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Sage profits slip in first half
Buying spree over for time being
Sage will spend the rest of the current financial year bedding down its latest crop of acquisitions after releasing first half results that showed revenues up but net profits down.
The UK-based business software vendor turned in revenues of £574.4m for the six months ending March 31, up 26 per cent on the previous year. Or up 34 per cent on the year, if current exchange rates are used. Revenues grew organically in all its regions.
Pre-tax profits were £74.9m, down on the previous year’s £78.5m. However, Sage chose to highlight “adjusted” profits – ignoring amortisation, a disposal gain last year, and neutralization of foreign exchange movements – which showed a 12 per cent rise to £121.8m.
The ever-acquisitive Sage made seven buys in 2006 and completed three more buy-ups in the first half.
However, it looks like it plans to put the cheque book away for a while at least. In its outlook, Sage said the first half had been in line with expectations, and the focus had been on integration and growth in its organic business. The second half will see it focus on “further operational improvements to recent acquisitions”, the reorganization of its American business and sustained organic growth.®