Sage calms FTSE nerves

Shares in software group Sage sparkled today after a reassuring update soothed jittery investors.

Sage, the only tech firm left in the FTSE 100 Index, said it was on course to report full-year pre-tax profits in line with market expectations.

In a brief statement it added: “This performance, in challenging market conditions, was encouraging, notably the progress made by Interact.”

Sage bought Interact, an US customer relationship management business, in May 2001.

Investors appeared to agree and shares in the group jumped 3.75p to 141p, a 3% rise during an otherwise subdued session.

Analysts are expecting pre-tax profits to come in around £134m for the recent financial year to September 30.

Last year Sage posted pre-tax profits of £121.3m on turnover of £484.1m.

Sage, based in Newcastle upon Tyne, sells accountancy software to small and medium sized enterprises (SMEs).

It became the sole blue-chip tech stock in June after computer services firm Logica and chip designer ARM were booted out in a quarterly reshuffle.

Investors fell out of love with hi-tech stocks after market values dropped and the tech and telecom downturn dented sales and profits across the sector.

Like most of its counterparts, Sage’s value soared in the tech boom but has been in decline since the bubble burst – in 2000, shares were worth more than 900p.

Sage is scheduled to post full-year figures on December 3.