Sage hits profit targets

Newcastle-based Sage develops accountancy software

Software group Sage has reported a 12% rise in pre-tax profits for the year to the end-September.

Both profits and sales had met market expectations, Sage said in a trading update.

The Tyneside based technology firm said that group pre-tax profit was £151m.

The group's full year sales were £560m, up 4% on the previous year.

'Challenging'

Market conditions in Europe "remain challenging" it said. Growth there was largely due to acquisitions, and both operating profit and margins shrank.

The US, however, the picture was stronger, with margins improving 2% to 23% on year-earlier, and operating profits up 17% to approximately £61m.

In the UK, sales grew 3% to £161m, while margins improved 3% to 40% and operating profit rose 12% to £65m.

Much of the UK growth was generated by gains in the entry-level business, said Sage.

The company employs 4,000 people worldwide, including about 1,400 people in the UK.

It joined the FTSE 100 Index in 1999.