Peachtree 2012 Annual Report Download - page 34

Financial and operating review continued
Total revenue from continuing operations in the Americas grew
by 4%* to £411.7m (2011: £395.8m*), with organic revenue
growth of 2%* (2011: 3%*). Organic subscription revenue grew
4%* (2011: 4%*), while organic software and software-related
services revenue contracted by 6%* (2011: 3%* contraction).
Organic revenue growth for the second half of the year was 3%*
compared with 1%* for the rst half of the year, demonstrating
the anticipated sequential improvement in performance.
The EBITA† margin for Americas increased to 26% (2011: 25%*),
reecting an increase in margin of our North American business.
North America
In North America, we continue to see the impact of the strategic
switch to recurring revenue. Adoption of Sage Business Care, our
premium support offering, was a key feature of the year particularly
for Sage 50 US Edition and Sage 50 Canada Edition, which both
delivered good revenue growth. In April 2012, we announced the
launch of a pure subscription option for our mid-market products
including Sage 100 ERP, Sage 300 ERP and Sage 500 ERP and
have also launched this option for Sage ERP X3 in North America
and Sage 50 Canadian Edition.
Our payment services business showed good growth of 6%*,
driven by growth in merchant numbers and volumes and 18%*
revenue growth in the cross-sell of integrated payment solutions
into our accounting base.
Brazil
Folhamatic has continued to perform well in the short period since
the acquisition, contributing revenue of £12.2m and EBITA† of
£3.0m, which is in-line with our expectations. We are also pleased
with progress made on integration. We have supplemented the
management team around Mauricio Frizzarin, the founder and
CEO of Folhamatic, with key appointments in senior nance
and HR roles.
We have subsequently strengthened our footprint in Brazil with the
important in-ll acquisitions of EBS and Cenize, as announced in
September 2012. The acquisition of EBS, a provider of accounting,
business management and tax software in Brazil, strengthens
Sage’s market leadership position in the accounting rm market
in Brazil and extends the geographic breadth of our offering,
particularly in the Southern region. The acquisition of Cenize,
a provider of accounting software to small and micro businesses
in Brazil, extends Sage’s reach to an attractive market segment
with signicant growth potential.
* Underlying gures neutralise the impact of foreign exchange movements and exclude amortisation of acquired intangible assets, acquisition-related items and imputed interest.
† EBITA is dened as earnings before interest, tax, amortisation of acquired intangible assets, acquisition-related items and is after neutralising the impact of foreign exchange movements.
Americas
Pascal Houillon, Paul Harrison,
Chief Executive Officer, North America Brazil
Strategic highlights
• The strategic shift to subscription continues to be a key theme with a continued
uptake in the adoption of Sage Business Care, our premium support contract
• Sage One, our SaaS solution for start-up and small business, was launched to the
US market in May 2012
• Subscription pricing options for our North America mid-market products launched
in April 2012
• Strong payments revenue growth in North America driven by cross-sell and higher
merchant and volumes
• Entry into Brazil with the acquisitions of Folhamatic, EBS and Cenize
Strategic priorities for FY13
• Subscription pricing option for Sage ERP X3 to launch in North America
• Integration of EBS and Cenize into Folhamatic leveraging broader geographical
reach with a streamlined product portfolio
Key data
£ m 2012 2011
Revenue from continuing operations £411.7m £395.8m
EBITA £106.1m £100.9m
EBITA margin 26% 25%
Country revenue
North America 97%
Brazil 3%
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