London (November 22, 2017)
|Organic revenue23||£1,696m||£1,591m||6.6 %|
| - Recurring revenue
- Processing revenue
- SSRS revenue
|Organic revenue including North American Payments||£1,815m||£1,713m||6.0 %|
|Organic operating profit||£475m||£431m||10.3 %|
|Organic operating profit margin||28.0 %||27.1 %||0.9 %|
|Underlying operating margin||27 %||27.0 %||0.0 %|
|Underlying basic EPS||31.90p||30.82p||3.5 %|
|Underlying adjusted EPS4||33.10p||30.82p||7.4 %|
|Underlying cash conservation||95 %||100 %||(500bps)|
|Ordinary dividend per share||15.42p||14.15p||9.0 %|
|Operating profit||£348m||£267m||30.3 %|
|Profit before tax||£342m||£242m||41.3 %|
|Basic EPS||27.80p||19.28p||44.2 %|
Significant focus has been placed on the successful integration of the acquired businesses with strong continuing momentum :
Stephen Kelly, Chief Executive Officer said :
“FY17 marks the completion of the transformation of Sage outlined at the June 2015 Capital Markets Day. For each of the past three years we have delivered management’s guidance for at least 6 % organic revenue growth and 27 % underlying operating margins, whilst fundamentally transforming Sage. We now have the leadership, organisational alignment, brand and comprehensive suite of cloud solutions, to accelerate momentum in our markets. The launch of Sage Business Cloud in October 2017 gives our customers the most comprehensive business management cloud platform in the market and provides the platform for this acceleration. We will continue to drive efficiencies and productivity throughout the organisation and this is now ‘business as usual’.”
The organic revenue definition for FY18 will include acquired businesses from the beginning of the financial year following their date of acquisition5 . During FY17, Sage acquired Fairsail (now Sage People) and Intacct (now Sage Intacct), which will now form part of organic revenue and, combined, are expected to add around 1 % of revenue in FY18. On this basis Management expects organic revenue growth for FY18 to be around 8 %.
We expect to continue to achieve cost efficiencies that will be more than sufficient to offset any losses in the acquired businesses as they scale. We are therefore confident of delivering an organic operating margin of around 27.5 % in FY18.
We look forward to sharing the plans for Sage’s future accelerated growth journey at the Capital Markets Day in London on 25 January 2018.
Sage is the global market leader for technology that helps businesses of all sizes manage everything from money to people – whether they’re a start-up, scale-up or enterprise. We do this through Sage Business Cloud - the one and only business management solution that customers will ever need, comprising Accounting, Financials, Enterprise Management, People & Payroll and Payments & Banking.
For more information, visit www.sage.com
The Sage Group plc
+ 44 (0) 191 294 3457
Lauren Wholley, Investor Relations
Amy Lawson, Corporate PR
An analyst presentation will be held at 8.30am today at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. A live webcast of the presentation will be hosted on www.sage.com/investors, dial-in number +44 (0) 20 3427 1903, pin code: 2018766#. A replay of the call will also be available for one week after the event: Tel: +44 (0) 20 7984 7568, pin code:2018766#