Macro 4 has produced another year of solid profitability. While the Group’s results have been impacted by the weakness of the US dollar, in which 32% (2006 30%) of revenue is denominated, the Group has again delivered year-on-year growth in profit before taxation, amortisation and material one-off items at constant exchange rates.

The SMS business has gone from strength to strength.  It has continued the momentum established at the half year and is delivering impressive new business growth through winning a number of significant new customers. We have also continued to expand our product set through acquisition and internal development.

The DMS business has had a tough year.  This was compounded by slippages of a number of large deals, elongated sales cycles, and the time needed to develop third party channels. However, excellent new business wins with partners Dell and Computacenter towards the end of the financial year give us encouragement for the future.

During the year, we welcomed Laurent Berns to the Board. A highly experienced individual who will add depth and expertise in his field to the management team.

The Board is recommending a final dividend of 5.25 pence per share (2006 5.0 pence per share), giving an overall dividend for the year of 7.75 pence per share (2006 7.25 pence per share).

Having served as Chairman for seven years, I have decided to retire.  During my time at Macro 4, the Company has undergone significant changes in its strategy and product offerings and I have overseen consistent underlying profit growth for the last five years. I am pleased with the progress made since I joined the Company in January 2000 and feel privileged to have played a part in the Group’s overall development.  I would like to thank the rest of the Board, the management and all the staff for their support during my time in the Chair.  An exercise is underway to identify my successor as Chairman and I will formerly retire from the Board upon that appointment which I anticipate to be towards the end of the calendar year.

I continue to think that both the SMS and DMS businesses have good potential. Whilst deal slippages in the DMS division have been disappointing, we now have a firm base established for our partner offerings. The SMS division’s impressive performance combined with the investments we have made in exciting new products, provide an excellent foundation for this part of the business going forward.

2006/2007 Results - Further Details