Sage profits up

Sage, the financial software giant, revealed static UK revenues but an increase in profits across the company.

Revenue in the UK in the first half of 2010 remained unchanged compared to the same period a year before, at £122m. Operating profit grew 3% to £44.9m for H1 2010, compared to the same period a year earlier.

Sage said in its statement to the stock exchange that its HR and payroll products experienced a "subdued" customer demand over the previous six months.

The FTSE 100 company claims its Practice Solutions product, aimed at UK accountants, grew 7% in the first half of 2010 compared to the same period in 2009.

Across the company, earnings before interest tax and amortisation increased to £181.9m in the first half of 2010 compared to £169m a year earlier - an overall rise of 8%.

Overall pre-tax profit grew to £177.5m for H1 2010 from £159.9m - an increase of 11%.

Chief executive Paul Walker said: “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 longer term, we have a significant opportunity to provide connected business solutions to our customers. 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. The operational and financial strength of our business supports our progressive dividend policy and the 3% increase in the interim dividend.”

Sage believes some SMEs will find purely online software to be "attractive". It has launched several online products abroad such as My Business Online in South Africa and Billing Boss in North America. It also announced it will make a number of launches around the world in the second half of the year.

Further reading:

Fish Partnership teams up with Sage

New Sage product to help accountants file clients' accounts

Sage chief Walker to step down after 16 years