Sage's shares rise as subscription revenues jump over 30 per cent

 
Shruti Tripathi Chopra
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The FTSE-listed firm's revenue hit £840m for the first half of 2016-17 (Source: Getty)

Sage saw its share rise nearly three per cent to 685p today after the accounting and payroll software giant reported a five per cent increase in its interim core profit.

The tech firm's adjusted operating profit stood at £211m for the first half of its 2016-17 financial year while its software subscription revenue grew 30.5 per cent in the six months to March 31 compared to the previous year.

Sage's profit before tax rose 41.1 per cent to £180m while it proposed to increase its interim dividend by 8.8 per cent to 5.22p.

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The FTSE-listed firm's revenue hit £840m for the first half of 2016-17, up 22.7 per cent compared to one year earlier.

Stephen Kelly, chief executive of Sage, said: “These are positive results in line with market expectations and there are clear signs our strategy is working, with seven of our nine largest geographies, that collectively generate 95 per cent of our revenues, now delivering growth in excess of our revenue guidance.

"The investments in our go-to-market functions are starting to bear fruit: our cloud-enabled products are growing strongly and we have made progress in our new customer acquisition strategy, driving momentum in the second quarter that will continue throughout this year."

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