Sage Group predicts "accelerated growth" despite six month profit drop

A multinational software company has reported that it expects to see accelerated growth despite its profits dropping in the first half of the year.

Sage Group, headquartered in Newcastle, saw operating profits drop by 30 per cent to £203m from £289m in the first six months of the year.

However, revenue in the period decreased by just 4 per cent, staying above the £900m mark.

The company said that it predicts that its investment in its Business Cloud product will support its accelerated growth and recovery from the impact of the pandemic.

Steve Hare, CEO of Sage Group, said: “Sage performed strongly in the first half against tough comparators, with continued recurring revenue growth and increasing levels of new customer acquisition, principally in cloud native solutions.

“Our deep sense of purpose and experience of supporting small and medium-sized businesses through change has equipped us well to play a vital role throughout the pandemic, and I am proud of the way our colleagues around the world have shown dedication to our customers and partners.

“We believe that small and medium-sized businesses will lead the recovery, and I am confident that our strategic investment in Sage Business Cloud will continue to accelerate growth, as customers become stronger and more digitally-enabled.”

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