The CEO of Sage Plc says being listed in London “is not holding us back” after half-year recurring revenues topped £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 £1.9bn in H1 2022 to £2.1bn for H1 2023.

Statutory revenues climbed to almost £1.1bn from £989m in 2022, with operating profit falling from £204m to £157m. Sage said this was due to a £49m one-off gain in the prior period relating to the disposal of Sage Switzerland.

Growth was particularly strong in the North American market.

“We’re proud of our roots,” CEO Steve Hare told the Evening Standard. “We were born in Newcastle and were very proud of that. 

“What I ask is, ‘What do we need to do to continue to grow the business?’ 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.”

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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. 

“Our 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. 

“Sage’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.”

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