Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Sage Group shares fall on guidance downgrade
(Sharecast News) - Sage Group shares were well into the red on Thursday morning, despite reporting a robust first-half performance, as the company downgraded its guidance. The FTSE 100 software company said it now expected organic total revenue growth for the 2024 financial year to be broadly in line with the approximately 9% seen in the first half.
For the six months ended 31 March, pre-tax profit rose to £203m from £139m a year earlier.
Adjusted operating profit reached £254m, exceeding consensus estimates.
Revenue advanced 10% to £1.15bn, which was slightly below consensus forecasts, while underlying annualised recurring revenue advanced 11% to £2.25bn.
The renewal rate by value stood at 102%, surpassing the previous year's rate due to increased sales to existing customers and strong retention rates.
Sage Business Cloud revenue increased 18% to £915m, including 25% growth in cloud native revenue to £353m.
Subscription penetration rose to 81%, driven by a 14% growth in subscription revenue to £937m.
Strategically, Sage said it expanded its global cloud solutions and deepened vertical-specific capabilities in the period, further strengthened by the acquisition of Bridgetown Software.
The company also noted the introduction of new AI-powered products and services such as Sage Copilot, a generative AI-powered digital assistant, although it provided no comment on its performance.
The board proposed an interim dividend of 6.95p per share, compared to 6.55p a year earlier.
"Sage performed well in the first half of the year, delivering broad-based revenue growth and significant margin expansion," said chief executive officer Steve Hare.
"Demand for our solutions remains robust, with small and mid-sized businesses continuing to trust Sage to automate their accounting, HR and payroll workflows.
"We are resolutely focused on innovation, as both a source of near-term competitive advantage and a foundation for our long-term success."
Hare said the company was continuing to introduce new AI-powered products and services to deliver enhanced productivity and insights, driving value for both existing and new customers.
"As we look forward, despite the ongoing macroeconomic uncertainty, I am confident that Sage's proven strategy, underpinned by continued investment, will enable us to deliver further efficient growth."
At 0835 BST, shares in the Sage Group were down 11.51% at 1,059.72p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.