Sage hails strong start to the year

Sage Group reiterated full-year guidance on Thursday, after the technology firm said it had seen a strong start to the year.

Updating on trading, the accounting and finance specialist said total revenues in the three months to 31 December had strengthened 10% to £540m, or by 9% on an organic basis.

Within that, recurring revenues jumped 12% to £517m, while software sales declined by an expected 27%, to £23m, as Sage continued to move away from licence sales.

Jonathan Howell, chief financial officer, said: "Sage has made a strong start to the year, in line with our expectations.

"While we are mindful of the current macroeconomic environment, we remain confident in our strategy for delivering efficient growth and we reiterate our guidance for the full year."

The blue chip, which in November posted full-year total revenues of £1.92bn, currently expects 2023 organic recurring revenue growth to be ahead of 2022, with operating margins also trending upwards.