Delcam announces record sales and profits in 2011
Birmingham-based CADCAM developer Delcam has announced that it achieved record sales of £41.9 million and record profits of £3.73 million for 2011. Sales increased by 14% over the previous record set in 2010, with growth seen in most of the company’s international markets.
The latest results continue the growth in sales seen since 2009, with the further recovery in global manufacturing prompting increases in demand for both new software licences and maintenance contracts. Sales for the second half of the year reached a new high, meaning that Delcam has set new sales records in each of the last four half-year periods. The company’s improved performance was evident in its traditional markets, in particular in the automotive and aerospace industries, as well as in its newer healthcare business.
The strongest overall sales continued to come from the USA and Germany, while the fastest increase in sales of new software licences came from Asia, especially India, Indonesia, Korea and our direct sales in China. However, there were many global examples of significant growth, with 28 of Delcam’s resellers achieving increases in their sales of more than 20%.
Delcam Professional Services, which was formed from the combination of our Professional Services Group and our Tooling Services Division at the start of the year, is showing an excellent performance. Demand for its process development and prototype manufacturing services continues to grow and investments are being made to increase capacity in this area.
Continuing its strategy to promote long-term growth, the company invested strongly in product development. Delcam invested £10.7 million over the year, an increase from the £9.6 million invested in 2010. In line with the company’s long-standing policy, at least one new version of all of Delcam’s main software products was released during the year.
Other highlights of the year included the presentation of Delcam’s sixth Queen’s Award for Enterprise in June and the announcement by CIMdata in July that Delcam had retained its position as the world’s leading specialist supplier of CAM software and services.
Peter Miles, Delcam Chairman, commented, "Progress in 2011 was excellent and Delcam’s results are above market expectations. Despite our ongoing concerns over the financial background in Europe and the potential impact on our business of any further loss in confidence, the current indications are that 2012 should see continued investments in capital equipment and associated software in our key automotive and aerospace markets. At this early stage in 2012, we are continuing to see increases in our sales. With this encouraging start to the year, we anticipate that our trading results for the coming year should show further improvement over those for the last twelve months.”
22 March 2012