The share of the British software provider Sage rose by 19 percent following the announcement of a significant profit increase, a generous share buyback program, and a dividend increase.

Sage, a FTSE 100 company providing financial, HR, and payroll software for small and medium-sized enterprises (SMEs), reported a 43 percent increase in statutory operating profit to £452 million for the fiscal year ending in September. Organic revenue growth was 9 percent.

CEO Steve Hare explained that the results were due to "steady growth in revenue and profit" as well as strong demand for the company's products. He cited new customer acquisitions and additional purchases by existing customers as growth drivers. North America showed itself to be the strongest growth region: "The USA is a huge market for SMEs, which can often successfully build large businesses without exports," said Hare.

The software package Sage Intacct, a provider of cloud financial solutions acquired in 2017, remains a central growth driver. Additionally, the company is increasingly focusing on the introduction of its generative AI tool Sage Copilot to improve efficiency and user-friendliness.

Free cash flow rose by 30 percent to £524 million, supported by a high cash flow conversion rate of 123 percent, attributed to a strong subscription business and good working capital management. Sage also announced a £400 million share buyback program starting immediately. This move reflects the board's confidence in the company's future prospects and "robust" financial position.

In addition, Sage proposed a final dividend of 13.5 pence per share, raising the total dividend for the year by 6 percent to 20.45 pence.

For the fiscal year 2025, Sage anticipates organic revenue growth of at least 9 percent. Operating margins are expected to continue rising as the company increasingly focuses on efficiency and scaling.

Citi analysts described the results as "solid" and emphasized that fears of a growth slowdown were unfounded. The dynamic growth figures and stable operational execution should leave investors with a positive outlook.

Hare expressed hope that Sage's strong results would send a "positive signal" for British technology companies. "We are a global company with stable access to capital and talent," he emphasized.

The development is part of a phase of increased activity in the British technology sector, including the IPO of microcomputer manufacturer Raspberry Pi and the acquisition of Darktrace by US investor Thoma Bravo.