Portfolio

Sage reports flat H1 profits, sees margin rise

By Frank Prenesti

Date: Friday 13 May 2022

(Sharecast News) - Company software provider Sage Group reported flat interim profits and revenue as organic growth in all regions was offset by disposals and foreign exchange headwinds.
The company on Friday said pre-tax profit for the six months to March 31 fell 1% to £189m and revenue slipped to £934m from £937m.

On an organic basis, which excludes contributions from disposed businesses, profit rose 4% to £184m, in line with expectations.

Organic recurring revenue increased by 8% to £866m, underpinned by Sage Business Cloud growth of 21% to £572m. Organic total revenue grew by 5% to £924m.

Sage maintained its annual outlook and continued to expect organic recurring revenue growth in the region of 8% - 9%, driven by strength in Sage Business Cloud, and in "cloud native revenues in particular".

"Organic operating margin is expected to trend upwards in full-year 2022 and beyond, as we focus on scaling the group," the company said.

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