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The Markets
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Software & services

Sage Group expects top-end sales growth

Growth of recurring revenue has accelerated as the year has progressed, up 10% in the third quarter

The Sage Group PLC (LSE:SGE) said it expects full-year organic recurring revenue growth to be towards the top end of its guidance range of 8% to 9%.

Following what it said was a strong performance in the first nine months of its financial year to end-September, the SME accountancy software group said it is seeing "momentum continuing to build".

This was led by its Sage Business Cloud product suite, which grew 20% in the period.

In the third quarter, overall recurring revenue grew 10%, with growth accelerating as the year progressed, with a total of £1.3mln over nine months, up 9% year on year.

Revenue from legacy products shrank 25% to £82mln in the nine months.

"While we are mindful of broader macroeconomic trends, I am confident that continued delivery against our strategic priorities will ensure Sage remains well-positioned for the future," said chief financial officer Jonathan Howell.

The shares were flat at 707p after an hour and a half of trading on Tuesday.

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