Sage shows resilient results for first half of 2012
IT giant contracts 4% from loss of software related revenue but grows 5% from increased subscriptions
BUSINESS SOFTWARE PROVIDER Sage has reported a satisfactory trading performance for the first half of 2012 according to its latest results.
The FTSE 100 business announced revenues stayed much the same for the first half of the year posting £673.1m compared to £670.4m for the same period in 2011. Pre-tax profit also proved resilient increasing marginally to £167.1m compared to £162.8m for H1 2011.
However, there was a decline of 4% from software and software related services, offset by a 5% increase from subscriptions.
Earlier this month Sage announced a strategic partnership with Microsoft to create an online package for its customers.
Guy Berruyer, (pictured) CEO Sage, said: “Revenue performance in the period reflects the strategic switch to subscription revenues, which has exceeded our expectations. It also reflects the challenging economic conditions, particularly in Europe, and we remain watchful of the broader business environment in this region. Nevertheless, we have delivered a resilient financial and operational performance.
“We have made good progress on our priorities and will increasingly see their impact on the business. We have also renewed our focus on accelerating growth. This involves changing the way we will run our business, including a more disciplined approach to resource allocation, portfolio management and execution.”