SOFTWARE firm Sage said it was recruiting another 100 employees at its North-East base after revealing its new financial year had started well.

The company also reported a 13 per cent rise in annual pre-tax profit to £205.4m over the past year.

The Newcastle-based firm, which is the largest surviving technology stock on the Footsie, said its customer base had expanded to 4.7 million, while turnover had increased by 14 per cent to £776.6m in the year to September 30.

Revenue climbed 14 per cent to £776.6m, helped by acquisitions. On an organic basis, revenues rose six per cent.

Finance director Paul Harrison said Sage had weathered the storm of the economic downturn by concentrating on keeping existing customers.

And he said the group would be recruiting an extra 100 staff in Newcastle to help it continue offering good customer service.

Chief executive Paul Walker said: "The start of 2006 has been encouraging and we therefore view 2006 with confidence."

Vinay Bedi, director and fund manager of Wise Speke in Newcastle, said: "The underlying strength of this business continues to rest on its traditional, proven and highly successful recurring revenue streams.

"These are enhanced by a customer base, which not only shows consistent growth but remains the envy of many, indeed some larger, operators in the sector."

Sage spent £101m on acquisitions in 2004-5 in new and existing territories, which included Simultan, in Switzerland, Logic Control, in Spain and Symfonia, in Poland.

The firm also bought two French companies, C2G Informatique and Cogestib, and earlier this month announced it had further strengthened its presence in the country with the acquisition of Adonix, for £78.4m.

Sage is the leading supplier of accounting and business management software solutions and related services for small to medium-sized enterprises. It has also established a global arm to deal with customer relationship management software - its fastest growing category of products in the past financial year.