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Macro4 - Momentum in Columbus contracts

March 2005

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • MAO
  • Price:
  • 277.5p
The shares went to a 52-week high shortly following the release of  results for the six months to 31 December. Turnover was £16.6m, up from £15.1m the year before, with pretax profit doubled at £2.4m. Similarly eps went from 3.9p to 7.7p.As expected, sales in the legacy systems management products (SMP) business continued to decline reflecting further reductions in rental income from old out-of-date products mostly based on IBM’s VM/VSE mainframe technology and slightly lower US revenues. Recurring revenues therefore went down to £5.4m but assisted by the IBM OEM agreement, new licences were up 16% to £2.8m.The swing factor has always been Macro4’s other division, Business Info ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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