A SOFTWARE firm says European and North American demand is driving its momentum.

Sage Group says revenues have increased as greater numbers of customers subscribe to its products.

According to the business’ results, for the nine months to June 30, group revenues from existing services increased six per cent in the third quarter.

It meant overall growth stood at 6.1 per cent for the nine months.

Earlier this year, Sage, which employs more than 1,000 workers at its Newcastle headquarters, hailed demand for its products.

It said 50 Cloud, which allows people to process data from various locations through mobile devices, was pushing subscriptions higher.

Bosses added the success was being complemented by increased demand for its Sage One marque, which helps smaller businesses look after their accounts and payrolls, and Sage X3, known for supporting larger operations’ affairs.

They also confirmed they are continuing in their quest to make £50m cuts across back office work, revealing the business has served notices on 46 property leases.

Officials previously told The Northern Echo they wanted to remove duplicative systems and software, rather than workers, and a spokesman said bosses are eyeing more jobs.

Referring to its latest results, Steve Hare, chief financial officer, said: “The performance for the year to date demonstrates sustained momentum and we are encouraged by the continued double digit growth in high-quality recurring revenue.

“Our business transformation remains on track and we are focused on its execution while continuing to deliver on our commitments to shareholders, customers and the communities we serve.”

Mr Hare also said Sage remains confident amid Brexit uncertainty.

He said: “Although conscious of the IMF's revised growth forecasts, we don’t expect there to be a material impact on the underlying operating performance of the business.”

Mr Hare added Sage’s net debt at June 30 stood at £442m, compared to £404m on March 31, with the rise predominantly down to exchange rate movements.

Earlier this month, Sage revealed it had strengthened its management team by welcoming Jacqueline de Rojas.

Ms de Rojas will lead the business across Northern Europe and be responsible for luring more customers to Sage’s subscription packages.