28th Jan 2015 07:41
LONDON (Alliance News) - The Sage Group PLC said Wednesday it remains on track to achieve its targeted 6% organic revenue growth and 28% operating margin in its current financial year, with revenue growth weighted towards its second half, after its revenue rose 5.3% in its first quarter on the year before.
In the three months to end-December the company said organic recurring revenue increased by 7.0% year-on-year, and organic software and software-related services revenue rose 1.0%.
Sage said that all of its regions contributed to its first quarter performance, citing Europe in particular as delivering good growth. The company said it remains focussed on taking actions in its weaker areas, which it identified as its North American payments business and Europe Enterprise business, particularly in France.
The company continued its share-buyback programme during the period, repurchasing around 3.5 million shares for GBP12.4 million. Sage said its operating cash generation remains strong.
"This is a solid start to the financial year and the overall growth trajectory remains on track," said Chief Executive Officer Stephen Kelly in a statement. "Small-medium enterprises are the growth engine of the economy worldwide and our performance attests to the enduring quality of our relationships with them."
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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