Sage Group's FY pretax profit slips a jot

Sage Group's statutory FY pretax profit has slipped a jot to £275m, from £276m. Ordinary dividend per share was 14.15p, from 13.1p.

Revenue totalled £1.57bn, from £1.44bn.

The company also said that Ruth Markland and Inna Kuznetsova have advised that they intend to step down as non-executive directors at the AGM in February 2017.

Referring to the results, CEO Stephen Kelly said:

"FY16 saw Sage continue to deliver on the commitment made at our June 2015 Capital Markets Day to perform and transform. The organic revenue growth of 6% is driven by higher quality recurring revenue, which grew at the fastest rate in a decade.

"The strategy is working - with customers embracing closer relationships with Sage, evidenced by a 46% increase in the number of subscription contracts and a contract retention rate of 86%.

"Phase one of the transformation programme has been successfully delivered. For phase two we have ensured that we have the core management team, processes and culture to deliver the best technology ecosystem for our customers - those business builders that drive the world's economy, creating jobs, growth and prosperity.

"Phase two of the transformation will continue to be non-linear and focus on driving more technology innovation with increasing focus on new customer acquisition as well as continuing to improve execution against the strategy for Business Builders.

"We are already starting to see Sage drive faster innovation, a more customer-obsessed DNA and colleagues making a difference in all of our communities through the Sage Foundation.

"For FY17, the second full fiscal year of our transformation, our full year guidance for FY17 is for at least 6% organic revenue growth and at least 27% organic operating margin. We will continue to front-load investment in growth in H117, consistent with our execution last year. Consequently, we anticipate stronger H2 growth and accelerating momentum as we exit FY17."

At 9:23am: (LON:SGE) Sage Group The PLC share price was +2.75p at 678.25p