Sage, a British software firm, confirmed it was on track in accelerating its growth in 2015 as it posted a fundamental 5% increase in revenue, along with an 8 % increase in earnings during the first set of the results presented by its new CEO, Stephen Kelly.
Company shares rose 3.7% at 418 pence by 0936 GMT, increased at 423 pounds, their record-high since May.
Sage’s software is utilized by over six million small businesses. It posted a 1.31 billion pounds or 2 billion US dollar revenue, and earnings of 22.69 pence per share for the year ended in September. Results were slightly ahead of analysts’ expectations.
The new CEO said the outcomes were momentous towards the growing revenue target of 6%, with 28% operating profit margin for the current year. Kelly said there was a 28% rise in subscription revenue that was predictable, while improving retention rates.
Also, the group was expecting a strong demand for Sage One software, its very own cloud-based product, which was designed as an accounting software introduction for small traders.
On Wednesday, Kelly said customers perceive Sage as crucial to their industries, and seeking the company’s help for a cloud and mobility transition over time.
The company would pay 8p per share as final dividend, giving it an annual total of 12.12p, up by 7%.