By Adriano Marchese
Sage Group PLC said Wednesday that pretax profit fell 9.3% in fiscal 2019 and that it would issue a capital return from the expected proceeds of the sale of Sage Pay and strong cash generation.
For the year ended Sept. 30, the FTSE 100 software company (LON:UK:SGE) made a pretax profit of 361 million pounds ($467.1 million), compared with GBP398 million in fiscal 2018.
Organic operating profit margin fell to 23.7% in the year, compared with 28.8%.
Revenue in the year rose 4.9% to GBP1.94 billion.
The board declared a final dividend of 16.91 pence a share, up from last year’s 16.50 pence.
Reflecting the expected proceeds on Sage Pay, the company said it will make a capital return of GBP250 million, and added that further details will be shared following the disposal of the unit.
Sage Group said that it expects recurring revenue growth to be between 8% and 9% in fiscal 2020, with an organic operating margin expected to be around 23%.