Sage growth in line with expectations: European growth strong

Source: Technology Digital

Date :09/05/2008 15:56:32

Sage Plc, announced a nine percent rise on Thursday, as strong growth in Europe and areas such as South Africa and Australia helped offset US problems.

The business management software and services provider posted a pretax profit of £122.6 million for the six months to March 31, up from £108.6 million in the previous year.

Revenue was £640.4 million compared with £574.7 million, Sage, the UK’s largest listed software company said.

North America

Chief executive Paul Walker said the results demonstrate the strength and resilience of the company's business model in a more challenging economic environment, with organic growth underpinned by almost 60 percent of revenues coming from subscription contracts.

While the company's businesses in the UK, Mainland Europe and other regions showed good revenue and profit growth, North America was hit by problems in its healthcare division, which is being restructured.

Aside from healthcare, the North American business performed in line with expectations in a 'more challenging' economic environment, Mr. Walker said.

Acquisition opportunities

In a statement, Mr. Walker said the company continues to evaluate a 'strong' pipeline of acquisition opportunities but 'remains disciplined' in its valuation appraisals.

'We see a lot of opportunities in the market, particularly in these more turbulent times,' he said.

Looking forward, the company is seeing early benefits from changes introduced earlier in the year, including new management in North America.

May 09, 2008