Business
The Sage Group plc audited results for FY19
The Sage Group plc audited results for FY19.
About this update from Sage Group Plc
[{"type":"text","content":"\n \nRNS Number : 9750T Sage Group PLC 20 November 2019 \n\nThe Sage Group plc audited results for the year ended 30 September 2019\n \nStrong recurring revenue growth and significant progress in strategic execution\n \nOverview\n- Strong growth in high quality recurring revenue, underpinned by over £1bn of software subscription revenue; \n- Strong underlying cash conversion;\n- Organic operating margin in line with expectations;\n- Capital return of £250m today announced, following announcement of disposal of Sage Pay;\n- Significant progress in strategic execution in FY19 with further momentum into FY20;\n- FY20 guidance reflects continuing focus on recurring revenue and Sage Business Cloud. \n \n\n\n\n\nAlternative Performance Measures (APMs)[1]\n\n\nFY19\n\n\nFY18[2]\n\n\nChange\n\n\n\n\nOrganic Financial APMs (excluding assets held for sale)\n\n\n \n\n\n \n\n\n \n\n\n\n\nOrganic Total Revenue\n\n\n£1,822m\n\n\n£1,725m\n\n\n5.6%\n\n\n\n\nOrganic Recurring Revenue\n\n\n£1,559m\n\n\n£1,406m\n\n\n10.8%\n\n\n\n\nOrganic Operating Profit\n\n\n£432m\n\n\n£496m\n\n\n(13.0%)\n\n\n\n\n % Organic Operating Profit Margin\n\n\n23.7%\n\n\n28.8%\n\n\n(5.1% pts)\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nUnderlying Financial APMs\n\n\n \n\n\n \n\n\n \n\n\n\n\nUnderlying Total Revenue\n\n\n£1,936m\n\n\n£1,878m\n\n\n3.1% \n\n\n\n\nUnderlying Recurring Revenue\n\n\n£1,612m\n\n\n£1,465m\n\n\n10.0% \n\n\n\n\nUnderlying Operating Profit\n\n\n£448m\n\n\n£509m\n\n\n(12.1%)\n\n\n\n\n % Underlying Operating Profit Margin\n\n\n23.1% \n\n\n27.1% \n\n\n(4.0% pts)\n\n\n\n\nUnderlying Basic EPS \n\n\n28.40p\n\n\n32.85p\n\n\n(13.5%)\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nKPIs\n\n\n \n\n\n \n\n\n \n\n\n\n\nAnnualised recurring revenue\n\n\n£1,685m\n\n\n£1,496m\n\n\n12.6%\n\n\n\n\nRenewal Rate by Value\n\n\n101%\n\n\n101%\n\n\n-\n\n\n\n\n% Subscription Penetration\n\n\n55%\n\n\n45%\n\n\n10% pts\n\n\n\n\n% Sage Business Cloud Penetration\n\n\n48%\n\n\n29%\n\n\n19% pts \n\n\n\n\nUnderlying Cash C...