Sage Group, the accountancy software company, has seen revenues come in ahead of the consensus forecast for the 12 months to the end of September.
Taking into account discontinued operations (mainly its Healthcare division) Sage's revenues for the period were £1.48bn; this is slightly ahead of the consensus of £1.47bn.
On an underlying basis revenues rose 4% from £1,227.6m in 2010 to £1,334.1m this year. Pre-tax profits rose 8%, up from £326.6m to £352.6m.
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Sage says it is "evolving our approach to the use of capital" which may sound like jargon but in reality means a 25% boost to the total dividend which is raised from 7.8p per share in 2010 to 9.75p per share this year.
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In his review of the business, chief executive Guy Berruyer, notes that the subscription renewal rates were stable on 2010 levels at 81% and that subscription revenues "grew ahead of software and software-related services".
The main objective for Sage, says Berruyer, has been to increase margins, which he argues has been helped by the closure of Sage Healthcare. As a result of that decision the EBITA (earnings before interest, tax and amortisation) margin has grown from 26.4% to 27.4%.
Commenting on the results Berruyer noted there are significant macro-economic concerns which may have an impact on the small and medium-sized enterprises that Sage services, particularly in the Eurozone, but added "we will continue to manage the business prudently, whilst pursuing the significant longer term opportunities we have in our markets"
BS
