BusinessCorporate FinanceSage revenues higher than forecast

Sage revenues higher than forecast

Subscription revenue climbs but is overshadowed by fall in software growth

Sage, the accountancy software company, has exceeded its forecast by posting
£307.5m pre-tax profits.

The FTSE 100 company forecast that pre-tax profits would reach £296.8m,
Reuters
reported.

Paul Walker, chief executive, said: “We have managed our cost base to reflect
the current market conditions, and at the same time invested for future growth.
Our cash generation remains strong, and reflecting this, we are proposing to
increase our final dividend by 3%.”

“At this stage, we are not yet seeing a general recovery in our markets.
Therefore, we will continue to manage our cost base prudently” he added.

Subscription revenue, which includes software and maintenance, increased by
2%. However, organic growth in software fell 16%.

Earlier this year Sage cut back on 1,000 jobs making an annual saving of
£54m.

Further reading:

Sage results reveal restructuring plans

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