Sage today reported earnings that were largely in line with expectations with an underlying pre-tax profit of £356.3m , an increase of 4%* over the year. Growth in subscription revenues were 6% which overshadowed a contraction in software sales of 5%.
Sage’s three big strategy drivers for 2012 were:
- Focusing our business: Disposal of healthcare; new presence in Brazil and centralized R&D
- Capturing the technology opportunity: Sage One customer growth; development of hybrid cloud strategy using Microsoft Azure and strong performance by payment services
- Benefits of subscription: continued progress with premium support; launch of subscription pricing options in North America, Europe and South Africa
During the year Sage added 289,000 customers (261,000 in 2011) and maintained their support contract renewal rate at 81%.
Sage North America showed sequential improvement in the second half of the year, driven by good progress with Sage Business Care and with Sage Payment Solutions.