Sage well-equipped to meet challenges

Feb 5 2009 by Andrew Mernin, The Journal

ACCOUNTANCY software firm Sage yesterday said its UK operation - which employs 1600 people in the North East - is standing up to tough market conditions despite a slump in its US business.

The Newcastle company said its UK division showed a “resilient performance” in the three months to December 31, although mainland Europe, which accounts for 35% of revenues, saw revenue growth slow.

The group said it had been boosted by the weakness of the pound although sterling’s slide against the dollar and euro had served to increase its debt, up by £108m to £649m.

Meanwhile the firm, which serves 5.8 million businesses worldwide, said North America was operating in “particularly challenging market conditions”.