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(Alliance News) - Sage Group PLC said on Friday its half-year performance was "strong" despite a slight dip in profit and has left its annual outlook unchanged.
In the six months to March 31, the UK-based accounting software company recorded pretax profit of GBP189 million, down slightly from GBP190 million in the same period a year prior.
Sage's organic operating profit was up to GBP184 million from GBP177 million.
Revenue was broadly flat, slipping to GBP934 million from GBP937 million. It noted, however, organic revenue was up 5%, driven by Sage Business Cloud growth of 21%.
Organic recurring revenue was up 8% to GBP866 million from GBP800 million, with annualised recurring revenue up 10% to GBP1.78 billion from GBP1.63 billion.
Sage upped its interim dividend to 6.30 pence from 6.05p.
Chief Executive Officer Steve Hare said: "We achieved a strong first half performance, in line with expectations, demonstrating sustainable growth and building further momentum. Our strategic investment in sales, marketing and innovation has continued to accelerate revenues across Sage Business Cloud, underpinned by increasing levels of new customer acquisition."
For financial 2022, Sage continues to expect organic recurring revenue growth in the region of 8% to 9%.
"I am confident that our ambition to become the trusted network for small and mid-sized businesses will drive the success of Sage, as we focus on growing both revenue and earnings in absolute terms," Hare added.
Sage Group shares were shot up 1.8% in early trading in London on Friday morning to 675.82 pence.
By Xindi Wei; xindiwei@alliancenews.com
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