Sage Group reported a solid first half but cautioned that H2 will be more reflective of impacts due to the pandemic driving licence and professional services sales down.
For the six months ended 31st March 2020 the financial software firm witnessed organic sales growth of 5.7% to £935m.
The company's operating profit measured £213m, a 3% increase. Meanwhile, recurring revenue jumped 10.3% to £826m with more customers migrating to a subscription model and the Sage Business Cloud.
The Northern Europe region outperformed the rest of the group with organic revenue up 10% to £198m, which included a 13% rise in recurring revenue.
Across the full year, the company anticipates organic recurring revenue growth will be below its previous guidance of 8%-9%.
Steve Hare, CEO, said: “Sage has had a strong first half, sustaining last year’s growth momentum as we continue to focus on recurring revenue growth and making good progress in strategic execution."