Income from a subscription compensates to Sage decrease in demand for software

The Sage group, the developer of business applications of the class ERP and CRM for medium and small business, published financial results of the 2008 financial year (which ended on September 30). The income of group grew by 7% and was 1.3 billion pounds sterling (about 2.5 billion dollars), in comparison with 1.2 billion pounds sterling (2.4 billion dollars)  for  the same period of last year. Total amount  of profit before charge of taxes, depreciation and percent on the credits (EBITA) grew by 23% whereas a year ago on this indicator growth by 24% was recorded.

Income from a subscription to software and  rendering services in a support and maintenance grew by 10% and is 61% of the total amount of revenues of the company now.  According to vendor, the ukhusheniye of the general economic situation least of all was reflected in this item of income. Sales returns of the software and the related services increased by only 2%.

The customer base  was replenished within a year with more than  300 thousand new clients and  for the end  of September contained more than 5.8 million companies.

Besides, against the background of the general reduction of staff in many leading companies - developers of business applications, the number of staff of Sage grew in a year from 13,900  to 14,500 people.

According to the CEO of the Sage group Paul Walker , the flexibility of model of business allowed the company to achieve strong results in difficult economic conditions. Considering weakening of the markets in Great Britain and North America, the company quickly adapted to the changing market conditions and reoriented the enterprises in these regions.  Besides, Paul Walker noted that big and geographically various  structure of the customer base should help the company to develop the business in a present difficult financial situation.

It is supposed that  next financial year  revenue growth from a subscription and maintenance will still compensate low receipts in the field of sales of the software. The company  is careful in designation of perspectives, however predicts demand for services in a customer support that in combination with strict cost control should allow the company to stand in a difficult economic situation.