SOFTWARE supplier Sage, a marker for small business sentiment, issued an upbeat interim management statement yesterday stating that it had continued to pay down debt at a rapid rate.
It led to speculation among analysts that the Newcastle-based company, which supplies more than six million small and medium sized companies with accountancy software, could be about to start making acquisitions again.
The group said net debt had fallen from £439m to £392m in the three months to December 31.
Sage went deep into debt in 2006 when it spent £617.5m on a series of acquisitions including Verus, the merchant services business, and Emdeon, the healthcare business.
It remains well within its banking convenants, with facilities of £815m, but the rapid debt repayment suggests it may start on the acquisition trail again.
After making eight acquisitions in 2006, five in 2007 and three in 2008, Sage did not complete any last year as the downturn hit small businesses across the world.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here