Customers' recovery sees Sage sales surge

The FTSE 100 company returned to sales growth in the six months to September and maintained the improved performance in the final three months of 2010.

Chief executive Guy Berruyer said the company's principal markets, which include the UK, USA and Australia, stepped up their gradual recovery in the quarter, helping Sage perform in line with expectations.

The company operates in more than 24 countries and mainly serves small and medium sized enterprises (SMEs). The UK makes up about 20 per cent of its revenues, with America accounting for about 40 per cent.

The Newcastle-based firm, which employs around 13,400 people and serves more than six million businesses worldwide, previously said SMEs went into the recession late but were also slow to recover.

Sage recently reported its first period of growth in software and software-related services in the six months to September 2010 since 2007. The improved performance helped overall revenues climb 3 per cent on an organic basis in the second half of the year, compared with a decline of 2 per cent in the first half.

Despite revenues for the year being flat at 1.4bn, the company posted a 14 per cent rise in underlying profits of 355.7m.

Aside from its Newcastle headquarters, the firm also has UK offices in Manchester, Winnersh, near Reading, central London and Witney in Oxfordshire.