The CAD/CAM software developer Delcam plc achieved record sales again in 2007, continuing the strong, steady increase in turnover of recent years. Group sales for the year ending December 31 rose by 11% to £29.7 million, from £26.7 million in 2006.
These results were driven by good growth in software license and maintenance sales in the core Power Solution range of software and by additional revenue from the company’s newer software products. These include FeatureCAM, which was acquired in July 2005, PartMaker, acquired in July 2006, and Crispin, acquired in December 2006.
Profitability suffered in 2007 as a result of the weak dollar. With more than half of Delcam’s global sales undertaken in dollars, this weakness affected profit by more than £0.5 million. Profit before tax was £2.15 million in 2007, as against £2.79 million in 2006.
Commenting on the results, Peter Miles, the company’s chairman, said, “I am pleased to report that the business has performed robustly. Our record sales are especially creditable given the background of US dollar weakness, which adversely affected sales and profitability. Our results demonstrate the high quality of our software offering and the diversified spread of our business across the many industries in which we operate.”
The chairman continued: “We have had an encouraging start to the current year, but we will not be immune to any global downturn in economic activity. However, by offering our wide range of products and services across a number of industries, we are in a position to capitalize on the variety of opportunities available to us. We continue to view prospects for the business over the long term very positively.”
Miles additionally highlighted the expected benefits of Delcam’s closer relationship with the metrology supplier Renishaw, following the latter’s £6.1 million investment in the former in April. “Since then, we have been working together on new initiatives,” he reported, “including the development of software to support Renishaw’s new inspection probes and for applications in the medical industries.”
Link to this article:Delcam Sets Annual Sales Record
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