Accounting software maker Sage Group said today it remains on target to hit market expectations, but admitted that organic growth looks set to slow for the year ahead.

The Newcastle-based firm, which punts much of its financial software at the small and medium-sized (SME) market where Microsoft has recently started flexing its muscles, said in an interim management statement that trading for the three months ended 31 December 2007 was in line with expectations.

The FTSE 100-listed company added that it's still looking for a new North American CEO.

On the economy at large, it struck a similar note to its statement back in November last year. "Whilst we recognise the current uncertainties in the macro-economic situation," said CEO Paul Walker, "the defensive characteristics of our business model, including strong cash flows and a high level of recurring revenues through our support contracts, mean that we are well placed to meet these challenges."

Sage said that its UK and mainland Europe business had performed well, though added that organic growth had "moderated somewhat" compared to its 2006/2007 fiscal year.

Following the statement, shares in Sage rose nearly two per cent at 227 pence on the London Stock Exchange. ®

Related stories

• Sage waves voluntary redundo plan at staff (15 April 2009)
• Sage sees flat US market (8 May 2008)
• Sage update fails to convince the markets (14 April 2008)
• Sage annexes construction software firm (31 March 2008)
• Sage settles on US head (18 March 2008)
• Sage clocks £1.16bn revenues (28 November 2007)
• Microsoft stuffs Sage with free accounts software (15 November 2007)
• Sage gets upclose to personnel with KCS buy (29 October 2007)
• Sage rips hole in US management team (11 October 2007)
• Sage partners worry about falling into Line (4 October 2007)
• Sage takes lion's share of XRT (12 September 2007)
• Sage goes after the little people (4 September 2007)
• Sage gets mergers and acqusitions director (25 July 2007)