15th May 2025 09:47
(Alliance News) - Sage Group PLC on Thursday reported "strong results" for its first half year, although it noted the "more volatile and uncertain" environment going forward.
The stock was down 5.6% at 1,208.00 pence on Thursday morning in London.
The Newcastle-upon-Tyne, England-based accounting software manufacturer said pretax profit increased to GBP236 million in the six months ended March 31, from GBP203 million the previous year. Basic earnings per share rose 19% to 18.2 pence from 15.3p.
Revenue increased 8% on-year to GBP1.24 billion from GBP1.15 billion.
Underlying total revenue rose 9% (on a reported and organic basis) to GBP1.24 billion from GBP1.13 billion, "reflecting our high-quality subscription-based recurring revenue model". Annualised recurring revenue increased 11% to GBP2.45 billion from GBP2.22 billion.
Sage Group declared an interim dividend of 7.45p per share, up 7% from 6.95p the year before.
"Sage delivered strong results in the first half of the year, extending our track record of broad-based growth and significant margin expansion," commented Chief Executive Officer Steve Hare. "Our performance reflects the strength of our accounting, HR and payroll solutions, underpinned by ongoing investment in our network platform."
Going forward, Sage Group said it continues to expect full-year organic total revenue growth of 9% or above, and expects operating margins to trend upwards in financial 2025 and beyond "as we focus on efficiently scaling the group".
"Amid a more volatile and uncertain macroeconomic environment, Sage remains resilient and diversified," CEO Hare said. "Small and mid-sized businesses continue to adopt digital technologies to become more productive and efficient.
"I am confident that our proven strategy will deliver further long-term value to all our stakeholders."
Also on Thursday, Sage announced an up to GBP200 million extension of its ongoing share buyback programme.
The extension will commence upon the completion of the original programme, which is worth up to GBP400 million aggregate and expected to end no later than June 3. Sage said it expects the extended programme to end no later than August 6.
"The extended programme is consistent with the group's disciplined capital allocation policy, and reflects the board's confidence in Sage's future prospects, together with Sage's strong cash generation and robust financial position," the company said. "Sage continues to have considerable financial flexibility to drive the execution of its growth strategy."
By Emma Curzon, Alliance News reporter
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