8th May 2014 08:49
LONDON (Alliance News) - Sage Group PLC Thursday announced the departure of Chief Executive Guy Berruyer, while expressing confidence in meeting its 6% revenue growth target for 2015, after it swung into a profit in the half year to end-March.
Berruyer had been chief executive for four years, and the company said it had begun the process of appointing his successor.
The business management software company raised its interim dividend to 4.12 pence from 3.88 pence in the previous year.
Sage posted a pretax profit of GBP164,5 million in the half year, swinging from a pretax loss of GBP7.7 million in the same period a year earlier, despite seeing revenue decline to GBP656.5 million from GBP708.1 million. Sage's latest half benefited from lower operating costs. Also in the previous year period, the company posted a GBP180.2 million loss from the disposal and impairment on non-core products, it said.
Revenue was hit by the strengthening of sterling against the South African rand, the US dollar and the Brazilian real, as well as the inclusion of GBP53 million of revenues in the previous year from products of businesses that have since been sold. Excluding these currency fluctuations and contributions from acquisitions and acquisitions, revenue rose 5%.
Recurring revenue grew 7%, excluding currency translations, as the company continued to shift its product mix towards subscriptions.
In Europe revenue was up 3%, driven by strong growth from the company's Sage Pay product as a result of price increases.
In the America revenue was up 6%, driven by the inclusion of Brazil in the region and continued growth in its software related services revenue.
In the Africa, Australia, Middle East and Asia region revenue rose 12%, driven by good growth in South Africa and Malaysia.
Sage expressed confidence that its good first half performance would be carried through to the full year, and reiterated its target of 6% revenue growth, excluding currency movements, for 2015.
"Sage is changing, with greater focus, investment in technology to address customer needs and the move to subscription all delivering results," said the departing Berruyer in a statement.
Shares in Sage were trading down 5.3% at 399.50 pence Thursday morning, making it the biggest FTSE 100 faller.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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