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Sage Group reiterates its financial guidance for fiscal 2021

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The Sage Group plc (LON: SGE) reiterated its financial guidance for the full year on Thursday as performance matched expectations in the fiscal first quarter. In an earlier report published in November, the FTSE 100 listed company registered an increase in its pre-tax profit to £373 million in fiscal 2020.

Sage Group shares, that you can learn to buy online here, opened roughly 6% up on Thursday but lost 1.5% in the next hour. Including the price action, the stock now has a per-share price of 603 pence. In comparison, it had tumbled to as low as 535 pence per share last year in March.

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Sage reports a 1.4% annualised growth in organic revenue

For the three months that concluded on 31st December, the enterprise software firm reported £447 million of organic revenue that represents a 1.4% annualised growth from £441 million in the same quarter last year. Sage excluded the revenue that it generated from its businesses in Asia, Australia, and Poland as the company is in the process of pulling out of these markets.

The British company posted £408 million of recurring revenue in Q1 versus the year-ago figure of £390 million. Recurring revenue in North America saw a jump from £150 million last year to £160 million in the first quarter. The company attributed its upbeat performance in North America to the Sage Intacct division.

In separate news from the United Kingdom, retailer Pets at Home also backed its guidance for annual profit as sales jumped 18% in the fiscal third quarter.

Other prominent figures in Sage’s quarterly update

Other prominent figures in Sage’s financial update on Thursday include £96 million of recurring revenue in Northern Europe. In the same quarter last year, the region had generated a lower £93 million of revenue instead. The remaining regions, as per the Newcastle upon Tyne-based company, performed as expected.

CFO Jonathan Howell commented on the quarterly report on Thursday and said:

“While the pandemic increases uncertainty in the near term, we continue to expect that our investment in Sage Business Cloud will drive the growth and long-term success of Sage.”

Sage plc performed fairly downbeat in the stock market last year with an annual decline of more than 20%. At the time of writing, the British multinational enterprise software company is valued at £6.59 billion and has a price to earnings ratio of 21.17.