Capital Markets Day
RNS Number : 9364C
Sage Group PLC
25 January 2018
The Sage Group plc Capital Markets Day
The Sage Group plc ("Sage") is hosting a Capital Markets Day for analysts and investors today, during which the leadership team will expand on its plans to become the acknowledged market leader.
In line with the Q1 18 trading update, Sage reiterates full year guidance of around 8% organic revenue growth1 and around 27.5% organic operating margin for FY18. Today, Sage is issuing mid-term guidance that over the next three years, organic revenue growth will reach 10% on a sustainable basis and organic operating margins will be at least 27%. Further cost savings of 500bps will be delivered over this three year period and either reinvested for growth or realised as an increase to operating margin. Over the long-term, Sage has an aim of achieving organic operating margins of at least 30%.
Today, Sage is also announcing plans to launch Sage Intacct in the UK in FY19 and is evaluating the timing of roll-outs to other countries.
Ahead of the event, Stephen Kelly, CEO commented:
"Today we are excited to share with you our plans to become the acknowledged market leader. Our total addressable market is worth $28bn per annum and is growing at 7% with cloud software growing at 13%, yet the market remains fragmented with no consistent global competitor.
The significant progress we have made since the last Capital Markets Day in 2015 has provided us with the leadership, technology and organisational alignment, combined with local expertise, to target faster growth in our markets. Sage Business Cloud is the one and only solution customers will ever need, providing the platform for this acceleration. The key to unlocking this growth is flawless execution in go-to-market functions and Blair Crump, Sage President, will share more on this today."
Today's meeting will commence at 2pm (GMT) and is being webcast live (Sage.com/investors).
The Sage Group plc +44(0) 191 294 3457
Steve Hare, Chief Financial Officer
Lauren Wholley, Investor Relations
FTI Consulting +44(0) 20 3727 1000
1The organic revenue definition includes acquired businesses from the beginning of the financial year following their date of acquisition. Adjustments are made to the comparative period to present acquired businesses as if these had been part of the Group throughout the period.
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