Sage lifts dividend as recurring revenue rises 8.5%

Accounting software firm Sage lifted its dividend as it reported a 8.5% rise in organic recurring revenue to £1.6bn, driven by growth from existing and new customers, in North America and Northern Europe.

Total revenue rose 3.7% to £1.76bn. Sage said the result was underpinned by software subscription revenue growth of 20.5% to £1.14bn. Sage guided for organic recurring revenue growth for fiscal 2021 to be 3% - 5%, weighted towards the second half of the year.

Statutory revenue for the year to September 30 fell 1.7% to £1.90bn. The full-year dividend was increased 2% to 17.25p a share.

Organic operating profit fell 3.7% to £391m, reflecting investment in cloud services and a £17m bad debt provision for Covid-19.