CAD/CAM software provider Delcam issued an impressive set of results for the year to 31 December following a good first half (see Delcam manufactures a strong half). Full year revenue was up 17% to a record £36.6m, and pre-tax profits were £2.26m vs. just £590k in FY09 (6% margin vs. 2% the prior year) – meeting its upgraded expectations announced in January, following a “buoyant” performance in its busiest Q4 period. Growth was achieved in its key markets in Europe, North America and Asia, with the group's newer territories in China and India also showing “significant growth”.
Chairman Peter Miles, however, sounded a note of caution for 2011, due to the recent events in Japan and the Middle East. Nonetheless, he points out that sales growth is continuing and is therefore optimistic that 2011 will show further improvements over 2010.
Delcam is currently benefitting from increased recurring revenue from maintenance and support, which now stands at £11.6m (vs. £10.2m). The company is also investing more in research and development (R&D), at £9.4m vs. £8.9m the prior year - or 26% of sales. This is a high percentage for a mature software provider, and far higher than larger rival AVEVA, which invested 14% of its FY10 revenue on R&D. This should put Delcam in a good position to benefit from new opportunities as the market expands.