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The Sage Group plc audited results for the year ended 30 September 2021 Wednesday 17 November 2021 Accelerating growth driven by continued strategic progress sage Strategic investment driving growth and significant acceleration in new customer acquisition Organic recurring revenue growth of 5.4 % , driven by growth in Sage Business Cloud of 19 % Organic operating margin of 19.3 % , in line with guidance Sustained strong cash generation , with underlying cash conversion of 126 % ARR growth of 7.7 % , underpinned by cloud native ARR growth of 44 % FY22 organic recurring revenue growth expected to be in the region of 8 % to 9 % Refreshed strategic framework to reflect Sage's evolving strategic priorities Alternative Performance Measures ( APMs ) 1 Organic Financial APMs Organic Total Revenue FY21 FY202 Change £ 1,778m £ 1,725m + 3 % £ 1,637m £ 1,553m + 5 % £ 343m £ 380m -10 % 19.3 % 22.0 % -2.7 ppts Organic Recurring Revenue Organic Operating Profit % Organic Operating Profit Margin Underlying Financial APMs EBITDA £ 443m £ 486m Underlying Operating Profit £ 358m £ 400m % Underlying Operating Profit Margin 19.4 % 21.6 % Underlying Basic EPS 23.09p 26.74p -9 % -11 % -2.2 ppts -14 % Underlying Cash Conversion 126 % 123 % +3 ppts KPIs Annualised Recurring Revenue ( ARR ) £ 1,680m £ 1,560m + 8 % Renewal Rate by Value 99 % 99 % % Subscription Penetration 70 % 65 % +5 ppts % Sage Business Cloud Penetration 67 % 60 % +7 ppts Statutory Measures FY21 FY20 % Change Revenue £ 1,846m £ 1,903m -3 % Operating Profit £ 373m £ 404m -8 % % Operating Profit Margin 20.2 % 21.3 % -1.1 ppts Basic EPS ( p ) 26.33p 28.38p -7 % Dividend Per Share ( p ) 17.68p 17.25p + 2.5 % 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 delivered a strong performance in FY21 . We achieved recurring revenue growth ahead of our initial expectations and ended the year with real momentum , supported by our strategic investment in sales , marketing and innovation . Our cloud native solutions have performed particularly well , as more new customers choose Sage to take care of their accounting , people and payroll processes removing friction , delivering business insights , and giving them a competitive edge . I would like to thank our colleagues and partners , whose hard work and commitment has helped deliver a successful year . " Having reshaped and invested significantly in the Group over the last three years , we are now focused on growing the business in absolute terms , both organically and through acquisitions . The small and mid - sized businesses that power the global economy are adopting digital solutions at a faster rate than ever before , and through our trusted technology and human approach , Sage is well positioned to support them . I am confident that , through our refreshed strategic framework , we will deliver further sustainable growth , driving the success of Sage now and in the long term . " 1 Please see Appendix 1 for guidance on the usage and definitions of the Alternative Performance Measures . 2 Organic revenue and operating profit for FY20 have been restated to aid comparability with FY21 . 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