Sage maintains momentum in first quarter

26th Jan 2011 07:03

Accountancy software group Sage's first quarter was in line with expectations flagged at last month's full-year numbers, keeping up the momentum in revenue growth seen in the second half.In a rather brief statement, the company said results for each of its regions matched forecasts, "with the improved revenue performance we saw in the second half of the year ended 30 September 2010 continuing into the first quarter of this financial year". In December, the firm reported revenue for the full-year was flat at £1.44bn, but said it had returned to organic revenue growth in the final six months, a 3% increase offsetting a 2% drop in the first half.Net debt at the end of 2010 fell to £187m from £219.8m at 30 September, reflecting continued strong cash generation. Sage says it remains "comfortably" within its banking covenants with committed financing facilities in place until 2015 to 2017."Our principal markets continued their gradual recovery in the quarter, and I am pleased that our results were in line with our expectations," chief executive Guy Berruyer said."In addition, the organisation changes announced in December have been implemented smoothly. This, together with our strong business model and geographically diverse customer base ensures we are well positioned to capitalise on the many growth opportunities we have within the business."