The accounting and management software company Sage, has increased revenues over the last 12 months by four percent to £1.33 billion. The company has also boosted its customer base by 261,000. However, the company remains cautious, as statistics show that Small and Medium Enterprises remain uncertain about the future of the UK economy.
Business for the company’s branches in Ireland and the UK grew by four percent, which was in line with the outcome for other areas of Europe. The strongest growth was seen in Poland, which increased by 24 percent. However, Spain contracted by four percent in a difficult economy.
According to Guy Berruyer, the chief executive of the Newcastle-Upon-Tyne business, “concrete progress” was evident although he had significant concerns for the coming 12 months. The Sage Business Index shows that businesses remain uncertain of the economy’s future, with the Eurozone and a number of other factors having a detrimental effect on their performance. Berruyer said that if a “clear recession” in the UK occurred, this could affect performance in other countries resulting in contraction.
The uncertainty blurs the financial outcome for Sage, as two thirds of their revenue is secured from recurring income, with subscriptions for support and updates to software. However, the other third of the company’s revenue is income from licences for new software. This income suffered during the last recession. Mr Berruyer said:
“When there is bad weather outside, companies reduce the size of their sails.”
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