Sage Group makes "solid start" as Q1 organic revenues rise 5.3%

28th Jan 2015 07:02

Business management software group Sage said it made a "solid start" to the new financial year and remains on track to hit its growth targets.The company, which provides small and medium-sized businesses software for accounting, payroll and payments, reported a 5.3% increase in group organic revenues in the first quarter ended 31 December 2014.It held on to its full-year target of a 6% increase in organic sales, reiterating that it expects an acceleration in the rate of growth in the second half."This is a solid start to the financial year and the overall growth trajectory remains on track," said new chief executive Stephen Kelly."I have been privileged to meet many customers in my first 90 days with Sage. SMEs are the growth engine of the economy worldwide and our performance attests to the enduring quality of our relationships with them."Organic recurring revenues in the first quarter improved by 7% on the previous year, driven by a 28.8% jump in software subscription sales, with all regions contributing to the growth.However, payments operations in North America remain an "area of weakness", along with enterprise planning in France.Sage said "management remain focussed on taking actions in these areas".