Sage boosted by small businesses

City A.M. Reporter
Accountancy software firm Sage Group said that a gradual recovery in spending by small businesses had continued in its first quarter, keeping the north east England-based group on track.

Sage, which sells software to 6.3M small and medium-sized businesses, said results for each of its regions were in line with expectations, with a resumption in revenue growth continuing.

The company said in December that organic revenue grew by three per cent in the six months to end-September, the second half of its fiscal year, marking the first return to growth in software revenue since the second half of 2007.

Chief Executive Guy Berruyer said: "Our principal markets continued their gradual recovery in the quarter, and I am pleased that our results were in line with our expectations."

Sage said it cut its debt to £187m at 31 December from £219.8m three months earlier.