1 See full definition of organic revenue and underlying revenue in appendix II on page 17.
|FINANCIAL SUMMARY||H1 17||H1 16||Change|
|- Recurring revenue||£647m||£589m||9.9%|
|- Processing revenue||£44m||£39m||11.1%|
|- SSRS revenue||£147m||£159m||-7.5%|
|Organic operating profit||£211m||£201m||5.0%|
|Organic operating profit margin||25.2%||25.6%||-0.4%|
|Underlying basic EPS||14.45p||14.17p||2.0%|
|Underlying cash conversion||104%||111%||-7.0%|
|Ordinary dividend per share||5.22p||4.80p||8.8%|
|STATUTORY SUMMARY - CONTINUING OPERATIONS||H1 17||H1 16||Change|
|Profit before tax||£180m||£128m||41.1%|
Statutory performance has been positively impacted by movements in key exchange rates during the year in all major currencies.
Stephen Kelly, Chief Executive Officer said:
“These are positive results in line with market expectations and there are clear signs our strategy is working, with seven of our nine largest geographies, that collectively generate 95% of our revenues5, now delivering growth in excess of our revenue guidance. The investments in our go-to-market functions are starting to bear fruit: our cloud-enabled products are growing strongly and we have made progress in our new customer acquisition strategy, driving momentum in Q2 that will continue throughout H2 and as we exit FY17.
Our updated payments and banking strategy and the acquisition of Fairsail, show our commitment to the golden triangle of accounting, people & payroll and payments & banking, reinforced by our cloud capabilities. We are focused on Sage continuing to invest in growth, predominantly through new customer acquisition with cloud-products, and supported by bolt-on acquisitions that accelerate the strategy.”
The business as defined and constituted at the time of publishing FY17 guidance included North American Payments and excluded the contributions from FY17 acquisitions. On this basis we are very confident of exceeding our full year guidance of 6% revenue growth. In addition we reconfirm our guidance of at least 27% operating margin on an underlying basis with acquisitions having no dilutive impact. We confirm there will be no further transformation-related exceptional charge post FY17 and the exceptional charge for current year is not expected to exceed £75m. We expect our strong Q2 performance to continue into H2 with accelerating momentum as we exit FY17.
Sage – the market and technology leader for integrated accounting, payroll and payment systems, powered by the cloud and supporting the ambition of the world’s entrepreneurs and business builders. Because when business builders do well, we all do.
For more information, visit sage.com
The Sage Group plc
+44 (0) 191 294 3457
Lauren Wholley, Investor Relations
Amy Lawson, Corporate PR
+44 (0) 20 3727 1000
An analyst presentation will be held at 8.30am today at the London Stock Exchange plc, 10 Paternoster Square, London, EC4M 7LS. A live webcast of the presentation will be hosted on sage.com/investors, dial-in number +44 (0) 20 3427 1904, pin code: 3583475#. A replay of the call will also be available for two weeks after the event: Tel: +44 (0) 20 3427 0598, pin code: 3583475#