SOFTWARE company Sage has revealed plans to strengthen its presence in the region as it looks to further expand its UK core business.

The Newcastle firm, which yesterday announced a 12 per cent rise in half-year pre-tax profits to £121.8m, said it is eyeing a number of potential acquisitions in the UK, and could yet make more purchases to add to the seven it made last year and two so far this year.

However, Sage said its immediate focus would be on organic growth and consolidation of its acquisitions over the next six months - but would be constantly looking to increase its North-East operations.

The plc employs about 1,400 people in the region, and said it may increase staffing on the back of seven per cent organic growth in its UK operation in the six months to March 31.

Chief executive Paul Walker said: "As a company that has grown successfully from the North-East and where our head office is based, it will play a significant part in our UK plans to expand.

"We have a strong business in the region built around a strong customer base, and we expect the company to continue to experience development.

"In terms of our Newcastle site, that would lead to an expansion in terms of both the business and employment.

"With regard to acquisitions, we do have a number of UK businesses we are looking at, but any potential moves after that to build on what we have already got depend on a number of factors."

Sage, which provides specialist software for small businesses, also reported a 34 per cent growth in sales for the six months to £574.7m, driven by the acquisitions and organic growth.

It said its full-year results to September 30 promised to be in line with analyst predictions of revenues of £1.18bn and pre-tax profits of £254m.