Sage pre-tax profits down more than half
Pre-tax profits drop 51% for accountancy software company
SAGE’S PRE-TAX PROFITS dropped around 51% in the year to 30 September 2013, its latest annual results shows.
Despite growing revenues by 3%, operating profit fell 48% to £180.5m from £344.9m the year before. Similarly, pre-tax profits shrank from £334.3m to £161.1m, a 51% contraction.
Such figures are partly caused by a £188.2m exceptional charge primarily relating to non-core disposals, the Newcastle-based company said. There has also been a 32% increase in investment in higher-growth opportunities, supporting its cloud and connected services projects, it added.
Chief executive Guy Berruyer said: “I am pleased to report a strong set of results, with good growth across all regions and our strategic initiatives progressing well. These results highlight the strong appeal of our offering to SMEs, great execution in delivering on our plans and the benefit of a clear strategy, which focuses on our most significant growth opportunities.
“The strategy is working and growth is accelerating. We remain confident of achieving our target of 6% organic revenue growth in 2015, and anticipate further progress during the year ahead.”