Sage experience 4% profit rise
Accounting software giant Sage has posted a 4% rise in profits, driven by growth in its subscription base. An underlying pre-tax profit of £356.3m was fuelled by 6% growth in subscription revenue.
Throughout the year ended September 30, the company disposed of its Sage Healthcare business and built on its presence in Brazil.
The firm also said it had developed its hybrid cloud solutions on Mircosoft’s Azure platform. Sage also reported a strong operating cash flow of £383.8m, and stated a proposed final divided of 6.67p per share.
Guy Berruyer, chief executive, said: “We delivered a solid performance in the context of a macro-economic environment which remained difficult in most of our markets. We achieved strong growth in recurring revenue and focused on disciplined resource allocation, protecting margins at the same time as investing for growth.
“We are committed to driving strategic change and I am pleased with the momentum we have established with our growth initiatives. A feature of the year has been the variable trading performance by geography.
“Europe’s performance reflected good growth by the UK and Germany, offset by the impact of weaker markets in France and Spain. North America delivered the anticipated improvement in the second half of the year while AAMEA continued to deliver very strong growth. As we look forward, the global macro-economic outlook remains uncertain and we are watchful of the environment in Europe, particularly in France. We are making good progress with our strategy for accelerating growth and remain confident we will continue to deliver on our strategic and financial goals.”