Sage Group has posted a 9% rise in underlying revenue to £1.24bn in its opening half results.

The accountancy software company said the figure reflected its subscription-based recurring revenue model, after also reporting a 16% increase in underlying operating profit to £288m.

Sage, announcing its H1 results for the six-month period to 31 March, described the performance as “strong” and stated that it had extended a track record of “broad-based growth and significant margin expansion”.

In its outlook for the remainder of the financial year, the Newcastle-based company acknowledged a “volatile and uncertain” macroeconomic environment but confirmed it was still expecting its organic total revenue growth in FY25 to be 9% or above. Sage is also expecting its operating margins to trend upwards as it focuses on “efficiently scaling” the group, it added.

Following the performance, Sage also confirmed in a separate statement that it would extend an existing share buyback programme by up to £200m, taking the aggregate value of the buyback scheme to a potential £400m.

“Our performance reflects the strength of our accounting, HR and payroll solutions, underpinned by ongoing investment in our network platform,” Sage CEO, Steve Hare, said.

“Amid a more volatile and uncertain macroeconomic environment, Sage remains resilient and diversified. Small and mid-sized businesses continue to adopt digital technologies to become more productive and efficient. I am confident that our proven strategy will deliver further long-term value to all our stakeholders.”

---