Sage Group PLC is expected to reveal in its interims on Friday that it is on track to hit revenue growth targets for the full year.
The Newcastle-based accountancy software firm has indicated it expects full-year year-on-year revenue growth of between 8% and 9% and analysts expect the company to be well within that range at 8.4% at the halfway point, raising the prospect that management might ratchet up the bottom end of that range a bit.
“On balance we believe guidance may be left unchanged or at best raised to the upper end of the range. We think this is largely priced in,” said analysts at UBS.
Cloud-native annual recurring revenue grew 44% in 2021, which UBS said should translate into revenue growth at the same rate in the first quarter, and “we expect a similarly strong showing in Q2 albeit management may caution on tougher comparatives in H2”.
Significant announcements expected
Interims: Sage Group PLC
Trading announcements: ContourGlobal PLC
AGMs: ContourGlobal PLC, Derwent London PLC, Metro Bank PLC, TT Electronics PLC
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