It’s not too often that you hear the word ‘excellent’ in connection with year end results but that was the verdict from CAM software provider Delcam chairman Peter Miles on company progress during 2011. Despite ongoing Eurozone concerns, performance has been consistently strong throughout the year (see here), so the year end results were not a surprise.
Investment in capital equipment and associated software in the automotive and aerospace markets were markers for the year, driving revenue up 14% to £41.9m and delivering net profit that jumped c29% to £3.1m. More of the same is expected during 2012 - three months into the new fiscal year and the company says it expects 2012 results to be even better than its record breaking 2011. There was also growth in the newer healthcare business, but no detail on the numbers.
Sales were strongest in the USA and Germany. Not surprisingly Asia grew fastest, especially India, Indonesia, Korea and direct sales in China, which bodes well for Delcam’s future performance. European revenue rose by 13% (vs 16% for the Americas and 14% for Asia), so the region is keeping in touch with the growth rates for the rest of the business. Looking for areas of improvement, the company could make more of its recurring revenue (maintenance and support contracts) as this is only 31% of total revenue, and it would be good to hear what its cloud plans are.