Member Article

Revenue rises to £1.44bn for Newcastle-headquartered Sage Group

Newcastle-headquartered Sage Group plc has reported a strong set of results for the year, reaching its target of achieving organic revenue growth of 6%.

Releasing its audited results for the year ended 30 September 2015, the multinational enterprise software company also Increased organic recurring revenue by 9%, up from 7% last year, primarily driven through software subscription.

Moreover, other key financial indicators reported healthy increases for the firm, as revenue went up from £1.35bn to £1.44bn, whilst pretax profit jumped from £340.9m last year to £358.5m.

Software subscription contracts grew to over 690,000, an increase of last year’s 450,000, achieving 28% growth in the annualised value of the software subscriber base to £344m, up from £268m.

Moreover, Sage increased the number of paying subscriptions for Sage One by over 100% to 173,000 and surpassed 100,000 paying subscriptions in the UK & Ireland, in November 2015.

Stephen Kelly, Chief Executive Officer said: “We are pleased to have met the financial targets set three years ago. We have already begun the transformation outlined at the Capital Markets Day in June 2015 and highlight today clear signs of early progress.

“Transformation is rarely linear and it is clear we have much to do as we manage the operational risks. Our balanced and sequenced approach, the experience of the management team, and the strong underlying characteristics of the business give me confidence in the delivery of long term, sustainable, high quality growth.”

Sage will pay a total dividend for the year of 13.10 pence per share, up from 12.12p.