Sages stocks fell above 13 per cent on friday as ftse 100 accounting pc software group said it can crank up spending the following year to capture small businesses while they changed to cloud processing.
Sage stated its full-year revenue dropped 1.7 % to 1.9bn, slightly ahead of opinion quotes, while operating profit rose 5.8 per cent to 404m.
After stripping down businesses that sage features consented to offer in poland, switzerland, asia and australia, full-year working profit fell 3.7 % to 391m.
The business stated it was wagering that pace of electronic transformation among smaller businesses was accelerating so it planned to boost financial investment in its sage business cloud software offering, upgrading spending on product sales, marketing and advertising and study and development.
Thus, it warned that its running margin will be knocked by to 3 percentage things in 2021, and that it hoped that margins would trend upwards after next year as financial investment drives recurring income development and operating efficiencies. sages share cost has actually dipped 21 per cent because the start of 2020.
Sage has been moving away from licensing fees and towards a registration design, and said that continual product sales today made up nine-tenths of the revenues as clients shifted to its business cloud system.
Im confident that our additional financial investment in sage company cloud, and in specific cloud native solutions, will provide more powerful development and drive the long term success of the group, stated chief executive steve hare.