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Sage shares down after concerns on recurring revenue

Sage Group has issued a revenue warning citing "inconsistent operational execution” over the last six months. The share prices has already fallen some 16% this year for the former accounting software firm which has staked a lot on moving to cloud and the wider business market including CRM and ERP. Sage has revised down 2018 revenue guidance from around 8% organic growth to around 7% and has a continuing cost reduction plan.

Organic revenue growth for the first half was 6.3% but unusually, it saw a fall in recurring revenue growth to 6.4% as well as licensing "slippage in the enterprise segment". The recurring revenue growth is being felt in Northern Europe (which includes the UK).