By Mark McSherry

Shares of Sage Group plc, the Newcastle-based FTSE 100 global tech business, rose as much as 4% after it reported that its revenue rose 16% to £1.087 billion in the six months to March 31, 2023, driven by strong Sage Business Cloud growth.

Underlying profit before tax rose 13% to £210 million.

Sage Group, which sells accounting, financial, HR and payroll software to SMEs (small and medium-sized enterprises), also upgraded its full-year organic recurring revenue growth forecast to around 11%.

The Newcastle firm previously said it expected growth to be above the 9.4% level achieved in its last financial year.

Interim dividend is up 4% to 6.55p.

Sage Group CEO Steve Hare said: “Sage performed strongly in the first half, accelerating revenue growth, increasing profitability and making further progress against our strategic priorities.

“Our investments in technology and in sales and marketing are continuing to drive results, as small and mid-sized businesses increasingly choose Sage as a valued partner to transform the way they work.

“Our purpose is to knock down barriers so everyone can thrive. We are committed to delivering innovative, AI-powered services that make our customers’ lives easier and their organisations more productive and resilient.

“Sage’s global platform, centred on our expanding digital network, is enabling us to leverage our scale and collective expertise to maximise the significant opportunities we see across our markets.

“Small and mid-sized businesses are continuing to digitise, despite the macroeconomic uncertainty, and through our trusted technology and human approach Sage is well positioned to support them. I am confident that our proven strategy will enable us to deliver further efficient growth.”