ECS, the computer leasing subsidiary of the French banking group Societe Generale SA, is one leasing company that is doing well. It has reported net profit for 1989 equivalent to $9.1m, up 13%, on turnover up 35% to $1,333m. ECS says it is particularly pleased with the sales of personal computers in the French domestic market, up by 80%, and the performances of overseas subsidiaries. ECS Germany turned over $66.7m and the UK operation saw turnover increase by 34% to UKP126m. UK profit still has to be confirmed, but the company says that it should be around the UKP1.4m mark. ECS also highlights its service activities, and says that maintenance, application development, and systems integration have grown by 30%, and contributed $40m. The company believes that performance in the UK is particularly impressive given the turbulent state of the leasing market. It believes that it has taken a significant market share from its main competitors, and names Atlantic Computers, in administration, and Meridian as two victims. Antoine Colboc, managing director of ECS UK Ltd, says that the company’s success is partly due to the its IBM specialisation. Colboc claims that operating leases work only when used equipment has a significant remarketable value, and IBM is the sole manufacturer to have that. Which explains why the plug-compatible manufacturers receive short shrift from ECS, even if there are many Amdahl and Hitachi Data Systems users that would disagree very strongly with Colboc’s rather sweeping statements. Colboc, along with every other lessor, claims that IBM Financial Services Ltd has contributed to the demise of many leasing companies by its aggressive marketing stra-tegy. He believes that there is a need for strong third party lessors since users should not have to rely on total IBM control.
