Results for the six months to 31 March 2026

About this update from Sage Group Plc

[{"type":"text","content":"\n \n The Sage Group plc \n Results for the six months to 31 March 2026 (unaudited) \n 21 May 2026 \n   \n Accelerating growth driven by execution of AI strategy \n Steve Hare, Chief Executive Officer, commented: \n \"Sage delivered an excellent first-half performance, with double-digit revenue growth, further margin expansion and strong cash flows. This reflects the focused execution of our strategy and a deep understanding of our customers' needs. \n \"Small and mid-sized businesses trust Sage to run their mission-critical finance, payroll and HR workflows, where accuracy and compliance are non-negotiable. Our intelligent agents are already helping finance teams accelerate cash flows, close the books faster, plan more effectively and turn insight into action, without compromising control or accountability. \n \"By embedding AI directly into our customers' day-to-day work, we are making our solutions more valuable, reinforcing our competitive advantages, and driving efficient, sustainable growth. \n \" With our trusted scalable platform, growing agent portfolio and strong momentum supported by investment across the business, I am confident in Sage's ability to deliver growth and long term value for all stakeholders.\" \n \n \n \n \n Underlying Financial APMs [1] \n \n \n H1 26 \n \n \n H1 25 [2] \n \n \n Change \n \n \n Organic \n Change \n \n \n \n \n Annualised Recurring Revenue (ARR) \n \n \n £2,727m \n \n \n £2,453m \n \n \n +11% \n \n \n +11% \n \n \n \n \n Underlying Total Revenue \n \n \n £1,363m \n \n \n £1,231m \n \n \n +11% \n \n \n +10% \n \n \n \n \n Underlying Operating Profit \n \n \n £326m \n \n \n £285m \n \n \n +15% \n \n \n +14% \n \n \n \n \n      % Underlying Operating Profit Margin \n \n \n 23.9% \n \n \n 23.1% \n \n \n +0.8 ppts \n \n \n +0.9 ppts \n \n \n \n \n Underlying EBITDA \n \n \n £375m \n \n \n £331m \n \n \n +14% \n \n \n \n \n \n \n \n      % Underlying EBITDA Margin \n \n \n 27.6% \n \n \n 26.8% \n \n \n +0.8ppts \n \n \n   \n \n \n \n \n Underlying Basic EPS (p) \n \n \n 23.7p \n \n \n 20.5p \n \n \n +16% \n \n \n \n \n \n \n \n Underlying Cash Conversion \n \n \n 116% \n \n \n 115% \n \n \n +1 ppt \n \n \n \n \n \n \n \n Statutory Measures \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n   \n \n \n \n \n Revenue \n \n \n £1,363m \n \n \n £1,242m \n \n \n +10% \n \n \n \n \n \n \n \n Operating Profit \n \n \n £293m \n \n \n £255m \n \n \n +15% \n \n \n \n \n \n \n \n      % Operating Profit Margin \n \n \n 21.5% \n \n \n 20.5% \n \n \n +1.0 ppts \n \n \n   \n \n \n \n \n Basic EPS (p) \n \n \n 20.7p \n \n \n 18.2p \n \n \n +14% \n \n \n \n \n \n \n \n Dividend Per Share (p) \n \n \n 8.05p \n \n \n 7.45p \n \n \n +8% \n \n \n \n \n \n \n \n Please note that tables may not cast and change percentages may not calculate precisely due to rounding. \n Financial highlights \n ·     Underlying total revenue increased by 11% to £1,363m, reflecting broad-based growth across the business underpinned by strength in cloud solutions. \n ·     Underlying operating profit grew by 15% to £326m, driving a margin increase of 80 basis points to 23.9%, with disciplined cost management supporting increased investment. \n ·     Underlying EBITDA increased by 14% to £375m, with margin also increasing by 80 basis points to 27.6%. \n ·     Statutory operating profit increased by 15% to £293m reflecting growth in underlying operating profit. \n ·     Underlying basic EPS increased by 16% to 23.7p, whilst statutory basic EPS increased by 14% to 20.7p. \n ·     Strong cash performance, with underlying cash conversion of 116%, reflecting continued growth in revenue and good working capital management. \n ·     Robust balance sheet, with £ 1. 1bn of cash and available liquidity; net debt to underlying EBITDA of 2.0x. \n Shareholder returns \n ·     Interim dividend up 8% to 8.05p, in line with our progressive policy. \n ·     Share buyback programme of £300m announced in March 2026 is well underway, taking the total value of share buybacks announced in the first half to £600m. This reflects Sage's strong cash generation, robust financial position, and the Board's confidence in Sage's future prospects. \n Strategic and operational highlights \n ·     Underlying annualised recurring revenue (ARR) up 11% to £2,727m, with growth across all regions balanced between new and existing customers. \n ·     Renewal rate by value of 102%, ahead of last year (H1 25: 101%), reflecting higher sales to existing customers, including the growing adoption of AI-powered features, supported by strong retention rates. \n ·     Sage Business Cloud revenue increased by 15% to £1,162m (H1 25: £1,011m), including cloud native revenue growth of 25% to £518m (H1 25: £416m). \n ·     Strong growth across our cloud products, particularly Sage Intacct, supported by investment in our product and go-to-market capabilities together with the focused execution of our AI strategy. \n ·     Embedding AI into core customer workflows, with the launch of intelligent agents and the expansion of Sage Copilot delivering tangible productivity and decision-making benefits for customers. \n ·     Leveraging the Sage Platform to extend our ecoystem, supporting broader innovation and scale, alongside the acquisitions of Criterion, Akao and Doyen AI [3] . \n ·     Success in acquiring small business customers earlier in their lifecycle through Sage Sole Trader and our embedded services partnerships with major UK banks and fintechs. \n ·     Accelerating productivity through the adoption of AI across our own operations, with significant benefits in areas including engineering, customer support, sales and marketing. \n Outlook \n Building on strong momentum in the first half, we now expect organic total revenue growth for FY26 to be above 9%. We continue to expect operating margins to trend upwards in FY26 and beyond, as we focus on efficiently scaling the Group. \n About Sage \n Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses (SMBs) served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitalising business processes and relationships with customers, suppliers, employees, banks and governments, our AI-powered network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis. \n \n \n \n \n Enquiries: \n \n \n Sage: \n \n \n +44 (0) 7341 479956 \n \n \n FGS Global: \n \n \n +44 (0) 20 7251 3801 \n \n \n \n \n \n \n \n James Sandford, Investor Relations \n \n \n Conor McClafferty \n \n \n \n \n \n \n \n David Ginivan , Corporate PR \n \n \n Sophia Johnston \n \n \n \n \n   \n A presentation for investors and analysts will be held at 8.30am UK time. The webcast can be accessed via sage.com/investors or directly via the following link: https://edge.media-server.com/mmc/p/xk88y5dc . To join the conference call, please register via https://register-conf.media-server.com/register/BI508df57c7ecd4e03ae86026254ec15c0 .  \n   \n Business Review \n Sage performed strongly in H1 26, with good levels of growth in revenue, profits and cash flow. This was underpinned by focused execution, as we embed AI into trusted, mission ‑ critical finance, payroll and HR workflows, enhancing the value of our solutions and deepening customer relationships. By deploying AI across our business, we are reinforcing our growth, efficiency and the durability of our business model.  \n Overview of results \n The Group increased underlying revenue by 11% to £1,363m (H1 25: £1,231m), with all regions contributing to growth. In North America, revenue grew by 14%, with strong performance from Sage Intacct together with continued growth in Sage 50 and Sage 200. In the UKIA [4] region, revenue increased by 10% driven by Sage Intacct together with cloud solutions for small businesses including Sage 50. In Europe, revenue increased by 7%, with growth across our accounting, HR and payroll solutions. \n Our aim is to efficiently grow revenues across all products and services by attracting new customers and delivering more value to existing customers. Sage Business Cloud, comprising our cloud native [5] and cloud connected [6] solutions, helps customers benefit from a growing range of cloud and AI-powered services via the Sage Platform, leading to deeper customer relationships and higher lifetime values. \n As a result, Sage Business Cloud total revenue increased by 15% to £1,162m (H1 25: £1,011m), driven by growth in cloud native revenue of 25% to £518m (H1 25: £416m) primarily through new customer acquisition, and by growth in cloud connected revenue from both existing and new customers. \n Underlying recurring revenue increased by 11% to £1,323m (H1 25: £1,192m), with software subscription revenue up 12% to £1,150m (H1 25: £1,022m) leading to subscription penetration of 84% (H1 25: 83%). As a result, 97% of the Group's revenue is recurring.  \n On an organic basis, total revenue grew by 10% to £1,360m (H1 25: £1,235m), while recurring revenue increased by 10% to £1,321m (H1 25: £1,195m). \n ARR growth \n ARR increased by 11% to £2,727m (H1 25: £2,453m) on an underlying basis, reflecting growth balanced between new and existing customers. On an organic basis, ARR grew by 11% to £2,721m (H1 25: £2,461m).  \n Renewal rate by value of 102% is ahead of last year (H1 25: 101%) reflecting increased sales to existing customers, including the growing adoption of AI-powered features and targeted price rises, supported by strong retention rates. In total, Sage has added £200m of ARR through new customer acquisition on an organic basis over the last 12 months, up from £190m [7] a year earlier. \n Performance by region \n \n \n \n \n North America \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n Organic change \n \n \n \n \n US \n \n \n £541m \n \n \n £472m \n \n \n 15% \n \n \n 13% \n \n \n \n \n Canada \n \n \n £75m \n \n \n £68m \n \n \n 9% \n \n \n 9% \n \n \n \n \n Underlying total revenue \n \n \n £616m \n \n \n £540m \n \n \n 14% \n \n \n 13% \n \n \n \n \n In North America, underlying total revenue increased by 14% to £616m, with growth across Sage's key accounting solutions, particularly among mid-sized businesses. Recurring revenue grew by 14% to £600m (H1 25: £527m), while subscription penetration increased to 83%, up from 82% in the prior period. \n In the US, total revenue increased by 15% to £541m. Sage Intacct, which now represents about half of US revenue, grew by 26% to £267m (H1 25: £211m). This was driven by continued success from our vertical-focused go-to-market approach, including strong momentum across not-for-profit, construction & real estate and financial services, and supported by customers adopting AI-powered functionality. In addition, Sage Intacct benefited from good progress in Sage Intacct Advisory, enabling accounting firms to deliver outsourced financial and advisory services and helping drive further scale. \n   \n US revenue was also driven by a strong performance in Sage 50, reflecting momentum in migrations to a cloud-native environment, together with growth in HR and payroll following the acquisition of Criterion, and a continued contribution from Sage 200. \n In Canada, total revenue grew by 9% to £75m, driven by a strong performance in Sage Intacct, now the largest growth driver in the region, while Sage 50 also contributed strongly, supported by good renewal rates. \n Adjusting for the acquisitions of Criterion in H1 26 and Fyle in FY25, organic total revenue grew by 13% in the US, and by 13% in North America as a whole. \n   \n \n \n \n \n UKIA \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n Organic change \n \n \n \n \n UK & Ireland \n \n \n £297m \n \n \n £271m \n \n \n 10% \n \n \n 10% \n \n \n \n \n Africa & APAC \n \n \n £98m \n \n \n £89m \n \n \n 10% \n \n \n 10% \n \n \n \n \n Underlying total revenue \n \n \n £395m \n \n \n £360m \n \n \n 10% \n \n \n 10% \n \n \n \n \n In the UKIA region, underlying total revenue increased by 10% to £395m, with strength across accounting, HR and payroll solutions. Recurring revenue grew by 10% to £389m (H1 25: £352m), while subscription penetration was 90%, up from 89% in the prior period.  \n In the UK & Ireland, total revenue grew by 10% to £297m. Sage Intacct continued to perform well, driven by new customer acquisition reflecting strong demand and effective execution through the partner channel, with good renewal rates supported by customer add-ons. Sage 50 was a significant contributor to growth, with momentum driven by our bundling approach, as customers move into higher-value solutions with expanded capabilities, including AI-powered features. \n Sage's cloud native solutions for small businesses, including Sage Accounting, Sage Payroll and Sage HR, also continued to deliver good growth. Sage Accounting benefited from strong renewal rates and upselling to our integrated small business suite, which includes AI capabilities including Sage Copilot. \n In Africa and APAC, total revenue grew by 10% to £98m, driven by growth in Sage Accounting and Sage Payroll across new and existing customers. Sage Intacct also performed well and is rapidly scaling through new customers. Sage X3 and local products within the Sage 50 franchise also contributed to growth. \n   \n \n \n \n \n Europe \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n Organic Change \n \n \n \n \n France \n \n \n £176m \n \n \n £165m \n \n \n 7% \n \n \n 7% \n \n \n \n \n Iberia \n \n \n £93m \n \n \n £85m \n \n \n 9% \n \n \n 8% \n \n \n \n \n Central Europe \n \n \n £83m \n \n \n £81m \n \n \n 4% \n \n \n 4% \n \n \n \n \n Underlying total revenue \n \n \n £352m \n \n \n £331m \n \n \n 7% \n \n \n 6% \n \n \n \n \n Europe delivered underlying total revenue growth of 7% to £352m, mainly reflecting a strong performance across Sage 200, Sage X3, and HR and payroll solutions. Recurring revenue increased by 7% to £334m (H1 25: £313m), while subscription penetration rose to 81% from 79% in the prior period. \n In France, total revenue grew by 7% to £176m, driven primarily by accounting solutions. Sage X3 made a significant contribution, supported by continued execution and momentum in customer demand. Performance in Sage 200 was also strong, reflecting good renewals across existing customers. Growth was further supported by Sage Intacct, which saw increasing traction as the solution starts to scale. \n Iberia achieved a total revenue increase of 9% to £93m, driven by Sage 200, together with solutions for accountants which benefited from compliance tailwinds in the region. Sage 50 also contributed to growth largely through higher pricing and strong retention. \n In Central Europe, total revenue grew by 4% to £83m. Cloud HR and payroll, which represents a significant proportion of the business, delivered solid growth, complemented by Sage 200. In addition, Sage Intacct has started to build early traction from a small base. \n Adjusting for the impact of the ForceManager acquisition in FY25, organic total revenue grew by 8% in Iberia, and by 6% in Europe as a whole. \n Strategic progress \n Sage grows by consistently enhancing the value we deliver to existing and new customers. By innovating to provide better ways for SMBs to run their finance, HR and payroll processes, we make our products more attractive and more valuable. Our focus on improving customer outcomes is accelerating with the adoption of AI and agentic tools, enabling us to deliver more powerful solutions that automate decisions, surface insights and orchestrate complex processes. \n Leveraging our competitive advantages \n Building on our trusted system-of-record status, we are leveraging our competitive advantages - including extensive, proprietary data sets, deep domain expertise gained over decades and our scaled ecosystem of accountants, developers and resellers - to embed enterprise-grade AI directly into customers' mission-critical workflows and transform the way they work. Importantly, our AI is designed with guardrails that aim to ensure reliable and transparent results, building customer confidence, control and accountability, and placing trust at the centre of our customer proposition. \n Scaling AI through the Sage Platform \n The Sage Platform provides a secure, scalable foundation for our solutions, connecting customers, products and partners in an intelligent ecosystem, where every connection and every transaction make the system smarter. Designed to accelerate innovation and efficient product development, the platform has enabled the rapid rollout of Sage Copilot, our digital assistant, and the deployment of multiple AI agents including our Accounts Payable Agent, Close Agent and Finance Intelligence Agent, resulting in significant productivity and decision-making benefits to customers. \n Expanding our ecosystem \n We have also introduced new agentic capabilities and pricing models to enable partner-developed agents to operate on the platform, giving customers faster access to new functionality, and we have expanded our relationship with AWS to accelerate the migration of connected products such as Sage 50 to a cloud native environment. In addition, in partnership with PwC and supported by our recent acquisition of Doyen AI, a data migration specialist, we are launching AI-powered implementations to accelerate time-to-value.  \n Growing our cloud solutions \n By broadening our offering across more financial tasks, reaching further into operational workflows, and embedding agentic AI, we are strengthening our competitive position and driving growth. During the period we scaled services such as accounts payable, accounts receivable and payments. In the mid-market, we grew Sage Intacct strongly, with ARR growth of over 20% in the US and around 50% internationally. We also strengthened our mid-market HR & payroll capabilities through the acquisition of Criterion. In addition, we launched Sage X3 as a fully managed cloud service and introduced Sales Intelligence Agent to proactively alert teams to risks such as overdue orders or delayed shipments. In the small segment, we have made strong progress with Sage Sole Trader, and partnered with leading UK banks and fintechs including HSBC, Monzo, Tide and SumUp to deliver embedded accounting and tax services, helping us win new customers earlier in their lifecycle. Growth has been supported by regulatory changes including Making Tax Digital for Income Tax in the UK, anti-fraud legislation in Spain and e-invoicing in France. \n Transforming our operations \n We are also delivering productivity through our own AI transformation. In engineering, third-party coding tools have significantly increased developer productivity, saving hundreds of thousands of work hours. In customer support, AI is driving strong resolution rates with high levels of customer satisfaction. In go-to-market, AI is helping to improve demand generation by personalising and automating outbound campaigns, while also supporting inbound lead qualification. In addition, we are executing comprehensive upskilling programmes across the Group to help colleagues confidently apply AI in their day-to-day work. \n Sustainability and Society \n Sage has, in recent months, continued to be recognised among the World's Most Sustainable Companies by TIME Magazine and Statista, maintained a Gold rating from EcoVadis, achieved an 'A' leadership score from CDP, retained an 'AAA' ESG rating from MSCI, and won the edie 2026 award for Sustainability Reporting & Communications for the second consecutive year. Alongside making good progress across our sustainability priorities, including the Sage Impact Entrepreneurship programme, we also advanced our Responsible AI programme, underpinned by the adoption of the NIST AI Risk Management Framework and the AI Trust Label, to support the responsible development and use of AI across the business. \n   \n Financial Review \n The financial review provides a summary of the Group's results on a statutory and underlying basis, alongside its organic performance. Underlying measures allow management and investors to understand the Group's financial performance adjusted for the impact of foreign exchange movements and recurring and non-recurring items, while organic measures also adjust for the impact of acquisitions and disposals [8] . \n Statutory and underlying financial results \n \n \n \n \n Financial results \n \n \n Statutory \n \n \n Underlying \n \n \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n \n \n North America \n \n \n £616m \n \n \n £568m \n \n \n +8% \n \n \n £616m \n \n \n £540m \n \n \n +14% \n \n \n \n \n UKIA \n \n \n £395m \n \n \n £358m \n \n \n +11% \n \n \n £395m \n \n \n £360m \n \n \n +10% \n \n \n \n \n Europe \n \n \n £352m \n \n \n £316m \n \n \n +11% \n \n \n £352m \n \n \n £331m \n \n \n +7% \n \n \n \n \n Total revenue \n \n \n £1,363m \n \n \n £1,242m \n \n \n +10% \n \n \n £1,363m \n \n \n £1,231m \n \n \n +11% \n \n \n \n \n Operating profit \n \n \n £293m \n \n \n £255m \n \n \n +15% \n \n \n £326m \n \n \n £285m \n \n \n +15% \n \n \n \n \n % Operating profit margin \n \n \n 21.5% \n \n \n 20.5% \n \n \n  +1.0 ppts \n \n \n 23.9% \n \n \n 23.1% \n \n \n  +0.8 ppts \n \n \n \n \n Profit before tax \n \n \n £262m \n \n \n £236m \n \n \n +11% \n \n \n £295m \n \n \n £267m \n \n \n +11% \n \n \n \n \n Profit after tax \n \n \n £196m \n \n \n £180m \n \n \n +9% \n \n \n £224m \n \n \n £203m \n \n \n +10% \n \n \n \n \n Basic EPS \n \n \n 20.7p \n \n \n 18.2p \n \n \n +14% \n \n \n 23.7p \n \n \n 20.5p \n \n \n +16% \n \n \n \n \n The Group achieved statutory and underlying total revenue of £1,363m in H1 26. Statutory total revenue increased by 10%, reflecting underlying total revenue growth of 11% offset by a one percentage point foreign exchange headwind, with US dollar depreciation partly offset by a strengthening euro. \n Statutory and underlying operating profit increased by 15%, to £293m and £326m, respectively, reflecting revenue growth combined with operating efficiencies. \n Statutory basic EPS increased by 14% to 20.7p, and underlying basic EPS increased by 16% to 23.7p, mainly reflecting higher underlying profit, with an increase in net finance costs offset by a reduction in the weighted average number of shares as a result of recent share buybacks. \n Revenue - underlying and organic reconciliation to statutory \n \n \n \n \n Total revenue bridge \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n \n \n Statutory \n \n \n  £1,363m \n \n \n  £1,242m \n \n \n +10% \n \n \n \n \n Recurring items \n \n \n  - \n \n \n - \n \n \n \n \n \n \n \n Impact of FX \n \n \n - \n \n \n (£11m) \n \n \n \n \n \n \n \n Underlying \n \n \n £1,363m \n \n \n £1,231m \n \n \n +11% \n \n \n \n \n Disposals \n \n \n  - \n \n \n - \n \n \n \n \n \n \n \n Acquisitions \n \n \n (£3m) \n \n \n £4m \n \n \n \n \n \n \n \n Organic \n \n \n £1,360m \n \n \n £1,235m \n \n \n +10% \n \n \n \n \n Statutory and underlying revenue was £1,363m in H1 26. Underlying revenue in H1 25 of £1,231m reflects statutory revenue of £1,242m retranslated at current year exchange rates, resulting in a foreign exchange headwind of £11m. Organic revenue in H1 26 was £1,360m, reflecting underlying revenue of £1,363m adjusted for £3m of revenue from the acquisition of Criterion during the period. Organic revenue in H1 25 of £1,235m reflects underlying revenue of £1,231m, adjusted for £3m of revenue