Sage: tech spending charges on

Interim result show growth in profits but a slump in Sage Healthcare Division.

Written by Rachael Singh

Accountancy Age, 08 May 2008

It is an important driver to expand and sustain good levels of organic growth

Paul Harrison, group finance director Sage

SMEs are still spending on accounting software, Sage has said as it clocked a pre-tax profit of £122.6m for the period to 31 March, up from £108.6m on the previous year.

UK revenues grew 12% from £107.5m to £120.2m in comparison to the same six months last year.

Paul Harrison, group finance director for Sage said: 'We have a 5.5m SME customer base and even though we are facing a touch economic market, SMEs still need support'.

The results also reveal that Sage continues to grow but its Healthcare Division had slumped, from £249m to £248.5m. Sage Healthcare makes up 11% of the overall company.

In response to the launch of CODA2go the new force.com application released by Coda this week, Harrison said: 'They have no brand in the SME market.

'We have a good relationship with business. If you get the support right the customers will renew their contracts.'

Earnings per share were up 9% to £7.30.