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Sage continued to report a healthy rise in subscriptions as Britain’s biggest software group side-steps a decline in traditional software sales.

The Newcastle-based company, which provides accounting and payroll software, said the number of software subscription contracts increased 48 per cent in the six months to March to over 1.2m.

Sage has focused on building subscriptions as its traditional business of software installation declines. Revenue in the period rose 22.7 per cent to £840m. Pre-tax profit was £180m, up 41.1 per cent.

Stephen Kelly, chief executive, said:

These are positive results in line with market expectations and there are clear signs our strategy is working, with seven of our nine largest geographies, that collectively generate 95% of our revenues, now delivering growth in excess of our revenue guidance.

He added that Sage was confident it would exceeds its guidance of annual revenue growth of 6 per cent.

Copyright The Financial Times Limited 2018. All rights reserved.

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