Sage’s organic growth disappoints
Half-year results sluggish
Despite beating forecasts, Newcastle-based Software group Sage has
disappointed the market after revealing sluggish growth on the back of its
failed bid for Scandinavian software vendor Visma.
The listed business software company reported its results under IFRS rules
for the first time and revealed that pre-tax profits for the six months to the
end of March rose 19% to £113.7m, just 2% to 3% higher than it said it would
achieve last month.
Revenue was up 18% to £455.9m.
Organic growth – excluding acquisitions – was just 5% with strong performance
in Sage’s newer territories such as South Africa and Australia offset by a small
2% rise in its biggest market, US mid-sized companies.
Finance director Paul Harrison said he expected organic growth to be higher
in the second half of the year.