StockMarketWire.com - Software company Sage Group has seen an increase in its recurring revenues of 5% to £1,220m in the nine months ended 30 June.

Total group revenue increased by 2.6% to £1,329m in the first nine months of the year, and by 5.0% to £440m in the third quarter.

This was supported by software subscription growth of 11% to £920m. As a result, subscription penetration increased to 69%.

The Future Sage Business Cloud Opportunity revenues increased by 7% to £1,103m, underpinned by strong growth in cloud-native recurring revenue of 32% to £205m, primarily through new customer acquisition, and supported by migrations to both cloud-native and cloud-connected solutions.

Sage Business Cloud penetration increased to 66%.

Group net debt was £160m as of 30 June 2021, with cash and available liquidity of £1.3bn.

Jonathan Howell, CFO, commented: 'The performance of the Group in the first nine months of the year demonstrates continued delivery against our strategy. Sage's growth is accelerating, driven by increasing demand for Sage Business Cloud solutions, particularly in cloud-native, as we support customers in their digital transformation.'


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