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Sage Group FY20 Profit Rises, Lifts Dividend; Sees Organic Revenue Growth In FY21

Technology company Sage Group Plc (SGE.L) reported Friday that its fiscal 2020 profit before tax grew 3 percent to 373 million pounds from 361 million pounds a year ago.

Basic earnings per share were 28.38 pence, up 15.9 percent from 24.49 pence a year ago.

Underlying pre-tax profit was 386 million pounds, compared to 417 million pounds a year earlier. Underlying earnings per share were 27.43 pence, compared to prior year's 27.88 pence.

Operating profit grew 5.8 percent from last year to 404 million pounds and operating margin improved 1.6 percentage points to 21.3 percent.

Underlying operating profit dropped 6.7 percent to 411 million pounds and underlying operating margin dropped 1.6 percentage points to 21.6 percent.

EBITDA edged down 0.7 percent to 498 million pounds .

Revenue declined 1.7 percent to 1.90 billion pounds from 1.94 billion pounds last year. Organic total revenue grew 3.7 percent.

Further, the company announced full-year dividend up 2 percent to 17.25 percent, including a final dividend of 11.32 pence.

Looking ahead for fiscal 2021, Sage Group currently expects organic recurring revenue growth to be in the region of 3 percent to 5 percent, weighted towards the second half of the year.

Organic operating margin is expected to be up to three percentage points below FY20.

Looking beyond FY21, the company expects margins to trend upwards over time, as the investment drives recurring revenue growth and operating efficiencies.

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