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Sage expecting profit to start rising

Sage has been investing to accelerate its transformation to a cloud service and expects profit margins to improve next year
November 17, 2021
  • Organic recurring revenue climbed 8 per cent on last year
  • Dividend up 2.5 percent

Sage (SGE) is going through the arduous process of converting itself into a software-as-a-service (SaaS) business. It was slow off the mark, only starting its focused push in 2018, but it is now closing in on the finish line. The company said its 'business cloud' subscription products saw a seven percentage point increase as a proportion of overall recurring revenue, taking it to 67 per cent of possible take-up. Management’s aim is for this to eventually reach 90 per cent of recurring revenue. 

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