Technology

Posted on January 17, 2019 by staff

Strong growth at North East software giant

Technology

Sage Group enjoyed a strong quarter as revenues reached £465 million.

The North East software giant saw revenues increase 7.6 per cent as its software subscription business grew 27.7 per cent to £237m.

Its recurring revenue for the three months to December 31st was £387m, up 10 per cent compared with the corresponding period a year before.

Sales from software and software-related services fell 5.8 per cent to £65m.

The firm’s North American market saw revenue growth of 10.4 per cent (£154m) with 5.9 per cent revenue growth (£96m) in the UK and Ireland.

This week the accountancy software company announced the sale of its US-based payroll outsourcing business for £78m.

Sage appointed an experienced finance veteran as its new chief financial officer in December having named a new CEO in November.

New CEO Steve Hare said: “We have been encouraged by the strong start to FY19, reflecting the renewed focus on high-quality subscription and recurring revenue as we continue the journey to becoming a great SaaS business.

“Looking ahead we reiterate our full year guidance for FY19 as outlined at the FY18 results announcement.”