Software firm Sage said it was on track to accelerate growth in 2015 after posting an underlying 5 per cent rise in revenue and 8 per cent rise in earnings, in the first set of results presented by new chief executive Stephen Kelly.

Sage, whose software is used by more than six million small businesses, reported revenue of £1.31 billion and earnings per share of 22.69 pence for the year to end-September, slightly ahead of market expectations.

Mr Kelly, a former executive of Micro Focus Intl, said the results were a milestone towards the target of growing revenue by 6 per cent, with a 28 per cent operating profit margin, in its current financial year.

He said a 28 per cent increase in subscription revenue, which is predictable and improves retention rates, underpinned his confidence. – (Reuters)