from Fyle, and £1m of revenue from ForceManager, which were acquired in FY25. \n Operating profit \n The Group increased underlying operating profit by 15% to £326m (H1 25: £285m), resulting in an increase in underlying operating margin of 80bps to 23.9% (H1 25: 23.1%). This was driven by revenue growth and operating efficiencies, with disciplined cost management supporting increased investment. On an organic basis, adjusting for the impact of acquisitions in FY25 and H1 26, operating profit increased by 14% to £325m (H1 25: £285m) while organic operating margin was broadly in line with underlying. \n Operating profit - underlying and organic reconciliation to statutory \n \n \n \n \n Operating profit bridge \n \n \n H1 26 \n \n \n H1 25 \n \n \n \n \n   \n \n \n Operating profit \n \n \n Operating margin \n \n \n Operating profit \n \n \n Operating margin \n \n \n \n \n Statutory \n \n \n  £293m \n \n \n 21.5% \n \n \n  £255m \n \n \n 20.5% \n \n \n \n \n Recurring items [9] \n \n \n  £33m \n \n \n - \n \n \n  £35m \n \n \n - \n \n \n \n \n Non - recurring items: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ·   Reversal of property restructuring costs \n \n \n - \n \n \n - \n \n \n (£2m) \n \n \n - \n \n \n \n \n Impact of FX \n \n \n - \n \n \n - \n \n \n (£3m) \n \n \n - \n \n \n \n \n Underlying \n \n \n £326m \n \n \n 23.9% \n \n \n £285m \n \n \n 23.1% \n \n \n \n \n Disposals \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Acquisitions \n \n \n (£1m) \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Organic \n \n \n £325m \n \n \n 23.9% \n \n \n £285m \n \n \n 23.0% \n \n \n \n \n The Group achieved a statutory operating profit in H1 26 of £293m (H1 25: £255m). Underlying operating profit of £326m in H1 26 reflects statutory operating profit adjusted for recurring and non-recurring items. Organic operating profit of £325m in H1 26 reflects underlying operating profit adjusted for £1m of operating profit from the acquisition of Criterion during the period. \n Recurring items of £33m (H1 25: £35m) comprise £22m of amortisation of acquisition-related intangibles (H1 25: £22m) and £11m of M&A related charges (H1 25: £13m). In H1 25, non-recurring items comprised a £2m reversal of property restructuring costs. Recurring and non-recurring items together were unchanged compared to the prior period, at £33m.   \n In addition, the retranslation of H1 25 operating profit at current year exchange rates has resulted in an operating profit headwind of £3m. This has led to a 10-basis point margin headwind from foreign exchange to 23.1% (H1 25 underlying as reported: 23.2%). \n Underlying EBITDA \n Underlying EBITDA was £375m (H1 25: £331m) representing a margin of 27.6%. The increase in underlying EBITDA principally reflects growth in underlying operating profit. \n \n \n \n \n \n \n \n H1 26 \n \n \n H1 25 \n \n \n Margin \n \n \n \n \n Underlying operating profit \n \n \n £326m \n \n \n £285m \n \n \n 23.9% \n \n \n \n \n Depreciation & amortisation \n \n \n £24m \n \n \n £24m \n \n \n \n \n \n \n \n Share based payments \n \n \n £25m \n \n \n £22m \n \n \n \n \n \n \n \n Underlying EBITDA \n \n \n £375m \n \n \n £331m \n \n \n 27.6% \n \n \n \n \n Net finance cost \n The underlying net finance cost for the period increased to £31m (H1 25: £18m), mainly reflecting lower interest income on deposits, as well as higher finance costs including new debt issuance. This was consistent with the statutory net finance cost of £31m (H1 25: £19m). \n Taxation \n The underlying tax expense for H1 26 was £71m (H1 25: £64m), resulting in an underlying effective tax rate of 24% (H1 25: 24%). The statutory income tax expense for H1 26 was £66m (H1 25: £56m), resulting in a statutory effective tax rate of 25% (H1 25: 24%). The difference between the statutory and underlying rates in H1 26, and the increase in the statutory rate year on year, largely reflects M&A ‑ related charges. \n Earnings per share (EPS) \n \n \n \n \n \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n \n \n Statutory basic EPS \n \n \n 20.7p \n \n \n 18.2p \n \n \n +14% \n \n \n \n \n Recurring items \n \n \n 3.0p \n \n \n 2.8p \n \n \n \n \n \n \n \n Non-recurring items \n \n \n - \n \n \n (0.2)p \n \n \n \n \n \n \n \n Impact of foreign exchange \n \n \n - \n \n \n (0.3) p \n \n \n \n \n \n \n \n Underlying basic EPS \n \n \n 23.7p \n \n \n 20.5p \n \n \n +16% \n \n \n \n \n Underlying basic EPS increased by 16% to 23.7p, mainly reflecting the increase in underlying operating profit. Statutory basic EPS increased by 14%, mainly reflecting the increase in underlying basic EPS partly offset by the post-tax impact of non-recurring items and a slight foreign exchange headwind. \n Cash flow \n Sage remains highly cash generative with underlying cash flow from operations increasing by 15% to £378 m (H1 25: £330m), representing underlying cash conversion of 116% (H1 25: 115%). This strong cash performance reflects revenue growth and continued good working capital management.  Free cash flow of £241 m (H1 25: £246m) reflects robust cash conversion, offset by income tax which increased due to the timing of tax payments in prior periods, and net interest which increased due to new debt issuance together with lower interest income on deposits. \n \n \n \n \n Cash flow APMs \n \n \n H1 26 \n \n \n H1 25 (as reported) \n \n \n \n \n Underlying operating profit \n \n \n £326m \n \n \n £288m \n \n \n \n \n Depreciation, amortisation and non-cash items in profit \n \n \n £23m \n \n \n £23m \n \n \n \n \n Share based payments \n \n \n £25m \n \n \n £22m \n \n \n \n \n Net changes in working capital \n \n \n £26m \n \n \n £29m \n \n \n \n \n Net capital expenditure \n \n \n (£22m) \n \n \n (£32m) \n \n \n \n \n Underlying cash flow from operations \n \n \n £378 m \n \n \n £330m \n \n \n \n \n      Underlying cash conversion % \n \n \n 116 % \n \n \n 115% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-recurring cash items \n \n \n (£1m) \n \n \n (£6m) \n \n \n \n \n Net interest paid \n \n \n (£56m) \n \n \n (£36m) \n \n \n \n \n Income tax paid \n \n \n (£80m) \n \n \n (£38m) \n \n \n \n \n Profit and loss foreign exchange movements \n \n \n - \n \n \n (£4m) \n \n \n \n \n Free cash flow \n \n \n £241 m \n \n \n £246m \n \n \n \n \n   \n \n \n \n \n Statutory reconciliation of cash flow from operations \n \n \n H1 26 \n \n \n H1 25 (as reported) \n \n \n \n \n Statutory cash flow from operations \n \n \n £390m \n \n \n £330m \n \n \n \n \n Recurring and non-recurring items \n \n \n £9m \n \n \n £28m \n \n \n \n \n Net capital expenditure \n \n \n (£27m) \n \n \n (£32m) \n \n \n \n \n Other adjustments including foreign exchange translations \n \n \n £6m \n \n \n £4m \n \n \n \n \n Underlying cash flow from operations \n \n \n £378 m \n \n \n £330m \n \n \n \n \n Net debt and liquidity \n Group net debt was £1,504 m at 31 March 2026 (30 September 2025: £1,189m), comprising cash and cash equivalents of £518 m (30 September 2025: £390m) and total debt of £2,022m (30 September 2025: £1,579m). The Group had £1,148m of cash and available liquidity at 31 March 2026 (30 September 2025: £1,020m). \n The increase in net debt in the period is summarised in the table below. \n \n \n \n \n \n \n \n H1 26 \n \n \n H1 25 (as reported) \n \n \n \n \n Net debt at 1 October \n \n \n (£1,189m) \n \n \n (£738m) \n \n \n \n \n Free cash flow \n \n \n £241 m \n \n \n £246m \n \n \n \n \n New leases less disposals \n \n \n (£18m) \n \n \n (£6m) \n \n \n \n \n Acquisition of businesses \n \n \n (£44m) \n \n \n (£33m) \n \n \n \n \n M&A and equity investments \n \n \n (£9m) \n \n \n (£22m) \n \n \n \n \n Dividends paid \n \n \n (£136m) \n \n \n (£135m) \n \n \n \n \n Share buyback \n \n \n (£353m) \n \n \n (£293m) \n \n \n \n \n FX movement and other \n \n \n £4m \n \n \n £5m \n \n \n \n \n Net debt at 31 March \n \n \n (£1,504 m ) \n \n \n (£976m) \n \n \n \n \n The Group's debt is sourced from sterling and euro denominated notes, together with a syndicated multi-currency Revolving Credit Facility (RCF). \n In February 2026, the Group issued €500m 7-year notes with a coupon of 3.821% as part of the Group's Euro Medium Term Note (EMTN) programme. Sage's notes also include £300m 12-year notes issued in March 2025 with a coupon of 5.625%, €500m 5-year notes in February 2023 with a coupon of 3.82%, £400m 12-year notes issued in February 2022 with a coupon of 2.875%, and £350m 10-year notes issued in February 2021 with a coupon of 1.625%.  \n The Group's RCF of £630m expires in December 2029 and was undrawn at 31 March 2026 (H1 25: undrawn). Sage has an investment grade issuer credit rating assigned by Standard and Poor's of BBB+ (stable outlook). \n Capital allocation \n Sage's disciplined capital allocation policy is focused on accelerating strategic execution through organic and inorganic investment, and delivering shareholder returns. During the period, Sage completed the acquisition of Criterion, a human capital management (HCM) platform which enhances Sage's offering to mid-sized businesses, and Akao, a specialist in digitalisation and automation solutions. \n Sage has a progressive dividend policy, intending to grow the dividend over time while considering the future capital requirements of the Group. Reflecting Sage's strong performance and cash generation during the first half, we have increased the interim dividend by 8% to 8.05p per share (H1 25: 7.45p). \n The Group also considers returning surplus capital to shareholders. On 5 February 2026, Sage completed a share buyback programme, commenced on 19 November 2025, under which a total of 29.4m shares were purchased for an aggregate consideration of £300m and subsequently cancelled. \n On 2 March 2026, we commenced a further share buyback programme of up to £300m, under which, as at 18 May 2026, a total of 30.0m shares had been purchased for an aggregate consideration of £258m and subsequently cancelled. This programme is expected to complete no later than 5 June 2026. \n These share buybacks reflect Sage's strong cash generation, robust financial position, and the Board's confidence in the Group's future prospects. Sage continues to have considerable financial flexibility to drive the execution of its growth strategy. \n   \n \n \n \n \n   \n \n \n H1 26 \n \n \n H1 25 (as reported) \n \n \n \n \n Net debt \n \n \n £1,504 m \n \n \n £976 m \n \n \n \n \n Underlying EBITDA (Last Twelve Months) \n \n \n £742m \n \n \n £655m \n \n \n \n \n Net debt/underlying EBITDA ratio \n \n \n 2.0x \n \n \n 1.5x \n \n \n \n \n The Group's underlying EBITDA over the last 12 months was £742m, resulting in a net debt to underlying EBITDA leverage ratio of 2.0x, up from 1.5x in the prior year. Sage intends to operate in a broad range of 1x to 2x net debt to underlying EBITDA over the medium term, with flexibility to move outside this range as business needs require. \n Return on capital employed (ROCE) for H1 26 was 33% (H1 25 as reported: 29%). A reconciliation of ROCE to our reported measures is set out in Appendix 1 on page 12. \n Foreign exchange \n The Group does not hedge foreign currency profit and loss translation exposure, and therefore the statutory results are impacted by movements in exchange rates. The average rates used to translate the consolidated income statement and to normalise prior year underlying and organic figures are as follows: \n \n \n \n \n Average exchange rates (equal to GBP) \n \n \n H1 26 \n \n \n H1 25 \n \n \n Change \n \n \n \n \n Euro (€) \n \n \n 1.15 \n \n \n 1.20 \n \n \n -4% \n \n \n \n \n US Dollar ($) \n \n \n 1.34 \n \n \n 1.27 \n \n \n +5% \n \n \n \n \n Canadian Dollar (C$) \n \n \n 1.85 \n \n \n 1.80 \n \n \n +3% \n \n \n \n \n South African Rand (ZAR) \n \n \n 22.40 \n \n \n 23.12 \n \n \n -3% \n \n \n \n \n   \n   \n Appendix 1 - Alternative Performance Measures \n Alternative Performance Measures are used by the Group to understand and manage performance. These are not defined under International Financial Reporting Standards (IFRS) or UK-adopted International Accounting Standards (UK-IFRS) and are not intended to be a substitute for any IFRS or UK-IFRS measures of performance but have been included as management considers them to be important measures, alongside the comparable GAAP financial measures, in assessing underlying performance. Wherever appropriate and practical, we provide reconciliations to relevant GAAP measures. The table below sets out the basis of calculation of the Alternative Performance Measures and the rationale for their use. \n \n \n \n \n MEASURE \n \n \n DESCRIPTION \n \n \n RATIONALE \n \n \n \n \n \n \n Underlying (revenue and profit) measures \n \n \n Underlying measures are adjusted to exclude items which in management's judgement need to be disclosed separately by virtue of their size, nature or frequency to aid understanding of the performance for the year or comparability between periods: \n ·      Recurring items include purchase price adjustments including amortisation of acquired intangible assets and adjustments made to reduce deferred income arising on acquisitions, acquisition-related items and unhedged FX on intercompany balances; and \n ·      Non-recurring items that management judge to be one-off or non-operational, such as gains and losses on the disposal of assets, impairment charges and reversals, and restructuring related costs. \n Recurring items are adjusted each period irrespective of materiality to ensure consistent treatment. \n Underlying basic EPS is also adjusted for the tax impact of recurring and non-recurring items. \n All prior period underlying measures (revenue and profit) are retranslated at the current year exchange rates to neutralise the effect of currency fluctuations. \n \n \n Underlying measures allow management and investors to compare performance without the effects of foreign exchange movements or recurring or non-recurring items. \n By including part-period contributions from acquisitions, discontinued operations, disposals and assets held for sale of standalone businesses in the current and/or prior periods, the impact of M&A decisions on earnings per share growth can be evaluated. \n \n \n \n \n Organic (revenue and profit) measures \n \n \n In addition to the adjustments made for Underlying measures, Organic measures: \n ·      Exclude the contribution from discontinued operations, disposals and assets held for sale of standalone businesses in the current and prior period; and \n ·      Exclude the contribution from acquired businesses until the year following the year of acquisition; and \n ·      Adjust the comparative period to present prior period acquired businesses as if they had been part of the Group throughout the prior period. \n Acquisitions and disposals where the revenue and contribution impact would be immaterial are not adjusted. \n \n \n Organic measures allow management and investors to understand the like for like revenue and current period margin performance of the continuing business. \n \n \n \n \n Underlying Cash Flow from Operations \n \n \n Underlying Cash Flow from Operations is Underlying Operating Profit adjusted for non-cash items, net capital expenditure (excluding business combinations and similar items) and changes in working capital. \n \n \n To show the cash flow generated by the operations and calculate underlying cash conversion. \n \n \n \n \n Underlying Cash Conversion \n \n \n Underlying Cash Flow from Operations divided by Underlying (as reported) Operating Profit. \n \n \n Cash conversion informs management and investors about the cash operating cycle of the business and how efficiently operating profit is converted into cash. \n \n \n \n \n Underlying EBITDA \n \n \n Underlying EBITDA is Underlying Operating Profit excluding underlying depreciation, amortisation and share-based payments.  \n Underlying depreciation and amortisation is the statutory equivalent measure, adjusted for the amortisation of acquired intangibles. Underlying share-based payments is the statutory equivalent measure, adjusted for M&A-related share-based payment charges included within other M&A activity related items. \n \n \n To calculate the Net Debt to Underlying EBITDA leverage ratio and to show profitability before the impact of major non-cash charges. \n \n \n \n \n Annualised recurring revenue \n \n \n Annualised recurring revenue (\"ARR\") is the normalised recurring revenue in the last month of the reporting period, adjusted consistently period to period, multiplied by twelve. Adjustments to normalise reported recurring revenue involve adjusting for certain components (such as non‑refundable contract sign‑up fees) to ensure the measure reflects that part of the revenue base which (subject to ongoing use and renewal) can reasonably be expected to repeat in future periods. \n \n \n ARR represents the annualised value of the recurring revenue base that is expected to be carried into future periods, and its growth is a forward-looking indicator of reporting recurring revenue growth. \n \n \n \n \n Renewal Rate by Value \n \n \n The ARR from renewals, migrations, upsell and cross-sell of active customers at the start of the year, divided by the opening ARR for the year. \n \n \n As an indicator of our ability to retain and generate additional revenue from our existing customer base through up and cross sell. \n \n \n \n \n Free Cash Flow \n \n \n Free Cash Flow is Underlying Cash Flow from Operations minus net interest paid, derivative financial instruments and income tax paid, and adjusted for non-recurring cash items (which excludes net proceeds on disposals of subsidiaries) and profit and loss foreign exchange movements. \n \n \n To measure the cash generated by the operating activities during the period that is available to repay debt, undertake acquisitions or distribute to shareholders. \n \n \n \n \n % Subscription Penetration \n \n \n Underlying software subscription revenue as a percentage of underlying total revenue. \n \n \n To measure the migration of our customer base from licence and maintenance to a subscription relationship. \n \n \n \n \n Net debt \n \n \n Net debt is cash and cash equivalents less current and non-current borrowings. \n \n \n To calculate the Net Debt to Underlying EBITDA leverage ratio and an indicator of our indebtedness. \n \n \n \n \n Return on Capital Employed (ROCE) \n \n \n ROCE is calculated as underlying Operating Profit, minus amortisation of acquired intangibles, the result being divided by capital employed, which is the average (of the opening and closing balance for the period) total net assets excluding net debt, derivative financial instruments, provisions for non-recurring costs, financial liability for the purchase of own shares and tax assets or liabilities. A reconciliation of ROCE to our reported measures is set out in the table below. \n \n \n As an indicator of the financial return on the capital invested in the Company. ROCE is used as an underpin in the FY24, FY25 and FY26 PSP awards. \n \n \n \n \n   \n   \n   \n   \n \n \n \n \n Reconciliation of Return on Capital Employed (ROCE) \n \n \n H1 26 \n \n \n H1 25 \n(as reported) \n \n \n \n \n Underlying operating profit net of amortisation of acquired intangibles \n   \n Net assets less borrowings and cash \n Less: \n ·    Derivative financial instruments \n ·    Provisions for non-recurring costs \n ·    Financial liability for the purchase of own shares \n ·    Tax assets or liabilities \n Adjusted net assets \n   \n Average adjusted net assets \n \n \n £608m \n   \n £1,725m \n   \n (£24m) \n £5m \n £257m \n (£63m) \n £1,900m \n   \n £1,871m \n \n \n £532m \n   \n £1,776m \n   \n (£2m) \n £9m \n £115m \n (£52m) \n £1,846m \n   \n £1,813m \n \n \n \n \n Return on capital employed \n \n \n 33% \n \n \n 29% \n \n \n \n \n   \n   \n Consolidated income statement \n For the six months ended 31 March 2026 \n   \n \n \n \n \n \n \n \n Six months \n \n \n Six months \n \n \n \n \n ended \n \n \n ended \n \n \n \n \n 31 March \n \n \n 31 March \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n (Unaudited) \n \n \n Note \n \n \n £m \n \n \n £m \n \n \n \n \n Revenue \n \n \n 2 \n \n \n 1,363 \n \n \n  1,242 \n \n \n \n \n Cost of sales \n \n \n \n \n \n (103) \n \n \n (90) \n \n \n \n \n Gross profit \n \n \n \n \n \n 1,260 \n \n \n 1,152 \n \n \n \n \n Selling and administrative expenses \n \n \n \n \n \n (967) \n \n \n (897) \n \n \n \n \n Operating profit \n \n \n 2 \n \n \n 293 \n \n \n 255 \n \n \n \n \n Finance income \n \n \n \n \n \n 4 \n \n \n 7 \n \n \n \n \n Finance costs \n \n \n \n \n \n (35) \n \n \n (26) \n \n \n \n \n Profit before income tax \n \n \n \n \n \n 262 \n \n \n 236 \n \n \n \n \n Income tax expense \n \n \n 4 \n \n \n (66) \n \n \n (56) \n \n \n \n \n Profit for the period \n \n \n \n \n \n 196 \n \n \n 180 \n \n \n \n \n   \n   \n \n \n \n \n Profit attributable to: \n \n \n \n \n Owners of the parent \n \n \n \n \n \n 196 \n \n \n 180 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share attributable to the owners of the parent (pence) \n \n \n   \n \n \n \n \n Basic \n \n \n 6 \n \n \n 20.68p \n \n \n 18.16p \n \n \n \n \n Diluted \n \n \n 6 \n \n \n 20.41p \n \n \n 17.86p \n \n \n \n \n \n \n \n \n \n \n \n \n All operations in the period relate to continuing operations. \nThe notes on pages 19 to 35 form an integral part of these condensed consolidated half-yearly financial statements. \n   \n   \n   \n Consolidated statement of comprehensive income \n For the six months ended 31 March 2026 \n   \n \n \n \n \n (Unaudited) \n \n \n Six months \nended \n31 March \n2026 \n£m \n \n \n Six months \nended \n31 March \n2025 £m \n \n \n \n \n Profit for the period \n \n \n 196 \n \n \n 180 \n \n \n \n \n Items of other comprehensive income that will not be reclassified to profit or loss, net of tax: \n \n \n   \n \n \n   \n \n \n \n \n Fair value reassessment of equity investments \n \n \n -   \n \n \n (2) \n \n \n \n \n \n \n \n -   \n \n \n (2) \n \n \n \n \n Items of other comprehensive income that may be reclassified to profit or loss, net of tax: \n \n \n   \n \n \n \n \n \n \n \n Exchange differences on translating foreign operations and net investment hedges \n \n \n 16 \n \n \n 33 \n \n \n \n \n Changes in fair value of foreign currency basis of hedge relationships \n \n \n (1) \n \n \n (2) \n \n \n \n \n Amortisation of foreign currency basis of hedge relationships \n \n \n - \n \n \n 1 \n \n \n \n \n Cash flow hedges \n \n \n (1) \n \n \n 2 \n \n \n \n \n   \n \n \n 14 \n \n \n 34 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Other comprehensive income for the period, net of tax \n \n \n 14 \n \n \n 32 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Total comprehensive income for the period \n \n \n 210 \n \n \n 212 \n \n \n \n \n   \n   \n Consolidated balance sheet \n As at 31 March 2026 \n \n \n \n \n   \n   \n (Unaudited) \n \n \n Note \n \n \n 31 March \n2026 \n£m \n \n \n 31 March \n2025 (Restated*) \n£m \n \n \n 30 September \n2025 \n£m \n \n \n \n \n Non-current assets \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n 7 \n \n \n 2,276 \n \n \n 2,201 \n \n \n 2,213 \n \n \n \n \n Other intangible assets \n \n \n 7 \n \n \n 213 \n \n \n 213 \n \n \n 212 \n \n \n \n \n Property, plant and equipment \n \n \n 7 \n \n \n 163 \n \n \n 123 \n \n \n 144 \n \n \n \n \n Equity investments \n \n \n \n \n \n 4 \n \n \n 4 \n \n \n 4 \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n 147 \n \n \n 139 \n \n \n 144 \n \n \n \n \n Deferred income tax assets \n \n \n \n \n \n 106 \n \n \n 99 \n \n \n 101 \n \n \n \n \n Derivative financial instruments \n \n \n \n \n \n 24 \n \n \n 14 \n \n \n 32 \n \n \n \n \n \n \n \n \n \n \n 2,933 \n \n \n 2,793 \n \n \n 2,850 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n 520 \n \n \n                            451 \n \n \n 471 \n \n \n \n \n Current income tax asset \n \n \n \n \n \n 16 \n \n \n 10 \n \n \n 2 \n \n \n \n \n Cash and cash equivalents \n \n \n 9 \n \n \n 518 \n \n \n 574 \n \n \n 390 \n \n \n \n \n \n \n \n \n \n \n 1,054 \n \n \n 1,035 \n \n \n 863 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Total Assets \n \n \n \n \n \n 3,987 \n \n \n 3,828 \n \n \n 3,713 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n \n \n \n (650) \n \n \n (464) \n \n \n (433) \n \n \n \n \n Current income tax liabilities \n \n \n \n \n \n (43) \n \n \n (40) \n \n \n (39) \n \n \n \n \n Borrowings \n \n \n 9 \n \n \n (15) \n \n \n (15) \n \n \n (17) \n \n \n \n \n Provisions \n \n \n \n \n \n (18) \n \n \n (17) \n \n \n (21) \n \n \n \n \n Deferred income \n \n \n \n \n \n (962) \n \n \n (870) \n \n \n (845) \n \n \n \n \n \n \n \n \n \n \n (1,688) \n \n \n (1,406) \n \n \n (1,355) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Borrowings \n \n \n 9 \n \n \n (2,007) \n \n \n (1,535) \n \n \n (1,562) \n \n \n \n \n Post-employment benefits \n \n \n \n \n \n (25) \n \n \n (23) \n \n \n (25) \n \n \n \n \n Deferred income tax liabilities \n \n \n \n \n \n (16) \n \n \n (18) \n \n \n (15) \n \n \n \n \n Provisions \n \n \n \n \n \n (24) \n \n \n (23) \n \n \n (23) \n \n \n \n \n Trade and other payables \n \n \n \n \n \n (2) \n \n \n (6) \n \n \n (8) \n \n \n \n \n Deferred income \n \n \n \n \n \n (5) \n \n \n (6) \n \n \n (5) \n \n \n \n \n Derivative financial instruments \n \n \n \n \n \n - \n \n \n (12) \n \n \n - \n \n \n \n \n \n \n \n \n \n \n (2,079) \n \n \n (1,623) \n \n \n (1,638) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Total liabilities \n \n \n \n \n \n (3,767) \n \n \n (3,029) \n \n \n (2,993) \n \n \n \n \n Net assets \n \n \n \n \n \n 220 \n \n \n 799 \n \n \n 720 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Equity attributable to owners of the parent \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Ordinary shares \n \n \n 8 \n \n \n 10 \n \n \n 11 \n \n \n 11 \n \n \n \n \n Share premium \n \n \n 8 \n \n \n 548 \n \n \n 548 \n \n \n 548 \n \n \n \n \n Other reserves \n \n \n 8 \n \n \n (311) \n \n \n (357) \n \n \n (369) \n \n \n \n \n Retained earnings \n \n \n \n \n \n (27) \n \n \n 597 \n \n \n 530 \n \n \n \n \n Total equity \n \n \n \n \n \n 220 \n \n \n 799 \n \n \n 720 \n \n \n \n \n *Other reserves and retained earnings have been restated to present the treasury share reserve and capital redemption reserve within other reserves (see note 1). \n   \n   \n Consolidated statement of changes in equity \n For the six months ended 31 March 2026 \n   \n \n \n \n \n \n \n \n Attributable to owners of the parent \n \n \n \n \n (Unaudited) \n \n \n Ordinary \nshares \n£m \n \n \n Share \npremium \n£m \n \n \n Other reserves \n £m \n \n \n Retained \nearnings \n£m \n \n \n Total \nequity \n£m \n \n \n   \n \n \n \n \n At 1 October 2025 \n \n \n 11 \n \n \n 548 \n \n \n (369) \n \n \n 530 \n \n \n           720 \n \n \n   \n \n \n \n \n Profit for the period \n \n \n - \n \n \n - \n \n \n - \n \n \n 196 \n \n \n 196 \n \n \n   \n \n \n \n \n Other comprehensive income/(expense), net of tax \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Exchange differences on translating foreign operations and net investment hedges \n \n \n - \n \n \n - \n \n \n 16 \n \n \n - \n \n \n 16 \n \n \n   \n \n \n \n \n Changes in fair value of foreign currency basis of hedge relationships \n \n \n - \n \n \n - \n \n \n (1) \n \n \n - \n \n \n (1) \n \n \n   \n \n \n \n \n Cash flow hedges \n \n \n - \n \n \n - \n \n \n (1) \n \n \n - \n \n \n (1) \n \n \n   \n \n \n \n \n Total comprehensive income \n for the period ended 31 March 2026 \n \n \n - \n \n \n - \n \n \n 14 \n \n \n 196 \n \n \n 210 \n \n \n   \n \n \n \n \n Transactions with owners \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Employee share option scheme - value of employee services including deferred tax \n \n \n - \n \n \n - \n \n \n - \n \n \n 26 \n \n \n 26 \n \n \n   \n \n \n \n \n Vesting of share awards and exercise of share options \n \n \n - \n \n \n - \n \n \n 43 \n \n \n (41) \n \n \n 2 \n \n \n   \n \n \n \n \n Cancellation of ordinary shares \n \n \n (1) \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n   \n \n \n \n \n Share buyback programme \n \n \n - \n \n \n - \n \n \n - \n \n \n (602) \n \n \n (602) \n \n \n   \n \n \n \n \n Dividends paid to owners of the parent \n \n \n - \n \n \n - \n \n \n - \n \n \n (136) \n \n \n (136) \n \n \n   \n \n \n \n \n Total transactions with owners \n for the period ended 31 March 2026 \n \n \n (1) \n \n \n - \n \n \n 44 \n \n \n (753) \n \n \n (710) \n \n \n   \n \n \n \n \n At 31 March 2026 \n \n \n 10 \n \n \n 548 \n \n \n (311) \n \n \n (27) \n \n \n 220 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n Consolidated statement of changes in equity \n For the six months ended 31 March 2025 \n   \n \n \n \n \n \n \n \n Attributable to owners of the parent \n \n \n \n \n (Unaudited) \n \n \n Ordinary \nshares \n£m \n \n \n Share \npremium \n£m \n \n \n Other reserves \n (restated*) \n£m \n \n \n Retained \nearnings \n (restated*) \n£m \n \n \n Total \nequity \n£m \n \n \n \n \n At 1 October 2024 \n \n \n 11 \n \n \n 548 \n \n \n (428) \n \n \n 962 \n \n \n 1,093 \n \n \n \n \n Profit for the period \n \n \n - \n \n \n - \n \n \n - \n \n \n 180 \n \n \n 180 \n \n \n \n \n Other comprehensive income/(expense), net of tax \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Exchange differences on translating foreign operations and net investment hedges \n \n \n - \n \n \n - \n \n \n 33 \n \n \n - \n \n \n 33 \n \n \n \n \n Changes in fair value of foreign currency basis of hedge relationships \n \n \n - \n \n \n - \n \n \n (2) \n \n \n - \n \n \n (2) \n \n \n \n \n Amortisation of foreign currency basis of hedge relationships \n \n \n - \n \n \n - \n \n \n 1 \n \n \n - \n \n \n 1 \n \n \n \n \n Cash flow hedges \n \n \n - \n \n \n - \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n \n \n Fair value reassessment of equity investments \n \n \n - \n \n \n - \n \n \n - \n \n \n (2) \n \n \n (2) \n \n \n \n \n Total comprehensive income \nfor the period ended 31 March 2025 \n \n \n - \n \n \n - \n \n \n 34 \n \n \n 178 \n \n \n 212 \n \n \n \n \n Transactions with owners \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Employee share option scheme - value of employee services including deferred tax \n \n \n - \n \n \n - \n \n \n - \n \n \n 33 \n \n \n 33 \n \n \n \n \n Vesting of share awards and exercise of share options \n \n \n - \n \n \n - \n \n \n 37 \n \n \n (34) \n \n \n 3 \n \n \n \n \n Share buyback programme \n \n \n - \n \n \n - \n \n \n - \n \n \n (407) \n \n \n (407) \n \n \n \n \n Dividends paid to owners of the parent \n \n \n - \n \n \n - \n \n \n - \n \n \n (135) \n \n \n (135) \n \n \n \n \n Total transactions with owners \nfor the period ended 31 March 2025 \n \n \n - \n \n \n - \n \n \n 37 \n \n \n (543) \n \n \n (506) \n \n \n \n \n At 31 March 2025 \n \n \n 11 \n \n \n 548 \n \n \n (357) \n \n \n 597 \n \n \n 799 \n \n \n \n \n \n \n \n \n \n \n \n \n \n *Other reserves and retained earnings have been restated to present the treasury share reserve and capital redemption reserve within other reserves (see note 1). \n   \n   \n Consolidated statement of cash flows \n For the six months ended 31 March 2026 \n   \n \n \n \n \n (Unaudited) \n \n \n Note \n \n \n Six months \nended \n31 March \n2026 \n £m \n \n \n Six months \nended \n31 March \n2025 \n£m \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash generated from continuing operations \n \n \n 9 \n \n \n 390 \n \n \n 330 \n \n \n \n \n Interest paid \n \n \n \n \n \n (58) \n \n \n (42) \n \n \n \n \n Income tax paid \n \n \n \n \n \n (80) \n \n \n (38) \n \n \n \n \n Net cash generated from operating activities \n \n \n \n \n \n 252 \n \n \n 250 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Acquisition of subsidiaries, net of cash acquired \n \n \n 11 \n \n \n (38) \n \n \n (28) \n \n \n \n \n Purchases of intangible assets \n \n \n 7 \n \n \n                 (12) \n \n \n (10) \n \n \n \n \n Purchases of property, plant and equipment \n \n \n 7 \n \n \n (15) \n \n \n (25) \n \n \n \n \n Interest received \n \n \n \n \n \n 4 \n \n \n 7 \n \n \n \n \n Net cash used in investing activities \n \n \n \n \n \n (61) \n \n \n (56) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Proceeds from borrowings \n \n \n 9 \n \n \n 584 \n \n \n 297 \n \n \n \n \n Repayments of borrowings \n \n \n 9 \n \n \n (150) \n \n \n (2) \n \n \n \n \n Borrowing costs \n \n \n \n \n \n (1) \n \n \n (1)   \n \n \n \n \n Capital element of lease payments \n \n \n \n \n \n (10) \n \n \n (9) \n \n \n \n \n Receipt of lease incentive \n \n \n \n \n \n - \n \n \n 6 \n \n \n \n \n Proceeds from issuance of treasury shares \n \n \n \n \n \n 2 \n \n \n 3 \n \n \n \n \n Share buyback programme \n \n \n 8 \n \n \n (353) \n \n \n (296) \n \n \n \n \n Dividends paid to owners of the parent \n \n \n 5 \n \n \n (136) \n \n \n (135) \n \n \n \n \n Net cash used in financing activities \n \n \n \n \n \n (64) \n \n \n (137) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Net increase in cash and cash equivalents \n(before exchange rate movement) \n \n \n \n \n \n   \n 127 \n \n \n 57 \n \n \n \n \n Effects of exchange rate movement \n \n \n 9 \n \n \n 1 \n \n \n 9 \n \n \n \n \n Net increase in cash and cash equivalents \n \n \n \n \n \n 128 \n \n \n 66 \n \n \n \n \n Cash and cash equivalents at 1 October \n \n \n 9 \n \n \n 390 \n \n \n 508 \n \n \n \n \n Cash and cash equivalents at period end \n \n \n 9 \n \n \n 518 \n \n \n 574 \n \n \n \n \n   \n   \n Notes to the financial information \n For the six months ended 31 March 2026 \n   \n 1.    Group accounting policies \n General information \n The Sage Group plc (\"the Company\") and its subsidiaries (together \"the Group\") is a leader in finance, HR and payroll software for small and mid-sized businesses . \n These condensed consolidated half-yearly financial statements were approved for issue by the Board of Directors on 20 May 2026. \n The financial information set out above does not constitute the Company's annual financial statements. Annual financial statements for the year ended 30 September 2025 have been delivered to the Registrar of Companies. The auditor's report was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain statements under section 498 (2) and (3) of the Companies Act 2006. \n The financial information has been prepared on the basis of the accounting policies and critical accounting estimates and judgements as set out in the annual financial statements for the year ended 30 September 2025, unless otherwise stated. \n These condensed consolidated half-yearly financial statements have been reviewed, not audited. \n The Company is a limited liability company incorporated and domiciled in the UK. The address of its registered office is C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, NE28 9EJ. The Company is listed on the London Stock Exchange. \n All figures presented are rounded to the nearest £m, unless otherwise stated. \n Basis of preparation \n The financial information for the six months ended 31 March 2026 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim Financial Reporting' as issued by the International Accounting Standards Board (\"IASB\") and as adopted for use in the UK. \n These condensed consolidated half-yearly financial statements should be read in conjunction with the annual financial statements for the year ended 30 September 2025, which have been prepared in accordance with UK-adopted International Accounting Standards (\"UK-IFRS\") and International Financial Reporting Standards (\"IFRS\") as issued by the IASB. \n In the annual financial statements for the year ended 30 September 2025, the Group presented the treasury share reserve and capital redemption reserve separately within other reserves, rather than within retained earnings, to improve clarity. Prior period comparatives as at 31 March 2025 have been restated to reflect this presentation change. \n Going concern \n As at 31 March 2026, the Group had a strong liquidity position with cash and available liquidity of £1.1bn, supported by underlying cash conversion of 116% reflecting the robust subscription-based business model. The Group's position is further supported by a well-diversified customer base amongst small and mid-sized businesses with high quality recurring revenue and strong retention rates. \n In reaching its assessment on going concern, the Directors have reviewed liquidity forecasts for the Group for a period of at least 12 months from the date of the approval of these financial statements (the going concern assessment period), which reflect the expected impact of economic conditions on trading. \n Scenario-specific stress testing has been performed, with the level of churn assumptions increased by 75%, and a significant reduction in the level of new customer acquisition and sales to existing customers. In these severe stress scenarios, the Group continues to have sufficient resources to continue in operational existence, without the need to drawdown the revolving credit facility or seek additional financing. If more severe impacts occur, controllable mitigating actions to protect liquidity, including the reduction of discretionary spend, are available to the Group should they be required. \n The Directors also reviewed the results of reverse stress testing to provide an illustration of the level of churn and deterioration in new customer acquisition which would be required to exhaust liquidity down to minimum working capital requirements. The result of the reverse stress testing has highlighted that such a scenario would only arise following a significant deterioration in performance, well in excess of the assumptions considered in the stress testing scenarios. The probability of these factors occurring is deemed to be remote given the resilient nature of the subscription business model, robust balance sheet, and continued strong cash conversion. \n After making enquiries, the Directors have a reasonable expectation that Sage has adequate resources to continue in operation throughout the going concern assessment period. Accordingly, these condensed consolidated half-yearly financial statements have been prepared on a going concern basis. \n Adoption of new and revised IFRSs  \n No standards, interpretations and amendments effective in the current financial period have had a material impact on the Group. No standards have been early adopted during the period. \n The impact of the following standards, interpretations or amendments that have been issued but are not yet effective are under assessment: \n ·     IFRS 18 \"Presentation and Disclosure in Financial Statements\", which will be effective for annual reporting periods beginning on or after 1 January 2027. IFRS 18 will not impact the recognition or measurement of items in the financial statements but is expected to change how Sage presents certain information. \n Other standards, interpretations and amendments issued but not yet effective are not expected to have a material impact on the Group. \n Accounting estimates and judgements \n Accounting estimates and judgements are consistent with those included in the Company's annual financial statements for the year ended 30 September 2025, except for business combinations which has been updated to reflect the acquisition of Criterion Inc. (\"Criterion\"). \n Business combinations (judgement and estimate) \n When the Group completes a business combination, the consideration transferred for the acquisition and the identifiable assets and liabilities are recognised at their fair values. The amount by which the consideration exceeds the net assets acquired is recognised as goodwill. The application of accounting policies to business combinations involves judgement and the use of estimates. \n In the period, the Group finalised the purchase price accounting for the acquisitions of Criterion (see note 11). As part of finalising the purchase price accounting, external independent valuation experts were engaged to support with the identification and valuation of acquired intangible assets: \n Judgement was required with respect to the identification of acquired intangible assets, with only technology being identified. Subsequently, the valuation of those acquired intangible assets involved key estimates. \n Valuation techniques being the multi-period excess earnings method was used to value the technology. The key estimates requiring consideration as part of the valuations included the application of a discount rate and the use of an appropriate royalty rate. \n Website \n This condensed consolidated half-yearly financial report for the six months ended 31 March 2026 can also be found on our website: www.sage.com/investors/financial-information/results \n   \n 2. Segment information \n In accordance with IFRS 8 (Operating Segments) information for the Group's operating segments has been derived using the information used by the Chief Operating Decision Maker (\"CODM\"). The Group's Executive Leadership Team (\"ELT\") has been identified as the CODM, in accordance with their designated responsibility for the allocation of resources to operating segments and assessing their performance through the Monthly Business Reviews. The ELT uses organic and underlying data to monitor business performance. Operating segments are reported in a manner which is consistent with the operating segments produced for internal management reporting. \n The Group is organised into three key operating segments: \n ·     North America \n ·     United Kingdom, Ireland, Africa and APAC (\"UKIA\") \n ·     Europe \n For reporting under IFRS 8 each of the three operating segments above represents a reportable segment. \n The revenue analysis in the table below is based on the location of the customer, which is not materially different from the location where the order is received and where the assets are located. \n \n \n \n \n Category \n \n \n Examples \n \n \n \n \n Recurring revenue \n \n \n Software subscription revenue \n Other subscription revenue \n Other recurring revenue \n \n \n \n \n Other revenue \n \n \n Perpetual software licences \n Upgrades to perpetual licences \n Professional services \n Training \n   \n \n \n \n \n   \n   \n Revenue by segment \n \n \n \n \n                         \n \n \n \n \n \n Six months ended 31 March 2026 \n \n \n Change \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n Statutory and Underlying \n£m \n \n \n Organic \n Adjustments* \n £m \n \n \n Organic \n£m \n \n \n  Statutory \n \n \n Underlying \n \n \n Organic \n \n \n \n \n Recurring revenue by segment \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n North America \n \n \n   \n \n \n   \n \n \n 600 \n \n \n (2) \n \n \n 598 \n \n \n 8% \n \n \n 14% \n \n \n 13% \n \n \n \n \n UKIA \n \n \n   \n \n \n   \n \n \n 389 \n \n \n - \n \n \n 389 \n \n \n 11% \n \n \n 10% \n \n \n 10% \n \n \n \n \n Europe \n \n \n   \n \n \n   \n \n \n 334 \n \n \n - \n \n \n 334 \n \n \n 12% \n \n \n 7% \n \n \n 7% \n \n \n \n \n Recurring revenue \n \n \n   \n \n \n   \n \n \n 1,323 \n \n \n (2) \n \n \n 1,321 \n \n \n 10% \n \n \n 11% \n \n \n 10% \n \n \n \n \n Other revenue by segment \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n North America \n \n \n   \n \n \n   \n \n \n 16 \n \n \n (1) \n \n \n 15 \n \n \n 13% \n \n \n 19% \n \n \n 12% \n \n \n \n \n UKIA \n \n \n   \n \n \n   \n \n \n 6 \n \n \n - \n \n \n 6 \n \n \n (23%) \n \n \n (24%) \n \n \n (24%) \n \n \n \n \n Europe \n \n \n   \n \n \n   \n \n \n 18 \n \n \n - \n \n \n 18 \n \n \n 8% \n \n \n 3% \n \n \n 3% \n \n \n \n \n Other revenue \n \n \n   \n \n \n   \n \n \n 40 \n \n \n (1) \n \n \n 39 \n \n \n 3% \n \n \n 3% \n \n \n 1% \n \n \n \n \n Total revenue by segment \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n North America \n \n \n   \n \n \n   \n \n \n 616 \n \n \n (3) \n \n \n 613 \n \n \n 8% \n \n \n 14% \n \n \n 13% \n \n \n \n \n UKIA \n \n \n   \n \n \n   \n \n \n 395 \n \n \n - \n \n \n 395 \n \n \n 11% \n \n \n 10% \n \n \n 10% \n \n \n \n \n Europe \n \n \n   \n \n \n   \n \n \n 352 \n \n \n - \n \n \n 352 \n \n \n 11% \n \n \n 7% \n \n \n 6% \n \n \n \n \n Total revenue \n \n \n   \n \n \n   \n \n \n 1,363 \n \n \n (3) \n \n \n 1,360 \n \n \n 10% \n \n \n 11% \n \n \n 10% \n \n \n \n \n * Adjustments relate to the acquisition of Criterion Inc. \n   \n \n \n \n \n \n \n \n \n \n \n Six months ended 31 March 2026 \n \n \n Change \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n Statutory and Underlying £m \n \n \n Organic \n Adjustments* \n £m \n \n \n Organic \n£m \n \n \n  Statutory \n \n \n Underlying \n \n \n Organic \n \n \n \n \n Total revenue by type \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Software subscription revenue \n \n \n   \n \n \n   \n   \n \n \n   \n 1,150 \n \n \n   \n (2) \n \n \n   \n 1,148 \n \n \n   \n 12% \n \n \n   \n 12% \n \n \n   \n 12% \n \n \n \n \n Other recurring revenue \n \n \n   \n \n \n   \n \n \n 173 \n \n \n - \n \n \n 173 \n \n \n 1% \n \n \n 2% \n \n \n 2% \n \n \n \n \n Recurring revenue \n \n \n   \n \n \n   \n \n \n 1,323 \n \n \n (2) \n \n \n 1,321 \n \n \n 10% \n \n \n 11% \n \n \n 10% \n \n \n \n \n Other revenue \n \n \n   \n \n \n   \n \n \n 40 \n \n \n (1) \n \n \n 39 \n \n \n 3% \n \n \n 3% \n \n \n 1% \n \n \n \n \n Total revenue \n \n \n   \n \n \n   \n \n \n 1,363 \n \n \n (3) \n \n \n 1,360 \n \n \n 10% \n \n \n 11% \n \n \n 10% \n \n \n \n \n * Adjustments relate to the acquisition of Criterion. \n   \n \n \n \n \n Six months ended 31 March 2025 \n \n \n \n \n   \n \n \n Statutory and Underlying as reported \n £m \n \n \n Impact of foreign exchange \n£m \n \n \n Underlying \n£m \n \n \n Organic \nadjustments* \n£m \n \n \n Organic \n£m \n \n \n \n \n Recurring revenue by segment \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n North America \n \n \n 554 \n \n \n (27) \n \n \n 527 \n \n \n 3 \n \n \n 530 \n \n \n \n \n UKIA \n \n \n 350 \n \n \n 2 \n \n \n 352 \n \n \n - \n \n \n 352 \n \n \n \n \n Europe \n \n \n 299 \n \n \n 14 \n \n \n 313 \n \n \n - \n \n \n 313 \n \n \n \n \n Recurring revenue \n \n \n 1,203 \n \n \n (11) \n \n \n 1,192 \n \n \n 3 \n \n \n 1,195 \n \n \n \n \n Other revenue by segment \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n North America \n \n \n 14 \n \n \n (1) \n \n \n 13 \n \n \n 1 \n \n \n 14 \n \n \n \n \n UKIA \n \n \n 8 \n \n \n - \n \n \n 8 \n \n \n - \n \n \n 8 \n \n \n \n \n Europe \n \n \n 17 \n \n \n 1 \n \n \n 18 \n \n \n - \n \n \n 18 \n \n \n \n \n Other revenue \n \n \n 39 \n \n \n - \n \n \n 39 \n \n \n 1 \n \n \n 40 \n \n \n \n \n Total revenue by segment \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n North America \n \n \n 568 \n \n \n (28) \n \n \n 540 \n \n \n 4 \n \n \n 544 \n \n \n \n \n UKIA \n \n \n 358 \n \n \n 2 \n \n \n 360 \n \n \n - \n \n \n 360 \n \n \n \n \n Europe \n \n \n 316 \n \n \n 15 \n \n \n 331 \n \n \n - \n \n \n 331 \n \n \n \n \n Total revenue \n \n \n 1,242 \n \n \n (11) \n \n \n 1,231 \n \n \n 4 \n \n \n 1,235 \n \n \n \n \n * Adjustments relate to the acquisition of Tritium Software, S.L. (\"Tritium Software\") and Fyle Technologies Private Limited (\"Fyle\") in the previous year. \n \n \n \n \n Six months ended 31 March 2025 \n \n \n \n \n \n \n \n Statutory and Underlying as reported \n £m \n \n \n Impact of foreign \nexchange \n£m \n \n \n Underlying \n£m \n \n \n Organic \nadjustments* \n£m \n \n \n Organic \n£m \n \n \n \n \n Total revenue by type \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Software subscription revenue \n \n \n 1,031 \n \n \n (9) \n \n \n 1,022 \n \n \n 3 \n \n \n 1,025 \n \n \n \n \n Other recurring revenue \n \n \n 172 \n \n \n (2) \n \n \n 170 \n \n \n - \n \n \n 170 \n \n \n \n \n Recurring revenue \n \n \n 1,203 \n \n \n (11) \n \n \n 1,192 \n \n \n 3 \n \n \n 1,195 \n \n \n \n \n Other revenue \n \n \n 39 \n \n \n - \n \n \n 39 \n \n \n 1 \n \n \n 40 \n \n \n \n \n Total revenue \n \n \n 1,242 \n \n \n (11) \n \n \n 1,231 \n \n \n 4 \n \n \n 1,235 \n \n \n \n \n * Adjustments relate to the acquisition of Tritium Software and Fyle in the previous year. \n   \n Operating profit by segment \n \n \n \n \n   \n \n \n Six months ended 31 March 2026 \n \n \n Change \n \n \n \n \n   \n \n \n Statutory                                                           £m \n \n \n Underlying \nadjustments* \n£m \n \n \n Underlying \n£m \n \n \n   \n Organic adjustments ** \n £m \n \n \n Organic \n£m \n \n \n Statutor y \n \n \n Underlying \n \n \n Organic \n \n \n \n \n Operating profit by segment \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n North America \n \n \n 119 \n \n \n 15 \n \n \n 134 \n \n \n (1) \n \n \n 133 \n \n \n 1% \n \n \n 8% \n \n \n 6% \n \n \n \n \n UKIA \n \n \n 104 \n \n \n 11 \n \n \n 115 \n \n \n - \n \n \n 115 \n \n \n 20% \n \n \n 17% \n \n \n 17% \n \n \n \n \n Europe \n \n \n 70 \n \n \n 7 \n \n \n 77 \n \n \n - \n \n \n 77 \n \n \n 39% \n \n \n 25% \n \n \n 24% \n \n \n \n \n Total operating profit \n \n \n 293 \n \n \n 33 \n \n \n 326 \n \n \n (1) \n \n \n 325 \n \n \n 15% \n \n \n 15% \n \n \n 14% \n \n \n \n \n * Adjustments are detailed in note 3. \n ** Adjustments relate to the acquisition of Criterion. \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Six months ended 31 March 2025 \n \n \n \n \n   \n \n \n \nStatutory £m \n \n \n Underlying adjustments* £m \n \n \n Underlying as reported \n £m \n \n \n Impact of foreign exchange \n£m \n \n \n Underlying \n £m \n \n \n Organic adjustments** \n £m \n \n \n Organic \n £m \n \n \n \n \n Operating profit by segment \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n North America \n \n \n 117 \n \n \n 14 \n \n \n 131 \n \n \n (6) \n \n \n 125 \n \n \n - \n \n \n 125 \n \n \n \n \n UKIA \n \n \n 87 \n \n \n 11 \n \n \n 98 \n \n \n - \n \n \n 98 \n \n \n - \n \n \n 98 \n \n \n \n \n Europe \n \n \n 51 \n \n \n 8 \n \n \n 59 \n \n \n 3 \n \n \n 62 \n \n \n - \n \n \n 62 \n \n \n \n \n Total operating profit \n \n \n 255 \n \n \n 33 \n \n \n 288 \n \n \n (3) \n \n \n 285 \n \n \n - \n \n \n 285 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n * Adjustments are detailed in note 3. \n ** Adjustments relate to the acquisition of Tritium Software and Fyle in the previous year. \n   \n 3.    Adjustments between underlying and statutory profit \n \n \n \n \n \n \n \n Six months ended 31 March 2026 \n \n \n Six months ended 31 March 2025 \n \n \n \n \n   \n \n \n Operating \n profit \n£m \n \n \n \nProfit \n before tax \n£m \n \n \n \nOperating \n profit \n£m \n \n \n \nProfit \n before tax \n£m \n \n \n \n \n Statutory measures \n \n \n 293 \n \n \n 262 \n \n \n 255 \n \n \n 236 \n \n \n \n \n Recurring items \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n ·      Amortisation of acquired intangibles \n \n \n 22 \n \n \n 22 \n \n \n 22 \n \n \n 22 \n \n \n \n \n ·      Other M&A activity-related items \n \n \n 11 \n \n \n 11 \n \n \n 13 \n \n \n 13 \n \n \n \n \n ·      Foreign currency movements on intercompany balances \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n Non-recurring items: \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n ·      Reversal of property restructuring costs \n \n \n - \n \n \n - \n \n \n (2) \n \n \n (2) \n \n \n \n \n Underlying (as reported) measures \n \n \n 326 \n \n \n 295 \n \n \n 288 \n \n \n 270 \n \n \n \n \n Impact of foreign exchange \n \n \n - \n \n \n - \n \n \n (3) \n \n \n (3) \n \n \n \n \n Underlying measures \n \n \n 326 \n \n \n 295 \n \n \n 285 \n \n \n 267 \n \n \n \n \n   \n Recurring items \n Recurring items impacting operating profit (reported within selling and administrative costs) and profit before tax comprise: \n ·     Amortisation of acquired intangibles £22m (six months ended 31 March 2025: £22m) which have previously been recognised as part of business combinations or similar transactions. \n ·     Other M&A activity-related items £11m (six months ended 31 March 2025: £13m) which include advisory, legal, accounting, valuation and other professional or consulting services which are related to M&A activity, as well as acquisition-related remuneration and directly attributable integration costs. £3m (six months ended 31 March 2025: £6m) of these costs have been paid in the period, while the remainder are expected to be paid in subsequent periods. \n Non-recurring items \n Non-recurring items impacting operating profit in the prior year (reported within selling and administrative costs) and profit before tax comprise: \n ·     Reversal of property restructuring costs of £2m relates to a sub-lease entered into for a property site in North America, which had previously been exited. \n In total for the six months ended 31 March 2026, cash paid in respect of recurring and non-recurring items of £9m, comprised £8m of other M&A activity-related items and £1m of property-related costs. (For the six months ended 31 March 2025, cash paid in respect of recurring and non-recurring items of £28m comprised £22m of other M&A activity-related items and £6m of employee-related costs). \n The tax impact of recurring and non-recurring adjustments between statutory and underlying profit before tax is £5m, of which £5m relates to recurring items and £nil relates to non-recurring items (for the six months ended 31 March 2025, the tax impact is £8m, of which £8m relates to recurring items and £nil relates to non-recurring items). For the impact of these on the effective tax rates, see note 4. \n   \n 4.    Income tax expense \n The effective tax rate on statutory profit before tax was 25% (six months ended 31 March 2025: 24%) whilst the effective tax rate on underlying profit before tax for continuing operations was 24% (six months ended 31 March 2025: 24%). The effective income tax rate represents the best estimate of the Group's average effective income tax rate expected for the full year, applied to the profit before income tax for the six months ended 31 March 2026. \n The effective tax rate for the period is consistent with (2025: lower than) the rate of UK corporation tax applicable to the Group of 25% (2025: 25%). \n The Group is in scope of the OECD's Pillar Two global tax reform for the financial year ended 30 September 2026. Pillar Two is not expected to materially impact the Group's effective tax rate. \n For the period to 31 March 2026, the Group has continued to apply the mandatory exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. \n   \n 5.    Dividends \n \n \n \n \n \n \n \n Six months ended \n31 March 2026 \n£m \n \n \n Six months ended \n 31 March \n2025 £m \n \n \n Year \nended \n 30 September \n2025 \n£m \n \n \n \n \n Final dividend paid for the year ended 30 September 2024 of 13.50p per share \n \n \n - \n \n \n 135 \n \n \n 135 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Interim dividend paid for the year ended 30 September 2025 of 7.45p per share \n \n \n - \n \n \n - \n \n \n 72 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Final dividend paid for the year ended 30 September 2025 of 14.40p per share \n \n \n 136 \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n 136 \n \n \n 135 \n \n \n 207 \n \n \n \n \n   \n The interim dividend of 8.05 pence per share will be paid on 3 July 2026 to shareholders on the register at the close of business on 5 June 2026. The Company's distributable reserves are sufficient to support the payment of this dividend. These condensed consolidated half-yearly financial statements do not reflect this proposed dividend payable. \n   \n 6.    Earnings per share  \n Basic earnings per share is calculated by dividing the profit for the period attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period, excluding those held as treasury shares and held by the Employee Benefit Trust, which are treated as cancelled, until reissued. \n For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potentially dilutive ordinary shares, exercisable at the end of the period. \n   \n \n \n \n \n   \n \n \n Underlying \nSix months ended \n31 March \n2026 \n \n \n Underlying \nas reported* Six months ended \n31 March \n2025 \n \n \n Underlying \nSix months ended \n31 March \n2025 \n \n \n \nStatutory \nSix months ended \n31 March \n2026 \n \n \n Statutory \nSix months ended \n 31 March \n2025 \n \n \n \n \n Earnings attributable to owners of the parent** (£m) \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Profit for the period \n \n \n 224 \n \n \n 206 \n \n \n 203 \n \n \n 196 \n \n \n 180 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Number of shares (millions) \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Weighted average number of shares for basic earnings per share \n \n \n 946 \n \n \n 993 \n \n \n 993 \n \n \n 946 \n \n \n 993 \n \n \n \n \n Dilutive effects of shares \n \n \n 12 \n \n \n 16 \n \n \n 16 \n \n \n 12 \n \n \n 16 \n \n \n \n \n Weighted average number of shares for diluted earnings per share \n \n \n 958 \n \n \n 1,009 \n \n \n 1,009 \n \n \n 958 \n \n \n 1,009 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Earnings per share attributable to owners of the parent (pence) \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n 23.74 \n \n \n 20.81 \n \n \n 20.48 \n \n \n 20.68 \n \n \n 18.16 \n \n \n \n \n Diluted earnings per share \n \n \n 23.43 \n \n \n 20.47 \n \n \n 20.14 \n \n \n 20.41 \n \n \n 17.86 \n \n \n \n \n *  Underlying as reported is at 31 March 2025 reported exchange rates. \n ** All operations in the years relate to continuing operations. \n \n \n \n \n Reconciliation of earnings \n \n \n Six months ended \n31 March \n2026 \n£m \n \n \n Six months ended \n31 March \n2025 \n£m \n \n \n \n \n Statutory profit for the period attributable to owners of the parent \n \n \n 196 \n \n \n 180 \n \n \n \n \n Adjustments: \n \n \n   \n \n \n \n \n \n \n \n ·      Recurring items \n \n \n 33 \n \n \n 36 \n \n \n \n \n ·      Non-recurring items \n \n \n - \n \n \n (2) \n \n \n \n \n Taxation on adjustments between statutory and underlying profit before tax \n \n \n (5) \n \n \n (8) \n \n \n \n \n Underlying profit for the period attributable to owners of the parent (as reported) \n \n \n 224 \n \n \n 206 \n \n \n \n \n Impact of movement in foreign currency exchange rates \n \n \n - \n \n \n (3) \n \n \n \n \n Underlying profit for the period (after exchange movement) attributable to owners of the parent \n \n \n 224 \n \n \n 203 \n \n \n \n \n   \n   \n 7.    