Software specialist Sage Group has reported five per cent year-on-year organic revenue growth in its half-year results, alongside an eight per cent boost in recurring revenues.
The strong performance was driven by the growing popularity of Sage Business Cloud, which enjoyed 21 per cent growth over the six month window .
Strategic investment continues to power the group’s performance, alongside new customer acquisitions, with organic operating profits rising four per cent to £184m.
This represents an organic operating margin of 19.9 per cent, while the Sage Group also reported underlying cash conversion of 120 per cent, which reflects growth in subscription revenue and continued prudent working capital management.
The group has left its full year outlook unchanged, with a robust balance sheet of £1.2bn of cash and available liquidity, and net debt to EBITDA of 1.5x.
Meanwhile, the interim dividend is up four per cent to 6.3p, with a progressive policy going forwards of growing the dividend over time.
Sage Group’s principal focus is to grow the business cloud, by attracting new customers and migrating existing customers and products to cloud native and cloud connected solutions.
Business cloud customers can connect to a range of cloud services as part of Sage’s digital network, leading to deeper customer relationships and higher lifetime values.
Chief executive Steve Hare said: “While we are mindful of increased macroeconomic and geopolitical uncertainties, our customers remain confident and resilient. Our aim is to knock down barriers to their success, delivering solutions that make their lives easier, and we continue to make good progress against our strategic objectives. I am confident that our ambition to become the trusted network for small and mid-sized businesses will drive the success of Sage, as we focus on growing both revenue and earnings in absolute terms.”