Sage Group PLC on Tuesday confirmed its annual outlook, as it reported a strong rise in revenue in the first nine months of its financial year.

The Newcastle-upon-Tyne, England-based accounting software firm said total revenue was £1.74 billion in the three months that ended June 30, up 9.3% from £1.59 billion a year before, all of which was organic growth.

By region, revenue was up 12% to £786 million in North America, up 8.0% to £497 million in UKIA - UK, Ireland, Africa and Asia-Pacific - and up 5.6% to £454 million in Europe.

The Sage Business Cloud offering represented the bulk of revenue at £1.39 billion, up 16% from £1.19 billion a year before.

Sage confirmed the guidance for the full year that it had provided in its half-year earnings. This was for organic total revenue growth for the full year to be broadly in line with the first half, when growth was 9%.

‘Sage performed well in the first nine months, delivering revenue growth in line with our expectations and sustaining good momentum, despite ongoing macroeconomic uncertainty,’ said Chief Financial Officer Jonathan Howell.

Sage shares were down 3.7% to 1,046.50 pence early Tuesday in London. The wider FTSE 100 index was down just 0.7%. Sage shares are down 12% in the past six months, though up 12% in the past 12.

Shore Capital analyst Martin O’Sullivan said Sage’s trading update was in line with expectations, remarking the company ‘delivered a reassuring trading performance’.

‘We expect a neutral/slightly positive reaction in the shares this morning, noting the about 18% underperformance versus FTSE 100 in the past six months, and we provisionally expect to leave our modestly above consensus estimates unchanged.’

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