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The Sage Group plc unaudited results for the six months ended 31 March 2021 Friday 14 May 2021 Strong momentum driven by good first half performance Organic recurring revenue growth of 4.4 % Organic operating margin of 20.2 % , in line with expectations Strategic investment to accelerate growth progressing in line with plan Sustained strong cash generation , with underlying cash conversion of 133 % ARR growth of 4.2 % , underpinned by cloud native ARR growth of 36 % sage Alternative Performance Measures ( APMs ) ¹ H1 21 H1 202 Change Organic Financial APMs Organic Total Revenue £ 890m £ 877m + 1 % Organic Recurring Revenue £ 811m £ 777m + 4 % Organic Operating Profit £ 180m £ 204m -12 % % Organic Operating Profit Margin 20.2 % 23.2 % -3.0 ppts Underlying Financial APMs EBITDA £ 232m £ 254m Underlying Operating Profit £ 191m £ 216m % Underlying Operating Profit Margin 20.4 % 22.5 % Underlying Basic EPS 12.14p 13.57p -9 % -11 % -2.1 ppts -11 % Underlying Cash Conversion 133 % 127 % +6 ppts KPIs Annualised Recurring Revenue ( ARR ) £ 1,595m £ 1,530m + 4 % Renewal Rate by Value 97 % 101 % -4 ppts % Subscription Penetration 68 % 63 % +5 ppts % Sage Business Cloud Penetration 65 % 59 % +6 ppts Statutory Measures Revenue Operating Profit H1 21 H1 20 % Change £ 937m £ 975m £ 203m £ 289m -4 % -30 % % Operating Profit Margin Basic EPS ( p ) Dividend Per Share ( p ) 21.7 % 29.7 % 13.29p 20.56p -8.0 ppts -35 % 6.05p 5.93p + 2 % Please note that tables may not cast and change percentages may not calculate precisely due to rounding . Commenting on the results , CEO Steve Hare said : " Sage performed strongly in the first half against tough comparators , with continued recurring revenue growth and increasing levels of new customer acquisition , principally in cloud native solutions . Our deep sense of purpose and experience of supporting small and medium - sized businesses through change has equipped us well to play a vital role throughout the pandemic , and I am proud of the way our colleagues around the world have shown dedication to our customers and partners . We believe that small and medium - sized businesses will lead the recovery , and I am confident that our strategic investment in Sage Business Cloud will continue to accelerate growth , as customers become stronger and more digitally - enabled . " Financial highlights Organic recurring revenue increased by 4.4 % to £ 811m , underpinned by software subscription revenue growth of 11 % to £ 608m . This was offset by a 21 % decrease in other revenue ( SSRS and processing ) to £ 79m . Total organic revenue grew by 1.4 % to £ 890m . Growth in recurring revenue reflects Sage's focus on acquiring new customers and migrating existing customers to Sage Business Cloud , supported by strong customer retention . 1 Please see Appendix 1 for guidance on the usage and definitions of the Alternative Performance Measures . 2 Organic revenue and operating profit for H1 20 have been restated to aid comparability with H1 21. The definition of organic measures can be found in Appendix 1 with a full reconciliation of organic , underlying and statutory measures on page 8. Unless otherwise specified , all references to revenue , profit and margins are on an organic basis . 1