Tech firm Sage bullish as service demand rises

A North East-founded international software firm says it is primed for expansion following increased demand.

Sage says it is ready to “deliver further sustainable growth in the year ahead” as “small and mid-sized businesses remain resilient despite macroeconomic uncertainty”.

The North Tyneside-based operator revealed its bullish outlook after annual revenues rose seven per cent to £2.3 billion and operating profit jumped 43 per cent to £452 million.

Bosses say the increases, in the year to September 30, were fuelled by clamour for its software services, with revenues across its Sage Business Cloud division, which provides accounting and payroll support, lifting 16 per cent to £1.87 billion.

Cloud native revenue grew 23 per cent to £732 million, with its AI-based digital assistant tool Sage Copilot – which monitors data and workflows – gaining increasing traction.

Steve Hare, chief executive, said: “We have delivered another successful year, achieving strong, broad-based revenue growth together with significantly higher profits and cash flows.

“We also invested further in our products and continued to execute well against our priorities.

“Our high pace of innovation continues, as we enhance existing products and expand key cloud solutions throughout our markets.

“Small and mid-sized businesses remain resilient, despite the ongoing macroeconomic uncertainty, and they continue to choose Sage to help them become more productive and efficient. 

“We look forward to delivering further sustainable growth in the year ahead.”

Founded in Newcastle in 1981, Sage listed on the London Stock Exchange in 1989 and began entering international markets in earnest from the early 1990s.

Today, the firm, which runs operations from North Tyneside’s Cobalt Business Park, serves millions of customers across countries in mainland Europe, Africa, Australia, Asia and Latin America.

It has further UK bases in London, Manchester, Brighton, Bristol and Wokingham.

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