Wednesday 16 November 2022
Download the full PDF of the press release
Alternative Performance Measures (APMs)1 |
FY22 |
FY212 |
Change |
Organic Financial APMs |
|
|
|
Organic Total Revenue |
£1,924m |
£1,809m |
+6% |
Organic Recurring Revenue |
£1,824m |
£1,667m |
+9% |
Organic Operating Profit |
£383m |
£353m |
+8% |
% Organic Operating Profit Margin |
19.9% |
19.5% |
+0.4 ppts |
|
|
|
|
Underlying Financial APMs |
|
|
|
EBITDA |
£468m |
£454m |
+3% |
% EBITDA Margin |
24.0% |
24.2% |
-0.2 ppts |
Underlying Operating Profit |
£377m |
£368m |
+2% |
% Underlying Profit Margin |
19.4% |
19.6% |
-0.2 ppts |
Underlying Basic EPS |
25.74p |
23.79p |
+8% |
Underlying Cash Conversion |
107% |
126% |
-19 ppts |
|
|
|
|
KPIs |
|
|
|
Annualised Recurring Revenue (ARR) |
£2,027m |
£1,816m |
+12% |
Renewal Rate by Value |
101% |
99% |
+2 ppts |
% Subscription Penetration |
75% |
70% |
+5 ppts |
% Sage Business Cloud Penetration |
75% |
67% |
+8 ppts |
|
|
|
|
Statutory Measures |
FY22 |
FY21 |
% Change |
Revenue |
£1,947m |
£1,846m |
+5% |
Operating Profit |
£367m |
£373m |
-2% |
% Operating Profit Margin |
18.9% |
20.2% |
-1.3 ppts |
Basic EPS (p) |
25.47p |
26.33p |
-3% |
Dividend Per Share (p) |
18.40p |
17.68p |
+4% |
Please note that tables may not cast and change percentages may not calculate precisely due to rounding.
Commenting on the results, CEO Steve Hare said:
"Sage has had a strong year, making good progress as we deliver on our strategic priorities. We significantly accelerated revenue across all key products and regions, expanded our organic operating margin and delivered strong cash flow. ARR growth of 12%, underpinned by increasing levels of new customer acquisition, is particularly encouraging and positions us well for the year ahead.
“Sage’s purpose of knocking down barriers so everyone can thrive is more important now than ever. Sage Business Cloud solutions enable small and mid-sized businesses to streamline their processes and unlock productivity, helping them to achieve more with less. While we are mindful of macroeconomic uncertainties, I am confident that our resilient business model together with our strategy for delivering efficient growth, centred on our expanding digital network, will enable us to create further long-term value for all our stakeholders.”
Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid sized businesses (SMBs) served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.
A presentation for investors and analysts will be held at 8.30am UK time. The live webcast can be accessed via sage.com/investors or directly via the following link: https://edge.media-server.com/mmc/p/umpbfg5k. To join the conference call, please register via https://register.vevent.com/register/BI0b234f8d6411450caeaea347d4931188.
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