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Sage tipped for upbeat results

ACCOUNTANCY software group Sage is expected to post better-than-expected performance figures when it presents its interim results tomorrow.

The Newcastle-based firm could post revenues of £725.9m, according to Panmure Gordon analysts, compared with a consensus prediction of £713.8m.

Sage, which employs around 13,400 people and serves more than six million businesses worldwide, is also expected to produce an optimistic outlook statement as the company gears up for growth.

Pre-tax profits fell 2% to £307.5m in the year to September 2009, but Sage said it was encouraged by a contract renewal rate of 81%.

Panmure analyst George O’Connor said the company was “laying the foundations for growth” with new products, while the recovery in its US market and debt reduction efforts continue.

“We expect Sage interim results to be a notch ahead of expectations, with a cautiously positive outlook statement bolstered by numbers which suggest that all of the geographies are performing in line and debt is falling,” he said.

Sage’s results are expected to be the last for outgoing chief executive Paul Walker, who announced his intention to step down earlier this year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .