The Sage Group plc audited results for the year ended 30 September 2013
Strategy delivering, growth accelerating
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|Profit before income tax
|Basic earnings per share
|Ordinary dividend per share
*Refer to notes on definitions below.
ᵝUnderlying revenue figures above are presented on an organic basis. Refer to notes on definitions below.
‡Statutory profit impacted by £188.2m exceptional charge primarily relating to non-core disposals.
†Prior year contains a full year of profit contribution from non-core products disposed during the current year.
#Current and prior year dividend per share is rebased and is shown on a post-share consolidation basis to reflect the share consolidation that took place in June 2013. Refer to dividend commentary on page 11 for dividend per share on a pre and post-share consolidation basis.
Financial highlights – doubling of organic revenue growth
- Organic revenue growth of 4% in the year (2012: 2%), and 5% in H2 demonstrates acceleration in growth;
- EBITA margin maintained at 27% (2012: 27%), with continued investment for growth;
- Strong operating cash flow of £417.4m (2012: £383.8m), representing 112% of EBITA (2012:106%);
- Proposed final ordinary dividend per share of 7.44p per share (2012: 7.02p per share), resulting in a total ordinary dividend of 11.32p per share (2012: 10.68p per share), an increase of 6%; and
- Total cash returned to shareholders in the year of £571.8m (2012: £434.0m).
Investment, innovation and focus delivering results
- 32% increase in investment in higher-growth opportunities supporting our cloud and connected services strategy;
- Meeting our technology milestones with Sage One, our cloud solution for smaller businesses, launched in eight markets and cloud versions of leading ERP products launched in the UK and Spain;
- Strong acceleration in adoption of Sage One, with over 21,000 paying subscribers in the UK & Ireland, an increase of more than three-fold in 12 months;
- 12% organic revenue growth for Sage ERP X3 (2012: 5%), our global ERP solution for mid-market customers, delivering on our target for double-digit growth;
- 13,800 integrated payments customers (2012: 9,700), reflecting the value of integrated connected services;
- 6% growth in recurring revenue (2012: 6%), and flat software and software-related services (“SSRS”) revenue (2012: 5% contraction); and
- Organic customer additions of 256,000 (2012: 229,000) during the year, with renewal rates on contracts increasing to 82% (2012: 81%).
Guy Berruyer, Chief Executive, said: “I am pleased to report a strong set of results, with good growth across all regions and our strategic initiatives progressing well. These results highlight the strong appeal of our offering to SMEs, great execution in delivering on our plans and the benefit of a clear strategy, which focuses on our most significant growth opportunities. The strategy is working and growth is accelerating. We remain confident of achieving our target of 6% organic revenue growth in 2015, and anticipate further progress during the year ahead.”
The Sage Group plc +44 (0) 191 294 3068
Guy Berruyer, Chief Executive
Darren Fisher, Acting Chief Financial Officer
Murdo Montgomery, Investor Relations
Tulchan Communications +44 (0) 20 7353 4200
An analyst presentation will be held at 8.45am today at the London Stock Exchange plc, 10 Paternoster Square, London, EC4M 7LS. A live webcast of the presentation will be hosted on www.sage.com/investors, dial-in number +44 (0) 20 3139 4830, pin code: 91226423#. A replay of the call will also be available for two weeks after the event: Tel: +44 (0) 20 3426 2807, pin code: 643480#.
Definitions of underlying measures:
- Underlying revenue neutralises the impact of foreign exchange in prior year figures.
- Organic revenue is underlying revenue excluding the contribution of current and prior year acquisitions and disposals.
- Underlying operating profit (“EBITA”) excludes amortisation of acquired intangible assets, acquisition-related items, goodwill impairment, fair value adjustments and exceptional items. The impact of foreign exchange is neutralised in prior year figures.
- Underlying cash conversion is calculated as cash flows from operating activities, adjusted for cash acquisition-related items and cash exceptional items of £1.9m (2012; £nil), divided by EBITA.
- Underlying profit before income tax excludes amortisation of acquired intangible assets, acquisition-related items, goodwill impairment, fair value adjustments, exceptional items and imputed interest. The impact of foreign exchange is neutralised in prior year figures.
- Underlying basic earnings per share is defined as underlying profit divided by the weighted average number of ordinary shares in issue during the year, excluding those held as treasury shares. Underlying profit is defined as profit attributable to owners of the parent excluding amortisation of intangible assets, acquisitionrelated items, goodwill impairment, fair value adjustments, exceptional items and imputed interest. All of these adjustments are net of tax. The impact of foreign exchange is neutralised in prior year figures.