TechnologyAccounting SoftwareSage hit by tough market conditions

Sage hit by tough market conditions

Accountancy software giant Sage has pointed to tough market conditions as it revealed interim results showing a 10% rise in pre-tax profits to £65.1m for the six months to 31 March 2002, writes Alex Miller.

Turnover for the period was £279.8m – up 22% on the comparable figure from the previous year. In the UK, however, operating profits dropped by almost £1m to £27.4m on turnover of £76.7m.

According to the company the drop in the UK profit margin was due to investments in the business and the performance of the Enterprise division.

‘The Enterprise division continues to face challenging market conditions, which resulted in reduced revenues.’

However, with our strong product portfolio, and the opportunity to migrate our existing customers to mid-market solutions, we are confident of better performance in the second half,’ said the company’s results report.

Revenue from existing users accounted for some two-thirds of the company’s total income for the period. ‘We remain cautiously optimistic about the rest of the financial year despite the continuing challenging market conditions.’

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