Business
Update on financial reporting and disclosure
Update on financial reporting and disclosure.
About this update from Sage Group Plc
[{"type":"text","content":"\n \nRNS Number : 7592U Sage Group PLC 02 April 2019 \n\n \nThe Sage Group plc.\n2 April 2019\nUpdate and simplification of financial reporting and disclosure\nThe Sage Group plc. (\"Sage\") today announces changes to the format of its financial reporting and disclosure in FY19 to simplify and improve clarity of reporting. The amended format will be introduced at the H119 results and subsequently used for future Sage financial reporting.\nKey amendments to the reporting disclosure are as follows:\n1. Update to portfolio revenue reporting;\n2. Amendment to KPIs; and\n3. Simplification of the financial reporting structure and layout.\n \nThis announcement includes an explanation of these changes as well as financial tables which are either new or have substantively changed from Sage's previous reporting format. Where previously disclosed, historical information has been included in these tables for illustrative purposes.\nThis announcement contains no new financial information, no historical numbers have been restated and there is no change to revenue recognition definitions on an organic, underlying or statutory basis.\n \n1. Update to portfolio reporting\nThe portfolio view of organic total revenue was first introduced as part of Sage's FY18 results, breaking down our product portfolio into the following categories:\n\n\n\n\nPortfolio View\n\n\n\n\nCloud native\n\n\n\n\nCloud connected\n\n\n\n\nSage Business Cloud\n\n\n\n\nProducts with potential to migrate\n\n\n\n\nFuture Sage Business Cloud Opportunity\n\n\n\n\nOther\n\n\n\n\nOrganic total revenue\n\n\n\n\nWe will continue to provide this portfolio disclosure for organic total revenue and from H119 we will also add organic recurring revenue to this portfolio view.\nOver time we expect the proportion of organic total revenue and organic recurring revenue within Sage Business Cloud categories to increase, driven by:\n- Acquisition of new customers and reactivation of off-plan customers onto cloud native and cloud connected solutions;\n- Migration of customers from their existing Sage product to a cloud connected or cloud native solution. Revenue from these customers is reported in Sage Business Cloud revenues from the point of migration onw...