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The Markets
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The Markets
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Software & services

Sage sees slight dip in pretax profit, expects other revenue to decline

Though "mindful of increased macroeconomic and geopolitical uncertainties" the software specialist company left its full year outlook unchanged

The Sage Group PLC (LSE:SGE) profits dipped in the first half of its financial year 2022 but the dividend was upped.

The FTSE 100-listed accounting software company recorded pre-tax profit of £189mln for the six months to March 31, down from £190mln in the comparative period, though organic operating profit rose to £184mln from £177mln.

Revenue slipped to £934mln from £937mln, though organic recurring revenue was up 8% to £866mln, driven by 21% growth in Sage Business Cloud to £572mln.

Annualised recurring revenue was up 10% to £1.78bn.

Sage upped its interim dividend to 6.30p from 6.05p.

Other revenue, namely software and software related services (SSRS), shrank 24% to £58mln, as part of the ongoing planned decline to boost profit margin.

Though "mindful of increased macroeconomic and geopolitical uncertainties" the software specialist company left its full-year outlook unchanged.

The company disposed of its business in Switzerland and its South African payroll outsourcing business, saying this was to increase its focus on 'core geographies'.

The shares were up 1.5% by midday on Friday to 673.4p.

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