Member Article

Europe at the forefront as Sage reports healthy Q1

Global software firm Sage Group plc has reported ‘good progress’ over the last three months, as the strong growth in Europe leading the way for the company’s growth.

Issuing a trading update for the three months ended 31 December 2015, the Newcastle-headquartered firm revealed a 6.6% increase in organic revenue whilst net debt dropped to £408m, down from £425m three months prior.

Moreover, the firm said that organic recurring revenue grew by 10.4%, driven by software subscription revenue which grew by 35.7% for the quarter.

The Group said that performance was led by good growth in Europe, balanced by a slower performance in the International region: growth in Africa has remained strong but was slower in some other geographies.

Management is confident that the business remains on course for FY16 full year guidance: delivering at least 6% organic revenue growth and 27% operating margin, weighting investment for growth towards the first half of the year.

Steve Hare, Chief Financial Officer, said: “The performance in the first quarter demonstrates continued momentum and was in line with expectations. Our business transformation is on track and we are focussed on its execution to realise our long-term plan for sustainable and improved quality growth.

He added: “Whilst we expect the transition to be non-linear, the first quarter represents good progress.”

Sage Group PLC operates in 23 countries worldwide, employing over 13,000 people.

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