Sage revenues up but European markets uncertain

SAGE HAS BOOSTED its dividends, as revenues increased and customer numbers spiked.

The business software giant saw  dividends increase 25%. This is attributed to revenues increasing 4% to £1.33bn compared to £1.27bn in 2010.

Pre-tax profit rose 11% to £352.6m for the year ending 30 September.

Sage also increased software and software-related services 3% to £457m as customer numbers rocketed 260,000. This bolstered the subscription takings to £876.5m.

The IT giant also increased earnings before interest tax and amortisation by 8% to £365.1m from £336.7m last year.

CEO Guy Berruyer (pictured), said: "In the past year we have continued to build on these foundations to deliver higher revenue and profit growth in the future.

"With our strong cash flows, confidence in our business and our focus on shareholder returns, we are evolving our approach to the use of capital and, as part of the process, the board has rebased the dividend, resulting in a proposed 25% increase for 2011."

However, Berruyer warned that its European customers face an uncertain future because of the tough economic climate.

"As we look forward, there are clearly significant macro-economic concerns which may impact SMEs, particularly in the eurozone, and our customers are telling us through our Sage Business Index that they see the outlook remaining uncertain."

UK & Ireland's division grew organically by 5% attributed to several launches in the last year, including mobile and online products.

Other growth areas include France and Germany where the business increased revenues by 5% respectively. However, both Switzerland and Spain's revenues were flat.