Software giant Sage Group pre-tax profits sank 31 per cent to £190m in the first half of its financial year, as it wired investment towards its cloud software.

The group’s revenue also fell by 4 per cent to £937m, in the six months to the end of March, Sage told investors today.

However, Sage’s measure of organic recurring revenue grew by 4.4 per cent, which aligned with the group’s previous shareholder forecast of between three and five per cent.

“Sage performed strongly in the first half against tough comparators, with continued recurring revenue growth and increasing levels of new customer acquisition, principally in cloud native solutions,” CEO Steve Hare said.

Despite pre-tax profits tumble, the group’s results were largely in line with expectations, with an organic operating margin of 20.2 per cent.

“Our deep sense of purpose and experience of supporting small and medium-sized businesses through change has equipped us well to play a vital role throughout the pandemic,” the CEO added.

More to follow.