Sage share price jumps 12 per cent to record after revealing £350m buyback
Sage shares climbed as much as 10.3 per cent on Wednesday morning, breaking its two day losing streak, after the software accountancy company posted strong operating profit and double-digit revenue growth.
In a full-year trading update, Sage said underlying operating profit jumped 18 per cent.
The firm’s margins grew 20.9 per cent and the company expects this to rise again next year as it focuses on “efficiently scaling the group”.
Underlying recurring revenue increased by 12 per cent to £2.1bn, largely thanks to growth in is business cloud unit.
Newcastle-headquartered Sage also announced a share buyback programme today of “up to £350m”, which Jefferies analysts said “sweetened” the results.
“Sage remains one of the more straightforward investment cases in the sector,” Jefferies analysts said in a note, rating it a ‘buy’.
The accountancy software business allows small business owners to track their income and expenses in multiple currencies as well as track inventory and manage invoices.
Sage chief executive, Steve Hare, said: “Small and mid-sized businesses are continuing to digitalise, despite the macroeconomic uncertainty.
“We are building a resilient platform to deliver sustained, efficient growth, and I am confident that Sage is well positioned to take advantage of the market opportunity in 2024 and beyond.”