UK software company Sage has reported a significant increase in its annual operating profit, with underlying operating profit rising by 18% to £456 million ($568 million). This positive result was driven by a rise in the company’s margin to 20.9%. Sage also expected its margin to continue growing throughout the year.
The company specializes in providing accountancy and payroll software to small businesses. Its success is evident in the 12% growth of underlying recurring revenue in the year leading up to September. This growth was primarily fueled by higher demand for Sage’s cloud products.
Sage is optimistic about the future, stating that it anticipates organic total revenue growth in FY24 to be in line with the previous financial year. Furthermore, the company expects its operating margins to increase in FY24 and beyond, as it focuses on efficiently scaling the group.
To reward its shareholders, Sage has announced a share buyback program worth £350 million. This initiative will be implemented and run until April of next year.
In conclusion, Sage’s strong financial performance highlights the company’s ability to meet the growing demand for its software solutions among small businesses. With its focus on innovation and efficient scaling, Sage is well-positioned to continue its growth trajectory in the coming years.
