Sage Group had a good H1 19/20 with a limited impact from the Coronavirus pandemic. Organic recurring revenue continued to grow rapidly (+10.3%) thanks to strong software subscription growth (+26% vs +27.7% in H1 18/19). The operating margin which was impacted by a provision for bad debt (£13m) represented 22.8% of revenue (-0.6pt), above the consensus (22%). H2 19/20 looks tricky. In April 2020, the gain of new customers was half the level expected and the churn rate increased slightly
14 May 2020
Good H1 2019/20, now put to the test
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Good H1 2019/20, now put to the test
Sage Group plc (SGE:LON) | 1,170 52.7 0.4% | Mkt Cap: 11,756m
- Published:
14 May 2020 -
Author:
Hélène Coumes -
Pages:
3
Sage Group had a good H1 19/20 with a limited impact from the Coronavirus pandemic. Organic recurring revenue continued to grow rapidly (+10.3%) thanks to strong software subscription growth (+26% vs +27.7% in H1 18/19). The operating margin which was impacted by a provision for bad debt (£13m) represented 22.8% of revenue (-0.6pt), above the consensus (22%). H2 19/20 looks tricky. In April 2020, the gain of new customers was half the level expected and the churn rate increased slightly