Sage trading in line with expectations

Software firm says client portfolio left it well positioned for market recovery

Sage managed to reduce its debt to £392m

On release of its 1Q results, accountancy software company Sage Group said trading is in line with its own predictions as subscription revenue growth continues to offset subdued markets for software and software-related services.

The firm provided its interim management statement on its results for the three months to 31 December and added that strong cash generation helped it to trim net debt down to £392m over the period, from £439m posted in the prior quarter.

Paul Walker, the company’s chief executive, said he had seen no change to the challenging business environment over the period.

But he added that the firm’s large and geographically diverse customer portfolio was central to its positioning for the market recovery.

Sage provides business management software to more than 6,000,000 small businesses. Analysts predict that revenue at the firm will reach £1.42bn, with pre-tax profit of £322.8m for the year to the end of September. This compares with the £1.44bn of revenue and £307.5m of profit reported in 2009.