Sage says small business customers remain ‘resilient’

 Sage says small business customers remain ‘resilient’

  • H1 recurring revenue rose 8%, on track for the year
  • H1 operating profit met expectations with a 4% increase
  • Says small business customers remain confident

LONDON, May 13 (Reuters)-British software company Sage (SGE.L) says the momentum of the cloud business will continue to drive organic motor revenue in the second half as its customers turn to digital products to help adapt to increasingly difficult economic conditions.

The company, which provides accounting and other software to small and medium-sized enterprises (SMBs), met market expectations on Friday with an 8% increase in organic recurring revenue in the six months to the end. in March.

Chief Executive Steve Hare said SMBs were still confident in their own prospects even as the economic backdrop in Britain and other Sage markets was bleak.

Register now for FREE unlimited access to

“They feel like they’ve become more adaptable and strong over the years,” he said in an interview.

All businesses face cost pressures, he said, and labor shortages continue to be a problem for many.

He said it’s important to balance Sage’s own cost increase, especially for staff, with the prices it charges customers.

“We don’t want to burden our small and medium-sized customers with a lot of price increases,” he said. “It’s important that we give them more value, we give them more equipment.”

Sage reported a 4% increase in organic operating revenue of 184 million pounds ($ 225 million), representing a 19.9% ​​margin, slightly over the same period a year ago but a progress over the past six months.

Hare said spending on promotions is likely to increase in the second half but the margin will still be ahead throughout the year. “From here, every year the margin gets better,” he said.

($ 1 = 0.8187 pounds)

Register now for FREE unlimited access to

Reporting by Paul Sandle Editing by James Davey and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

Source link

Related post