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Sage reports gentle SMB spending

Steady as she goes

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Accountancy software company Sage is seeing a steady flow of small businesses spending money on its products in the firm's first quarter.

Newcastle-based Sage, which just last week launched an online accounting package aimed squarely at SMBs, said in a statement this morning that results for each of its divisions were in line with expectations.

The company added that revenue growth was also on track, following an improvement in sales that Sage reported in the second half of its fiscal year, ended 30 September 2010.

Last month Sage said revenues were flat compared to the same period a year earlier, but profits were up 20 per cent.

"Our principal markets continued their gradual recovery in the quarter, and I am pleased that our results were in line with our expectations," said Sage CEO Guy Berruyer.

The company reported that it had decreased its debt to £187m as of 31 December 2010, down from £219.8m just three months earlier. ®

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