The CEO of Sage Plc says being listed in London 鈥渋s not holding us back鈥� after half-year recurring revenues topped 拢2 billion.
The Newcastle-headquartered accounting software giant saw recurring revenue, the coveted measure of sales which continue year-on-year on a contract basis, grow from almost 拢1.9bn in H1 2022 to 拢2.1bn for H1 2023.
Statutory revenues climbed to almost 拢1.1bn from 拢989m in 2022, with operating profit falling from 拢204m to 拢157m. Sage said this was due to a 拢49m one-off gain in the prior period relating to the disposal of Sage Switzerland.
Growth was particularly strong in the North American market.
鈥淲e鈥檙e proud of our roots,鈥� CEO Steve Hare told the Evening Standard. 鈥淲e were born in Newcastle and were very proud of that.聽
鈥淲hat I ask is, 鈥榃hat do we need to do to continue to grow the business?鈥� And we have no problem getting access to capital. We are very proud to be listed in the UK. It is not holding us back.鈥�
He told the London Stock Exchange: “Sage performed strongly in the first half, accelerating revenue growth, increasing profitability and making further progress against our strategic priorities.聽
鈥淥ur investments in technology and in sales and marketing are continuing to drive results, as small and mid-sized businesses increasingly choose Sage as a valued partner to transform the way they work.
“Our purpose is to knock down barriers so everyone can thrive. We are committed to delivering innovative, AI-powered services that make our customers’ lives easier and their organisations more productive and resilient.聽
鈥淪age’s global platform, centred on our expanding digital network, is enabling us to leverage our scale and collective expertise to maximise the significant opportunities we see across our markets.
“Small and mid-sized businesses are continuing to digitise, despite the macroeconomic uncertainty, and through our trusted technology and human approach Sage is well positioned to support them. I am confident that our proven strategy will enable us to deliver further efficient growth.”