Are you a client?
Sign in to view the full news archive.
Sage has reported a strong H1 performance for the six months to 31st March 2025. Revenue increased 9% (matching the FY25 growth rate) to £1.24bn. Operating profit grew stronger at +16% to £288m, expanding the margin by 140 basis points to 23.2%.
The company increased its interim dividend by 7% to 7.45p and has extended its share buyback programme by up to £200m.
Despite this, shares were down around 5% at time of writing.
In the UK&I, revenue grew 9% to £271m, outpacing the Europe region, which was up 7%. There were good performances across products with Sage Intacct (the company’s flagship solution for mid-sized businesses) the largest driver of growth. Sage 50 (accounting software for SMEs) also contributed strongly alongside Sage 200 (business management for SMEs), with growth mainly coming from existing customers through strong renewal rates and higher pricing.
The company continues to execute on its strategic framework focused on three key areas. Under Connect, the Sage Network platform is expanding rapidly, with monthly transaction value for accounts payable automation tripling in the past year to c.$1.3bn. For Grow, Sage aims to expand revenue on all products and services. In Deliver, the firm is using Sage Copilot to improve productivity and growth for customers. The company is also using AI internally to drive productivity in areas such as customer success and engineering.
Despite the volatile macroeconomic environment, Sage says it expects organic revenue growth in FY25 to be 9% or above, with operating margins trending upwards as the company focuses on efficiently scaling the Group.
Posted by: Kate Hanaghan at 10:00
Tags:
results
accounting