Small businesses spending more, says Sage

Accountancy software firm Sage said a gradual recovery in spending by small businesses had continued in its first quarter.

Sage, which sells software to 6.3 million small and medium-sized businesses, said results for each of its regions were in line with expectations, with a resumption in revenue growth continuing.

The company said last month that organic revenue grew by 3% in the six months to the end of September, the second half of its financial year, marking the first return to growth in software revenue since the second half of 2007.

Chief executive Guy Berruyer said: "Our principal markets continued their gradual recovery in the quarter, and I am pleased that our results were in line with our expectations."

Sage said it cut its debt to £187 million on December 31 from £219.8 million three months earlier.