Sage Group’s shares have seen a sharp fall after the software company announced its revenue growth was expected to be below expectations.

While its underlying total revenue increased by 10% to £1.15bn in the six months to 31 March, it was not enough to halt the company’s shares falling by more than 10%.

Sage provides software that allows small business owners to manage accounting, invoicing, expenses, cash flow, bank reconciliation, inventory, multi-currencies, quotes and financials reporting, as well as enable users to submit tax returns online.

Despite the movement in the company’s shares, Sage’s latest results still showed growth in its underlying operating profit increased by 18% to £254m, with margin increasing by 160 basis points to 22.0%, driven by operating efficiencies as the software firm scales its business.

Sage CEO, Steve Hare, commented: “Demand for our solutions remains robust, with small and mid-sized businesses continuing to trust Sage to automate their accounting, HR and payroll workflows.

“We are resolutely focused on innovation, as both a source of near-term competitive advantage and a foundation for our long-term success. We continue to introduce new AI-powered products and services that deliver enhanced productivity and insights, driving value for both existing and new customers.

“As we look forward, despite the ongoing macroeconomic uncertainty, I am confident that Sage’s proven strategy, underpinned by continued investment, will enable us to deliver further efficient growth.”

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