ad placeholder

Posted on January 17, 2019 by staff

Strong growth at North East software giant

Strong growth at North East software giant

Sage's North Park Newcastle HQ
Sage’s North Park Newcastle HQ

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.”