Sage FD bullish about future acquisitions
After posting another strong set of interim figures, driven on by customer loyalty and recent acquisitions, Sage's finance director is particurlarly bullish about future acquisitions.
Link: Profits grow as Sage posts strong interims
Finance director Paul Harrison told Accountancy Age that the accounting software provider is still looking to purchase more businesses. ‘Sage remains an acquisitive business. We will continue to look in new territories and also vertical markets,’ said Harrison.
The accounting software provider has seen pre-tax profits increase 17% to £86.7m for the half-year ended 31 March, from £74.3m a year ago.
Sage’s debt increased to £180m from £111m, mainly due to its acquisitions. However Harrison said its level of debt was ‘well under control’.
‘Cashflow in the company is strong, and our gearing is comfortable. We could increase our level of debt if we need to finance more acquisitions.’
Sage has added 146,000 new customers in the six-month period, in addition to the 903,000 gained from its acquired businesses, including Spanish Software company Grupo SP and Oregon-based Timberline.
Chairman Michael Jackson said: ‘[These results] demonstrate the value of our key asset, our large and growing customer base of over four million SMEs, to which we are successfully selling our extensive range of products.’