A SOFTWARE firm says it has completed the first part of a turnaround plan after increased customer demand pushed revenues higher.

Sage Group says rising subscriptions have given it a platform for growth.

The business, which employs more than 1,000 workers at its Newcastle headquarters, revealed software subscriptions lifted 32.3 per cent in the year to September 30.

Bosses said the increase, allied to better revenue streams in Europe and Africa, meant organic operating profit stood at £427m, more than nine per cent better off than a year ago.

Organic revenue was 6.1 per cent stronger at £1.56bn.

Stephen Kelly, chief executive, said: “The organic revenue growth is driven by higher quality recurring revenue, which grew at the fastest rate in a decade.

“The strategy is working - with customers embracing closer relationships with Sage - evidenced by a 46 per cent increase in the number of subscription contracts and a contract retention rate of 86 per cent.

“Phase one of the transformation programme has been successfully delivered.”

More to follow