Sage hails "excellent" interim trading as revenue, profit advance

(Alliance News) - Sage Group PLC on Thursday guided full-year revenue growth, as it upped its interim dividend amid improved first-half profit.

The Newcastle upon Tyne, England-based accountancy software provider reported GBP262 million in pretax profit for the six months ended March 31, up 11% from GBP236 million a year prior.

Driving the improved earnings was a 9.7% top-line gain as revenue grew to GBP1.36 billion from GBP1.24 billion, as Sage reported broad-based growth that was underpinned by strength in cloud solutions.

The company declared an interim dividend of 8.05 pence per share, up 8.1% from 7.45p, adding that its GBP300 million share buyback programme is "well underway" with the total value of buybacks announced in the first half GBP600 million.

Sage reported underlying annualised recurring revenue of GBP2.73 billion, up 11% from GBP2.45 billion, with the company noting growth across all regions balanced between both new and existing customers.

Looking ahead, Sage guided organic total revenue growth for the full-year greater than 9%. For financial 2025, the company reported GBP2.51 billion in revenue.

Sage said it continues to expect operating margins to trend upwards during the financial year and beyond as it focuses on efficient scaling of the company.

Shares in the company were down 2.8% at 872.20 pence on Thursday morning in London.

"Sage delivered an excellent first-half performance, with double-digit revenue growth, further margin expansion and strong cash flows. This reflects the focused execution of our strategy and a deep understanding of our customers' needs," said Chief Executive Steve Hare.

"With our trusted scalable platform, growing agent portfolio and strong momentum supported by investment across the business, I am confident in Sage's ability to deliver growth and long term value for all stakeholders."

By Christopher Ward, Alliance News reporter

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