Software giant Sage is eyeing opportunities in emerging markets as it aims to build on a 30% rise in earnings to £1.1bn for the year ended 30 September 2007.
Emerging markets only accounted for £76m of Sage's total revenue in the financial year. The company acquired Creative, which has a presence in Malaysia and Singapore, and is planning to be more active in emerging markets.
'Emerging markets are where the growth is - we have been doing research in the BRIC economies and have built good relationships there,' said finance director Paul Harrison, who also said acquisitions would be the preferred route to entering new markets.
The UK market saw revenues rise from £204.4m to £217.7m as improvements to the technology and service on the core Sage 50 small business accounting product reaped dividends.
Harrison said Sage 50 was well-positioned for further growth and played down fears that a Microsoft launch in the small business space would hurt growth prospects.
'Microsoft has adopted a similar model in the US, where they enter the market at a low price and eventually offer the product free of charge. We haven't been hurt there because service is so important and that is where we are strong,' said Harrison.
Pre-tax profits Sage rose 14% to £251.3m and the company rebased its dividend, which grew by 95% from 2.51p per share to 5.73p per share.
Sage shares were trading 7.4% higher at 208p following the announcement.
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