Sage's annual profits fall after disposals

4th Dec 2013 07:08

- Pre-tax profit flat, revenue rises- Exceptional charge due to disposals - Dividend raised six per cent- Revenue growth of six per cent forecast for 2015Sage Group's annual pre-tax profit was broadly flat at 164.1m pounds, reflecting the cost of non-core disposals.In the year ended September 30th the software company's profits were hit by a £188.2m exceptional charge due to the disposal of products in an effort to streamline the portfolio.Disposals included C&I, ATL and Automotive in France, the construction business in the UK and Aytos in Spain. As a result, statutory operating profit fell 48% to £180.5m despite a 4% increase in underlying revenue of £1.26bn.Revenue was driven by growth in premium support contract upselling and renewals, software subscriptions and payment services.During the period the group also acquired EBS Empresa Brasileira de Sistemas Ltda., a provider of accounting, business management and tax software in Brazil, for £11.3m.The firm proposed a final ordinary dividend of 7.44p per share, bringing the total ordinary dividend to 11.32p per share, up 6% on the prior year. "I am pleased to report a strong set of results, with good growth across all regions and our strategic initiatives progressing well," said Chief Executive Guy Berruyer."We remain confident of achieving our target of 6% organic revenue growth in 2015, and anticipate further progress during the year ahead."RD