Sage to update US business

Sage is expected to update investors on the health of its key US market when it reveals its interim results on Wednesday.

Analysts are predicting pre-tax profits of £116.3m, up from £108.7m.

In its October trading statement, the company said it was confident of meeting analysts' expectations of its performance.

Analysts vary in their opinions on whether this is likely.

The group's house broker Deutsche Bank said it does not expect the group's outlook to deviate materially from the consensus.

Fortis regards a cautious 2002 outlook statement as "realistic", while Goldman Sachs foresaw earnings downgrades and suggested investors may want to take profits before the results.

UBS Warburg also worries over apparent spending weakness of end-users.

"The company is unlikely to give positive news on the trading outlook or any reason for analysts to upgrade, so investors should be cautious going into these figures," it advised.

Signs of weakness in Sage's mid-market products have long been incorporated into expectations, while the company's strength in maintenance and support contracts is seen as a shield from market weakness.