Evidence of the transformation by Sage into a cloud business could be seen in its latest results which showed an increase in subscription revenue as more users start to pay for its cloud software.
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The software player reported a 4% increase in revenue to £1,261.3m for the year ended 30 September 2013 and revealed that it had already gained 21,000 subscribers in the UK and Ireland to its Sage One cloud solution for SMEs, which has increased by three-fold in the last year. Pre-tax profits were almost flat year-on-year with a 1% increase to £360.5m.
Along with growth in its cloud product there was also increases in its customer base to 256,000 added during the year and demand for its ERP X3 product improved by 12% although software and software related services revenue was flat.
Guy Berruyer, chief executive of Sage, said that there had been decent growth across all of the regions it operated in and its strategic initiatives, which included cloud, were going well.
“These results highlight the strong appeal of our offering to SMEs, great execution in delivering on our plans and the benefit of a clear strategy, which focuses on our most significant growth opportunities. The strategy is working and growth is accelerating. We remain confident of achieving our target of 6% organic revenue growth in 2015," he said.