Recovering export markets boost Delcam sales by 17%
MANUFACTURING and product development software firm Delcam has announced a sales rise of 17% for last year with a buoyant Q4 helping to deliver pre-tax profits in line with upgraded market expectations.
The Birmingham firm, which supplies the aerospace, automotive, footwear, medical and dental, toys and sports equipment sectors, said sales reached £36.6m last year, compared with £31.3m in 2009. Pre-tax profits escalated to £2.26m from £0.59m.
Delcam said the strong performance owed much to recovering export markets in Europe, North America and Asia.
The company also benefited from recurring income from software maintenance and support contracts. This rose to £11.6m from £10.2m in 2009 and now accounts for 32% of total sales.
The company, aware of the markets in which it operates and the need to supply the latest technology, invested £9.4m in R&D, up from £8.9m in 2009.
Basic earnings per share rose to 29.7p, up from 5p in 2009, while unrestricted net cash doubled to £8.8m from £4.4m in the previous year. The final dividend of 4.15p would take the total up to 5.50p, up 5% on 2009.
Delcam said that if its performance during the first two months on 2011 continued then it would be on track to deliver improved results.
Peter Miles, chairman, said: “In January 2011, we announced that we expected Delcam to deliver pre-tax profits above market expectations and I am pleased to report that pre-tax profits are substantially higher than the prior year, at £2.26m against £0.59m.
“This pleasing result was driven by improved sales across all Delcam’s key markets in Europe, North America and Asia, with the group’s newer territories in China and India showing significant growth.
“The current indications are that 2011 will see companies in most of our major territories increase their investments in capital equipment and the associated software and against this backdrop, the business is well-placed to benefit.”
