Accountancy software providers Sage has released its first half results for the year announcing that it is to make restructuring changes equating to approximately 4% of total cost for 2008.

The cost saving drive in the UK is expected to save the company £5.8m, with £3.7m coming from restructuring changes in the second half of the year.

Finance director Paul Harrison has said that there could be 700 job cuts across the group later this year, Reuters reported.

Chief executive Paul Walker said: 'After a robust performance last year, we are now experiencing the effects of the weakening global economy in most of our markets, with customers delaying software purchasing decisions.'

The global company has made £49.3m of cost savings with a company statement adding: 'As anticipated, customer demand for software and software-related services was weak.'

Sage said: 'We anticipate that market conditions will be challenging for both Sage and its customers over the second half of the year.'

'With global customer confidence at historically low levels, demand for software and software-related services will remain muted over the second half of the year,' it added.

Total UK revenues remained constant with the first half of 2008 showing revenues of £121.7m and first half of 2009 with £121.9m.

Organic revenues in the UK decreased by 2% while organic and software related services revenue shrunk by 19%.

The results revealed that mid-market and payroll products had seen weak license revenue.

In the UK customer subscriptions grew 7% however, in North America subscription revenues fell by 3%.

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Brokers says Sage could restructure