Sage in line but markets remain testing

28th Jul 2009 07:02

Software giant Sage said results for the year ended 30 September 2009 is in-line with market expectations but warned that markets remain testing. The group said market conditions in the quarter ended 30 June 2009 have remained challenging but largely unchanged. Subscription revenues continue to show solid growth and the cost base has been successfully reduced to address the slowdown in the market for software and software-related services."There has been no significant change in market conditions during the quarter ended 30 June 2009 and we are planning for markets to remain testing," said chief executive Paul Walker. "However, our proven business model and large, geographically diverse, customer base give us confidence that we are well positioned for these conditions and the eventual market recovery," he added.The group said it has a robust balance sheet, with committed facilities of £810m in place until 2011. Cash generation remains strong and net debt at 30 June 2009 fell to £491m (31 March 2009: £558m).