May 17, 2019 / 6:43 AM / 3 days ago

UPDATE 1-UK software firm Sage expects revenue growth at top end of forecast

(Adds details on results)

May 17 (Reuters) - British software company Sage Group Plc said on Friday it expects full-year organic recurring revenue growth to be at the top end of its previous forecast, following higher subscriptions.

The company’s upbeat forecast comes at a time it has been trying to boost its revenue by moving more products to cloud-based subscription services from packaged software.

Sage Group, whose software is used by millions of small businesses worldwide, said in January it expects recurring revenue growth of between 8% and 9% and that revenue growth would be constrained in the short term.

Sage’s organic recurring revenue rose 10.2% to 779 million pounds in the first half of the year.

The company, which launched the Sage Business Cloud in 2018, said recurring revenue growth was boosted largely by higher subscriptions in North America and Northern Europe.

However, the company said on Friday it expects full-year processing revenue to be at the lower end or below its previous forecast of a flat to mid-single digit fall.

Sage maintained its full-year revenue forecast and said it expects organic operating profit margin to remain between 23% and 25%. (Reporting by Samantha Machado in Bengaluru; Editing by Bernard Orr and Shounak Dasgupta)

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