Sage profits steady in tough climate
ACCOUNTANCY software firm Sage today reported an 3% rise in annual profits to £273m but warned of weakening UK and US markets in recent months.
The group, which serves 5.8 million businesses, said despite a 10% rise in UK subscription revenues, software sales slowed in the second half to September 30.
Total revenues were up 7% to £1.3bn, with UK revenues up 10% to £245.7m and sales of its flagship UK product, Sage 50, ahead by 8%.
Newcastle-based Sage, which employs around 14,500 people, grew its European revenues by 15%, while US turnover rose just 1%.
Chief executive Paul Walker said the ``strength and flexibility" of its business model helped achieve solid results in difficult market conditions.
``As markets weakened in the UK and North America, we were rapidly able to adapt to the changing markets and proactively focus our businesses in these regions."
He said growth in subscription revenues and demand for customer service continued to offset weakness in software in the new financial year.
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