LONDON (Reuters) – Sage Group’s (SGE.L) sales to new customers in April were roughly half the level expected as it felt the effects of a sharp economic downturn caused by the coronavirus pandemic.
The supplier of software to small and medium sized firms said on Wednesday its organic revenue growth rose 5.7% to 935 million pounds ($1.15 billion) and organic operating profit was up 3% to 213 million pounds for the six months to end-March.
Sage said it still expected recurring revenue to grow in the full year, but it would not be at the 8% to 9% it had previously targeted. Organic recurring revenue rose by a better-than-expected 10.3% in the first half.
“We don’t know what the level of new customer acquisition will be and also we don’t know what the level of existing customer churn will be because of the potential business failures,” Chief Executive Steve Hare said.
Sage bucked a trend among major companies of cutting dividends by raising its half-year payout by 2.5% to 5.93…
Source Reuters Tech News
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