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Highlights

  • In FY24, Sage Group reported a 9.3% year-on-year increase in total revenue, reaching GBP 2,332 million, driven by its subscription-based revenue model
  • Sage proposed a final dividend of 13.50p, raising the full-year dividend by 6% to 20.45p
  • Entering FY25, Sage expects organic revenue growth of over 9% and improved operating margins as it focuses on scaling the business efficiently

 Sage Group PLC (LSE:SGE) is a UK-based company providing cloud-based business management solutions for small and medium-sized businesses (SMBs), focusing on accounting, finance, HR, and payroll technology.

In the financial year 2024 (FY24), Sage Group reported an underlying total revenue of GBP 2,332 million, marking a 9.3% year-on-year increase from FY23's GBP 2,133 million, driven by its subscription-based recurring revenue model.

The company also saw a 20.8% YoY increase in underlying operating profit in FY24, reaching GBP 529 million, up from GBP 438 million in FY23. Operating margins improved by 220 basis points to 22.7%.

Further, the company proposed a final dividend of 13.50p, increasing the full-year dividend by 6% to 20.45p. Additionally, the company announced a share buyback of GBP 400 million.

Recent Business Update

On 30 January 2025, Sage Group released its trading update for the three months ended 31st December 2024. The company reported a 10% revenue growth, reaching GBP 612 million, with contributions from all regions. Sage Business Cloud revenue rose by 13% to GBP 502 million, while recurring revenue grew 10% to GBP 595 million. Subscription revenue saw a 12% increase, reaching GBP 509 million, pushing subscription penetration to 83%. Organic revenue also rose by 9%, totalling GBP 611 million.

Company Outlook

Entering FY25, the company is experiencing good momentum, fuelled by consistent and effective strategic execution. It anticipates organic total revenue growth of 9% or more for the year, with operating margins expected to improve as it focuses on efficiently scaling the business.

Top 10 Shareholders

The top 10 shareholders of Sage Group collectively hold approximately 37.75% of the company’s total shares. Leading the pack, BlackRock Institutional Trust Company, N.A. owns the largest stake with about 6.46% of the shares, while Capital Research Global Investors follows closely with around 5.16% of the shareholding.

Stock Information

The stock has witnessed a decline of approximately 9.52% in the last one month, while over the past 6 months, it has seen an increase of about 17.14%. The stock's 52-week low and high are GBX 954.20 and GBX 1,349.00, respectively, and it is currently trading above the average of the 52-week high and low, with a closing price of GBX 1192.00 as of 17 March 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 17 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.