Sage Ireland, a subsidiary of the British accountancy software company, reported pre-tax profits of €2.8 million yesterday as it published its results for the first time.
The firm, which was set up in Dublin in 1999, said it had increased its pre-tax profits by 11 per cent in the year to September 30th, 2002. Turnover, including acquisitions, increased by more than 30 per cent to €16.7 million during the same 12 months.
Sage Ireland, which develops accountancy software for the mass market, said growth in deferred revenue was up 44 per cent at €4.8 million and, as of September 30th, 2002, the number of registered Sage customers was 46,954.
Sage employs 160 staff and this year opened a business training centre in the year to September 2002 at Citywest business park.
Mr Liam Mullaney, managing director of Sage, said the increase in revenue was partly due to the introduction of the euro and a broadened product portfolio. During the year, Sage added 7,200 new customers, he added.
However, Sage Ireland warned that the current economic situation was causing most businesses to rethink their IT spending plans.
Despite the strong performance of its Irish subsidiary, shares in parent Sage Group - which is listed in London - fell 6 per cent yesterday as investors took profits after a 50 per cent rise in the share price since late September.
Sage saw underlying profits shoot to £139.2 million sterling (€219 million) in the year to September 30th from £121.3 million a year ago on turnover of £551.7 million, up 14 per cent. The group said the figures were in line with expectations, but analysts said they had come in towards the bottom of the range.
"The [post-results analysts'\] meeting was disappointing. Second-half organic growth was 5 per cent, and that's below our expectations, and the focus is still on acquisitions," said one dealer.
Merrill Lynch and BNP Paribas cut their ratings on the stock to "neutral", weighing on the shares.
"The stock has had a strong run ahead of the results and now looks expensive in the short term," said BWD Rensburg fund manager Mr Colin Morton, who oversees funds of around £170 million.
