Partner Article

Sage targets recovering SMEs

SOFTWARE giant Sage has predicted a surge in business following a 15% climb in profits, as the recovery bolsters the spending power of SMEs.

The Newcastle plc saw its pre-tax profit jump 15% on the previous year to £159.6m in the six months to 31 March.

Revenue in the period slipped 4% to £718.9m compared to the first half of 2009, while it added 127,000 new customers during the period.

The company, which employs 1,200 people in the North East and 13,400 worldwide, said the recovery in the markets would see a return to IT investment from its army of SME clients.

Chief Executive Paul Walker said: “We are pleased to report a good performance for the half with our organic revenue stabilising and a strong increase in profitability following cost reductions made in 2009.

“Our customers remain cautious, but the relevance of our products and the compelling nature of our customer support has driven our business in the period.

“Following a period where SMEs have delayed upgrading and investing in software solutions, we believe there is pent up demand which will be realised as markets recover.

“In the short term, while the recovery remains tentative, we will continue to manage our cost base prudently whilst investing and preparing for future profitable growth.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .