21st Jan 2021 08:23
(Alliance News) - Sage Group PLC on Thursday said it performed in line with expectations in its first quarter, posting a slight increase in revenue.
For the three months ended December 31, the Newcastle Upon Tyne-based accounting software firm posted revenue of GBP447 million, up 1.4% from the year prior.
Recurring revenue increased 4.7% to GBP408 million, supported by software subscription growth of 11% to GBP303 million. Other revenue - from the SSRS and processing units - fell 24% to GBP39 million, in line with Sage's strategy to transition away from licence sales and professional services revenue.
SSRS refers to software and software-related services, including training and implementation.
"We have continued to deliver against our strategy in the first quarter, growing recurring revenue in line with our plan for the year, supported by good demand for Sage Business Cloud solutions. Accordingly, we reiterate our guidance for the full year, as set out in our FY20 results announcement," said Chief Financial Officer Jonathan Howell.
In November, Sage had said it expected organic recurring revenue growth for financial 2021 to be around 3% to 5%, weighted towards the second half. Organic recurring revenue for financial 2020 was GBP1.59 billion.
Cash and available liquidity as at December-end totalled GBP1.2 billion.
The FTSE 100 stock was trading 3.7% higher at 594.00 pence on Thursday morning in London.
By Ife Taiwo; [email protected]
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