Newcastle software program group Sage noticed income and income fall within the first half of its monetary 12 months however says it’s on observe to see progress and had “carried out properly’.
The corporate noticed revenues drop 4% to £937m within the six months to the top of March whereas working revenue fell 30% to £203m.
However Sage’s most well-liked measure of natural recurring income grew by 4.4% and the corporate stated it expects this progress to be in direction of the highest finish of the three% to five% it has beforehand advised shareholders to count on for the monetary 12 months.
Sage stated it had carried out properly towards a troublesome comparitive interval in 2020, which included important sums from disposals.
The corporate stated it had made strategic funding to speed up its progress and was persevering with its deal with migrating clients to its Sage Enterprise Cloud platform.
Commenting on the outcomes, CEO Steve Hare stated: “Sage carried out strongly within the first half towards robust comparators, with continued recurring income progress and rising ranges of latest buyer acquisition, principally in cloud native options.
“Our deep sense of goal and expertise of supporting small and medium-sized companies by means of change has geared up us properly to play an important position all through the pandemic, and I’m pleased with the best way our colleagues world wide have proven dedication to our clients and companions.
“We imagine that small and medium-sized companies will lead the restoration, and I’m assured that our strategic funding in Sage Enterprise Cloud will proceed to speed up progress, as clients turn into stronger and extra digitally-enabled.”
Sage stated its natural recurring income elevated by 4.4% to £811m, however this was offset by a 21% lower in different income to £79m.
It stated it had a resilient steadiness sheet with £718m of money and £656m of undrawn services.
The interval noticed Sage full the disposal of its Polish companies and attain agreements to promote companies in Switzerland, Australia and Asia. It had additionally made various acquisitions and investments in smaller expertise corporations.
The corporate stated: “Sage carried out properly throughout the first half, towards the backdrop of the persevering with pandemic.
“We remained resolutely targeted on executing the strategic priorities we set out at our FY20 outcomes – together with accelerating progress with a deal with cloud native options, rising our strategic funding in gross sales, advertising and marketing and innovation throughout Sage Enterprise Cloud, and persevering with to embed SaaS capabilities and tradition all through the organisation.
“The occasions of the final 12 months have highlighted the significance of our goal – to remodel the best way individuals suppose and work so their organisations can thrive. Our goal and our values, a very powerful of which is to ‘do the best factor’, have guided our actions all through the pandemic, and we’re pleased with the steps we’ve taken to assist clients, colleagues and companions adapt to the challenges of Covid.
“More and more, small and medium-sized companies are investing in expertise that makes them extra productive, extra resilient and higher in a position to compete within the digital economic system. Our robust strategic progress leaves Sage well-positioned for progress as we assist clients of their adoption of digital options.”