Sage Group PLC 1st Quarter Results (3111D)
January 28 2015 - 2:00AM
UK Regulatory
TIDMSGE
RNS Number : 3111D
Sage Group PLC
28 January 2015
28 January 2015
The Sage Group plc
The Sage Group plc ("Sage") is today issuing its trading update
for the three months ended 31 December 2014.
Financial performance
For the first three months of the year, Group organic revenue
increased by 5.3%. The business remains on course to achieve the
targets of 6% organic revenue growth and 28% operating margin in
2015, with the anticipated acceleration in revenue growth weighted
towards the second half of the financial year, as stated at the
time of the 2014 full-year results.
Organic recurring revenue grew by 7.0% for the first quarter,
primarily driven by software subscription growth, and organic
software and software-related services ("SSRS") revenue grew by
1.0%. Organic software subscription revenue growth of 28.8% in the
quarter maintains the growth momentum reported with the 2014
full-year results. All regions contributed to this performance,
with Europe delivering particularly good growth on an established
software subscription base.
As stated at the time of the 2014 full-year results, areas of
weakness continue to be payments in North America and Europe
Enterprise, particularly in France, and Management remain focussed
on taking actions in these areas.
Stephen Kelly, Chief Executive Officer, commented:
"This is a solid start to the financial year and the overall
growth trajectory remains on track.
I have been privileged to meet many customers in my first 90
days with Sage. SME's are the growth engine of the economy
worldwide and our performance attests to the enduring quality of
our relationships with them. We look forward to building on this
position as a trusted partner to our customers, and to being even
more instrumental in supporting their success in the future."
Financial position
The Group's operating cash generation remains strong. The share
buyback programme continued during the period and, since 1 October
2014, approximately 3.5m shares have been repurchased for a
consideration of GBP12.4m. Net debt at 31 December 2014, was
GBP542m (GBP437m as at 30 September 2014).
Acquisitions
On 16 October 2014, as previously reported, the Group completed
the acquisition of PAI Group, Inc. ("PayChoice"), a provider of
payroll and HR services for small and medium-sized businesses
("SMBs") in the US, for a cash consideration of US$157.8m. The
acquisition accelerates Sage's move to the Cloud in this market by
leveraging PayChoice's Software as a Service ("SaaS") platform.
Management will be hosting an analyst conference call at 08:30am
London time; dial-in number +44 (0)203 427 1906, pin code: 3327938.
A replay of the call will also be available for one week after the
event: Tel: +44 (0)203 427 0598, pin code: 3327938
Enquiries
The Sage Group plc +44(0) 191 294 3068
Stephen Kelly, Chief Executive Officer
Steve Hare, Chief Financial Officer
Murdo Montgomery, Investor Relations
Tulchan Communications +44(0) 20 7353 4200
David Shriver
Jonathan Sibun
About The Sage Group plc
We provide small and medium sized organisations, and mid-market
companies with a range of easy-to-use, secure and efficient
business management software and services - from accounting, HR and
payroll, to payments, enterprise resource planning and customer
relationship management. Our customers receive continuous advice
and support through our global network of local experts to help
them solve their business problems, giving them the confidence to
achieve their business ambitions. Formed in 1981, Sage was floated
on the London Stock Exchange in 1989 and entered the FTSE 100 in
1999. Sage has millions of customers and circa 13,000 employees in
23 countries covering the UK & Ireland, mainland Europe, North
America, South Africa, Australia, Asia and Brazil. For further
information please visit www.sage.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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