Sales still sluggish at Sage

5th May 2010 07:37

Better control of costs enabled accountancy software giant Sage to post a healthy rise in interim profits, though sales fell again albeit a slower rate than this time last year.Pre-tax profits in the six months to March rose to £159.6m from £139.2m, on sales of £719m, down 4% from £748m. Underlying profits rose by 5% to £177.5m, with the biggest improvement in the US, where profits rose 19% to £60.2m. The rest of the World also did well, though the UK and Europe were largely flat.Sage said there are signs its core SME market is beginning to recover, though in the short term this recovery remains 'tentative', so it will to continue to focus on costs.The interim dividend rises by 3% to 2.58p per share. "The operational and financial strength of our business supports our progressive dividend policy and the 3% increase in the interim dividend," chief executive Paul Walker added.