The new CEO at accountancy software group Sage has praised the company's strong performance as annual turnover reached almost £1.85 billion.

The Newcastle-headquartered company generated revenue of £1.846 billion in the 12 months to 30 September 2018, an increase of 7.6 per cent from a year earlier.

Operating profits grew by 22.7 per cent to £427 million while pre-tax profits grew to £398 million.

Steve Hare, who took up the role of chief executive earlier this month, said Sage has shown "stronger performance" in the second half of its financial year.

"The renewed focus on high-quality subscription and recurring revenue has generated momentum as we exited the year," he added.

"As CEO I will put customers, colleagues and innovation at the heart of everything we do to accelerate the transition to becoming a great SaaS business. That means investing further resource in Sage Business Cloud, a continued commitment to customer success and a culture which values the individuals and promotes collaboration.

"Increased investment in these areas will lead to an acceleration in high-quality sustainable recurring revenue growth."

Hare joined the board in January 2014 as chief financial officer and was appointed as interim chief operating officer in August 2018 when former CEO Stephen Kelly stood down.

Hare will combine his duties as CFO with those as CEO until Sage finds a new finance boss.