Following a year in which it acquired seven companies, enterprise software and services provider Sage Group saw a 34% rise in revenue in the first half of its fiscal 2007 and vowed to focus on improving organic growth.
Total revenue of £574.7 million in the six-month period ended March 31 was a significant improvement on the £455.9 million reported in the equivalent 2006 time frame. EBITA (earnings before interest, tax, and net amortization) also saw double-digit growth, up 22% year over year to £138.6 million.
Other financial highlights for Sage included 7% organic revenue growth. Group Finance Director Paul Harrison said in a presentation today to financial analysts that Sage continues to realize a growing percentage of revenue from organic sources, such as support contracts, which include software license upgrades.
For Sage Software Inc., the North American unit of U.K.-based Sage Group, revenue increased to £254.1 million from £152.4 million in the same period a year ago on strong contributions from sales of acquired products.