Sage ups full-year dividend

2nd Dec 2009 07:03

Newcastle-based accountancy software firm Sage upped its dividend and said conditions have stabilised in the second half.The total dividend has been increased by 3% to 7.43p per share (2008: 7.21p per share). The group said the rise is reflecting the strength of cash flows and its robust business performance.Revenue, adjusted for foreign exchange movements, fell 4% to £1,439m. Earnings before interest, tax and amortisation, including restructuring costs, dropped 6% to £320.7m and profit before tax fell 2% to £307.5m. Expectations were for revenue of around £1,441m, earnings before interest, tax and amortisation of £336m and profit before tax of £306m. Broker Panmure Gordon expects net debt to be around £463m. 'Conditions stabilised in the second half of the year with SMEs still investing in value-adding business management products and services,' said chief executive Paul Walker.'However, at this stage, we are not yet seeing a general recovery in our markets. Therefore, we will continue to manage our cost base prudently whilst ensuring the business is well positioned to take advantage of the future economic upturn,' he added.