from 68% to 73%.

However, total group revenues increased 5% to £458.0m as improved recurring revenues were somewhat offset by a 22% drop in SSRS and processing revenues to £29.0m.

Gambling software maker Playtech has again urged shareholders to accept a £2.7bn takeover offer from Australia's Aristocrat Leisure after reports that it is planning a breakup and sale of the group if the bid is blocked by a bloc of Asia-based investors.

Sky News reported that Playtech's directors and its investment banking advisers were discussing dismantling the group, citing unnamed sources.

Newspaper round-up

At least 100,000 "ghost flights" could be flown across Europe this winter because of EU airport slot usage rules, according to analysis by Greenpeace. The deserted, unnecessary or unprofitable flights are intended to allow airlines to keep their takeoff and landing runway rights in major airports, but they could also generate up to 2.1m tons of greenhouse gas emissions – or as much as 1.4m average petrol or diesel cars emit in a year – Greenpeace says. - Guardian

Bereaved families in England and Wales face increased costs from Wednesday as probate fees rise by up to 76%. Applications for probate, which grants permission to deal with the estate of someone who has died, will now cost a flat rate of £273. Previously the fee was £155 if a solicitor applied on behalf of a family and £215 for those who applied direct. - Guardian

The owner of the Wolseley, a celebrity haunt in London's West End, has been pushed into administration by an angry investor embroiled in a row with its co-founder. Minor International, the largest shareholder in the restaurant's parent company Corbin & King, said it had appointed FRP as an administrator amid growing concerns that the business needed "strong financial support to survive and succeed". - Telegraph

Elon Musk is in line to reap in excess of $35.0bn of stock awards in the coming months despite the slide in Tesla's shares. The world's second-richest man is set to secure five tranches of share options in the electric carmaker over the next year, according to analysts, as it ramps up production and meets a series of targets tied to his controversial compensation package. - The Times

The City regulator has announced a clampdown on financial firms that try to sidestep paying compensation to burnt customers by improperly using insolvency techniques, with the prospect of fines, bans and court action for culprits. The Financial Conduct Authority said that there had been an increase in the number of firms developing proposals such as schemes of arrangement or other restructuring plans to shield themselves from liabilities to consumers, particularly redress orders. - The Times

US close

Wall Street stocks closed lower on Tuesday as corporate earnings, geopolitical tensions and a downgrade in global growth forecasts were all in focus throughout the session.

At the close, the Dow Jones Industrial Average was down 0.19% at 34,297.73, while the S&P 500 was 1.22% weaker at 4,356.45 and the Nasdaq Composite saw out the session 2.28% softer at 13,539.29.