UK's Sage reports 18% rise in annual operating profit

LONDON (Reuters) -Software company Sage reported a 18% rise in full-year underlying operating profit to 456 million pounds ($568 million) on Wednesday after its margin rose to 20.9%, and it said the margin would continue to increase this year.

The British company, which provides accountancy and payroll software to small businesses, said its underlying recurring revenue grew 12% in the year to end-September, underpinned by increased demand for its cloud products.

"Looking ahead, we expect organic total revenue growth in FY24 to be broadly in line with FY23," it said. "Operating margins are expected to trend upwards in FY24 and beyond, as we focus on efficiently scaling the group."

The company also said it would start a 350 million pound share buyback programme which would run until next April.

($1 = 0.8025 pounds)

(Reporting by Paul Sandle; editing by Sarah Young)