Sage debt reduced by £25m in three months

Accountancy software giant Sage announced a drop in net debt and improved growth trends in its latest interim management statement released this morning.

Net debt fell to £280m at 30 June from £305m at 31 March. The results are consistent with management expectations announced at the interim results on 5 May 2010.

Paul Walker, Sage's outgoing CEO, said the economic environment continues to be uncertain and the business was managing its "cost base prudently, whilst investing to enhance our competitive position".

He added that the company's growth internationally would position it well for the future.

Analysts expect the firm to report pre-tax profits of £332.6m for the year, up from £307.5m the previous year, Reuters reports.

In May this year, Sage announced in its H1 results that its Practice Solutions product, aimed at UK accountants, grew 7% compared to the same period a year ago. It also announced that operating profit had grown 3% to £44.9m compared to the same period last year.

Further reading:

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Sage profits up

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