Upgrades underpin Sage growth

SAGE Group, the last surviving technology group in the FTSE 100, is looking to upgrades and support services to drive growth as customers keep a tight rein on their IT spending.

Pre-tax profits rose 12% to £151m in the year to September, in line with forecasts, with the full-year dividend lifted 10% to 1.65p. Sales climbed 4% to £560.3m.

Around 373,000 businesses enhanced their Sage software over the year, lifting revenues from upgrades by 10%. This now represents 37% of overall software income. Support services grew by 8% as 250,000 customers paid for post-sales service.

'The group is therefore positioned to deliver growth in unchanged circumstances,' said chairman Michael Jackson.

Newcastle-based Sage is seeking more international acquisitions after spending £177.4m on buys. Those deals lifted its number of customers to 3.6m.