Numbers are adding up for Sage

ACCOUNTING software group Sage shone a rare light of optimism on the technology sector today for its prospects in the second half. Chief executive Paul Walker said: 'We cannot ignore the overall background of economic uncertainty but we feel we have put everything in place to do well in a challenging market place.'

He said Interact, bought for $300m (£206m) a year ago, was likely to produce a much better performance after cost-cutting and greater focus on customers.

He also dismissed the bears who have been calling for Sage to change its accounting treatment on goodwill paid for acquisitions in line with rivals such as Misys and SAP.

He said: 'We are in line with UK and, more importantly, US accounting practices. That is why we are always looking at impairment value and would write down when and if we felt it necessary'

In the six months to the end of March, sales rose 22% to £280m with pre-tax profits up 10% at £65.1m. Earnings rose 10% to 3.525p a share.