Sage, the only technology firm left on the London FTSE 100 Index, reckons that it’s on course to report a full year pre-tax profit in December as it prepares to launch formally into the CRM space.
Analysts are expecting pre-tax profits to come in around £134m for the financial year to 30 September. Last year, Sage posted pre-tax profits of £121.3m on turnover of £484.1m.
The company is making its CRM push on the back of its acquisition of US firm Interact in May 2001. In July, Sage folded Interact into Best Software, another acquired company to form Best Software's CRM division. In a statement, it added: "This performance, in challenging market conditions, was encouraging, notably the progress made by Interact."
The announcement calmed investors who have seen Sage’s value tumble from a 2000 high when shares where worth more than 900 pence. Its share price has halved among increasing concerns about the competitive landscape in which it operates.
Concern has been growing about the company’s long term prospects since Microsoft – cited as a close ally of Sage – made its acquisition of Great Plains in December 2000. When Microsoft followed that up with the acquisiton of Navision and made clear its intentions to compete in the traditional Sage SME space, Sage unsuccessfully attempted to block the Navision takeover.