Rolfe & Nolan Plc, futures and options computer bureau and software specialist, has announced record pre-tax profits of #1.573m, up 29.4% on last year’s figure of #1.709m, in its premliminary results for the year to February 28. Profits look healthy but they disguise the fact that the US division, Rolfe & Nolan Brokerage Systems Inc, again made a loss, of #1.088m. Rolfe & Nolan is keen to point out that the North American operation is getting better, losing #485,000 in the second half, a 19% improvement on the first half. Half the loss was down to costs involved in re-progamming the software used by a dozen or so customers that transfered over from Brokerage Systems Inc. Mike Warburg, chief executive of Rolfe & Nolan, emphasised that the company had taken a tough line in customer re-programming and would phase it out in one go. In fact, he is confident that it will be gone within the next two releases. Recurring revenue is also begining to show signs of recovery, during the period March to May it is estimated at roughly 63% of costs, a 34% increase over the equivalent period last year. This increase reflects the steady income flow generated by rented software. Rolfe & Nolan is doing well in Europe where pre-tax profits about doubled to #2.7m. The strong European position results from good bureau trading volumes in the first quarter of 1994-95. The European division has been particularly active in the derivatives market where it made a further three licence sales in the second half, making a total of seven for the year. One of the new licence sales in the second half involved the replacement of a competing system for the Bank Gesellschaft and another was a conversion from bureau by Spanish bank Banco Santander. In Europe, bureau and facilities management revenue was up 14.5% to #5.1m, as was software support revenue, which rose 22% to #1.7m. Recurring revenue from bureau and facilities management processing rose 17% to #6.9m, accounting for 71% of the group total. The company sees expansion into the third time zone as Mike Warburg put it as a definite possibility.
