Mainframe and mid-range systems software developer Macro 4 Plc has posted favourable results for the year ending June 30. Net profit rose 60% to UKP3.1m on turnover up 22.3% at UKP23.3m. The good news was not apparent in the year-end dividend, which stayed static at 17.75p, although earnings per share rose 18.9% to 31.5p. According to chairman Terry Kelly, trading has been difficult in all areas, and cancellations from the company’s customers, (who rent rather than buy the software), have increased as a result of customer downsizing. Like many companies, though, Macro 4 has benefitted from the devaluation of sterling. The company’s agents, which sell its products abroad, have mostly turned in poor sales due to bad economic conditions, although the South East Asian agent did well. Sales and marketing director Alex Pincus pointed out that the agents only contribute 6% of Macro 4’s turnover. All of Macro 4’s subsidiary companies did better, improving turnover and profit. Profits at the US subsidiary Macro 4 Inc grew the most, with the Italian, French, Benelux, Swiss and German subsidiaries also growing. The Spanish subsidiary, which replaced the former Spanish agent last October, has made a small profit. While noting the trend towards downsizing, Macro 4’s managing director Tony Staples stated his faith in the mainframe sector, from which the company makes most of its profit. I believe that many businesses are depending on mainframes for applications, he said, adding that Macro 4’s penetration of the market still stands at under 5%. Even so, Macro 4’s AS/400 business, while just breaking even, is gaining momentum.
