Accountancy software company Sage has met analysts’ expectations with its H1 2002 results. Turnover increased 22% to £279.8 million, while pre-tax profits were up 10% to £65.1 million. The improved results follow the successful integration of Interact, the US based CRM company Sage acquired last year. However, the positive news was tempered by speculation that Microsoft is looking to acquire one of Sage’s main European rivals.
Chairman, Michael Jackson, commented: Our strong recurring revenues provide stability and growth. With our compelling product portfolio for small to medium-sized businesses we continue to attract large numbers of new customers, which in turn creates further installed base opportunities.
Our businesses progressed well in implementing the clear strategies which have been set. The first half performance was encouraging. We remain cautiously optimistic about the rest of the financial year despite the continuing challenging market conditions.
Sage however needs to keep its eye on Microsoft which last year bought Great Plains Software and reportedly plans to further boost its portfolio in the area with the acquisition of Navision Damgaard, a low-end mid-market vendor which competes primarily in the same continental European market addressed by Sage.