As expected, accountancy software company Sage Group Plc has once again reported a good half year. Pre-tax profits for the UK-based company were up 37% to 16m British pounds on revenues that jumped 42% to 71.8m pounds. This included a four-month contribution from Paris-based Sybel Informatique SA, acquired by Sage in November 1995 (CI No 2,788). First half revenues from the software business were split between primary software sales that rose 38% to 33.7m pounds and the sales of services and supplies to existing customers, up 48% at 32.6m pounds. The French market, now the largest geographical segment of revenue, made excellent progress during the period, and accounted for 34% of the group’s total profits at 6.3m pounds, an increase of 138% on last year’s figures, on revenue that soared over 100% to 33.8m pounds. The company attributed gains from the French operation in part to a traditional first half bias, which would balance-out with a weaker second half, although the company expected this to show a stronger performance than during the same time last year. The rationalization process to integrate Saari SA, acquired in 1995 (CI No 2,437) and Sybel continued during the period, and the new additions are in the process of being integrated into the company. The acquisitions give the French group personal computer accounting software products and brands for all petite et moyennes entreprises or Le PME as the locals call them. Tighter margins continue to hamper US performance, but it managed to produce 11% of the group’s profits, rising 14% to 1.9m pounds, on revenue up only 5% at 11m pounds. In his statement, chairman david Goldman said the company would continue to supply a range of low-cost products through retailers, but that emphasis is shifting towards the higher margin areas of selling through specialist dealers and value-added resellers. Germany is considered to be a prime country for development, and Sage said it would be interested in acquiring something within the US personal computer accountancy or software field.
