Sage revenues rise 34% for half-year ended March 31, 2007

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The Sage Group plc ("Sage"), one of the leading global suppliers of business management software solutions for small and medium-sized enterprises ("SMEs"), announces its unaudited results for the half-year ended 31 March 2007.

 

Operational and strategic highlights

• 7%* organic revenue growth (H1 2006: 5%*)
• Total licence revenue growth of 13%*, total growth in services revenue of 45%*
• 155,000 new customers added, taking our total customer base to 5.4m
• Growth across all regions and strong performance in established product lines such as Line 50 and Payroll (UK); Line 100 (France); Logic Class (Spain); Office Line (Germany); Peachtree (North America); and Pastel (South Africa)
• Three acquisitions completed (two after the period end) in payment solutions, HR/payroll and ERP software and services with total enterprise value of £44.5m

Financial highlights

• Revenues increased by 34%* to £574.7m (H1 2006: £429.7m*)
• EBITA† increased by 22%* to £138.6m (H1 2006: £113.7m*)
• Adjusted pre-tax profit^ rose by 12% to £121.8m (H1 2006: £108.9m)
• Adjusted earnings per share^ increased by 11% to 6.48p (H1 2006: 5.86p)
• EBITA† margin of 24% (H1 2006: 26%*) reflecting absorption of 2006 acquisitions
• Operating cash flow represented 114% of EBITA (H1 2006: 125%)
• Interim proposed dividend raised 18% to 1.27p per share (H1 2006: 1.08p per share)

*Foreign currency results for the prior half-year ended 31 March 2006 have been retranslated based on the average exchange rates for the half-year ended 31 March 2007 of $1.95/£1 and €1.49/£1 to facilitate the comparison of results.
^Pre-tax profit (PBT) and earnings per share (EPS) figures stated prior to amortisation of intangible fixed assets, prior period gain on disposal of £2.7m and neutralisation of foreign exchange movements. A table reconciling adjusted PBT to statutory PBT is shown in Note 3 on page 10.
†Earnings before interest, tax, amortisation of intangible fixed assets and prior period gain on disposal of £2.7m.

Chief Executive, Paul Walker, commented: "Sage's first half performance has been in line with expectations. After a record number of acquisitions last year, the focus in the first half of this year has been on integration and growth in our organic business. For the remainder of the year, we will concentrate on further operational improvements to recent acquisitions, the reorganisation of our North American business and sustained organic growth.

We continue to evaluate a strong pipeline of acquisition opportunities but remain disciplined in our valuation appraisals. We will only purchase businesses that we believe can deliver long term value for our shareholders.

The Board continues to view 2007 with confidence."

The Sage Group plc is a leading global supplier of business management software solutions and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and now employs over 13,000 people worldwide.

Sourced From: ConnectComm