Partner Article

Sage reduces debt level

ACCOUNTANCY software giant Sage has announced a drop in net debt and improved growth trends in its latest trading update.

Net debt at the Newcastle-headquartered firm fell to £280m at 30 June from £305m at 31 March. The results are consistent with management expectations announced at the interim results on 5 May 2010.

Paul Walker, Sage’s outgoing CEO, said the economic environment continues to be uncertain and the business was managing its “cost base prudently, whilst investing to enhance our competitive position”.

He added the company’s growth internationally would position it well for the future.

Analysts expect the firm to report pre-tax profits of £332.6m for the year, up from £307.5m the previous year, according to reports.

In May this year Sage announced in its H1 results its Practice Solutions product, aimed at UK accountants, grew 7% compared to the same period a year ago. It also announced operating profit had grown 3% to £44.9m compared to the same period last year.

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