Non-current assets \n \n \n \n \n \n \n \n Goodwill \n £m \n \n \n Other \nintangible \nassets \n £m \n \n \n Property, \nplant and equipment \n£m \n \n \n Total \n £m \n \n \n \n \n Opening net book amount at 1 October 2025 \n \n \n 2,213 \n \n \n 212 \n \n \n 144 \n \n \n 2,569 \n \n \n \n \n Additions \n \n \n - \n \n \n 13 \n \n \n 34 \n \n \n 47 \n \n \n \n \n Acquisitions \n \n \n 36 \n \n \n 17 \n \n \n - \n \n \n 53 \n \n \n \n \n Depreciation, amortisation and other movements \n \n \n - \n \n \n (30) \n \n \n (16) \n \n \n (46) \n \n \n \n \n Exchange movement \n \n \n 27 \n \n \n 1 \n \n \n 1 \n \n \n 29 \n \n \n \n \n Closing net book amount at 31 March 2026 \n \n \n 2,276 \n \n \n 213 \n \n \n 163 \n \n \n 2,652 \n \n \n \n \n   \n   \n \n \n \n \n   \n   \n \n \n Goodwill \n£m \n \n \n Other \nintangible \nassets \n£m \n \n \n Property, \nplant and \nequipment \n£m \n \n \n Total \n£m \n \n \n \n \n Opening net book amount at 1 October 2024 \n \n \n 2,122 \n \n \n 228 \n \n \n 108 \n \n \n 2,458 \n \n \n \n \n Additions \n \n \n - \n \n \n 7 \n \n \n 31 \n \n \n 38 \n \n \n \n \n Acquisitions \n \n \n 25 \n \n \n 6 \n \n \n - \n \n \n 31 \n \n \n \n \n Depreciation, amortisation and other movements \n \n \n - \n \n \n (31) \n \n \n (16) \n \n \n (47) \n \n \n \n \n Exchange movement \n \n \n 54 \n \n \n 3 \n \n \n  - \n \n \n 57 \n \n \n \n \n Closing net book amount at 31 March 2025 \n \n \n 2,201 \n \n \n 213 \n \n \n 123 \n \n \n 2,537 \n \n \n \n \n   \n   \n 8.    Equity \n Ordinary shares and share premium \n   \n \n \n \n \n \n   \n \n \n Number of \n shares* \n \n \n Ordinary \n Shares \n       £m \n \n \n Share     premium \n       £m \n \n \n Total \n£m \n \n \n \n \n At 1 October 2025 \n \n \n 1,023,290,127 \n \n \n 11 \n \n \n 548 \n \n \n 559 \n \n \n \n \n Cancellation of shares \n \n \n (35,360,327) \n \n \n (1) \n \n \n - \n \n \n (1) \n \n \n \n \n At 31 March 2026 \n \n \n 987,929,800 \n \n \n 10 \n \n \n 548 \n \n \n 558 \n \n \n \n \n * Issued and fully paid ordinary shares of 14/77 pence each. \n \n \n \n \n \n \n \n \n Number of \n shares* \n \n \n \n Ordinary \n Shares \n       £m \n \n \n Share     premium \n       £m \n \n \n Total \n£m \n \n \n \n \n At 1 October 2024 \n \n \n 1,071,499,517 \n \n \n 11 \n \n \n 548 \n \n \n 559 \n \n \n \n \n Cancellation of shares** \n \n \n (22,188,837) \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n At 31 March 2025 \n \n \n 1,049,310,680 \n \n \n 11 \n \n \n 548 \n \n \n 559 \n \n \n \n \n   \n * Issued and fully paid ordinary shares of 14/77 pence each. \n ** Cancellation of shares in the six months ended 31 March 2025 resulted in a reduction of the nominal value of ordinary shares of less than £1m. \n As at 31 March 2026 the Group held 55,085,354 treasury shares (31 March 2025: 61,472,220). During the period, the Group satisfied the vesting of certain share awards utilising 4,784,153 treasury shares (six months ended 31 March 2025: 5,252,787). \n On 18 November 2025, the Group entered into a non-discretionary share buyback programme to purchase up to £300m of its own shares for a total consideration of £300m plus expected associated taxes. The programme completed on 5 February 2026 and the Group repurchased a total of 29,399,854 ordinary shares as part of this programme. \n On 27 February 2026, the Group entered into a non-discretionary share buyback programme to purchase up to £300m of its own shares. The programme is expected to end no later than 5 June 2026, for a total consideration of £300m plus expected associated taxes. As at 31 March 2026 the Group has repurchased a total of 5,960,473 ordinary shares as part of this programme. \n For both programmes, £610m (gross of tax) was recognised through retained earnings at the balance sheet date, of which £353m was paid in the period. \n At 31 March 2026, a liability of £257m is recorded within trade and other payables representing the remaining amount to be paid under the share buyback programmes. \n Employee Benefit Trust \n The Employee Benefit Trust (\"EBT\") holds shares in the Company and was set up for the benefit of Group employees. The EBT purchases the Company's shares in the market or is gifted these by the Company for use in connection with the Group's share-based payments arrangements. These shares are accounted for as treasury shares. Once purchased, shares are not sold back into the market unless required to settle employee tax liabilities in respect of their share awards. \n As at 31 March 2026 the EBT held 6,772,356 ordinary shares in the Company (31 March 2025: 8,211,546) with £nil of shares purchased during the year (six months ended 31 March 2025: £nil), funded by the Company, and a nominal value of £nil (six months ended 31 March 2025: £nil). During the period, the EBT satisfied the vesting of certain share awards utilising 1,292,492 ordinary shares (six months ended 31 March 2025: 263,336). \n The costs of funding and administering the EBT are charged to the profit and loss account of the Company in the period to which they relate. The market value of the shares of the Company held by the EBT at 31 March 2026 was £57m (31 March 2025: £89m). \n Other Reserves \n All components of other reserves are presented on a consolidated basis on the face of the consolidated statement of changes in equity. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Translation reserve \n £m \n \n \n Cash flow hedging Reserve \n        £m \n \n \n Cost of hedging reserve \n £m \n \n \n Merger Reserve \n        £m \n \n \n Treasury share Reserve \n        £m \n \n \n Capital redemption Reserve \n        £m \n \n \n Total \n £m \n \n \n   \n \n \n \n \n At 1 October 2025 \n \n \n 36 \n \n \n 5 \n \n \n (4) \n \n \n 61 \n \n \n (470) \n \n \n 3 \n \n \n (369) \n \n \n   \n \n \n \n \n Exchange differences on translating foreign operations and net investment hedges \n \n \n 16 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 16 \n \n \n   \n \n \n \n \n Changes in fair value of foreign currency basis of hedge relationships \n \n \n - \n \n \n - \n \n \n (1) \n \n \n - \n \n \n - \n \n \n - \n \n \n (1) \n \n \n   \n \n \n \n \n Vesting of share awards and exercise of share options \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 43 \n \n \n - \n \n \n 43 \n \n \n   \n \n \n \n \n Cancellation of ordinary shares \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n 1 \n \n \n   \n \n \n \n \n Cash flow hedges \n \n \n - \n \n \n (1) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1) \n \n \n   \n \n \n \n \n At 31 March 2026 \n \n \n 52 \n \n \n 4 \n \n \n (5) \n \n \n 61 \n \n \n (427) \n \n \n 4 \n \n \n (311) \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n   \n \n \n   \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n   \n   \n   \n \n \n   \n   \n \n \n   \n   \n   \n \n \n   \n \n \n   \n   \n \n \n   \n \n \n   \n \n \n   \n   \n \n \n   \n \n \n \n \n \n \n \n Translation reserve \n £m \n \n \n Cash flow hedging Reserve \n        £m \n \n \n Cost of hedging reserve \n £m \n \n \n Merger Reserve \n        £m \n \n \n Treasury share Reserve* \n        £m \n \n \n Capital redemption Reserve* \n        £m \n \n \n Total \n £m \n \n \n   \n \n \n \n \n At 1 October 2024 \n \n \n 26 \n \n \n 5 \n \n \n (3) \n \n \n 61 \n \n \n (520) \n \n \n 3 \n \n \n (428) \n \n \n   \n \n \n \n \n Exchange differences on translating foreign operations and net investment hedges \n \n \n 33 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 33 \n \n \n   \n \n \n \n \n Changes in fair value of foreign currency basis of hedge relationships \n \n \n - \n \n \n - \n \n \n (2) \n \n \n - \n \n \n - \n \n \n - \n \n \n (2) \n \n \n   \n \n \n \n \n Amortisation of foreign currency basis of hedge relationships \n \n \n - \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n   \n \n \n \n \n Vesting of share awards and exercise of share options \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 37 \n \n \n - \n \n \n 37 \n \n \n   \n \n \n \n \n Cash flow hedges \n \n \n - \n \n \n 2 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 2 \n \n \n   \n \n \n \n \n At 31 March 2025 \n \n \n 59 \n \n \n 7 \n \n \n (4) \n \n \n 61 \n \n \n (483) \n \n \n 3 \n \n \n (357) \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n   \n \n \n   \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n *The comparatives at 31 March 2025 have been restated as discussed within 'Basis of preparation' (see note 1) \n   \n   \n 9.    Cash flow and net debt \n \n \n \n \n Reconciliation of profit for the year to cash generated from continuing operations \n \n \n Six months ended \n31 March \n2026 \n£m \n \n \n Six months ended \n31 March \n2025 \n£m \n \n \n \n \n Profit for the period \n \n \n 196 \n \n \n 180 \n \n \n \n \n Adjustments for: \n \n \n   \n \n \n \n \n \n \n \n Income tax \n \n \n 66 \n \n \n 56 \n \n \n \n \n Finance income \n \n \n (4) \n \n \n (7) \n \n \n \n \n Finance costs \n \n \n 35 \n \n \n 26 \n \n \n \n \n Amortisation of intangible assets \n \n \n 30 \n \n \n 31 \n \n \n \n \n Depreciation of property, plant and equipment \n \n \n 16 \n \n \n 15 \n \n \n \n \n R&D tax credits \n \n \n (1) \n \n \n (1) \n \n \n \n \n Equity-settled share-based transactions \n \n \n 27 \n \n \n 25 \n \n \n \n \n Exchange movement \n \n \n - \n \n \n (4) \n \n \n \n \n Changes in working capital: \n \n \n   \n \n \n \n \n \n \n \n Increase in trade and other receivables \n \n \n (47) \n \n \n (43) \n \n \n \n \n Decrease in trade and other payables and provisions \n \n \n (31) \n \n \n (47) \n \n \n \n \n Increase in deferred income \n \n \n 103 \n \n \n 99 \n \n \n \n \n Cash generated from continuing operations \n \n \n 390 \n \n \n 330 \n \n \n \n \n   \n \n \n \n \n Reconciliation of net cash flow to movement in net debt \n \n \n Six months ended \n31 March \n2026 \n£m \n \n \n Six months ended \n31 March \n2025 \n£m \n \n \n \n \n Cash inflows in the year (pre-exchange movements) \n \n \n 126 \n \n \n 56 \n \n \n \n \n Cash inflows from loans and lease liabilities \n \n \n (423) \n \n \n (290) \n \n \n \n \n Change in net debt resulting from cash flows \n \n \n (297) \n \n \n (234) \n \n \n \n \n Cash and lease liabilities recognised from acquisitions of subsidiaries or similar transactions \n \n \n 1 \n \n \n (1) \n \n \n \n \n Other non-cash movements \n \n \n (20) \n \n \n (8) \n \n \n \n \n Exchange movement \n \n \n 1 \n \n \n 5 \n \n \n \n \n Movement in net debt in the year \n \n \n (315) \n \n \n (238) \n \n \n \n \n Net debt at 1 October \n \n \n (1,189) \n \n \n (738) \n \n \n \n \n Net debt at 31 March \n \n \n (1,504) \n \n \n (976) \n \n \n \n \n   \n \n \n \n \n Analysis of change in net debt \n \n \n At \n 1 October 2025 \n £m \n \n \n Cash flow £m \n \n \n   \n   \n Acquisitions £m \n \n \n Non-cash movements £m \n \n \n Exchange movement £m \n \n \n At \n 31 March 2026 \n £m \n \n \n \n \n Cash, cash equivalents \n \n \n 390 \n \n \n 126 \n \n \n 1 \n \n \n - \n \n \n 1 \n \n \n 518 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Loans due after more than one year \n \n \n (1,476) \n \n \n (434) \n \n \n - \n \n \n (1) \n \n \n - \n \n \n (1,911) \n \n \n \n \n Lease liabilities due within one year \n \n \n (17) \n \n \n 11 \n \n \n - \n \n \n (9) \n \n \n - \n \n \n (15) \n \n \n \n \n Lease liabilities after more than one year \n \n \n (86) \n \n \n - \n \n \n - \n \n \n (10) \n \n \n - \n \n \n (96) \n \n \n \n \n \n \n \n (1,579) \n \n \n (423) \n \n \n - \n \n \n (20) \n \n \n - \n \n \n (2,022) \n \n \n \n \n Total \n \n \n (1,189) \n \n \n (297) \n \n \n 1 \n \n \n (20) \n \n \n 1 \n \n \n (1,504) \n \n \n \n \n   \n \n \n \n \n Analysis of ch...

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