The Insider: City deals uncovered

Sage chairman Donald Brydon is clearly expecting great things from Stephen Kelly when the new man starts running the accountancy software company in November.

Shortly after announcing the appointment on Wednesday, Brydon celebrated by splashing out £56,000 on 15,000 shares in the company at just under 372p each.

"Stephen brings exceptional leadership skills combined with a passion for customers and a track record of driving profitable growth," said Brydon. "His experience in Europe and the USA in leading successful listed software companies and effective global teams will serve Sage well."

And Kelly, who beat off competition from Sage North American chief executive Pascal Houillon, certainly has the credentials. He's led both NASDAQ-listed Chordiant Software and the UK's Micro Focus International where he oversaw an impressive turnaround in profits. For the past two years has been chief operating officer for UK Government responsible to the Minister for the Cabinet Office. That makes him the most senior civil servant responsible for efficiency and reform.

The team at Panmure Gordon is clearly happy. The broker has upgraded its recommendation to buy with 407p target price, based on Kelly's track record and recent fall in the share price. A forward price/earnings ratio of 16 and enterprise value to cash profits ratio of 10.8 is "attractive," it says.

But Kelly's annual basic salary of £790,000 will be hard-earned. Just a few weeks ago, Sage left the market unimpressed after revealing growth slowed during the third quarter. Organic revenue grew by 4.7% in the first nine months of the year, but just 4.3% during the three months to July. It was 4.9% for the first half.

Berruyer's confidence that Sage could hit its 6% target in 2015 cut no ice with City traders and the shares have slipped back further to 369p.

"It therefore appears that Sage is fractionally lowering second-half expectations on an organic basis," says the research team at Barclays.

No worries. Brydon clearly loves an occasion. Just a day after Sage's half-year results in May, he bought 15,000 shares at 390p. It was also the day that current chief executive Guy Berruyer announced that he would stand down after 17 years with the company.

True, Kelly looks like a good choice for Sage. But his arrival is still a few months away and there's a lot to do in the meantime. Directors have been buying on the way down - non-executive director Drummond Hall bought 10,000 at 424p - Sage shares could yet test significant technical support at 361p.

American seller at Rolls-Royce

With tepid interim results still fresh in the memory, the man who runs Rolls-Royce's American business has hit the exit button, trousering over £1 million from the sale of shares in the "low-to-no growth" aerospace engineer.

James Guyette, president and chief executive of Rolls-Royce North America, has just offloaded 100,000 shares at just under 1,040p. But to prove he has a heart, the kindly American also gifted 8,000 Rolls shares to a US charity.

Guyette is contractually bound to maintain a stake of a minimum 150% of annual salary - currently £508,000. At the last count it was 379,878.

With few potential catalysts to drive the share price higher until a capital markets day in October - and then the chance of a serious rally is slim, given forecasts for only mid-single-digit earnings per share growth in 2015 - it's difficult to argue with Guyette's decision.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.