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.

Further reading:

Accounting software packages: it's a jungle out there

CODA2go now launched with a view to tackling the SME market