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SAGE REVS HERE UP 1 PERCENT

The Sage Group has reported that North American revenue hit $430.7 million for the half ended March 31, an organic increase of 1 percent over last year’s corresponding period. And while that’s not a hot growth track, it was an improvement. “We are very pleased to report our North American region is back to growth in the first half of this year,” Sage Group chief executive Guy Berruyer said in this week’s earnings webcast. The news was better for the accounting side since that organic growth was 4 percent excluding Sage HealthCare.
Overall, Sage reported revenue of $1.18 billion for the most recently ended half, an increase of 4 percent over a year earlier based on constant exchange rates. (But given the drop in the dollar, that’s a pretty big concept.) The North American EBITA margin fell to 21 percent from 22 percent and here’s the big break from the past as the company reported the decline reflected its investment in new product development and business infrastructure. You get the feeling that the past management would rather turn Newcastle-on-Tyne, its HQ city, back to the Scots rather than cut margins. (OK, so it’s been a few centuries since the Scots lost their lease.) In North America, payments revenue grew by 16 percent. The company did not break out product performance but noted “Our small business accounting and mid-market ERP products such as Sage ERP Accpac and Sage ERP MAS 90 performed well, with strong execution and increased demand. The market for our construction products remains challenging, but our Nonprofit Solutions business was strong.” Berruyer also said X3 revenue was up 11 percent, but that’s probably on a small base.
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