Thursday lunchtime business bulletin

May 8 2008 By Andrew Mernin

Accountancy software firm Sage offset a disappointing performance in North America to post half-year figures ahead of market expectations today.

The group further buoyed investors - shares rose 6% - by pointing out that 60% of its revenues came from recurring subscription contracts, leaving it well positioned for growth in times of challenging economic conditions.

Sage reported adjusted pre-tax profits of £138m for the six months to March 31, a gain of 9% on a year earlier after businesses in the UK, mainland Europe and the rest of world achieved good revenues and profit growth.

North America disappointed with flat revenues and a dip in profits, but Sage said it had taken steps to improve the division’s healthcare arm.

The Newcastle-based firm axed North American chief executive Ron Verni and finance director Jim Eckstaedt last October after disappointing sales figures. Sue Swenson, a former senior manager at Pacific Bell, took charge of the division at the start of this month.

The City watchdog today warned that some insurance comparison websites could be misleading consumers because of the way they presented information.

The Financial Services Authority (FSA) reviewed 17 comparison websites and found that while they were all appropriately authorised, the clarity, fairness and accuracy of information given to consumers could be improved in some cases.

The review found a number of problems with the sites, such as some of them using assumptions to generate quotes, but not allowing consumers to review these assumptions.

Other issues included sites giving details on policies that were inaccurate and out of date, sites failing to list all of the features of a policy, and information on the excess consumers would have to pay being wrong or misleading.

In one case consumers were only given full information on a policy once they had committed to taking it out.

Clothing chain Austin Reed said today it would open another 30 stores this year as the firm continued its expansion after being taken private.

The group, which also operates the womenswear clothing chain Country Casuals, will look to grow its UK sites from 329 to nearly 360. It currently has 96 Austin Reed stores and concessions, as well as 233 Country Casuals outlets in the UK and Ireland.

Austin Reed delisted from the London stock market in January last year after it was bought for £49m by Guy Naggar and Peter Klimt, the owners of corporate finance group Dawnay Day, in January.

In its first full year as a private company to January 31 this year, the company saw like-for-like sales rise by 0.8%, with total UK and Ireland revenues 1.8% ahead at £110m. Underlying profitability also improved during the year, from £6.7m to £8.8 million.

The pound at 10am was US$1.9609 compared to US$1.9518 at the previous close while the euro at 10am was £0.7823  compared to £0.7876 at the previous close.