Sage has boosted revenues thanks to growth of its cloud services, particularly in the US market.
The Tyneside-based software company increased its underlying recurring revenue by 12% to £2.09bn in the year to the end of September as underlying profit grew by 18% to £456m.
Sage also said statutory operating profit fell by 14% to £315m, which reflected one-off gains from disposals in 2022 and property restructuring and merger and acquisition-related charges in 2023, in its latest report to the LSE.
The strongest growth came from Sage’s US market, where recurring revenue grew 16% to £944m, supported by demand for its Sage Intacct and cloud connected products. In the UK and Ireland, recurring revenue grew 10% to £611m thanks to customer interest in cloud native solutions and the firm’s Sage 50 cloud product. European recurring revenue grew 7% to £541m, reflecting growth across the Sage Business Cloud portfolio.
Sage also announced a share buyback programme of up to £350m, reflecting the board’s confidence in Sage’s growth prospects and balance sheet, alongside a five per cent increase in its full-year dividend to 19.3p per share.
CEO Steve Hare said: “Sage performed well in FY23, delivering double-digit revenue growth, increased profitability and strong cash flows, We sustained good momentum throughout the year in all regions, driven by consistent strategic execution.”
Sage added that it expects 2024’s performance to broadly match this year’s.
