Strong Revenue and ARR Growth
The company achieved revenue growth of 9% and ARR growth of 11%, with ARR increasing by almost GBP230 million to GBP2.3 billion. This growth is well-balanced between new and existing customers.
Record Operating Profit and Margin Expansion
Operating profit grew by 21% to GBP529 million, with a margin expansion of 220 basis points to 22.7%. This represents a record operating profit for Sage.
High Cash Conversion and Free Cash Flow
The company delivered excellent cash conversion of 123% and free cash flow of GBP524 million, up 30% on the prior year.
Cloud Products and Sage Intacct Growth
Sage Business Cloud revenue increased by 16%, with cloud-native revenue growing by 23%. Sage Intacct also showed significant growth, particularly in the UK with a two-thirds increase.
Introduction and Adoption of Sage Copilot
The company introduced Sage Copilot, a Gen AI-powered digital assistant, which has seen strong engagement and adoption.
Strong Regional Performance
North America, UKIA, Africa and APAC, and Europe all showed revenue growth, with notable achievements in cloud solutions across these regions.
Share Buyback Program
The company announced a share buyback program of up to GBP400 million, reflecting strong cash generation and financial position.