Macro 4 Plc, Crawley, Sussex, which these days makes most of its money from software rental, not from sales, is still managing to earn a decent crust from the IBM mainframe system software market, reporting pre-tax profits up 14% at just under UKP4m on revenues up 9% at just under UKP9m. Cash levels are strong too, up by UKP1.8m to UKP11.3m at the period end, and the company expects it to have grown further by year-end at the end of June. Chairman Terry Kelly says that all overseas subsidiaries increased turnover and contribution to profits compared with the same period in 1990. On January 1, the firm paid UKP100,000 cash to take over the customer base and marketing and support of the Macro 4 range of products from its Benelux distributor, which has represented it there for over a decade. A new wholly-owned subsidiary has now been formed with offices in Belgium and the Netherlands to takeover the installed customer base. Macro 4 anticipates steady growth from that market. The contribution level of Macro 4 Inc in the US, the company’s largest subsidiary, improved substantially, which is put down in part to a stabilisation of the sales team. The group’s second largest subsidiary, Macro 4 GmbH in Germany, which serves what Macro 4 feels is its largest European market, produced steady progress. The UK, however, continued to be a cautious and nervous marketplace, manifesting itself in lengthened purchase decision cycles – but still growth was achieved. All except one of Macro 4’s overseas distribution outlets reported increased royalties; one, however, is now under close scrutiny for continued poor payment despite a reasonable and increasing level of business generated. Macro 4 develops system software for IBM’s MVS, VSE and VM mainframe environments, for automation, console management, print management, and session management across networks. Its customers range right across the board. Offering its products on a rental basis, says Macro 4’s Marie Patterson, is popular with customers and has been an important factor in protecting the company’s profit margins.
