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UPDATE 1-UK's Sage operating profit up 9 pct as subscriptions rise
November 30, 2016 / 9:15 AM / a year ago

UPDATE 1-UK's Sage operating profit up 9 pct as subscriptions rise

(Adds CEO comment, shares)

LONDON, Nov 30 (Reuters) - Software company Sage said a rise in the number of customers subscribing to its cloud-based small business accounting software helped full-year operating profit increase 9 percent.

The British company said more than 1 million customers had now signed up to its accounting, tax and wage processing software based in the cloud, more than double the number two years ago.

Chief Executive Stephen Kelly said it was a “solid set” of numbers, underpinned by 10.4 percent growth in recurring revenue.

Shares in Sage, which had drifted 11 percent from a 16-year high of 761 pence last month, were trading up 1 percent at 682 pence at 0843 GMT.

Sage met forecasts with a 9 percent rise in full-year operating profit to 427 million pounds ($532 million) for the year to end-September on organic revenue up 6.1 percent at 1.57 billion pounds.

It said on Wednesday it expected to grow organic revenue by 6 percent or better this year, and to again achieve an operating margin of at least 27 percent.

$1 = 0.8021 pounds Reporting by Paul Sandle, editing by Louise Heavens

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