Sage brushes off credit crunch

Despite 'uncertain and challenging markets'

Sage told the London Stock Exchange this morning that it expects to hit targets for the year but remains cautious of the impact of the credit crunch on its business.

The accountancy and management software specialist expects to hit targets for the full year ending 30 September. Sage's business in the US, except for its healthcare division, performed well despite tough conditions. Sales in Europe for the nine months to 30 June were strong.

Paul Walker, chief executive of Sage, said: "Our businesses continue to show resilience in uncertain and challenging markets." He said that although the company remained cautious about the economic outlook it believed its large number of customers spread around the world would help it weather wider problems.

The firm reduced net debt in the period to £532m compared to £556m on 31 March 2008. It expects to hit analysts' targets which predicted revenues of £1.296bn and Ebitda of £310m for the year.

Sage will publish prelimary results for the year ended 30 September on 3 December 2008.

Sage's full interim statement is here. ®