Turnover increased by 13% to Pounds 229.6m, while pre-tax profits climbed to Pounds 59.2m. The company derived almost half of its revenue from its US-based operations, where it also registered the highest growth in turnover to Pounds 106.5m.
However, the UK region was by far the most profitable, generating profits of Pounds 28.3m on turnover of Pounds 71.4m.
The only region to suffer a fall in revenues and profits was Europe, which saw profits fall more than 15% to Pounds 11.6m, on the back of turnover down 8% to Pounds 51.6m
Commenting on the results, chairman Michael Jackson said Sage had not been ‘immune to the US slowdown’, but nonetheless had delivered ‘satisfactory results for the full year’.
He blamed the fall in profits in Europe on significantly lower new licence revenues and restructuring operations, but said Sage continued to perform well in Germany and was improving in France.
Jackson praised the progress made at the company as well as its improved profitability, and said a key reason for Sage’s growth was its ability to generate revenues from its 2.7 million existing customer base, despite a decline in license revenues after 2000.
In its statement, Sage also confirmed the acquisition of Interact Commerce Corporation on 3 May, after announcing plans to purchase the customer relation management software maker in March 2001. Sage acquired Interact for Pounds 183m.
‘The acquisition of Interact marks a significant development in our strategy of offering SMEs a comprehensive suite of business management software solutions,’ the company said.
Sage will pay registered shareholders interim dividends of 0.143p per share on 19 June 2001
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