Feeds

Sage weathers storm with 10 per cent profit increase

Investors still not impressed though

  • alert
  • submit to reddit

Build a business case: developing custom apps

Accounting software group Sage has announced a 10 per cent pre-tax profit increase in its interim results. New licences have fallen thanks to a general slowdown but it has managed to tap existing customers to increase turnover by 13 per cent.

The City was not too impressed however as the results came at the bottom of expectations and the company's share price has dropped more than five per cent this morning to rest at 258.25p.

The company also suffered slightly from recent investment in the US market, which has since slowed down thanks to the state of the economy (it spent £183 million acquiring Interact in March).

Sage remains optimistic though, with Chairman, Michael Jackson saying he thinks the company will knock out some good full-year results.

The interim results were: (last year's)

  • Turnover up 13 per cent to £229.6 million (£202.5 million)
  • Pre-tax profit up 10 per cent to £59.2 million (£54.0 million)
  • Earnings per share up 8 per cent to 3.214p (2.987p)
  • Dividend for the half year up 10 per cent to 0.143p per share (0.130p)
  • Operating cash flow £66.6 million (£66.7 million)


Mr Jackson had this to say: "Our businesses have made sound progress during the period. Whilst broadening our product portfolio and attracting more customers, we continue to improve underlying profitability. Our second quarter showed an encouraging improvement in revenue growth which continued into April. Whilst not immune to the US slowdown, we believe we will deliver satisfactory results for the full year." ®

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.