ACCOUNTANCY software group Sage received a shares boost yesterday after forecasting half-year profits would be in line with hopes.

The Newcastle company said pre-tax profits in the six months to March 31 were likely to be about £74m, up 14 per cent on a year earlier.

That encouraged the City, as the London market's only remaining blue-chip technology stock gained more than three per cent to 125p.

Sage, which supplies business management software and related products, said revenues in its UK business had grown five per cent thanks to a strong performance from its business serving small and medium-sized enterprises.

Operating margins from the UK were also higher, lifting to 40 per cent from the 36 per cent seen a year earlier.

Across the group, revenues are likely to be about £282m, also in line with market expectations. That represents growth of four per cent.

Sage, which joined the FTSE 100 Index in 1999, employs 4,000 people worldwide, including about 1,400 people in the UK.

It added yesterday that Graham Wylie, one of the company's founders and managing director of its UK operation, planned to retire from his post at the end of next month after 22 years with the company.