Tech

Sage profits fall 10% to £343m

The Sage Group has released its audited results for FY21 which reveals the company’s pre-tax profits also decreased by 9% from £486m down to £443m.

The Sage Group has reported an operating profit decrease of 10% for the financial year ending 30 September 2021, taking the company’s total from £380m to £343m.

The results also revealed the company’s pre-tax profits decreased by 9%, taking the total of £486m down to £443m.

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Meanwhile, Sage saw a recurring revenue growth of 5.4% to £1.63bn in FY21 compared to £1.55bn in FY20, which the company said is driven by growth in Sage Business Cloud of 19% to £997m.

Additionally, its total revenue increased by 3% to £1.77bn from £1.72bn, due to an increase in software subscriptions and other recurring revenue, such as maintenance and support from on-plan customers.

The operating profit margin also fell by 2.7%, from 22% to 19.3%. Sage said this reflects its “planned strategic investment to accelerate growth across Sage Business Cloud”, with a focus on cloud native solutions.

Steve Hare, Sage CEO, said: “Sage delivered a strong performance in FY21. We achieved recurring revenue growth ahead of our initial expectations and ended the year with real momentum, supported by our strategic investment in sales, marketing and innovation. 

“Having reshaped and invested significantly in the group over the last three years, we are now focused on growing the business in absolute terms, both organically and through acquisitions.”

He added: “I am confident that, through our refreshed strategic framework, we will deliver further sustainable growth, driving the success of Sage now and in the long term.”

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