By Anthony Clark, Plastics & Rubber Weekly
Birmingham, UK - CADCAM software developer Delcam has reported a strong performed in the face of challenging trading conditions during 2009. Sales at £31.8 million ($58 million) were slightly down year-on year, but still represented the second-best turnover in the company's history and stood 7 percent higher than sales in 2007.
Reflecting Delcam's decision to maintain its high levels of investment in R&D and to continue to employ the largest development team in the CAM industry, the group's profitability declined compared to 2008.
"The reduction was in line with expectations and we anticipate profitability moving higher in the current financial year," said chairman Peter Miles.
The high value that Delcam's customers place in its product development was seen in the growing revenues from maintenance contracts, he added. These contributed £10.7 million to the 2009 total and showed a year-on-year increase of 10 percent.
Looking to the future, Miles added: "Uncertainty over the timing and strength of the recovery in the global economy continues to make it more difficult than usual to forecast accurately. However, the continued growth of recurring revenues, from annual software maintenance and support income, and the increase in new software sales in the later part of 2009 give us cause for confidence."
"Our policy of offering a wider range of products and services across a broader number of industries, together with our strong balance sheet, puts us in a better position than many of our competitors," he continued. "We continue to view prospects for the business over the long term very positively."
PIC: One of Delcam's strengths is software for developing footwear