Accounting software group Sage has notched up a 16% jump in half-year profits amid a boom in customer demand for AI-powered tools, but flagged a more “volatile and uncertain” backdrop.
The firm reported pre-tax profits of £236 million for the six months to March 31, up from £203 million a year ago.
Chief executive Steve Hare said strong demand for AI technology was helping boost business, with its generative AI-powered software – Sage Copilot – now boasting 40,000 customers in the UK a year after launch.
But he said the group was trading in a “more volatile and uncertain macroeconomic environment” as global tariff uncertainty weighs on sentiment.
Shares in the Newcastle-based firm fell 5% in Thursday afternoon trading, with analysts pointing to disappointment over the lack of any upgrade in the full-year outlook after the robust first half.
He told the PA news agency the group had not seen any change in behaviour yet among its small and medium-sized firms in the UK and US due to the global outlook worries.
But he said uncertainty was “not particularly helpful when you’re trying to persuade business leaders to invest and take a longer term view”.
He added: “It’s more helpful when it’s a stable and more positive environment.
“There’s always the risk that people are more cautious when things are uncertain.”
The group said it was not set for a direct impact from the US tariffs being put in place by President Donald Trump, although Mr Hare said he was having “to be very alert and watch the ever-changing landscape”.
