Rachael Singh, Accountancy Age, Wednesday 28 July 2010 at 10:05:00

FTSE 100 financial software company Sage said its debt has dropped by 25m in the last three months


Accountancy software giant Sage announces drop in net debt and improved growth trends in its latest interim management statement released this morning.

Net debt fell to 280m at 30 June from 305m at 31 March. The results are consistent with management expectations announced at the interim results on 5 May 2010.

Paul Walker, Sage's outgoing CEO, said the economic environment continues to be uncertain and the business was managing its "cost base prudently, whilst investing to enhance our competitive position".

He added the company's growth internationally would position it well for the future.

Analysts expect the firm to report pre-tax profits of 332.6m for the year, up from 307.5m the previous year, Reuters reports.

In May this year Sage announced in its H1 results its Practice Solutions product, aimed at UK accountants, grew 7% compared to the same period a year ago. It also announced operating profit had grown 3% to 44.9m compared to the same period last year.

Further reading:

Guy Berruyer takes CEO role at Sage

Sage profits up

Intuit problems sees rival Sage's shares increase