The boss of global software giant Sage Group has said the uncertain economic and geopolitical environment is not affecting sales as more small and mid-size businesses bought into its cloud services.
The group reported a “strong” performance in the six months to the end of March, with its organic total revenue growing by 5% to £924 million while like-for-like revenue grew by 8%.
Its cloud services drove the positive performance as revenues grew by 21% to £572 million, accounting for around a quarter of the group’s annual recurring revenue.
Sage said more small to medium sized businesses are using digital solutions to automate processes, gain better business insights and also to help them comply with new regulations.
It also reported improved sales to existing customers as the group’s renewal rate rose by 100%.
Despite significant cost inflation for businesses and consumers, the boss of the software provider said its customers remain resilient and he is not expecting sales to drop.
Chief executive Steve Hare said: “While we are mindful of increased macroeconomic and geopolitical uncertainties, our customers remain confident and resilient.
“Our aim is to knock down barriers to their success, delivering solutions that make their lives easier, and we continue to make good progress against our strategic objectives.
“I am confident that our ambition to become the trusted network for small and mid-sized businesses will drive the success of Sage, as we focus on growing both revenue and earnings in absolute terms.”
Profits reached £184 million, beating analysts’ expectations of £180 million.
Sage also said it gained cash from selling its business in Switzerland and its South African payroll outsourcing business, as it completed its so-called disposal programme.
Shares in the company moved 1.4% higher in early trading on Friday.
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