Sage Group Full-Year Net Profit Jumps

Sage Group PLC SGPYY reported a gain in its full-year net profit. Sage's full-year net profit jumped to 186.8 million pounds ($292.8 million), or 17.04 pence per share, versus a year-ago profit of GBP46.4 million, or 3.96 pence per share. Its profit before tax climbed to 277.5 million pounds from 164.1 million pounds, while adjusted pre-tax profit slipped to 339.7 million pounds from 360.6 million pounds. Its revenue declined 5% to GBP1.31 billion from GBP1.38 billion. Organic revenue climbed 4.9%, while recurring revenue increased 7% organically. Software subscription revenue surged 28% organically. Operating profit margin widened to 27.5% from 27.1%. Stephen Kelly, Chief Executive Officer, said: "I would like to thank Guy Berruyer for leading Sage to deliver an encouraging set of results with a strong finish to the year. I reconfirm the Board's financial targets for 2015 and recognise the 2014 results as an important milestone on the path to meeting them. Our financial performance demonstrates the strength of Sage's global business and the quality of relationships it has with millions of SME customers worldwide." Sage shares fell 0.32% to close at $25.20 yesterday.